Question

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

Answer 1

Answer:

62.5

Step-by-step explanation:

Data provided in the question:    

Actual demand = 59  

Previous forecast = 64  

Alpha = 0.3  

Now,    

The  forecast for the next period be using simple exponential smoothing will be given as      

= [ Alpha × Actual demand ] + [ (1 - Alpha) × Previous forecast ]  

= 0.3 × 59 + [ ( 1 - 0.3 ) × 64 ]    

= 17.7 + 44.8      

= 62.5