Question
When the actual demand for a product over time tends to be stable, what type of alpha should we use in our simple exponential smoothing
When the actual demand for a product over time tends to be stable, what type of alpha should we use in our simple exponential smoothing forecast?
alpha of zero
alpha of one
alpha that is relatively high (e.g., 0.8)
alpha that is low (e.g., 0.15)
alpha that is right in the middle to help stabilize the demand (e.g., 0.5)
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
9780132997621, 132149117, 132997622, 978-0132149112
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