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Example: The demand for Gingerbread Men is shown in the table. Forecast the demand for
month 7.
6 5400
9000
8000
7000
6000
5000 Demand
Sales
4000 Forecast
3000
2000
1000
0
1 2 3 4 5 6 7
Period
2
Example: The demand for Gingerbread Men is shown in the table. Forecast the demand for
month 7, using a smoothing constant of 0.4. The forecast for month 1 is 1500 units.
9000
8000
7000
6000
5000
Demand
Sales
4000 Forecast
3000
2000
1000
0
1 2 3 4 5 6 7
Period
Example: The demand for Gingerbread Men is shown in the table. Forecast the demand for
month 7, using a smoothing constant for the average of 0.4, and a smoothing constant for the
trend of 0.2. The forecast for month 1 is 1500 units and the trend for month 1 is 200 units.
4 4200
5 7800
6 5400
4
B a ke ry Gi ng e rb re a d M a n S a l e s
9000
8000
7000
6000
Demand
5000
For ecas t
Tr end
4000
FIT
3000
2000
1000
0
1 2 3 4 5 6 7
P e r iod