Question

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

Answer 1

Answer: 60.5

Step-by-step explanation:

The forecast for the next period using the simple exponential smoothing method is given by:

$D\times \alpha+F(1-\alpha)$ , where D= actual demand for the recent period, $\alpha=$ smoothing factor, F= forecast for the recent period .

Given: D= 64, $\alpha=0.34$ , F= 59

The forecast for the next period  = $64\times0.3+59(1-0.3)$

$\\\\= 64\times0.3+59\times0.7\\\\=19.2+41.3\\\\=60.5$

Hence, the forecast for the next period = 60.5