Question: Remember that the exponential smoothing forecast is based on last period's forecast and the fraction of the difference between last period's forecast and actual demand:

Remember that the exponential smoothing forecast is based on last period's forecast and the fraction of the difference between last period's forecast and actual demand:
Upper F Subscript t Baseline equals Upper F Subscript t minus 1 Baseline plus alpha left parenthesis Upper A Subscript t minus 1 Baseline minus Upper F Subscript t minus 1 Baseline right parenthesis comma where alpha equals smoothing constant between 0 and 1.

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