Production and Operations Management Consulting.
Demand forecasting: Holt's procedure
The procedure of Holt is applied to forecast a time-series with a trend.
|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|
- regular demand with linear trend
- Silver/Peterson (1985), Paragraph 4.5.3