Question: 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

Starbucks has a large, global supply chain that

Starbucks has a large, global supply chain that

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. -5 4 38 40 WEEK -4 -3 -2 Atlanta 45 30 58 Boston 62 18 48 40 Chicago 62 22 72 44 Dallas 42 35 40 64 LA 43 40 54 46 Total 254 153 244 252 -1 37 35 48 43 35 198 1 33 26 44 27 32 2 45 35 34 42 43 199 3 37 41 22 35 54 5 55 46 48 51 46 55 6 7 9 10 30 18 58 47 37 48 55 18 62 44 72 62 27 95 64 70 65 55 43 74 40 35 45 38 288 245 204 236 257 28 11 12 13 23 55 40 30 45 50 35 45 47 38 47 42 48 56 50 174 248 229 40 40 162 189 213 246 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 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. Round all answers to 2 decimal places. Enter "MAPE" answers as a percentage rounded to 2 decimal places.) ATL BOS CHI DAL LA Avg of DCS 3-week MA MAD MAPE TS 5-week MA MAD MAPE TS

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!