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1	
  
Food Insecurity in America:
A Macro and Micro-Level
Analysis
Virag Mody, Marielle Lenowitz, Aneesha Chowdhary, Eboni Freeman,
Jasmyn Mackell and Ben Gross
April 12, 2017
	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
2	
  
TABLE	
  OF	
  CONTENTS	
  
	
  
	
  
1.   Executive	
  Summary……………………………………………………………………………………..3	
  
	
  
2.   Project	
  Goal…………………………………………………………………………………………………4	
  
	
  
3.   Part	
  I:	
  A	
  Macro	
  Perspective	
  on	
  Food	
  Insecurity…………………………………………….4	
  
	
  
3.1	
  Food	
  Insecurity	
  in	
  the	
  United	
  States……………………………………………4	
  
	
  
3.2	
  Selection	
  of	
  Exponential	
  Smoothing	
  and	
  Alpha	
  Coefficient………….4	
  
	
   	
  
3.3	
  Exponential	
  Smoothing	
  Data	
  Analysis………………………………………….5	
  
	
  
3.4  Forecasting	
  Food	
  Insecurity	
  with	
  Regression	
  Analysis………………….6	
  
	
  
3.5  Comparing	
  Forecasts	
  –	
  Exponential	
  Soothing	
  vs.	
  Regression………..7	
  
	
  
3.6  Note	
  on	
  Regression	
  Analysis………………………………………………………..7	
  
	
  
4.	
  Part	
  II:	
  Quality	
  of	
  Inventory	
  at	
  a	
  Local	
  Food	
  Pantry…………………………………………7	
  
	
  
4.1	
  Background	
  on	
  Toco	
  Hills	
  Community	
  Alliance………………………......7	
  
	
  
4.2	
  Data	
  Collection……………………………………………………………………………8	
  
	
  
4.3	
  P-­‐Bar	
  Chart	
  Construction	
  and	
  Analysis…………………………………….….8	
  
	
  
4.5  R-­‐Chart	
  Construction	
  and	
  Analysis	
  …………………………………………….10	
  
	
  
5.   Recommendation………………………………………………………………………………………..11	
  
	
  
6.   	
  Future	
  Considerations………………………………………………………………………………..11	
  
	
  
7.   Appendix	
  A	
  (for	
  Part	
  II	
  data	
  and	
  graphs)……………………………………………………..13	
  
	
  
8.   Appendix	
  B	
  (for	
  Part	
  I	
  data	
  and	
  graphs)………………………………………………………14	
  
	
  
9.   Sources……………………………………………………………………………………………………….19	
  
	
  
	
  
	
  
 
	
  
	
  
3	
  
1.	
  Executive	
  Summary	
  
There	
  is	
  a	
  food	
  insecurity	
  epidemic	
  in	
  America.	
  In	
  2016	
  over	
  17	
  million	
  American	
  households	
  were-­‐	
  at	
  
some	
  point-­‐	
  food	
  insecure	
  (USDA	
  Food	
  Security	
  Study).	
  The	
  taxpayer	
  burden	
  of	
  this	
  insecurity	
  is	
  
massive;	
  in	
  fiscal	
  year	
  2015,	
  the	
  federal	
  government	
  spent	
  over	
  75	
  billion	
  dollars	
  on	
  supplemental	
  
food	
  programs	
  (Center	
  for	
  Budget	
  and	
  Policy	
  Priorities).	
  	
  	
  
	
  
While	
  some	
  of	
  the	
  hunger	
  burden	
  is	
  relieved	
  through	
  specific	
  federal	
  programs,	
  such	
  as	
  the	
  free	
  and	
  
reduced	
  lunch	
  program	
  for	
  students,	
  SNAP,	
  and	
  WIC,	
  a	
  significant	
  amount	
  of	
  food	
  is	
  distributed	
  
through	
  non-­‐profit	
  entities	
  such	
  as	
  food	
  banks	
  and	
  food	
  pantries.	
  In	
  fact,	
  1	
  of	
  out	
  every	
  7	
  US	
  families	
  
at	
  least	
  partially	
  relied	
  on	
  a	
  food	
  bank	
  or	
  food	
  pantry	
  in	
  the	
  last	
  year	
  to	
  meet	
  their	
  needs	
  (Feeding	
  
America	
  Study).	
  
	
  
For	
  our	
  study,	
  we	
  first	
  wanted	
  to	
  focus	
  on	
  a	
  local	
  food	
  pantry	
  where	
  we	
  could	
  offer	
  a	
  
recommendation	
  that	
  could	
  benefit	
  the	
  thousands	
  of	
  families	
  whom	
  it	
  serves	
  each	
  month.	
  We	
  chose	
  
Toco	
  Hills	
  Community	
  Alliance	
  in	
  Druid	
  Hills	
  to	
  conduct	
  our	
  survey,	
  due	
  to	
  its	
  proximity	
  to	
  Emory	
  and	
  
the	
  wide	
  range	
  of	
  food	
  products	
  it	
  receives	
  each	
  month.	
  By	
  visiting	
  the	
  food	
  pantry,	
  we	
  were	
  able	
  to	
  
collect	
  both	
  qualitative	
  and	
  quantitative	
  observations	
  about	
  its	
  inventory	
  management	
  system	
  and	
  
the	
  clientele	
  it	
  serves.	
  	
