What will be the forecast for the month of October using an exponential smoothing technique and a smoothing constant of 0.2,if the demand during the months of August and September was 200 and 220 respectively and the forecast for the month of August was 180?
A)185.6
B)191.2
C)198.7
D)205.5

Question

Quizplus · Accepted Answer

The forecast for October using exponential smoothing is calculated using the formula: Forecast = Last Month's Forecast + α(Last Month's Actual - Last Month's Forecast), where α is the smoothing constant. For September, the forecast would be 180 + 0.2(200 - 180) = 184. For October, using September's actual demand of 220, the forecast would be 184 + 0.2(220 - 184) = 191.2.

What Will Be the Forecast for the Month of October