4 Analytics Exercise 18-1 (Algo) Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be very similar, they are actually very different. Depending on the location of the store, its size, and the profile of the customers served, Starbucks management configures the store offerings to take maximum advantage of the space available and customer preferences. 0.98/3 points awarded Scored Starbucks' actual distribution system is much more complex, but for the purpose of our exercise let's focus on a single item that is currently distributed through five distribution centers in the United States. Our item is a logo-branded coffeemaker that is sold at some of the larger retail stores. The coffeemaker has been a steady seller over the years due to its reliability and rugged construction. Starbucks does not consider this a seasonal product, but there is some variability in demand. Demand for the product over the past 13 weeks is shown in the following table. (week -1 is the week before week 1 in the table, -2 is two weeks before week 1, etc.). eBook References Management would like you to experiment with some forecasting models to determine what should be used in a new system to be implemented. The new system is programmed to use one of two forecasting models: simple moving average or exponential smoothing. 4 6 7 WEEK Atlanta Boston Chicago Dallas LA Total -5 45 56 50 36 41 -4 32 27 20 35 40 -3 34 47 64 34 48 -2 55 43 40 60 40 -1 32 35 40 42 35 1 32 32 45 29 36 2 46 35 33 28 42 3 35 44 26 35 44 33 45 50 38 46 5 55 45 49 48 45 28 47 69 62 66 20 52 65 68 42 8 58 18 30 62 35 9 45 62 24 47 39 10 35 43 95 40 42 11 26 31 34 35 45 12 57 41 44 13 42 51 46 43 50 40 50 228 154 227 238 184 174 184 184 212 242 272 247 203 217 255 171 232 232 4. a. Consider using a simple moving average model. Experiment with models using five weeks' and three weeks' past data. (Round your answers to 2 decimal places.) 3-week MA 8/3 nts awarded Week ATL BOS CHI DAL LA Total 1 40.33 42.33 X 48.67 x 40.00 x 216.00 x Scored 2 40.33 X 43.00 X 36.67 X 199.33 X 37.33 X 33.67 X 44.67 X 42.00 X 32.00 x 30.00 x 3 37.00 x 40.00 x 38.00 X 180.67 4 37.67 34.67 1 OO WN eBook 180.00 X 37.00 40.33 X 40.67 44.00 38.00 36.33 33.67 192.33 X eferences 40.67 X 44.33 X 41.00 x 40.00 x 45.33 X 211.33 X I 7 38.33 X 45.33 X 55.33 x 49.00 x 52.67 x 240.67 X 8 34.00 x 49.00 x 60.33 X 59.00 x 51.33 X 253.67 9 35.33 40.67 X 54.67 64.00 47.67 242.33 x 10 41.00 45.67 X 39.67 59.00 38.67 224.00 x 11 46.00 42.33 X 49.67 49.67 38.67 226.33 X 12 35.33 46.33 X 51.00 40.67 42.00 215.33 X 13 39.33 40.33 X 57.67 38.33 45.67 221.33 X 5-week MA 4 Week ATL BOS CHI DAL LA Total 1 40.40 x 42.40 x 44.20 x 40.20 x 40.80 208.00 X 2 37.20 x 37.60 x 42.80 x 38.00 x 39.60 X 195.20 x 3 39.80 38.60 X 44.80 X 37.80 x 39.60 X 200.60 x 0.98/3 points awarded 4 40.40 X 38.00 x 37.60 X 37.80 x 39.20 x 193.00 x 5 35.80 x 37.80 X 39.20 X 33.80 x 40.80 x Scored 6 40.00 X 39.80 x 40.20 x 35.00 X 42.80 x 187.40 X 197.80 217.80 7 39.20 x bloo 42.80 x 45.00 X 42.00 x 48.80 x eBook 8 34.00 x 47.00 X 51.40 x 50.00 x 48.80 x 231.20 x 9 38.60 42.00 X 52.20 x 55.40 X 47.00 X 235.20 References 10 41.00 46.00 x 47.00 X 57.20 x 45.60 X 236.80 x 11 37.20 45.80 x 56.60 55.80 44.80 240.20 x 12 36.80 42.60 x 49.60 50.40 DOO 40.60 220.00 x 13 44.20 40.80 X 45.40 44.80 42.20 217.40 X 4 0.98/3 points awarded Scored b. Evaluate the forecasts that would have been made over the 13 weeks using the overall (at the end of the 13 weeks) mean absolute deviation, mean absolute percent error, and tracking signal as criteria. (Negative values should be indicated by a minus sign. Round all answers to 2 decimal places. Enter "MAPE" answers as a percentage rounded to 2 decimal places.) eBook ATL BOS CHI DAL LA Avg of DCS References 3-week MA MAD 11.67 9.56 18.62 12.00 7.77 11.92 MAPE 32.77 X 27.43 44.28 17.36 30.21 29.21 x (0.83) X 0.66 1.29 X (0.21) TS MAD 2.79 7.42 x 5-week MA 11.45 9.95 17.29 X 12.54 X 11.73 MAPE 31.58 28.07 x 41.35 28.68 X 16.14 x 29.16 x TS 0.56 1.59 0.69 (0.49) X 3.02