  
	
  
We	
  took	
  16	
  samples	
  of	
  Toco	
  Hill	
  Community	
  Alliance’s	
  inventory	
  in	
  an	
  attempt	
  to	
  calculate	
  the	
  
approximate	
  number	
  of	
  goods	
  that	
  are	
  defective	
  (expired).	
  Using	
  this	
  data,	
  we	
  were	
  then	
  able	
  to	
  
calculate	
  that	
  number	
  of	
  defective	
  goods	
  per	
  million,	
  as	
  well	
  as	
  construct	
  a	
  P-­‐Bar	
  Chart	
  for	
  the	
  
number	
  of	
  expired	
  goods	
  present	
  in	
  each	
  sample.	
  Additionally,	
  we	
  created	
  an	
  R-­‐Chart	
  of	
  the	
  sample	
  
ranges	
  to	
  better	
  understand	
  the	
  extent	
  of	
  quality	
  management	
  situation.	
  From	
  both	
  of	
  these	
  charts,	
  
we	
  found	
  that	
  the	
  number	
  of	
  expired	
  goods,	
  as	
  well	
  as	
  the	
  range	
  in	
  expiration	
  for	
  expired	
  goods,	
  
varied	
  widely.	
  Such	
  variation	
  showed	
  that	
  the	
  food	
  bank	
  most	
  likely	
  does	
  not	
  have	
  a	
  system	
  in	
  place	
  
to	
  ensure	
  that	
  goods	
  expiring	
  soonest	
  are	
  distributed	
  first.	
  
	
  
To	
  better	
  understand	
  our	
  data,	
  we	
  also	
  examined	
  broader	
  food	
  insecurity	
  trends	
  in	
  the	
  US.	
  Using	
  
data	
  from	
  USDA	
  studies	
  on	
  food	
  insecurity	
  in	
  the	
  US	
  from	
  1998-­‐2015,	
  we	
  conducted	
  exponential	
  
smoothing	
  forecasts	
  of	
  total	
  US	
  households	
  and	
  US	
  households	
  with	
  general	
  food	
  insecurity	
  (as	
  well	
  
as	
  for	
  subsections	
  with	
  low	
  food	
  security	
  and	
  very	
  low	
  food	
  security).	
  These	
  forecasts	
  turned	
  out	
  to	
  
be	
  consistent	
  with	
  actual	
  data	
  from	
  the	
  period.	
  We	
  also	
  ran	
  regressions	
  for	
  these	
  four	
  categories	
  as	
  
well,	
  which	
  had	
  a	
  noticeably	
  higher	
  error	
  when	
  compared	
  with	
  real	
  data	
  from	
  the	
  period.	
  We	
  then	
  
used	
  the	
  regression	
  models	
  to	
  forecast	
  the	
  the	
  number	
  of	
  food	
  insecure	
  households	
  the	
  next	
  5	
  years.	
  	
  
	
  
Based	
  on	
  our	
  analysis	
  of	
  the	
  Toco	
  Hills	
  Community	
  Alliance	
  data,	
  as	
  well	
  as	
  the	
  P-­‐Bar	
  and	
  R-­‐Charts	
  we	
  
constructed,	
  we	
  recommend	
  that	
  the	
  food	
  pantry	
  create	
  a	
  system	
  that	
  organizes	
  goods	
  by	
  expiration	
  
date.	
  Goods	
  that	
  are	
  expiring	
  sooner	
  should	
  be	
  placed	
  in	
  the	
  front	
  of	
  the	
  room	
  and	
  on	
  the	
  outermost	
  
edge	
  of	
  the	
  shelves,	
  as	
  a	
  means	
  of	
  encouraging	
  shoppers	
  to	
  pick	
  those	
  goods.	
  Meanwhile,	
  goods	
  that	
  
are	
  received	
  and	
  have	
  several	
  years	
  before	
  their	
  expiration	
  should	
  be	
  placed	
  towards	
  the	
  back,	
  
because	
  they	
  have	
  a	
  significantly	
  longer	
  “use-­‐by”	
  date.	
  This	
  organizational	
  solution	
  will	
  not	
  
completely	
  eliminate	
  the	
  food	
  pantry’s	
  problem	
  with	
  expired	
  goods;	
  indeed,	
  some	
  of	
  the	
  goods	
  the	
  
food	
  pantry	
  receives	
  are	
  already	
  close	
  to,	
  if	
  not	
  past,	
  their	
  expiration	
  date.	
  The	
  implementation	
  of	
  
 
	
  
	
  
4	
  
such	
  a	
  system	
  could	
  make	
  an	
  impact	
  in	
  reducing	
  the	
  total	
  number	
  of	
  expired	
  goods	
  that	
  the	
  pantry	
  
keeps	
  in	
  its	
  inventory.	
  	
