The forecast for the monthly demand of a product is given in the table below Month Forecast Actual Sales 1 32.00 30.00 2 31.80 32.00 3 31.82 30.00 The forecast is made by using the exponential smoothing method. The exponentialsmoothing coefficient used in forecasting the demand is

GATE Mechanical Engineering (ME) 2020 Shift 2 Solved Paper

Question : 51 of 65

Marks: +1, -0

The forecast for the monthly demand of a product is given in the table below

The forecast is made by using the exponential smoothing method. The exponentialsmoothing coefficient used in forecasting the demand is

Solution:

Since

\;\; {f}_{ {t}}= {f}_{ {t}-1}+ {a}( {D}_{ {t}-1}- {F}_{ {t}-1})

{F}_{3}= {F}_{2}+ {a}( {D}_{2}- {F}_{2})

31.82=31.80+ {a}(32-31.80)

{a}=0.10

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