Q51453 Develop an adjusted exponential forecast for the week of 5/14 for a firm with the demand shown in Table 1. Let a = 0.1 and b = 0.2.

Begin with a previous of F^t-1= 650, and let the initial trend adjustment, Tt–1 = 0.

Week 3/19 3/26 4/2 4/9 4/16 4/23 /30 5/7
Demand 700 685 648 717 713 728 754 762
Table No. 1

Solution:

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The remainder of the calculations is in Table 2. The trend-adjusted forecast for the week of 5/14 is 711.89 = 712 units.

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Table No. 2
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