  
	
  
2.	
  Project	
  Goal	
  
This	
  project	
  aims	
  to	
  analyze	
  the	
  quality	
  of	
  inventory	
  at	
  the	
  Toco	
  Hills	
  Community	
  Alliance,	
  a	
  local	
  food	
  
pantry	
  in	
  Atlanta,	
  Georgia.	
  Additionally,	
  to	
  understand	
  the	
  large	
  number	
  of	
  food	
  insecure	
  households	
  
that	
  frequent	
  these	
  types	
  of	
  food	
  pantries,	
  this	
  project	
  also	
  sought	
  to	
  forecast	
  macro	
  level	
  data	
  about	
  
food	
  insecurity,	
  such	
  as	
  the	
  total	
  number	
  of	
  food	
  insecure	
  households	
  each	
  year,	
  from	
  1998-­‐2015	
  (as	
  
well	
  as	
  subsections	
  of	
  this	
  data,	
  such	
  as	
  those	
  with	
  very	
  low	
  food	
  security).
	
  
3.	
  Part	
  I:	
  A	
  Macro	
  Perspective	
  on	
  Food	
  Insecurity	
  
3.1	
  Food	
  Insecurity	
  in	
  the	
  United	
  States	
  
The	
  United	
  States	
  Department	
  of	
  Agriculture	
  (USDA)	
  defines	
  food	
  insecurity	
  as	
  a	
  state	
  in	
  which	
  
“consistent	
  access	
  to	
  adequate	
  food	
  is	
  limited	
  by	
  a	
  lack	
  of	
  money	
  and	
  other	
  resources	
  at	
  times	
  during	
  
the	
  year.”	
  Food	
  insecurity	
  exists	
  whenever	
  the	
  availability	
  of	
  healthy,	
  nutritionally	
  adequate,	
  and	
  safe	
  
foods	
  is	
  limited,	
  or	
  the	
  ability	
  to	
  obtain	
  sufficient	
  foods	
  in	
  a	
  legitimate	
  and	
  socially	
  acceptable	
  way	
  is	
  
uncertain.	
  An	
  estimated	
  1	
  in	
  7	
  Americans	
  struggles	
  with	
  food	
  insecurity.	
  	
  
	
  
We	
  were	
  interested	
  in	
  the	
  relationship	
  between	
  food	
  pantries	
  and	
  food	
  insecurity,	
  but	
  before	
  we	
  
could	
  focus	
  specifically	
  on	
  our	
  local	
  food	
  pantry,	
  the	
  Toco	
  Hills	
  Community	
  Alliance,	
  we	
  wanted	
  to	
  
understand	
  the	
  larger	
  food	
  insecurity	
  problem	
  in	
  the	
  United	
  States.	
  Using	
  data	
  from	
  the	
  USDA	
  report	
  
entitled	
  “Household	
  Food	
  Security	
  in	
  the	
  United	
  States	
  in	
  2015,”	
  we	
  chose	
  to	
  forecast	
  Total	
  Food	
  
Insecurity	
  as	
  a	
  function	
  of	
  Total	
  Households,	
  which	
  could	
  then	
  further	
  be	
  broken	
  down	
  into	
  Low	
  Food	
  
Security	
  and	
  Very	
  Low	
  Food	
  Security	
  (Exhibit	
  8,	
  Appendix	
  B).	
  By	
  analyzing	
  this	
  data,	
  we	
  would	
  be	
  able	
  
to	
  get	
  a	
  macro-­‐level	
  perspective	
  on	
  a	
  topic	
  that	
  affects	
  people	
  both	
  locally	
  within	
  the	
  Atlanta	
  area,	
  as	
  
well	
  as	
  nationally.	
  
	
  
3.2	
  Selection	
  of	
  Exponential	
  Smoothing	
  and	
  Alpha	
  Coefficient	
  
To	
  properly	
  forecast,	
  the	
  first	
  step	
  is	
  to	
  identify	
  which	
  method	
  of	
  forecasting	
  is	
  most	
  appropriate	
  to	
  
use.	
  The	
  five	
  methods	
  available	
  are	
  Naïve,	
  Moving	
  Average,	
  Weighted	
  Moving	
  Average,	
  Exponential	
  
Smoothing,	
  and	
  Regression.	
  The	
  following	
  shows	
  our	
  analysis	
  and	
  applicability	
  of	
  each	
  method,	
  
except	
  for	
  regression	
  analysis,	
  which	
  is	
  mentioned	
  later:	
  
•	
  	
  	
  	
  Naïve	
  Forecasting	
  –	
  This	
  method	
  does	
  not	
  appropriately	
  account	
  for	
  historical	
  data,	
  with	
  
the	
  exception	
  of	
  the	
  previous	
  period.	
  At	
  a	
  minimum,	
  the	
  population	
  tends	
  to	
  grow	
  positively,	
  
so	
  using	
  the	
  prior	
  period’s	
  data	
  point	
  would	
  be	
  empirically	
  wrong,	
  thus	
  eliminating	
  this	
  
method	
  as	
  a	
  viable	
  option.	
  
