Hi guys,
Difference between Strategy 21(Holt) & Strategy 22( 2nd order exponential smoothing) as listed in APO DP.
G(t1) = alpha * V(t1) + (1-alpha) G(t1-1)
G(t2)= alpha * G(t1) + (1-alpha) G(t2-1)
Along with assumption used in SAP to calculate 1st ex-post point in the past
Hi Bhaskar,
You can find the explanation for each strategy and their differences in the below links:
First-order exponential smoothing (21): https://help.sap.com/saphelp_scm50/helpdata/en/ac/216b83337b11d398290000e8a49608/content.htm
Second-order exponential smoothing (22): https://help.sap.com/saphelp_scm50/helpdata/en/ac/216b86337b11d398290000e8a49608/content.htm
Also, please check the follow link for more details:
https://help.sap.com/saphelp_scm50/helpdata/en/ac/216b6e337b11d398290000e8a49608/content.htm
Best regards,
Werner Hansen
Please explain the formula below...
G(t)= alpha * V(t) + (1-alpha)* G(t-1)
while calculating G(t), why & how V(t) is involved into it. Please explain with example. No theoretical explanation required.