Moving average

What is moving average?

Moving Average is a simple forecasting algorithm that calculates the average of a specified number of previous observations to predict future values. It assumes that future values will follow a similar pattern as the past observations.

What are the key steps?

• Define a window size (e.g., 3, 5, or 7) that represents the number of previous observations to consider
• Calculate the average of the values within the window
• Slide the window by one observation and repeat the calculation to generate predictions for subsequent time periods

Once the moving average has been calculated, the value comes from how you act on the signal. In fashion, these short-term demand trends can shape real decisions: Hakio’s Fashion Planning Module uses such forecasting insights to adjust assortments and drops in line with demand shifts.

And when averages point to steady, ongoing sales of core products, Hakio’s Sales & Operations Module ensures those never-out-of-stock items remain available without building up excess inventory.