What is the exponential smoothing forecast for week 3 for the given data? Use a = 0.5. Assume F1=D1 (answer should be correct up to one decimal point)WEEK DEMAND1 8202 7753 6804 655
Question
What is the exponential smoothing forecast for week 3 for the given data? Use a = 0.5. Assume F1=D1 (answer should be correct up to one decimal point)WEEK DEMAND1 8202 7753 6804 655
Solution
To calculate the exponential smoothing forecast for week 3, we need to use the formula:
Ft = Ft-1 + α(Dt-1 - Ft-1)
where: Ft is the forecast for week t, Ft-1 is the forecast for the previous week (week t-1), α is the smoothing constant (in this case, 0.5), Dt-1 is the actual demand in the previous week (week t-1).
Given that F1 = D1, the forecast for week 1 (F1) is 820 (the demand for week 1).
Now, let's calculate the forecast for week 2 (F2):
F2 = F1 + α(D1 - F1) F2 = 820 + 0.5(820 - 820) F2 = 820
Now, let's calculate the forecast for week 3 (F3):
F3 = F2 + α(D2 - F2) F3 = 820 + 0.5(775 - 820) F3 = 820 - 0.5(45) F3 = 820 - 22.5 F3 = 797.5
So, the exponential smoothing forecast for week 3 is 797.5.
Similar Questions
A computer software firm has experienced the demand for their software package as shown below.Month Demand (D)1 562 613 554 705 666 65Using 𝛂 = 0.4, what is the exponential smoothing forecast for month 3? (Assume F1 = 56) (answer in whole number)
Given a prior forecast demand value of 1,000, a related actual demand value of 1100, and a smoothing constant alpha of 0.2, what is the exponential smoothing forecast value? Group of answer choices 1080 1020 1120 1180 980
Consider the following time series: Period 1 2 3 Demand 15 24 26 Forecast the demand for period 3 using exponential smoothing with W (smoothing coefficient) = 0.4. Express your answer without rounding
Using simple exponential smoothing, what would your forecast be for October if the exponentially smoothed forecast for the month July was 450 units and the smoothing constant was 0.20.July Actual Demand 400 unitsAugust Actual Demand 350 unitsSeptember Actual Demand 352 units
The manager of a service station wants to forecast the demand of unleaded gasoline next month in order to place an order with the distributor. The manager has accumulated ten months of demand data. Use this data to answer the following TWO questions.month gasoline demandedOctober 360November 326December 284January 225February 290March 311April 329May 365June 540July 441 Flag question: Question 2Question 2Tips8.5 ptsCompute an exponentially smoothed forecast for August, using an 𝛼 value of 0.30. Round to two decimal places.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.