Question: Analytics Exercise 18-2 (Algo) Starbucks has a large, global supply chain that must efficiently supply over 17.000 stores. Although the stores might appear to be

Analytics Exercise 18-2 (Algo) Starbucks has a
Analytics Exercise 18-2 (Algo) Starbucks has a
Analytics Exercise 18-2 (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. 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.). 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 WEEK Atlanta Boston Chicago Dallas LA Total -5 -2 44 36 28 55 61 20 40 61 24 74 43 36 40 64 42 40 50 45 249 156 240 247 -1 36 36 48 44 35 1 2 32 45 27 34 45 33 28 42 32 42 164 196 3 38 39 20 35 53 185 4 37 42 54 40 40 213 5 6 7 54 28 17 45 48 54 48 72 62 50 62 70 46 72 40 243 282 243 8 57 19 28 65 35 204 9 48 61 26 54 45 234 10 36 45 96 40 11 24 30 34 38 12 54 45 46 47 55 247 13 42 50 48 40 50 230 199 255 174 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. Enter "MAPE" answers in percentage rounded to 4 decimal places. Round your answers to 2 decimal places.) ATL 10.85 28.8100% 0.39 Avg of DCS 29.54 14.300096 ES, 02 MAD MAPE TS ES, 04 MAD MAPE TS BOS 9.46 26 0500 % 1.91 9.86 28.3700% 1.29 CHI 17.11 41.1000% (0.38) 17 81 41 7600 % 028 DAL 11.28 27 8000% (106) 10.19 24.4800% LA 6.19 13 3000% 2.63 6.57 14 38001% 1.96 29.70 13.9500% 11.87 33 4000% 0.48 (0.24)

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