Multi-Period Forecasting under Constant Level

1 Multi-Period Forecasting under Constant Level 

Under the constant level forecasting approach, the level forecasts are updated based only on the observed demands. Since there is no new demand information beyond period n, the forecast for the next m periods will remain the same. 

To illustrate, consider Example 2.2 where we forecasted the demand for month 7 as 316 based on the last 6 months of demand, using Exponential Smoothing. Forecasts beyond month 7 are given by 

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