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

Explanation:

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

`D* \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*0.3+59(1-0.3)`

`\\\\= 64*0.3+59*0.7\\\\=19.2+41.3\\\\=60.5`

Hence, the forecast for the next period = 60.5