Demand forecasting: double exponential smoothing
Double exponential smoothing is applied to a time series exhibiting a linear
trend pattern.
As an alternative you may apply the procedure of Holt
.
Symbols:
| Alpha
|
smoothing
constant |
| t
|
smoothing
constant |
| b(0,0) |
(estimated)
initial value for the base level of the trend equation |
| b(1,0) |
(estimated)
initial value for the slope of the trend equation |
| Y(t) |
observed demand
in period t |
| MAD(t) |
mean absolute
deviation in period t |
Assumptions:
- Hopp/Spearman (1996), Chapter 13
|
