Given an actual latest demand of 59, a previous forecast of 64, and α = 0.3, what would be the forecast for the next period using the exponential smoothing method?
A) 36.9
B) 57.5
C) 60.5
D) 62.5
E) 65.5

Question

Quizplus · Accepted Answer

The exponential smoothing forecast is calculated as: Forecast = Previous Forecast + α * (Actual Demand - Previous Forecast). Substituting the given values: 64 + 0.3 * (59 - 64) = 62.5.

Given an Actual Latest Demand of 59, a Previous Forecast