•	
  	
  	
  	
  Moving	
  Average	
  –	
  This	
  method	
  weights	
  each	
  data	
  point	
  equally,	
  meaning	
  that	
  data	
  from	
  
1998	
  is	
  just	
  as	
  relevant	
  as	
  data	
  from	
  2014.	
  Weighting	
  older	
  data	
  equally	
  to	
  recent	
  data	
  would	
  
be	
  problematic	
  for	
  this	
  project	
  because	
  numerous	
  factors	
  influence	
  levels	
  of	
  food	
  security	
  
over	
  time,	
  such	
  as	
  economic	
  trends,	
  immigration,	
  population	
  changes,	
  and	
  health.	
  These	
  
factors	
  cause	
  food	
  insecurity	
  to	
  evolve	
  over	
  time,	
  meaning	
  that	
  more	
  current	
  factors	
  are	
  more	
  
relevant	
  to	
  present	
  food	
  insecurity	
  trends.	
  Therefore,	
  the	
  historical	
  data	
  from	
  1998	
  should	
  not	
  
have	
  as	
  much	
  weight	
  as	
  recent	
  years,	
  removing	
  the	
  Moving	
  Average	
  as	
  an	
  option.	
  
 
	
  
	
  
5	
  
•	
  	
  	
  	
  Weighted	
  Moving	
  Average	
  –	
  WMA	
  could	
  have	
  some	
  applicability,	
  but	
  without	
  knowing	
  
how	
  to	
  weight	
  historical	
  data,	
  doing	
  so	
  would	
  be	
  arbitrary.	
  This	
  eliminates	
  WMA.	
  
•	
  	
  	
  	
  Exponential	
  Smoothing	
  –	
  This	
  forecasting	
  method	
  assigns	
  exponentially	
  decreasing	
  
weights	
  as	
  the	
  observations	
  get	
  older,	
  allowing	
  us	
  to	
  put	
  more	
  weight	
  on	
  more	
  recent	
  and	
  
more	
  relevant	
  data,	
  which	
  was	
  the	
  concern	
  pointed	
  out	
  in	
  the	
  Moving	
  Average	
  model.	
  This	
  
means	
  that	
  Exponential	
  Smoothing	
  is	
  a	
  viable	
  method	
  for	
  forecasting	
  our	
  data.	
  
	
  
Given	
  that	
  there	
  are	
  macro	
  factors	
  for	
  variability	
  in	
  food	
  insecurity,	
  including	
  immigration,	
  population	
  
changes,	
  health,	
  and	
  economic	
  factors,	
  we	
  cannot	
  solely	
  rely	
  on	
  historical	
  data,	
  as	
  there	
  is	
  most	
  likely	
  
not	
  a	
  consistent,	
  holistic	
  trend.	
  However,	
  we	
  cannot	
  assume	
  an	
  alpha	
  of	
  1	
  because	
  it	
  will	
  become	
  
naive	
  forecasting.	
  Additionally,	
  immigration,	
  population	
  changes,	
  and	
  the	
  economy	
  often	
  follow	
  
trends	
  and	
  cycles,	
  so	
  to	
  some	
  extent,	
  historical	
  data	
  is	
  useful.	
  Thus,	
  to	
  use	
  only	
  the	
  previous	
  years	
  
would	
  be	
  inaccurate	
  and	
  naïve,	
  while	
  discounting	
  historical	
  data	
  altogether	
  would	
  make	
  for	
  a	
  poor	
  
forecast.	
  In	
  order	
  to	
  appease	
  both	
  sides	
  of	
  this	
  narrative,	
  we	
  selected	
  an	
  alpha	
  value	
  of	
  0.5	
  as	
  a	
  
median	
  between	
  discounting	
  historical	
  data	
  and	
  accounting	
  for	
  historical	
  information.	
  
	
  
3.3	
  Data	
  Analysis	
  –	
  Exponential	
  Smoothing	
  
After	
  forecasting	
  using	
  exponential	
  smoothing,	
  the	
  following	
  graphs	
  show	
  noteworthy	
  information.	
  
The	
  raw	
  data	
  can	
  be	
  found	
  in	
  Exhibit	
  1	
  and	
  2	
  under	
  Appendix	
  B.	
  Exhibit	
  2	
  also	
  shows	
  the	
  MAPE	
  to	
  
calculate	
  the	
  error.	
  
