__Concept:__

Exponential Smoothing Method:

- In exponential smoothing method of forecast, the forecast for the next period is equal to

Ft = α Dt - 1 + (1 - α) Ft - 1 **= F**_{t - 1} + α(Dt - 1 - Ft - 1)

Where, Dt-1 = latest figure sale or latest demand, Ft-1 = old forecast and α = smoothing constant

__Calculation:__

__Given:__

The sales of the particular years are given and the forecast for the year 2014, F_{2014} = 260 units.

∴ The forecast for the year 2015,

F_{2015} = F_{2014} + α(D_{2014} - F_{2014})

⇒ 260 + 0.5(280 - 260) = **270 units.**

∴ The forecast for the year 2016,

F2016 = F2015 + α(D2015 - F2015)

⇒ 270 + 0.5(268 - 270) = 269 **units.**

∴ The forecast for the year 2017,

F2017 = F2016 + α(D2016 - F2016)

⇒ 269 + 0.5(259 - 269) = 264 **units.**

∴ The forecast for the year 2018,

F2018 = F2017 + α(D2017 - F2017)

⇒ 264 + 0.5(270 - 264) = 267 **units.**

∴ The forecast for the year 2019,

F2019 = F2018 + α(D2018 - F2018)

⇒ 267 + 0.5(287 - 267) = 277 **units.**

**∴ The sales forecast for the year 2019, is 277 units.**