Question

The forecast was 70 units for the current period while actual demand was 76. the forecast for the next period is 75.8. what is alpha if a simple exponential smoothing forecast method is being used?

Answer 1

Answer:

To find the value of alpha in a simple exponential smoothing forecast method, we can use the following formula:

alpha = (actual demand - forecast for current period) / actual demand

Plugging in the values from the problem, we get:

alpha = (76 - 70) / 76 = 6 / 76 = 0.0789

Thus, the value of alpha in this case is approximately 0.0789.