Example: bottled water at Kroger (Homework) Month Actual Forecasted a=0.3 Jan 1,325 1,370 Feb 1,353 1,361 Mar 1,305 1,359 Apr 1,275 1,349 May 1,210 1,334 Jun ? 1,309 ve the acutal sales in jun using Exponential smoothing: the method Assume that we are currently in period r. We calculated the forecast for the last period (F) and we know the actual demand last period (d)

Principles of Heat Transfer (Activate Learning with these NEW titles from Engineering!)
8th Edition
ISBN:9781305387102
Author:Kreith, Frank; Manglik, Raj M.
Publisher:Kreith, Frank; Manglik, Raj M.
Chapter5: Analysis Of Convection Heat Transfer
Section: Chapter Questions
Problem 5.12P
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Example: bottled water at Kroger (Homework)
=
Month
Actual
Forecasted
α = 0.3
Jan
1,325
1,370
Feb
1,353
1,361
Mar
1,305
1,359
Apr
1,275
1,349
May
1,210
1,334
Jun
?
1,309
solve the acutal sales in jun using
Exponential smoothing: the method
Assume that we are currently in period. We calculated the
forecast for the last period (F) and we know the actual demand
last period (4.) ...
F₁=F₁₁+a(A₁-F₁)
The smoothing constant a expresses how much our forecast will
react to observed differences...
If a is low: there is little reaction to differences.
If a is high: there is a lot of reaction to differences.
Transcribed Image Text:Example: bottled water at Kroger (Homework) = Month Actual Forecasted α = 0.3 Jan 1,325 1,370 Feb 1,353 1,361 Mar 1,305 1,359 Apr 1,275 1,349 May 1,210 1,334 Jun ? 1,309 solve the acutal sales in jun using Exponential smoothing: the method Assume that we are currently in period. We calculated the forecast for the last period (F) and we know the actual demand last period (4.) ... F₁=F₁₁+a(A₁-F₁) The smoothing constant a expresses how much our forecast will react to observed differences... If a is low: there is little reaction to differences. If a is high: there is a lot of reaction to differences.
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