This reduction indicates that when the number of the last observations in prediction is large, moving average forecasting has more effect on taming bullwhip effect. As a result, retailer can decrease bullwhip effect to provide a better coordination between various echelons of the supply chain by choosing moving average forecasting method. Both the graphs are provided for only one measure of lead-time (L1 ¼L2 ¼1) and similar result could be provided for other values of lead-time.