Question: It has been determined that your sales demand data is comprised of a relatively low amount of randomness and hence you want to have a
It has been determined that your sales demand data is comprised of a relatively low amount of randomness and hence you want to have a more responsive demand forecast. Which of the following statements is correct, given that you are forecasting with the exponential smoothing method? You should use a negative smoothing constant (for example, alpha = 0.4). You should use a large smoothing constant (for example, alpha = 0.99). You should use a smoothing constant greater than 1 (for example, alpha = 2.3). You should use a small smoothing constant (for example, alpha = 0.01)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
