Question: To calculate the forecast for Year 2 using a smoothing constant of 0 . 6 , we use the formula Forecast for Year 2 =

To calculate the forecast for Year 2 using a smoothing constant of 0.6, we use the formula
Forecast for Year 2=(1- Smoothing Constant) Actual Demand in Year 1+ Smoothing Constant Forecast for Year 1
Forecast for Year 2=(1-0.6)45+0.641=0.445+0.641=18+24.6=42.6
Step 2: Repeat the process for the following years, using the previous year's forecast as the starting point.
For Year 3:
Forecast for Year 3=(1-0.6)50+0.642.6=0.450+0.642.6=20+25.56=45.56
For Year 4:
Forecast for Year 4=(1-0.6)52+0.645.56=0.452+0.645.56=20.8+27.336=48.136
For Year 5:
Forecast for Year 5=(1-0.6)56+0.648.136=0.456+0.648.136=22.4+28.8816=51.2816
For Year 6:
Forecast for Year 6=(1-0.6)58+0.651.2816=0.458+0.651.2816=23.2+30.76896=53.96896

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