Question: Analytics Exercise 18-1 (Algo) tarbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be




Analytics Exercise 18-1 (Algo) tarbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might appear to be very imilar, they are actually very different. Depending on the location of the store, its size, and the profile of the customers served, tarbucks management configures the store offerings to take maximum advantage of the space available and customer preferences. 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 veeks 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 mplemented. The new system is programmed to use one of two forecasting models: simple moving average or exponential smoothing. 7 8 9 4 33 1 55 20 WEEK Atlanta Boston Chicago Dallas TA U NO 00 un 34 25 20 35 u wow OO DOON sot un NNN m www do mwNN WI- VW Na w ou un T 42 25 6 28 46 69 62 66 19 30 nou NO 52 40 No No on an u U in 4 + + in 50 43 4 35 B 240 183 Total 204 245 271 216 174 240 231 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 3-week MA Week ATL BOS CHI DAL Total 1 5-week MA Week ATL BOS CHI LA Total 1 1 2 3 8 9 10 12 13 b. Evaluate the forecasts that would have been made over the 13 weeks using the overall (at the end of the 13 weeks) mean absolut deviation, mean absolute percent error, and tracking signal as criteria. (Negative values should be indicated by a minus sign. Roun all answers to 2 decimal places. Enter "MAPE" answers as a percentage rounded to 2 decimal places.) CHI LA ATL Avg of DCS 3-week MA MAD MAPE TS 5-week MA MAD MAPE TS
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