Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of. 4, what is the exponential smoothing forecast for next period?

The forecast for the next period is given as 100.6 s shown below.

Step-by-step explanation:

In forecasting using exponential smoothing, the applicable formula is given as:

Ft+1 = αDt + (1-α) F

Ft+1 implies the next forecast value, if this month forecast is given, invariably next month forecast is denoted by Ft+1 or Fnext which means next forecast which is the unknown here.

The alpha also known as the weighting factor is given as 0.4

Dt is the actual value for this period at 103 while F is the forecast value for the current period and it is 99.

As a result, by slotting the variables into the formula, the forecast for next period is computed as:

Fnext=0.40 (103) + (1-0.4) 99

Fnext = 100.6