•	
  	
  	
  	
  Total	
  Households	
  –	
  Our	
  forecast	
  for	
  this	
  metric	
  is	
  fairly	
  accurate	
  in	
  tracking	
  Historical	
  Data,	
  
with	
  a	
  MAPE	
  of	
  1.99%.	
  However,	
  except	
  for	
  1998,	
  forecasted	
  Total	
  Households	
  is	
  consistently	
  
below	
  the	
  actual	
  data.	
  This	
  is	
  most	
  likely	
  because	
  there	
  were	
  variable	
  jumps	
  in	
  the	
  number	
  of	
  
real	
  total	
  households,	
  which	
  could	
  not	
  be	
  accurately	
  accounted	
  for,	
  due	
  to	
  the	
  fact	
  that	
  our	
  
exponential	
  smoothing	
  model	
  weights	
  the	
  previous	
  year’s	
  forecast	
  as	
  heavily	
  as	
  the	
  actual	
  
data.	
  Thus,	
  any	
  lag	
  in	
  the	
  forecast	
  would	
  permanently	
  influence	
  future	
  predictions.	
  
	
  
	
  
 
	
  
	
  
6	
  
•	
  	
  	
  	
  Total	
  Food	
  Insecurity	
  –	
  Analysis	
  of	
  Total	
  Food	
  Insecurity	
  be	
  can	
  be	
  broken	
  up	
  into	
  “Pre	
  
2007”	
  and	
  “Post	
  2007.”	
  	
  
•   Pre	
  2007	
  –	
  The	
  exponential	
  smoothing	
  forecasts	
  had	
  a	
  low	
  forecast	
  error	
  because	
  they	
  
normalized	
  the	
  variability	
  in	
  total	
  food	
  insecurity.	
  The	
  dip	
  from	
  1998	
  to	
  2000	
  is	
  offset	
  by	
  
the	
  increase	
  in	
  food	
  insecurity	
  from	
  2000	
  to	
  2004.	
  Because	
  the	
  model	
  accounts	
  for	
  
historical	
  data	
  at	
  an	
  exponentially	
  decaying	
  rate,	
  the	
  variability	
  over	
  time	
  will	
  be	
  smoothed	
  
in	
  our	
  forecasted	
  graph.	
  	
  
•   Post-­‐2007	
  –	
  The	
  massive	
  jump	
  in	
  Total	
  Food	
  Insecurity	
  likely	
  resulted	
  from	
  the	
  housing	
  
market	
  collapse	
  and	
  subsequent	
  recession.	
  Our	
  forecast	
  model	
  didn’t	
  intersect	
  the	
  actual	
  
data	
  from	
  2007	
  to	
  2013	
  due	
  to	
  our	
  use	
  of	
  a	
  0.5	
  alpha.	
  An	
  alpha	
  of	
  1	
  would	
  have	
  better	
  
accounted	
  for	
  the	
  spike.	
  	
  
	
  
•	
  	
  	
  	
  Low	
  Food	
  Security	
  and	
  Very	
  Low	
  Food	
  Security	
  –	
  These	
  graphs,	
  found	
  under	
  Exhibits	
  3	
  and	
  4	
  in	
  
Appendix	
  B,	
  provide	
  a	
  very	
  similar	
  analysis	
  to	
  that	
  of	
  the	
  Total	
  Food	
  Insecurity	
  graph.	
  A	
  notable	
  
difference	
  can	
  be	
  seen	
  in	
  the	
  Very	
  Low	
  Food	
  Security	
  Graph,	
  whose	
  forecast	
  lags	
  from	
  2000	
  to	
  2014.	
  
This	
  lag	
  is	
  due	
  to	
  the	
  same	
  reason	
  cited	
  as	
  Total	
  Households;	
  Very	
  Low	
  Food	
  Security	
  has	
  been	
  
steadily	
  increasing	
  for	
  years,	
  and	
  our	
  exponential	
  smoothing	
  model	
  has	
  lagged	
  as	
  it	
  continually	
  
accounted	
  for	
  historical	
  data	
  at	
  an	
  exponentially	
  decreasing	
  rate.	
  
	
  
Exponential	
  smoothing	
  limited	
  our	
  ability	
  to	
  forecast	
  into	
  the	
  future	
  to	
  only	
  one	
  year	
  ahead,	
  2016.	
  If	
  
we	
  wanted	
  to	
  forecast	
  further	
  into	
  the	
  future,	
  we	
  would	
  have	
  to	
  use	
  a	
  regression	
  analysis.	
  	
  
	
  
3.4	
  Forecasting	
  Food	
  Insecurity	
  with	
  Regression	
  Analysis	
  
We	
  used	
  regression	
  analysis	
  because	
  this	
  method	
  allows	
  for	
  forecasting	
  beyond	
  a	
  single	
  year,	
  unlike	
  
Exponential	
  Smoothing.	
  Additionally,	
  regression	
  analysis	
  predicts	
  linear	
  trends	
  more	
  accurately	
  than	
  
exponential	
  smoothing.	
  The	
  regression	
  model	
  used	
  the	
  same	
  data	
  as	
  exponential	
  smoothing	
  (data	
  
which	
  can	
  be	
  found	
  in	
  Exhibit	
  1,	
  Appendix	
  B).	
  In	
  analyzing	
  the	
  regression	
  results,	
  P-­‐values	
  for	
  all	
  
different	
  regressions	
  are	
  less	
  than	
  0.05,	
  which	
  indicates	
  significance.	
  We	
  thus	
  felt	
  comfortable	
  using	
  
the	
  regression	
  analysis	
  to	
  forecast.	
  Additionally,	
  looking	
  at	
  the	
  R2
	
  values:	
  
