GATE 2026 ME – Question 60

Production Planning and Control · Forecasting models · 2 marks · Numerical answer

The actual demand for castings in a factory is 500 units and 635 units for the months of January 2026 and February 2026, respectively. The forecasted demand for January 2026 is 250 units and smoothing constant is 0.7. Using the exponential smoothing method, the forecast of the demand for castings in March 2026 is________ units (*in integer*).

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Correct answer: 572

Explanation

The forecast for February is $0.7 \times 500 + 0.3 \times 250 = 425$. The forecast for March is $0.7 \times 635 + 0.3 \times 425 = 444.5 + 127.5 = 572$ units.