Hello Community,
I need help to understand the default setup for Moving average period set-up in Demand Plan server. I have default set to 6 periods, but in demand plan client if I check under each parts Moving average period is 1 and due to that system forecast shows 0 all over the board.
Can someone put some light on this if I am missing anything during server set-up?
Best answer by Deshani Gunasinghe
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+8
Hi
The moving average model gives a flat line forecast always (unless you add a seasonal profile to it)
As an example if you have the following history 10 15 20 25 and are running a moving average model over 3 periods the forecast is
(25+20+15)/3=20
so the forecast will be 20,20,20,20,20,20 for as many period as you forecast into the future
It’s Just a straight average line.
IFS help describes –
Sets all the periods of the forecast equal to the average of historical demand. The average is based on the number of most recent periods entered in the Moving Average Periods.
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