Answer:
20,400 units
Explanation:
Calculation to determine What should be the forecast for this period
Using this formula
F t+1=α*D t+(1-α)
Where,
F t+1=Forecast for this period
α=Smoothing constant (alpha)
D t=Last period's actual demand
(1-α)=(1-Last period's demand forecast)
Let plug in the formula
F t+1=(0.4*21,000 units)+(1-0.4*20,000 units)
F t+1=(0.4*21,000 units)+ (0.60*20,000 units)
F t+1=8,400 units+12,000 units
F t+1=20,400 units
Therefore What should be the forecast for this period is 20,400 units
