What is moving average in SAP MFG-ME - SAP Manufacturing Execution?

SAP Term: moving average

• Component: MFG-ME

• Component Name: SAP Manufacturing Execution

• Description: The average value for the set of chart points that includes the current point and the subgroup size -1 preceding points.

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• Key Concepts: 
  Moving average is a forecasting technique used in SAP Manufacturing Execution (MFG-ME) to predict future demand for materials and components. It is based on the average of past demand data, which is used to calculate the expected demand for a given period. This technique is useful for planning and scheduling production activities, as it helps to anticipate future demand and adjust production accordingly. 
  
  How to use it: 
  In SAP MFG-ME, moving average can be used to forecast future demand for materials and components. To do this, the user must first enter the past demand data into the system. This data can be obtained from sales orders, customer orders, or other sources. Once the data is entered, the system will calculate the average of the past demand and use it to predict future demand. The user can then use this information to plan and schedule production activities accordingly. 
  
  Tips & Tricks: 
  When using moving average in SAP MFG-ME, it is important to ensure that the past demand data entered into the system is accurate and up-to-date. This will help ensure that the forecasted demand is as accurate as possible. Additionally, it is important to consider any external factors that may affect future demand when using this technique. 
  
  Related Information: 
  Moving average is just one of many forecasting techniques available in SAP MFG-ME. Other techniques include exponential smoothing, linear regression, and time series analysis. Each of these techniques has its own advantages and disadvantages, so it is important to consider which one will best suit your needs before making a decision.