How many years of historical data does the unconstrained transient demand forecast consider?

The unconstrained transient demand forecast takes into account 3 years of historical data to ensure a robust and reliable prediction of future demand patterns. By analyzing this timeframe, the forecast can identify trends and seasonal variations that may affect demand. This adequately balances the need for sufficient data to capture fluctuations while not being so lengthy as to incorporate outdated trends. The use of 3 years strikes a practical compromise, allowing for the inclusion of relevant past data without losing sight of recent changes in demand behavior.

In contrast, shorter periods such as 1 or 2 years may not capture long-term trends adequately, while extending the timeframe to 5 years could introduce irrelevance due to shifts in market dynamics, consumer preferences, or external factors that have emerged in more recent years. Thus, utilizing 3 years of historical data provides a comprehensive view that is aligned with best practices in demand forecasting.