Answered: Evaluate the forecasts that would have…

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...

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Question

**5-week MA Analysis**

**Table 1: 5-week Moving Average by Week and Location**

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

**Instructions for Evaluation:**
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 (MAD), mean absolute percent error (MAPE), and tracking signal (TS) as criteria. **Note:** Negative values should be indicated by a minus sign. Round all answers to two decimal places. Enter "MAPE" answers as a percentage rounded to two decimal places.

**Table 2: Evaluation of Forecasts**

| | ATL | BOS | CHI | DAL | LA | Avg of DCs |
|------------|-----|-----|-----|-----|-----|------------|
| **3-week MA** | | | | | | |
| MAD | | | | | | |
| MAPE (%) | | | | | | |
| TS | | | | | | |
| **5-week MA** | | | | | |

Transcribed Image Text:**Starbucks Supply Chain Forecasting Exercise** Starbucks operates a vast supply chain to efficiently stock over 1,000 stores. Despite the apparent similarities among stores, they differ significantly in terms of location, size, and customer demographics. To maximize efficiency, Starbucks customizes store offerings based on spatial and consumer needs. For this exercise, we'll focus on a singular item distributed via five U.S. distribution centers. This item, a logo-branded coffeemaker, is consistently a top seller due to its durability. While demand variability is acknowledged, Starbucks does not view it as a seasonal product. Below, we explore the item's demand over the past 13 weeks (where week -1 is the week before week 1). **Demand Table:** | Week | ATL | BOS | CHI | DAL | LA | Total | |------|-----|-----|-----|-----|----|-------| | -5 | 45 | 58 | 56 | 42 | 45 | 246 | | -4 | 34 | 25 | 20 | 35 | 40 | 154 | | -3 | 32 | 54 | 48 | 38 | 56 | 236 | | -2 | 54 | 33 | 52 | 25 | 47 | 240 | | -1 | 33 | 31 | 33 | 32 | 66 | 188 | | 1 | 22 | 24 | 47 | 50 | 47 | 171 | | 2 | 51 | 46 | 69 | 62 | 66 | 183 | | 3 | 55 | 20 | 65 | 64 | 28 | 213 | | 4 | 28 | 19 | 47 | 48 | 35 | 177 | | 5 | 20 | 60 | 29 | 42 | 39 | 245 | | 6 | 58 | 42 | 24 | 62 | 46 | 271 | | 7 | 45 | 35

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