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The Year 3 forecast is calculated by applying the exponential smoothing formula to the Year 2 actual demand and the Year 2 forecast. The actual demand of 365 is weighted by $\alpha=0.4$, and the previous forecast of 310 is weighted by $(1-\alpha)=0.6$, yielding a new forecast of 332.

Conditions: The smoothing constant $\alpha$ is 0.4.; The actual demand for Year 2 ($A_2$) is 365.; The forecast for Year 2 ($F_2$) is 310.

The Year 3 forecast is calculated by applying the exponential smoothing formula to the Year 2 actual demand and the Year 2 forecast. The actual demand of 365 is weighted by $\alpha=0.4$, and the previous forecast of 310 is weighted by $(1-\alpha)=0.6$, yielding a new forecast of 332.

Conditions: The smoothing constant $\alpha$ is 0.4.; The actual demand for Year 2 ($A_2$) is 365.; The forecast for Year 2 ($F_2$) is 310.

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.

The video translates the mathematical recurrence into an Excel formula. For Week 2, the current forecast is computed from the Week 1 forecast in C4, the Week 1 actual in B4, and the smoothing constant in B2.

Conditions: Requires a table with actuals in one column and forecasts in another.; Uses relative references for prior row values and an absolute reference for alpha.

The video translates the mathematical recurrence into an Excel formula. For Week 2, the current forecast is computed from the Week 1 forecast in C4, the Week 1 actual in B4, and the smoothing constant in B2.

Conditions: Requires a table with actuals in one column and forecasts in another.; Uses relative references for prior row values and an absolute reference for alpha.