Scribd
Upload
175 views1 page

Starbucks Problem 2

The document discusses forecasting demand for a coffee maker sold by Starbucks. It provides historical demand data for the coffee maker over the past 18 weeks across 5 cities. Management wants to implement a new forecasting system that uses either simple moving average or exponential smoothing models. They ask the reader to experiment with the two models using alpha values of 0.2 and 0.4, and provide forecasts for weeks 1-13 based on the historical demand data.

Uploaded by

Johny Faulk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
175 views1 page

Starbucks Problem 2

The document discusses forecasting demand for a coffee maker sold by Starbucks. It provides historical demand data for the coffee maker over the past 18 weeks across 5 cities. Management wants to implement a new forecasting system that uses either simple moving average or exponential smoothing models. They ask the reader to experiment with the two models using alpha values of 0.2 and 0.4, and provide forecasts for weeks 1-13 based on the historical demand data.

Uploaded by

Johny Faulk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

2/25/2020 Starbucks

Starbucks  Saved Help Save & Exit S

Check my w

2 customers served, Starbucks management configures the store offerings to take maximum advantage of the space ava
and customer preferences.
 
     Starbucks’ actual distribution system is much more complex, but for the purpose of our exercise let’s focus on a sing
item that is currently distributed through five distribution centers in the United States. Our item is a logo branded
10 coffeemaker that is sold at some of the larger retail stores. The coffeemaker has been a steady seller over the years d
points its reliability and rugged construction. Starbucks does not consider this a seasonal product, but there is some variabilit
demand. Demand for the product over the past 18 weeks is shown in the following table. (week −1 is the week before w
in the table, −2 is two weeks before week 1, etc.).
eBook
 
Print      Management would like you to experiment with some forecasting models to determine what should be used in a ne
system to be implemented. The new system is programmed to use one of two forecasting models: simple moving aver
References or exponential smoothing.

 
WEEK −5 −4 −3 −2 −1 1 2 3 4 5 6 7 8 9 10 11 12 13
Atlanta 30 32 33 57 34 35 46 35 34 54 33 21 56 45 36 25 56 40
Boston 60 21 43 46 33 36 33 47 40 48 45 49 23 66 42 35 41 49
Chicago 54 26 57 35 43 44 34 27 48 48 66 64 32 26 90 34 44 46
Dallas 35 28 35 54 43 43 28 35 38 46 55 65 60 45 40 34 38 42
LA 40 42 46 36 37 38 42 45 46 47 65 43 35 39 42 45 50 50
Total 236 149 224 228 190 181 183 189 206 243 266 242 206 221 250 173 229 227

 
a. Consider using a simple exponential smoothing model. In your analysis, test two alpha values, 0.2 and 0.4. When us
alpha value of 0.2, assume that the forecast for week 1 is the past three-week average (the average demand for period
−2, and −1). For the model using an alpha of 0.4, assume that the forecast for week 1 is the past five-week average. (Ro
your answers to 2 decimal places.)

← Prev 2 of 2 ▦ Next →

https://newconnect.mheducation.com/flow/connect.html 1/1

You might also like