This forecast method smooths the old average and the new average together rather than simply replacing the old average with the new. It computes the base trend using smoothing constants α (alpha) and β (beta). Double Exponential Smoothing is more appropriate forecast method when seasonality is not a significant factor. It requires the Double Exponential Smoothing global setting value plus three months of demand history. If less than the double exponential smoothing global setting value plus 3 months of demand history are available, then the application will use Single Exponential Smoothing and post a Review Board record.

In addition to α (alpha) and β (beta), Double Exponential Smoothing accepts the trend-dampening constant φ (phi) as an input. Phi reduces the effect the trend has on future forecasts.