Simple Moving Average Operations Management Assignment Help

Simple Moving Average

any seasonal characteristics, a simple moving average can be very useful in identifying a trend within the data fluctuation. For example, if we want to forecast sales in June with a five-month moving average, we can take the average of the sales in January, February, March. April, and May. When June passe. the forecast for July would be the average of February, March, April, May, and June. The formula for a simple moving average forecast is

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Suppose we want to forecast weekly demand for a product using both a three-week and a nine-week moving average. as shown in Exhibits 9.6 and 9.7. These forecasts are computed as follows:

Solution

To illustrate, the three-week forecast for week is:

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Posted by: anderson

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Forecasting

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