Analytics Exercise 18-1 (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 −5 −4 −3 −2 −1 1 2 3 4 5 6 7 8 9 10 11 12 13 Atlanta 45 34 32 54 33 32 46 36 33 55 28 20 58 45 36 25 55 41 Boston 58 25 48 41 32 33 34 42 43 46 46 54 19 60 42 32 45 52 Chicago 56 20 68 42 42 45 33 25 52 47 69 65 30 24 96 35 44 47 Dallas 42 35 38 62 43 25 28 34 40 50 62 68 62 48 42 36 43 42 LA 45 40 50 41 38 36 42 45 45 47 66 42 35 39 42 46 53 49 Total 246 154 236 240 188 171 183 182 213 245 271 249 204 216 258 174 240 231                     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.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Analytics Exercise 18-1 (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 −5 −4 −3 −2 −1 1 2 3 4 5 6 7 8 9 10 11 12 13
Atlanta 45 34 32 54 33 32 46 36 33 55 28 20 58 45 36 25 55 41
Boston 58 25 48 41 32 33 34 42 43 46 46 54 19 60 42 32 45 52
Chicago 56 20 68 42 42 45 33 25 52 47 69 65 30 24 96 35 44 47
Dallas 42 35 38 62 43 25 28 34 40 50 62 68 62 48 42 36 43 42
LA 45 40 50 41 38 36 42 45 45 47 66 42 35 39 42 46 53 49
Total 246 154 236 240 188 171 183 182 213 245 271 249 204 216 258 174 240 231
 

 

 

 

 

 

 

 

 

 

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.)

 

 

 

 

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
11.62
МАРЕ
32.17
TS
1.41
5-week MA
MAD
11.28
МАРЕ
31.53
TS
0.48
Transcribed Image Text: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 11.62 МАРЕ 32.17 TS 1.41 5-week MA MAD 11.28 МАРЕ 31.53 TS 0.48
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 14 images

Blurred answer
Knowledge Booster
Ecological design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.