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This video in our series on forecasting methods looks at the basics of moving averages. When you create a forecast using this moving average method, you predetermine the number of periods to average to get a forecast for the next period.

Savvy demand planners that use moving averages for supply and operations planning will often use a weighted average for specific periods. While moving averages can be an effective method of forecasting in some instances, you can get better accuracy by combining forecasting methods.

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