Production and Operations Management Consulting.
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.
|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|
regular demand with linear trend
- Hopp/Spearman (1996), Chapter 13