Next, consider using a simple exponential smoothing model. In your analysis, test two alpha values, $0\mathrm{.}2$ and $0\mathrm{.}4.$ Use the same criteria for evaluating the model as in question $1.$ When using an alpha value of $0\mathrm{.}2,$ assume that the forecast for week $1$ is the past three$-$week average $($the average demand for periods $-3,-2,$ and $-1).$ For the model using an alpha of $0\mathrm{.}4,$ assume that the forecast for week $1$ is the past five$-$week average.

Starbucks is considering simplifying the supply chain for their coffeemaker. Instead of stocking the coffeemaker in all five distribution centers, they are considering only supplying it from a single location. Evaluate this option by analyzing how accurate the forecast would be based on the demand aggregated across all regions. Use the model that you think is best from your analysis of questions $1$ and $2.$ Evaluate your new forecast using mean absolute deviation, mean absolute percent error, and the tracking signal.

What are the advantages and disadvantages of aggregating demand from a forecasting view? Are there other things that should be considered when going from multiple DCs to a DC$?$