Question

For a canteen, the actual demand for disposable cups was 500 units in January and 600 units in February. The forecast for the month of January was 400 units. The forecast for the month of March considering the smoothing coefficient as 0.75 is .

• A. 569

Answer 1

The correct option is A 569
$F_{Feb}=F_{Jan}+\alpha [D_{Jan}-F_{Jan}]$

$=400+0.75[500-400]$

$F_{March}=F_{Feb}+\alpha [D_{Feb}-F_{Feb}]$

$=475+0.75[600-475]$

$=568.75=569\text{units}$