Excel's smoothing add-in can help you respond to a significant change that may affect business operations by providing a forecast that balances the recent surge in sales with the average number of software packages sold for the entire 30-day period.
Say you've entered the daily number of packages sold for the month of January in A2:32. To use the smoothing add-in, follow these steps:
- If this is the first time you have used Excel's add-ins, go to Tools | Add-ins. Otherwise, skip to step 4.
- Select the Analysis ToolPak-VBA check box.
- Click OK.
- Go to Tools | Data Analysis.
- Click Exponential Smoothing and click OK.
- Click in the Input Range box and select A1:A32.
- Enter 0.7 in the Damping Factor box.
- Select the Labels check box.
- Click in the Output Range Box and enter B2.
- Click OK.
Looking at the function's forecast will give you a better idea of how many more packages to order in the coming weeks.
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