 
	
  
	
  
7	
  
•	
  	
  	
  	
  The	
  high	
  R-­‐Square	
  value	
  of	
  98	
  percent	
  for	
  the	
  “Total	
  Households”	
  regression	
  indicates	
  that	
  
the	
  regression	
  is	
  representative,	
  though	
  there	
  may	
  be	
  concerns	
  of	
  overfitting	
  data,	
  which	
  may	
  
account	
  for	
  noise	
  that	
  could	
  impede	
  future	
  projections.	
  
•	
  	
  	
  	
  The	
  R-­‐Square	
  values	
  of	
  the	
  regressions	
  for	
  Total	
  Food	
  Insecurity,	
  Low	
  Food	
  Security,	
  and	
  
Very	
  Low	
  Food	
  Security	
  ranged	
  between	
  64	
  percent	
  and	
  84	
  percent,	
  which	
  indicates	
  that	
  
there	
  is	
  a	
  higher	
  amount	
  of	
  variability	
  in	
  the	
  actual	
  data	
  relative	
  to	
  that	
  of	
  our	
  regression.	
  
(Raw	
  numbers	
  for	
  p-­‐values	
  and	
  R-­‐squared	
  are	
  shown	
  in	
  Exhibit	
  5,	
  Appendix	
  B)	
  
	
  
3.5	
  Comparing	
  Forecasts	
  –	
  Exponential	
  Soothing	
  vs.	
  Regression	
  
(Graphs	
  of	
  regression	
  analysis	
  can	
  be	
  found	
  in	
  Exhibit	
  6,	
  Appendix	
  B)	
  
Exponential	
  smoothing	
  is	
  limited	
  in	
  how	
  far	
  into	
  the	
  future	
  we	
  can	
  forecast	
  data,	
  but	
  it	
  excels	
  at	
  its	
  
ability	
  to	
  fit	
  actual	
  data	
  closely.	
  This	
  is	
  shown	
  by	
  the	
  differences	
  in	
  MAPE	
  for	
  the	
  comparative	
  models.	
  
MAPE	
  for	
  the	
  regression	
  models	
  is	
  higher	
  for	
  nonlinear	
  trends	
  than	
  it	
  is	
  for	
  linear	
  trends.	
  Indeed,	
  the	
  
only	
  linear	
  trend	
  that	
  we	
  found	
  was	
  for	
  the	
  regression	
  for	
  total	
  households.	
  The	
  MAPE	
  calculations	
  
can	
  be	
  seen	
  in	
  Exhibit	
  7,	
  Appendix	
  B.	
  MAPE	
  for	
  total	
  households	
  is	
  much	
  lower	
  when	
  the	
  regression	
  
model	
  is	
  used	
  than	
  when	
  the	
  exponential	
  smoothing	
  model	
  is.	
  For	
  total	
  households,	
  there	
  are	
  more	
  
predictable	
  causal	
  reasons	
  for	
  a	
  linear	
  trend.	
  Ultimately,	
  it	
  is	
  the	
  least	
  squares	
  component	
  of	
  
regression	
  that	
  does	
  a	
  better	
  job	
  of	
  accounting	
  for	
  causal	
  factors	
  of	
  change	
  in	
  the	
  number	
  of	
  total	
  
households.	
  	
  
	
  
3.6	
  Note	
  on	
  Regression	
  Analysis	
  
The	
  regression	
  model,	
  while	
  applicable	
  for	
  periods	
  in	
  which	
  there	
  is	
  historical	
  data	
  following	
  a	
  linear	
  
trend,	
  has	
  future	
  forecasts	
  for	
  years	
  2016-­‐2020	
  that	
  are	
  likely	
  inaccurate	
  (forecasts	
  for	
  those	
  years	
  
can	
  be	
  found	
  in	
  Exhibit	
  7,	
  Appendix	
  B).	
  This	
  is	
  due	
  to	
  the	
  fact	
  that	
  the	
  regression	
  model	
  only	
  looks	
  at	
  
aggregate	
  numbers	
  and	
  doesn’t	
  account	
  for	
  causal	
  factors.	
  A	
  multivariable,	
  non-­‐linear	
  regression	
  
model	
  would	
  have	
  been	
  a	
  more	
  appropriate	
  way	
  to	
  forecast,	
  but	
  we	
  didn’t	
  have	
  the	
  capability	
  to	
  do	
  
that	
  for	
  this	
  analysis.	
  
