Trend Component exhibits long range movement in sales over an extended period of time.
(a) Trend may change number of times over the entire product life cycle.
(b) For instance, a reduction in birth rate implies reduction in demand of disposal diapers.
(c) Trend component influences base demand as Bt+1 = Bt x T, where
-Bt+1 = base demand in period t+1
-Bt = base demand in period t, and
-T= periodic trend index.
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