1. Working with Planning
  2. Predictive Planning Forecasting and Statistical Descriptions
  3. Classic Time-series Forecasting
  4. Classic Nonseasonal Forecasting Methods
  5. Single Moving Average (SMA)

Single Moving Average (SMA)

Smooths historical data by averaging the last several periods and projecting the last average value forward.

This method is best for volatile data with no trend or seasonality. It results in a straight, flat-line forecast.

Figure A-1 Typical Single Moving Average Data, Fit, and Forecast Line


Graph of single moving average historical and forecasted data