Question

The actual demand for a product in a company is 79 units. The previous forecast and exponential smoothening factor are 84 units and 0.25, respectively. What will be the forecast (of the product units) for the next period?

• A. 81.75
• B. 80.25
• C. 82.75
• D. 81.25

Answer 1

Answer:

C. 82.75

$Given: F_{t} = 84, D_{t} = 79 , \alpha = 0.25$

$F_{t+1}=F_t + \alpha (D_t -F_t )=84+0.25(79 - 84) = 84 - 1.25 = 82.75$