Question: I just need the solution to part b. Analytics Exercise 3-01 Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores.

I just need the solution to part b.

Analytics Exercise 3-01

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 lets 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 18 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 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10 11 12 13
Atlanta 48 33 32 56 33 32 46 35 33 54 28 20 58 45 35 26 57 42
Boston 57 28 48 44 35 33 33 45 43 45 48 54 20 63 44 32 45 52
Chicago 52 23 62 42 42 45 33 26 50 47 69 65 30 24 95 34 44 46
Dallas 38 29 35 58 41 27 28 35 38 47 62 68 62 47 40 35 40 43
LA 42 42 46 38 36 36 42 44 46 46 66 42 35 39 42 45 50 50
Total 237 155 223 238 187 173 182 185 210 239 273 249 205 218 256 172 236 233

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

Week ATL BOS CHI DAL LA Total
1
2
3
4
5
6
7
8
9
10
11
12
13

5-week MA

Week ATL BOS CHI DAL LA Total
1
2
3
4
5
6
7
8
9
10
11
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 absolute deviation, mean absolute percent error, and tracking signal as criteria. (Round your answers to 2 decimal places. Negative values should be indicated by a minus sign.)

ATL BOS CHI DAL LA Avg of DCs
3-week MA MAD
MAPE
TS
5-week MA MAD
MAPE
TS

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