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TERM
Seasonality
Regular patterns in demand across the year.
Definition
Seasonality captures recurring peaks and dips like holidays or weather.
How to Calculate
Index sales by week versus the annual average.
Why it Matters
Guides timing for support and inventory.
Key Advantages
Improves forecasts and plan accuracy.
Example
Ice cream peaks in summer weeks.
Use it to
Identify recurring intra-year patterns to separate true trend from seasonal variation. Use seasonality adjustments to compare performance across periods consistently.
