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To calculate exponential smoothing forecasts step-by-step, first initialize the first forecast equal to the first actual demand. Then, for each subsequent period, substitute the previous period's actual demand and previous forecast into the formula $F_{t+1} = \alpha A_t + (1-\alpha)F_t$ to compute the next forecast, repeating this recursive process until the target period is reached.

Conditions: The smoothing constant $\alpha$ is fixed across all periods.; An initial forecast $F_1$ is established from $A_1$.; Each new forecast depends only on the immediately preceding actual demand and forecast.

To calculate exponential smoothing forecasts step-by-step, first initialize the first forecast equal to the first actual demand. Then, for each subsequent period, substitute the previous period's actual demand and previous forecast into the formula $F_{t+1} = \alpha A_t + (1-\alpha)F_t$ to compute the next forecast, repeating this recursive process until the target period is reached.

Conditions: The smoothing constant $\alpha$ is fixed across all periods.; An initial forecast $F_1$ is established from $A_1$.; Each new forecast depends only on the immediately preceding actual demand and forecast.