Exponential smoothing methods of forecasting provide forecasts using weighted averages of past values and forecasts errors. In these methods, recent observations are given more weight in forecasting than older observations. In exponential smoothing, there is a single smoothing parameter that is used to weight the data. The parameter is called alpha. Exponential smoothing methods are commonly used in inventory control systems where many items are to be forecast and low forecast cost is a primary concern.
See Forecasting guidelines and methods; Forecasting in manufacturing management.
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© 2000 Kluwer Academic Publishers
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(2000). EXPONENTIAL SMOOTHING . In: Swamidass, P.M. (eds) Encyclopedia of Production and Manufacturing Management. Springer, Boston, MA . https://doi.org/10.1007/1-4020-0612-8_310
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DOI: https://doi.org/10.1007/1-4020-0612-8_310
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