It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1000 units. You are using the exponential smoothing method with α= 0.20. The forecast for June is:
A. fewer than 925 units.
B. greater than or equal to 925 units but fewer than 950 units.
C. greater than or equal to 950 units but fewer than 1000 units.
D. greater than or equal to 1000 units.
Answer:A
It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1000 units. You are using the exponential smoothing method with α= 0.20. The forecast for June is:
A. fewer than 925 units. B. greater than or equal to 925 units but fewer than 950 units. C. greater than or equal to 950 units but fewer than 1000 units. D. greater than or equal to 1000 units.