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Forecasting with exponential smoothing | Free template

Forecasting with exponential smoothing and trend adjustment is a free template to make a sale forecast by exponentially smoothing the demand in the previous period and make a trend adjustment.

Forecasting is an art and science used to predict future events. Sale forecasting means an attempt to predict the future sale for the entire company or for individual products, either in volume or in monetary values. Sale forecasts can be made both for shorter and longer periods and provides forecasts for future demand for the products.

Forecasts of demand are very important in the business in order to plan the capacity required to meet future demand. Forecasts of demand are not precise but provide the best indication of future sales until the actual sale becomes known. Sales forecasts form the basis of how large production will be, how to priorities between different products, the manpower required, how much material that should be purchased, how much equipment that is needed and how much capital is required and more.

This template uses two constant values to smooth the forecast based on previous month's sales, forecast and the trend value. Smoothing constants are alpha (a) and beta (ß) where alpha is the smoothing constant for the forecast and beta is the trend smoothing constant value. Both alpha and beta can take a value between 0 and 1 and these constants can be modified to achieve better forecasts with a smaller forecasting error.

You can use this template to make forecasts of demand using exponential smoothing and trend adjustment. No account for seasonal fluctuations is made in this template.
Updated: 01-01-2015 | Created by

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