ABC FLORAL SHOP

ABC Floral Shop

ABC Floral Shop

Introduction

The study is related to the ABC Floral Shop, the demand from customers for geraniums during the last two weeks made the shop focus on the demand of the 3 rd and 5 th period on the basis of moving average.

Discussion

The forecasting of the demand of geraniums for the ABC Floral Shop is done on the basis of moving average. Moving averages are probably one of the most widely used indicators for forecasting the demand; this indicator is widespread yet it poorly used. The moving average is the average demand of geraniums over the two week period. The average is one of the data (opening, closing, highest, lowest) of each unit of time. The choice is often on the closing price. The difference between the different types of moving averages is only the weight assigned to the data over the two week period. (Lowry, 1998) We will see in this data the most common that is the simple and exponential moving averages.

Moving averages or MA have the advantage of high demand, and thus it helps the ABC Floral Shop to identify a trend by removing excessive transient fluctuations in the demand of geraniums for the ABC Floral Shop. They often used with indicators to accompany the movements.

The method of moving averages in statistics is a method used to analyze a set of mode data points to create sets of averages. So moving averages are a list of numbers in which each is the average of a subset of the original data. For example, if you have a set of 100 data, the first value in the series of moving averages could be the average of the first 25 terms, then the average of the terms 2 to 26, the third element of the ...