Question

The management at Brenda's Bigger Burritos using exponential smoothing to calculate averages. The exponentiallly-smoothed average value for today was 88 burritos and the demand today was 136 burritos. Using LaTeX: \alpha α = 0.81, calculate the exponentially-smoothed average value for today. State your result rounded to the nearest tenth of a burrito.

Answer 1

F - F +a(A. t-1 t-1 where: F =new forecast 't-1 t Fprevious eriod forecast A previous period actual demand t-1 t-1 smoothing (weighting) constant

Ft =88 + 0.81* (136 - 88)

= 126.88

= 126.9