Question

Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing

Answer 1

Answer:

58.9

Explanation:

Calculation to determine what would the forecast for the next period be using exponential smoothing

Next period forecast= [ (1 - Alpha) × Current forecast]+Alpha*Actual demand

Let plug in the formula

Next period forecast= [ ( 1 - 0.3 ) × 58] +0.3*61

Next period forecast=40.6+18.3

Next period forecast=58.9

Therefore what would the forecast for the next period be using exponential smoothing is 58.9