Question

Demand Planner Moving Average - system forecast calculation

  • 11 December 2023
  • 2 replies
  • 60 views
R
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Hi,

I would like to ask an explanation how is system forecast calculated if Moving Average forecast model is used. According to documentation I understand that it is calculated as average of adjusted demand for selected period. It works fine if adjusted demand is not outside standard deviation (red or yellow background). But when it is, I really don´t know how it is calculated and what is included in calculation.

For example - Moving Average for 3 period.

Adjusted Demand Average is 3968,12

System forecast is 1672,33.

 

Could somebody explain?

Thanks

Romana

2 replies

anbouk
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Userlevel 6
Badge +16

Romana,

Attached is a document that explains how each of the models work which should help….

 

Regards,

Antony

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R
Rank
Badge +6

Hello @anbouk 

 

thank you. I have this documentation, but there is no answer on my question. According to documentation, moving average should only summarize the demand/adjusted demand for selected periods and divide it by the number of these periods, but it is not like that in my example. So I assume the calculation works different in some scenarios, there is maybe some cleansing when demand is outside standard deviation and I would like to know how it is calculated. I hope I can figure it out :)

 

Romana

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