The Aleidon Middle School forecasts its lunch meals using the exponential smoothing method. The recent results and forecasts have been as follows:
Forecast | Actual Demand | |
Day 1 | 315 | 325 |
Day 2 | 350 | 330 |
a) Determine the smoothing constant. (2 points)
b) Provide the forecast of the lunch meals for Day 3. (2 points)
a) | |||||||
Forecast for Day 2 = Day 1 forecast (Day 1 Actual - Day 1 Forecast) * Smooting constant | |||||||
350 = 315 * ( 325-315 ) * Smooting constant | |||||||
350 = 315 * ( 325-315 ) * Smooting constant | |||||||
Smoothing constant = (350-315) / 10 = 3.5 | |||||||
b) | |||||||
Forecast for Day 3 = Day 2 forecast (Day 2 Actual - Day 2 Forecast) * Smooting constant | |||||||
Forecast for Day 3 = 350 (330-350) * 3.5 | |||||||
Forecast for Day 3 = 350-70 = 280 | |||||||
Please give ratings to my answer as your feedback is very important to me. | |||||||
Please reach out to me in the comment section in case of any clarification or queries. |
Get Answers For Free
Most questions answered within 1 hours.