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Given an actual demand this period of 61, a forecast value for this period of 58, and an alpha of 0.3, what is the experimential smoothing forecast for the next period?

User Polar
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Answer:

Experimental smoothing forecast for the next period will be 58.9

Explanation:

We have given actual demand is
A_(t-1)=61

Initial forecast
f_(t-1)=61 and
\alpha =0.3

We have to find the experimental smoothing forecast
f_t

Experimental forecast is given by


f_t=(1-\alpha )f_(t-1)+\alpha A_(t-1)=(1-0.3)* 58+0.3* 61=58.9

So experimental smoothing forecast for the next period will be 58.9

User Pablo Honey
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