Based on data provided in Example $5\mathrm{.}1,$ calculate the forecast for period $3$ using the exponential smoothing method. Assume the forecast for period $2$ is $1600.$ Use a smoothing constant $(\backslash$alpha $)$ of $0\mathrm{.}3.$

SOLUTION

Simple Moving Average Forecasting

PERIOD DEMAND

$11600$

$22200$

$32000$

$41600$

$52500$

$63500$

$73300$

$83200$

$93900$

$104700$

$114300$

$124400$

Based on the data provided above calculate the forecast for period $3,4,5$ and $6$ using the exponential smoothing method. Assume the forecast for period $2.1600$ and Alpha $($smoothing constant$)$is $0\mathrm{.}30.$