Forecast Based planning (Moving average model)
Hello all,
We are implementing the forecast based planning for the consumable materials. Also we have decided the forecast model as (G) Moving average. Can any one explain how the forecast values triggered? I am sure that there should be some formulas. Also I got the formula for the moving average from help as below.
Moving average formula
M(t) =V(t)V(t-1).......V(t-n1)
-
n
I gave the master data information as below.
Historical. Periods 6
Forecast periods 3
Periods per season 12
My control data information
Initialization x Tracking limit 4.000
Selection procedure 1
Optimization level F
Ticked Reset Automatically
Ticked Param. Optimization
Consumption value for the 6 historical periods as below
09.2008 0 500
08.2008 0 2,500
07.2008 0 6,500
06.2008 0 3,500
05.2008 0 2,500
04.2008 0 1,000
Forecast Values for 3 periods
M 10.2008 2750
M 11.2008 2750
M 12.2008 2750
Can any one explain how this values derived with the help of the formula in detail please?
Regards,
Ganesh