Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period?
A) 230
B) 232
C) 238
D) 248
E) 250

Question

Quizplus · Accepted Answer

The exponential smoothing forecast value is calculated using the formula: New Forecast = Old Forecast + α(Actual Demand - Old Forecast). Plugging in the given values: 230 + 0.1(250 - 230) = 230 + 0.1(20) = 230 + 2 = 232.

Given a Prior Forecast Demand Value of 230, a Related