Answer :
Final answer:
Using the exponential smoothing method, with an actual demand of 105, a previous forecast of 99, and an alpha of .3, the forecast for the next period is calculated to be 100.8.
Explanation:
The question relates to the calculation of the next period's forecast using exponential smoothing. Exponential smoothing is a rule of thumb technique for smoothing time series data using the exponential window function. Given the actual demand (At) of 105, the previous forecast (Ft-1) of 99, and an alpha (α) of .3, the formula to calculate the new forecast (Ft) is:
Ft = α * At + (1 - α) * Ft-1
Substituting the given values:
Ft = .3 * 105 + (1 - .3) * 99
Ft = 31.5 + 69.3
Ft = 100.8
Therefore, the exponential smoothing forecast for the next period would be 100.8.
