Answer :
Final answer:
The exponential smoothing forecast for the next period, given an actual demand this period of 103, a forecast value for this period of 99 and an alpha of 0.4, is 100.6.
Explanation:
The question is about calculating the exponential smoothing forecast for the next period given certain factors. Exponential smoothing is a technique used in time series forecasting which involves calculating a weighted average of past observations, where the weights decrease exponentially as the observations get older.
In your case, you have the following information:
- Actual demand this period (At): 103
- Forecast for this period (Ft): 99
- Smoothing coefficient (alpha, α): 0.4
The exponential smoothing forecast (Ft+1) for the next period is calculated using the formula:
Ft+1 = α*At + (1 - α)*Ft
By plugging in the given values:
Ft+1 = 0.4*103 + (1 - 0.4)*99 = 41.2 + 59.4 = 100.6.
So, the correct option is a. 100.6.
Learn more about Exponential Smoothing Forecast here:
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