	
  
Now	
  that	
  we	
  have	
  analyzed	
  overall	
  food	
  insecurity	
  in	
  the	
  United	
  States,	
  we	
  can	
  address	
  the	
  issues	
  
faced	
  by	
  our	
  one	
  of	
  Atlanta’s	
  own	
  food	
  pantries,	
  Toco	
  Hills	
  Community	
  Alliance.	
  	
  
	
  
4.	
  Part	
  II:	
  Quality	
  of	
  Inventory	
  at	
  a	
  Local	
  Food	
  Pantry	
  
4.1	
  Background	
  on	
  Toco	
  Hills	
  Community	
  Alliance	
  	
  
A	
  food	
  pantry	
  is	
  defined	
  as	
  a	
  charitable	
  organization	
  that	
  provides	
  those	
  in	
  need	
  with	
  food	
  and	
  
grocery	
  products	
  for	
  use	
  and	
  consumption	
  at	
  home.	
  The	
  food	
  pantry	
  we	
  analyzed,	
  Toco	
  Hills	
  
Community	
  Alliance,	
  is	
  a	
  food	
  pantry	
  that	
  serves	
  DeKalb	
  County	
  and	
  several	
  of	
  the	
  zip	
  codes	
  in	
  the	
  
surrounding	
  area.	
  According	
  to	
  its	
  website,	
  Toco	
  Hills	
  Community	
  Alliance’s	
  chief	
  goal	
  is	
  “to	
  provide	
  
assistance	
  and	
  support	
  for	
  individuals	
  and	
  families…	
  who	
  face	
  the	
  possibility	
  of	
  the	
  loss	
  of	
  housing	
  
and/or	
  who	
  are	
  without	
  sufficient	
  food	
  for	
  themselves	
  of	
  their	
  families”	
  (Toco	
  Hills	
  Community	
  
Alliance	
  Website).	
  The	
  pantry	
  receives	
  a	
  wide	
  variety	
  of	
  food	
  donations	
  from	
  both	
  local	
  grocery	
  stores	
  
and	
  individuals	
  in	
  the	
  community.	
  These	
  goods	
  are	
  then	
  organized	
  into	
  different	
  rooms,	
  based	
  on	
  the	
  
type	
  of	
  food	
  item,	
  by	
  the	
  employees	
  at	
  the	
  food	
  pantry.	
  For	
  example,	
  one	
  room	
  consists	
  of	
  mainly	
  
canned	
  goods	
  and	
  breads,	
  while	
  another	
  room	
  contains	
  mostly	
  snacks.	
  
	
  
 
	
  
	
  
8	
  
The	
  food	
  pantry	
  follows	
  a	
  specific	
  routine	
  when	
  serving	
  its	
  patrons.	
  Individuals	
  enter	
  the	
  building	
  that	
  
houses	
  the	
  pantry	
  and	
  must	
  prove	
  that	
  they	
  qualify	
  for	
  assistance.	
  Next,	
  they	
  are	
  placed	
  on	
  a	
  waiting	
  
list	
  and	
  provided	
  with	
  forms	
  to	
  complete.	
  One	
  by	
  one,	
  Toco	
  Hills	
  Community	
  Alliance	
  workers	
  guide	
  
these	
  individuals	
  through	
  the	
  different	
  food	
  storage	
  rooms.	
  Qualifying	
  individuals	
  are	
  allowed	
  to	
  
select	
  the	
  types	
  of	
  items	
  they	
  want,	
  but	
  only	
  workers	
  can	
  physically	
  collect	
  the	
  groceries.	
  At	
  the	
  end	
  
of	
  the	
  shopping	
  period,	
  the	
  workers	
  weigh	
  the	
  selected	
  groceries	
  and	
  record	
  the	
  amount.	
  	
  	
  
	
  
Following	
  our	
  initial	
  visit	
  to	
  the	
  Toco	
  Hills	
  Community	
  Alliance,	
  we	
  decided	
  to	
  focus	
  on	
  the	
  “quality”	
  
of	
  the	
  inventory.	
  For	
  our	
  purposes,	
  a	
  poor	
  quality	
  food	
  item	
  is	
  one	
  that	
  is	
  past	
  its	
  expiration	
  date.	
  We	
  
chose	
  this	
  aspect	
  for	
  analysis	
  because	
  the	
  pantry’s	
  primary	
  goal	
  is	
  providing	
  food	
  to	
  those	
  in	
  need,	
  
and	
  thus	
  it	
  is	
  important	
  that	
  it	
  is	
  serving	
  quality	
  food	
  that	
  won’t	
  make	
  people	
  sick.	
  	
  
	
  
Since	
  Toco	
  Hills	
  Community	
  Alliance	
  does	
  not	
  collect	
  information	
  on	
  the	
  donations	
  they	
  receive,	
  we	
  
had	
  to	
  use	
  a	
  heuristic	
  that	
  would	
  represent	
  the	
  quality	
  of	
  inventory.	
  We	
  ultimately	
  decided	
  on	
  the	
  
expiration	
  date	
  heuristic.	
  By	
  collecting	
  expiration	
  date	
  data,	
  we	
  hoped	
  to	
  determine	
  whether	
  a	
  
quality	
  issue	
  existed	
  and	
  to	
  give	
  a	
  possible	
  recommendation	
  to	
  address	
  this	
  problem,	
  if	
  this	
  turned	
  
out	
  to	
  be	
  the	
  case.	
  
