With the trend-adjusted exponential smoothing method,
A) the forecast for the next period is simply the average computed this period.
B) an estimate of the trend is computed by taking the difference between the demand this period and the demand last period to avoid lengthy averaging calculations.
C) the only smoothing is done on the trend estimates using exponential smoothing.
D) the forecast can be adjusted to account for changes in the trend.

Question

Quizplus · Accepted Answer

With trend-adjusted exponential smoothing, the forecast can be adjusted to account for changes in the trend. An estimate of the trend is computed using exponential smoothing on the trend estimates, but this is in addition to the smoothing of the demand itself. Therefore, options A and C are incorrect. Option B is incorrect because the estimate of the trend would be calculated using the difference between the demand this period and the forecast for the last period, not the demand last period.

With the Trend-Adjusted Exponential Smoothing Method