Question: A dry cleaner uses exponential smoothing to forecast equipment usage as a percentage of capacity (i.e., utilization) at its main plant. August usage was forecast
A dry cleaner uses exponential smoothing to forecast equipment usage as a percentage of capacity (i.e., utilization) at its main plant. August usage was forecast to be 88 percent of capacity, whereas actual usage turned out to be 89.6 percent of capacity. A smoothing constant of 0.2 is used.
Prepare a forecast for September.
Assuming actual September usage of 92 percent, prepare a forecast for October's usage.
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