The last period’s forecast was 70 and demand was 60. What is the simple exponential smoothing forecast with alpha of 0.4 for the next period?
S(t-1 )= 70
X(t) = 60
Alpha = 0.4
s t = αx t +(1 – α)s t-1 = s t-1 + α(x t – s t-1 )
Substituting the values we get,
0.4*60 + 0.6*70= 24 + 42= 66
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