Hyndman & Koehler Method

The Hyndman & Koehler Method, also known as the "Optimal Smoothing" approach, is a statistical technique used for forecasting time series data. It selects the best forecasting model by automatically evaluating multiple methods, such as moving averages or exponential smoothing, and choosing the one that minimizes forecast errors. This approach adapts to patterns in the data, like trends or seasonal fluctuations, to provide more accurate predictions. Essentially, it combines different techniques intelligently to generate reliable short-term forecasts, making it useful in areas like sales planning, inventory management, and financial analysis.