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Starbucks has a large, global supply chain that must efficlently supply over 34,000 stores. Although the stores might appear to be very similar, they are

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Starbucks has a large, global supply chain that must efficlently supply over 34,000 stores. Although the stores might appear to be very similar, they are octually very different. Depending on the lacation of the store, its size, and the profile of the customers served, starbucks management configures the store offerings to take moximum advantage of the space avallable and customer preferences. 'Starbucks' actuai distribution system is much more complex, but for the purpose of our exercise, let's focus on a single item thot 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 retall stores. The coffeemaker has been a steady seller over the years due to its rellability and rugged construction. Starbucks does not consider this a seasonal product, but there is some varlability 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 expertment with some forecasting models to determine what shoula 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 sithple exponentiai smoothing model. In your analysis, test two alpha values, 0.2 and 0.4 . When using an aipha value of 02 , assume that the forecast for week 1 is the past three-week average (the average demand for perfods 3,2, and -1 ) For the model using an alpha of 0.4 , assume that the forecast for week 1 is the past five-week averago. Note: Round your onswers to 2 decimal pleces. ES, a0.2 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, mean absolute percent error, and tracking signal as criteria. Note: Negotive volues should be indicated by a minus sign. Round all answers to 2 decimal ploces. Enter "MAPE" answers as o percentoge rounded to 2 decimal ploces

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