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. 47 50 49 69 WEEK -5 -4 -3 -2 -1 1 2 3 4 5 6 Atlanta 45 32 34 55 32 32 46 35 33 55 28 Boston 56 27 47 43 35 32 35 44 45 45 Chicago 50 20 64 40 40 45 33 26 Dallas 36 35 34 60 42 29 28 35 LA 41 40 48 40 35 36 42 44 228 154 227 238 184 174 184 184 212 242 272 247 203 217 255 171 232 232 38 48 62 45 66 42 35 46 Total 13 7 8 9 10 11 12 20 58 45 35 26 57 42 52 18 62 43 31 41 51 65 30 24 95 34 44 46 68 62 47 40 35 40 43 39 42 45 50 50 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.)

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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Transcribed Image Text: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 Atlanta 45 32 34 Boston 56 27 47 Chicago 50 20 64 Dallas 36 35 34 LA 41 40 48 Total Week 1 2 3 4 5 2 55 3 40 60 40 6 7 8 9 10 11 12 13 43 228 154 227 238 ATL -1 1 2 3 32 32 46 35 35 32 35 44 40 45 33 26 50 42 29 28 35 BOS 48 45 58 8 45 5 5 45 49 48 45 33 38 35 36 42 44 46 CHI 6 55 28 20 47 52 69 65 62 68 62 42 35 7 8 66 DAL 58 18 LA 30 45 2 24 47 39 10 35 45 95 48 42 9 62 184 174 184 184 212 242 272 247 203 217 255 40 43 31 41 42 11 12 13 42 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 26 57 Total 34 44 35 45 40 50 171 232 51 46 43 50 232