The document describes how to use the moving average analysis tool in Excel to forecast inventory levels. It provides step-by-step instructions on how to (1) select the data range and interval for the moving average, (2) specify the output range for the results, and (3) generate a chart comparing actual and forecasted inventory levels. Additional steps are included to add data labels to the forecast data series on the chart to clearly display the optimal monthly ending inventory quantities.
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The document describes how to use the moving average analysis tool in Excel to forecast inventory levels. It provides step-by-step instructions on how to (1) select the data range and interval for the moving average, (2) specify the output range for the results, and (3) generate a chart comparing actual and forecasted inventory levels. Additional steps are included to add data labels to the forecast data series on the chart to clearly display the optimal monthly ending inventory quantities.
The document describes how to use the moving average analysis tool in Excel to forecast inventory levels. It provides step-by-step instructions on how to (1) select the data range and interval for the moving average, (2) specify the output range for the results, and (3) generate a chart comparing actual and forecasted inventory levels. Additional steps are included to add data labels to the forecast data series on the chart to clearly display the optimal monthly ending inventory quantities.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
The document describes how to use the moving average analysis tool in Excel to forecast inventory levels. It provides step-by-step instructions on how to (1) select the data range and interval for the moving average, (2) specify the output range for the results, and (3) generate a chart comparing actual and forecasted inventory levels. Additional steps are included to add data labels to the forecast data series on the chart to clearly display the optimal monthly ending inventory quantities.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as DOC, PDF, TXT or read online from Scribd
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1.
The Moving Average analysis tool
The Moving Average analysis tool projects values in the forecast period, based on the average value of the variable over a specific number of preceding periods. A moving average provides trend information that a simple average of all historical data would mask. This example uses the data for Contoso product !" to predict a target inventory level for the new fiscal year.
Chart a target inventory level
#. $n the Tools menu, click %ata Analysis. &. 'n the %ata Analysis dialog box, click Moving Average, and then click $(. ). The Moving Average dialog box opens.
). 'n the 'nput *ange box, enter a single row or column of data. This example uses the row of data from product !" on the Contoso top+ , products report. -. 'n the 'nterval box, enter the number of values that you want to include in the moving average. 'n this example, enter &, the default interval. .ote The interval is the number of data points used to calculate the moving average. The larger the interval, the smoother the moving average line/ the smaller the interval, the more the moving average is affected by individual data point fluctuations. ". 'n the $utput *ange box, enter the cell address where you want the results to start. !. 0elect the Chart $utput check box to see a graph comparing the actual and forecasted inventory levels. 1. Click $(.
The resulting chart gives a better picture of ideal inventory levels, and with a little fine+tuning, can show exactly what the optimal monthly ending inventory should be.
Add data labels to a chart
. %ouble+click the first data point in the 2orecast series to open the 2ormat %ata 0eries dialog box. #. $n the %ata 3abels tab, select the 4alue check box, and then click $(.
&. %ouble+click the first data label to open the 2ormat %ata 3abel dialog box. ). $n the 2ont tab, set the font si5e to 1. -. $n the .umber tab, select number from the list on the left. ". 0et the decimal places to ,. !. Click $(. 6our chart now clearly shows your forecasted inventory levels and identifies each month7s optimal ending 8uantity.
