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Question #1: Assume an initial starting Ft of 300 units, a trend (Tt) of eight units, an alpha of 0.30, and a delta of 0.40. If actual demand turned out to be 288, calculate the forecast for the next period.

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akindelemf

Answer:

The forecast for the next period is 307.6 units

Explanation:

Write the formula to calculate exponential smoothing with trend.

Calculate the values of [tex]FIT_{t-1}[/tex] by substituting the values of the parameters in the formula.

Calculate the value of F₁ by substituting the required values

Calculate T₁

FIT₁ = F₁ + T₁

      = 302 + 5.6

      = 307.6

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