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Starbucks has a large, global supply chain that must efficiently supply over 1 7 , 0 0 0 stores. Although the stores might appear to
Starbucks has a large, global supply chain that must efficiently supply over 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 lets focus on a single item that is currently distributed through five distribution centers in the United States. Our item is a logobranded 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 weeks is shown in the following table. week is the week before week in the table, is two weeks before week 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
Atlanta
Boston
Chicago
Dallas
LA
Total
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