Question
Starbucks actual distribution system is much more complex, but for the purpose of our exercise lets focus on a single item that is currently distributed
Starbucks actual distribution system is much more complex, but for the purpose of our exercise lets 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 44 35 28 55 35 32 45 35 32 54 28 18 58 48 36 24 56 42 Boston 61 24 48 40 35 27 35 42 42 45 48 53 20 61 45 30 46 50 Chicago 61 23 74 43 45 45 33 23 53 48 72 60 27 26 96 34 45 48 Dallas 41 35 40 64 44 28 42 34 40 50 62 68 64 54 40 38 45 40 LA 42 42 50 45 36 32 42 50 42 46 72 42 34 45 38 48 55 50 Total 249 159 240 247 195 164 197 184 209 243 282 241 203 234 255 174 247 230
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