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The formula to calculate exponential smoothing forecast is as follows:

Ft = Ft-1 + α(At-1 – Ft-1)

Where:
Ft = forecast value for the coming time period
Ft-1= forecast value in 1 past time period
At-1 = actual value in 1 past time period
α = smoothing constant

Solution:

Week 1:
Given Demand = 860
Forecast = Ft = Ft-1 + α(At-1 – Ft-1) = 860 + 0.1(860 – 860)
Forecast = Ft = 860

Week 2:
Given Demand = 730
Forecast = Ft = Ft-1 + α(At-1 – Ft-1) = 860 + 0.1(860 – 860)
Forecast = Ft = 860

Week 3:
Given Demand = 690
Forecast = Ft = Ft-1 + α(At-1 – Ft-1) = 860 + 0.1(730 – 860) = 860 - 13
Forecast = Ft = 847

Week 4:
Given Demand = 610
Forecast = Ft = Ft-1 + α(At-1 – Ft-1) = 847 + 0.1(690 – 847) = 847 – 15.7
Forecast = Ft = 831.3

Week 5:
Given Demand =?
Forecast = Ft = Ft-1 + α(At-1 – Ft-1) = 831.3 + 0.1(610 – 831.3) = 847 – 22.13
Forecast = Ft = 809.17

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