Question

In December, actual demand was 10,687 units and the forecast demand was 9,500 units. Using a smoothing constant of 0.4, what is the forecast for January using the exponential smoothing technique

Answer 1

9,974.80 units

Step-by-step explanation:

Exponential smoothing forecast for January = (Actual demand in December - forecasted demand in December)*Smoothing constant + Forecasted demand in December

Exponential smoothing forecast for January = (10,687-9,500)*0.4 + 9,500

Exponential smoothing forecast for January = 1,187*0.4 + 9,500

Exponential smoothing forecast for January = 474.8 + 9,500

Exponential smoothing forecast for January = 9,974.80 units