Demand forecasting: simple exponential smoothing
Simple exponential smoothing is applied to a time series.
Symbols:
| Alpha
|
smoothing
constant |
| t
|
period
index |
| Y(t)
|
observed
demand in periode t |
| MAD(t)
|
mean
absolute deviation in period t |
Assumption:
Literature:
- Heizer/Render (1993), Chapter 4
|
