Question

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?

Answer 1

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