Model Initialization of First and Second Order Exponential Smoothing
After a trip has occurred for a product whose values you calculate with first or second order exponential smoothing, the system initializes the base values and the mean absolute deviation (MAD).
Features
The system calculates the base values of the demand, order items, and average demand size per order item as the weighted average of the last periods. The weighting that the system uses depends on the trip length.