This is a general question about modeling the seasons using sine and cosine functions; I am trying to use sine and cosine to model cyclic behavior in sales due to the seasons (spring, summer, fall and winter);
Eliza Gregory
Answered question
2022-10-25
Sine and Cosine Models This is a general question about modeling the seasons using sine and cosine functions; I am trying to use sine and cosine to model cyclic behavior in sales due to the seasons (spring, summer, fall and winter); I have the following seasonal factors so to speak:- Start of year Spring - Summer - Fall - Winter - I want to get sales to be max in each period for a given product. For example I want sales for sandals to max in the spring and sales for cardigans to max in the fall. I Would appreciate advice and guidance as am not sure if these are correct. But looking at the graphs, they seem reasonable.
Answer & Explanation
zupa1z
Beginner2022-10-26Added 20 answers
Step 1 Consider an arbitrary sinusoid:
Where A is the amplitude (the peak price), T is the period (the amount of time it takes for the function to repeat itself), and is the phase shift (the "starting point" of the cycle). You want your period to be 12 months, so the function will be
Keep in mind though that this function will drop below zero (and I'm sure you don't want to pay your customers to take the merchandise off your hands on off seasons!), so in order for it to vary from A to 0 instead, cut the amplitude in half and add half the amplitude to the function:
Step 2 The phase shift can be calculated by multiplying the time where the peak should occur by the angular frequency (the coefficient of t). So for example, if you wanted the price to peak every spring, .
Tara Mayer
Beginner2022-10-27Added 4 answers
Step 1 Let's measure time t in days, corresponding to 12 a.m. January , and each month has 30 days. So the relevant period is , corresponding to in angular measure. The "simplest" periodic function of period T having its peak at is given by
This "Ansatz" is so simple that f will automatically have its minimum at , which is maybe not what you want. Putting this point aside we now have to adjust the parameters m and a appearing in (1) to actual sales data. Step 2 We want f(t) to represent the expected sales on day t. Since the mean value of cos over a full period is 0 it follows that
where Y denotes the total sales over a year. Denote by and the maximal and minimal observed daily sales. Then our "Ansatz" enforces
which will most probably not be fulfilled in practice, and secondly one has
Plugging (2) and (3) into (1) we obtain
In this way we shall order the right number of shoes, but whether we shall properly accommodate the sales peaks and lows is not so sure.