Question: Analytics Exercise 18-1 (Algo) Starbucks has a large, global supply chain that must efficiently supply over 12,000 stores. Although the stores might appear to be



Analytics Exercise 18-1 (Algo) Starbucks has a large, global supply chain that must efficiently supply over 12,000 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 prole ofthe customers served. Starbucks management congures the store offerings to take maximum advantage ofthe space available and customer preferences. Starbucks' actual distribution system is much more complex, but for the purpose ofour 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 ofthe 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). 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 oftwo forecasting models: simple moving average or exponential smoothing. WEEK 5 -4 3 -2 1 1 2 3 4 5 6 2 8 9 18 11 12 13 Atlanta 46 33 33 55 32 32 46 36 33 55 28 26 58 45 35 2E 52 42 Boston 56 26 46 42 3B 31 32 43 44 44 46 53 19 61 43 33 43 53 Chicago 52 21 65 46 4D 45 33 25 52 42 69 65 36 24 95 34 44 46 Dallas 38 36 35 66 42 29 28 34 49 56 62 6B 62 42 4B 35 4B 43 LA 42 42 56 4G 35 36 42 45 45 42 66 42 35 39 42 45 5B 56 Total 234 153 229 232 129 123 186 183 214 243 221 243 294 216 255 123 234 234 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.) 3week MA \fb. Evaluate the forecasts that would have been made over the 13 weeks using the overall (at the end ofthe13 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.)
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