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19 - Demand Forecasting Using Simple Moving Averages

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SIMPLE MOVING AVERAGES: EXERCISE 1 DATA SET

DAY # DEMAND
42 32 45 5 44 50 (Oldest) 6
32 3 4 21 25 49 18
9 37 8 36 22 48 45
14 6 14 20 21 47 3
38 40 14 26 4 46 20
1 6 29 44 30 45 5
30 26 2 6 38 44 18
17 35 22 36 1 43 29
36 23 29 18 5 42 23
20 3 45 18 6 41 36
40 1
39 36
38 22
37 35
36 17
35 38
34 6
33 2
32 26
31 30
30 30
29 44
28 29
27 6
26 1
25 4
24 26
23 14
22 40
21 38
20 21
19 20
18 14
17 6
16 14
15 22
14 36
13 8
12 37
11 9
10 25
9 21
8 4
7 3
6 32
5 44
4 5
3 45
2 32
1 (Latest) 42
2DMA 3DMA 5DMA 20DMA
Chart Title
31.5 50
45
24 22.66667 40
11.5 9.333333 35
12.5 14.33333 19 30
25
11.5 17.33333 22.2 20
23.5 23.33333 21.4 15
10
26 29.33333 25
5
29.5 20 23.6 0
t) 47 44 41 38 35 32 29 26 23 20 17 14 11 8 5
18.5 24.33333 26 es
ld
18.5 19.66667 22.2 (O
50
29 31 29.6
28.5 24.66667 23.6 DEMAND 2DMA 3DMA 5DMA 20DMA

26 30 19.6
27.5 20.33333 17.8 1. First we will find 2DMA, 3DMA, 5DMA & 20DMA of the demand.
22 15.33333 20.4 2. Then we need to arrange the data from oldest to latest as we plot th
oldest to latest. For this> Copy the whole table>Paste the values only (
4 11.33333 18.8 column will hamper the formula)> Sort the data oldest to latest.
14 19.33333 26.4 3. Eyeball which DMA correlate higher with the actual demand from th
28 28.66667 31.8 case it is 2DMA).
4. Now our forecasted demand will be latest average from 2DMA colum
30 34.66667 27.8 22 to the "Day Moving Average Forecasting" model.
37 34.33333 22 20.95
36.5 26.33333 16.8 20.7
17.5 12 13.2 19.55
3.5 3.666667 10.2 18.3
2.5 10.33333 17 18.15
15 14.66667 24.4 19.7
20 26.66667 27.8 21.7
27 30.66667 26.6 20.65
39 33 26.6 22.2
29.5 26.33333 19.8 21.8
20.5 18.33333 15 22
17 13.33333 15.2 22.05263
10 11.33333 18.4 22.16667
10 14 17.2 22.64706
18 24 23.4 23.6875
29 22 22.4 24.33333
22 27 23 24.5
22.5 18 20 23.61538
23 23.66667 19.2 24.91667
17 18.33333 12.4 23.81818
23 16.66667 17 25.3
12.5 9.333333 20.8 25.33333
3.5 13 17.6 25.875
17.5 26.33333 25.8 29
38 27 31.6 33.33333
24.5 31.33333 33.6 33.6
25 27.33333 31 31
38.5 39.66667 39.66667 39.66667
37 37 37 37
42 42 42 42
DAY # DEMAND 2DMA 3DMA 5DMA 20DMA
1 [Latest] 42 37 39.66667 33.6 22
2 32 37 39.66667 33.6 22
3 45 37 39.66667 33.6 22
4 5 37 39.66667 33.6 22
5 44 37 39.66667 33.6 22
6 32 37 39.66667 33.6 22
7 3 37 39.66667 33.6 22
8 4 37 39.66667 33.6 22
9 21 37 39.66667 33.6 22
20 17 14 11 8 5 2
10 25 37 39.66667 33.6 22
11 9 37 39.66667 33.6 22
12 37 37 39.66667 33.6 22
5DMA 20DMA 13 8 37 39.66667 33.6 22
14 36 37 39.66667 33.6 22
20DMA of the demand. 15 22 37 39.66667 33.6 22
ldest to latest as we plot the data in graph in 16 14 37 39.66667 33.6 22
ble>Paste the values only (as direct sorting the
data oldest to latest. 17 6 37 39.66667 33.6 22
the actual demand from the graph. (In this 18 14 37 39.66667 33.6 22
19 20 37 39.66667 33.6 22
t average from 2DMA column i.e. 37 according
odel. 20 21 37 39.66667 33.6 22
21 38 37 39.66667 33.6 22
22 40 37 39.66667 33.6 22
23 14 37 39.66667 33.6 22
24 26 37 39.66667 33.6 22
25 4 37 39.66667 33.6 22
26 1 37 39.66667 33.6 22
27 6 37 39.66667 33.6 22
28 29 37 39.66667 33.6 22
29 44 37 39.66667 33.6 22
30 30 37 39.66667 33.6 22
31 30 37 39.66667 33.6 22
32 26 37 39.66667 33.6
33 2 37 39.66667 33.6
34 6 37 39.66667 33.6
35 38 37 39.66667 33.6
36 17 37 39.66667 33.6
37 35 37 39.66667 33.6
38 22 37 39.66667 33.6
39 36 37 39.66667 33.6
40 1 37 39.66667 33.6
41 36 37 39.66667 33.6
42 23 37 39.66667 33.6
43 29 37 39.66667 33.6
44 18 37 39.66667 33.6
45 5 37 39.66667 33.6
46 20 37 39.66667 33.6
47 3 37 39.66667
48 45 37 39.66667
49 18 37
50 [Oldest] 6
Chart Title
50
45
40
35
30
25
20
15
10
5
0
t] 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
es
at
[L
1

DEMAND 2DMA

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