1. ASR adjusts for lost sales and promotional sales before posting demand history.

Scenario: During period 3 your company ran a promotion. The promotion was not originally planned, nor historical. The demand forecast for period 3 was 35 units. Due to the promotion, we sold 60 units. We do not expect to anniversary this promotion next year.

If you worked for a company that did not apply the demand history formula and there were no adjustments for promotional sales, what impact would this have on your demand forecast for the same period next year? What would be the fiscal implication during that period next year? Be specific and incorporate the specific results (numbers) provided above.