Answer: 95.75
Explanation:
Old forecast = 100
Smoothing constant = 0.25
Latest actual demand = 83
New forecast will be:
= smoothing constant × latest demand + (1 - smoothing constant) × old forecast
= (0.25 × 83) + [(1 - 0.25) × 100)]
= 20.75 + 75
= 95.75
