Starbucks has a large, global supply chain that must efficiently supply over 17,000 stores. Although the stores might ap
Posted: Sun Oct 03, 2021 11:38 am
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.
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 Week ATL BOS CHI DAL LA Total 3 4 15 16 7 A 19 10 11 12 13 5-week MA Week ATL BOS CHI DAL LA Total 1 3 4 5 6 7 8 9 10 11 12 13
| 5-week MA
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.
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.)
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| 5-week MA