Forecast Calculation Using Exponential Smoothing

Explanation:

Calculation to determine the forecast for this period:

Using the formula:

F t+1 = α*D t + (1-α)

Where:

• F t+1 = Forecast for this period
• α = Smoothing constant (0.4 in this case)
• D t = Last period's actual demand
• (1-α) = (1- Last period's demand forecast)

Let's plug in the values:

F t+1 = (0.4 * 21,000 units) + (1 - 0.4 * 20,000 units)

F t+1 = (0.4 * 21,000 units) + (0.60 * 20,000 units)

F t+1 = 8,400 units + 12,000 units

F t+1 = 20,400 units

Therefore, the forecast for this period using exponential smoothing is 20,400 units.