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Actual Error Error Forecast=C Error

Period Value Single MA Difference Double MA Difference +F+Trend Difference


1 4
2 8
3 12 8 4
4 16 12 4
5 20 16 4 12 4
6 24 20 4 16 4 24 0
24

Ft =Forecast for m periods ahead of t = at + bt X m

Where,
at=2S't -S"t

b = 2(S't -S"t) /(N-1)

N is the period of MA

Inventory 4 month 4 month Value of


Periods Balance MA(1) MA(2) Value of a Value of b a+bXm
1 142
2 157
3 138
4 159 149
5 169 155.75
6 136 150.5
7 179 160.75 154 167.5 4.5
8 184 167 158.5 175.5 5.66666667 172 12 168.5714
9 150 162.25 160.125 164.375 1.41666667 181.166667 -31.1666667 179.8571
165.791667
0.6452337
15.42857
-29.85714

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