Supply chain glossary

Demand forecasting

Moving Average Forecast

By the Supply Chain Manager team · Updated October 16, 2026

A moving average forecast predicts next period's demand as the average of the most recent periods, such as the last 7 or 14 days.

It is the simplest smoothing method. A longer window is steadier but slower to react; a shorter window reacts faster but follows noise. Every period in the window counts equally, which is the main difference from exponential smoothing.

How to calculate moving average

Forecast (next period) = (Demand₁ + Demand₂ + … + Demandₙ) ÷ n, using the last n periods

Moving average example

Illustrative numbers: daily sales of 12, 15, 9, 14, 10, 13 and 11 over the last week give a 7-day moving average of 12 units a day. A one-off 60-unit day would lift the next week's forecast by about 7 units a day until it drops out of the window.

Why moving average matters for distributors

For steady SKUs a moving average is often hard to beat, and it is easy to explain. It also makes a sensible benchmark for more complex models.

Common moving average mistakes

  • Using it on trending or seasonal SKUs, where it always lags behind.
  • Letting one-off bulk orders sit inside the window and inflate the forecast.

Moving average in Supply Chain Manager

Supply Chain Manager includes 7- and 14-day moving averages among the methods it backtests for each SKU.

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Examples on this page use made-up round numbers to show the calculation. They are not benchmarks or results from real businesses.