Operations and Supply Chain Management The Core

CHAPTER 3
FORECASTING
Learning Objectives
LO3–1 Understand how forecasting is essential to supply chain planning.
LO3–2 Evaluate demand using quantitative forecasting models.
LO3–3 Apply qualitative techniques to forecast demand.
LO3–4 Apply collaborative techniques to forecast demand.
FROM BEAN TO CUP: STARBUCKS GLOBAL
SUPPLY CHAIN CHALLENGE
Starbucks Corporation is the largest coffeehouse company in the world with over
17,000 stores in more than 50 countries. The company serves some 50 million
customers each week.
Forecasting demand for a Starbucks is an amazing challenge. The product line
goes well beyond drip-brewed coffee sold on demand in the stores. It includes
espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot
and cold sandwiches and panini, pastries, snacks, and items such as mugs and
tumblers. Many of the company’s products are seasonal or specific to the locality
of the store. Starbucks-branded ice cream and coffee are also offered at grocery
stores around the world.