Question: A company is using exponential smoothing when forecasting the demand for a product. The forecast is updated once every week. The smoothing constant for the

A company is using exponential smoothing when forecasting the demand for a product. The forecast is updated once every week.
The smoothing constant for the demand forecast is 0.1,
and for MAD a smoothing constant equal to 0.2 is used.
Last week the forecast for the demand were 250 and MAD were 30.
The observed demand during this week is 230.
The supplier lead time is 3 weeks.
Assume that forecast errors during different weeks are independent of each other.
Update the demand forecast and the forecast for MAD and then derive a forecast for the total demand during the next three weeks (i.e., the lead time)

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