Assume that the forecast for the last period is FIT_t = 200 units,and recent experience suggests a likely sales increase of 10 units each period.Actual sales for the last period reached 230 units.Assume a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10.Demand in period t + 1turned out to be 220.What is the adjusted forecast for period t + 2? (Choose the closest answer.) A)227.3 B)215.9 C)217.3 D)221.3

Question

Quizplus · Accepted Answer

The adjusted forecast for period t + 2 can be calculated using the Exponential Smoothing with Trend Adjustment formula. Given the forecast for the last period (Ft) is 200 units, the actual sales (At) are 230 units, the smoothing coefficient (α) is 0.20, the trend smoothing coefficient (β) is 0.10, and the demand in period t + 1 (Dt+1) is 220 units, we first calculate the adjusted forecast for period t + 1 and then use it to forecast for period t + 2. The calculation involves updating the forecast based on the actual sales and adjusting for the trend. The closest answer to the calculated forecast for period t + 2, based on the given options, is 227.3.

Assume That the Forecast for the Last Period Is FITt

Assume That the Forecast for the Last Period Is FIT_t