Given an actual latest demand of 105, a previous forecast of 97, and α = 0.4, what would be the forecast for the next period using the exponential smoothing method?
A) 80.8
B) 93.8
C) 100.2
D) 101.8
E) 108.2

Question

Quizplus · Accepted Answer

The forecast for the next period using the exponential smoothing method is calculated using the formula: Forecast for next period = Previous forecast + α(Actual demand - Previous forecast). Plugging in the values: 97 + 0.4(105 - 97) = 97 + 0.4(8) = 97 + 3.2 = 100.2.

Given an Actual Latest Demand of 105, a Previous Forecast