Last period the forecast was 50 and the actual was 75. Use alpha = .2 and SES to find the forecast for the next period.
Given last period forecast Ft-1 = 50
Actual Demand = Dt-1 = 75
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Question & Answer: Last period the forecast was 50 and the actual was 75. Use alpha = .2 and SES to…..
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α = Smoothing Constant = 0.2
Based on Simple Exponential Smoothing(SES),
Forecast of current period (Ft) = Ft-1+α*(At-1 – Ft-1) = 50+0.2*(75-50) = 55
Ft = 55