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Demand forecasting: Holt's procedure
The procedure of Holt (1957) is applied to forecast a time-series with a trend..
Symbols:
| Alpha |
smoothing constant for the base level |
| Beta |
smoothing constant for the slope |
|
t
|
index
of time periods
|
| b(0,0) |
initial value of the base level |
| b(1,0) |
initial value of the slope |
| Y(t) |
observed demand in period t |
Assumptions:
- regular demand
with linear trend
Literature:
- Silver/Peterson (1985), Paragraph 4.5.3
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