Question: Alpha = 0 . 3 Actual demand in year 2 0 1 7 = 7 5 0 Forecast demand in year 2 0 1 7

Alpha =0.3
Actual demand in year 2017=750
Forecast demand in year 2017=960
The formula for exponential smoothing is:
Forecast for period t = Alpha * Actual demand in period t-1+(1- Alpha)* Forecast in period t-1
Substituting the values:
Forecast for 2018=0.3*750+(1-0.3)*960
=0.3*750+0.7*960
=225+704
=929

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