	
  
4.2	
  Data	
  Collection	
  	
  
To	
  analyze	
  the	
  quality	
  of	
  the	
  inventory	
  and	
  tracking	
  system	
  at	
  the	
  Toco	
  Hills	
  Community	
  Alliance,	
  we	
  
visited	
  the	
  food	
  pantry	
  to	
  collect	
  samples.	
  We	
  took	
  three	
  samples	
  from	
  each	
  of	
  the	
  food	
  bank’s	
  five	
  
storage	
  rooms,	
  for	
  a	
  total	
  of	
  15	
  samples.	
  Each	
  sample	
  was	
  obtained	
  randomly	
  and	
  contained	
  a	
  mix	
  of	
  
10	
  perishable	
  and	
  non-­‐perishable	
  items.	
  	
  For	
  every	
  sample,	
  we	
  recorded	
  the	
  number	
  of	
  defective	
  
(expired)	
  goods	
  found	
  amongst	
  the	
  ten	
  items	
  surveyed.	
  The	
  expiration	
  date	
  of	
  an	
  item	
  was	
  recorded	
  
if	
  the	
  item	
  was	
  found	
  to	
  be	
  defective.	
  See	
  Exhibit	
  1	
  in	
  Appendix	
  A	
  for	
  the	
  raw	
  sample	
  data.	
  By	
  taking	
  
an	
  average	
  of	
  the	
  15	
  samples,	
  we	
  found	
  that	
  34%	
  of	
  the	
  sample	
  goods	
  were	
  defective.	
  This	
  finding	
  
indicates	
  that,	
  on	
  average,	
  3.4	
  out	
  of	
  every	
  10	
  goods	
  at	
  the	
  Toco	
  Hills	
  Community	
  Alliance	
  should	
  be	
  
expired.	
  Converting	
  this	
  number	
  to	
  defective	
  goods	
  per	
  million,	
  we	
  can	
  expect	
  that	
  340,000	
  out	
  of	
  
every	
  million	
  goods	
  donated	
  to	
  Toco	
  Hills	
  Community	
  Alliance	
  will	
  be	
  defective.	
  
	
  
4.3	
  P-­‐Bar	
  Chart	
  Construction	
  and	
  Analysis	
  	
  
After	
  collecting	
  our	
  data	
  and	
  calculating	
  the	
  average	
  number	
  of	
  defective	
  goods	
  per	
  million	
  at	
  the	
  
food	
  bank,	
  we	
  constructed	
  a	
  P-­‐Bar	
  Chart.	
  We	
  created	
  a	
  P-­‐Bar	
  Chart	
  because	
  it	
  can	
  be	
  an	
  efficient	
  tool	
  
to	
  analyze	
  the	
  number	
  of	
  defective	
  goods	
  relative	
  to	
  the	
  UCL	
  and	
  LCL,	
  as	
  well	
  as	
  show	
  whether	
  a	
  
process	
  is	
  out	
  of	
  control	
  or	
  not.	
  In	
  our	
  case,	
  we	
  wanted	
  to	
  see	
  the	
  variation	
  in	
  defective	
  goods	
  among	
  
the	
  five	
  sample	
  rooms	
  and	
  determine	
  whether	
  any	
  specific	
  rooms	
  fell	
  significantly	
  outside	
  of	
  the	
  
average.	
  	
  	
  
	
  
To	
  begin	
  the	
  construction	
  of	
  the	
  P-­‐Bar	
  Chart,	
  we	
  used	
  P-­‐Bar,	
  previously	
  found	
  to	
  be	
  0.34,	
  and	
  the	
  
parameters	
  of	
  three	
  sigmas,	
  to	
  calculate	
  the	
  Upper	
  Control	
  Limit	
  (UCL)	
  and	
  the	
  Lower	
  Control	
  Limit	
  
(LCL)	
  of	
  the	
  data.	
  The	
  UCL	
  and	
  LCL	
  were	
  found	
  to	
  be	
  0.45603	
  and	
  0.22396,	
  respectively.	
  It	
  is	
  
important	
  to	
  note	
  that	
  we	
  are	
  not	
  analyzing	
  a	
  machine	
  or	
  production	
  process;	
  rather,	
  in	
  our	
  case,	
  the	
  
UCL	
  and	
  LCL	
  serve	
  as	
  lower	
  and	
  upper	
  bounds	
  to	
  assess	
  if	
  our	
  data	
  goes	
  beyond	
  these	
  numbers	
  when	
  
 
	
  
	
  
9	
  
analyzing	
  the	
  quality	
  of	
  the	
  inventory.	
  After	
  the	
  calculation	
  of	
  these	
  values,	
  we	
  were	
  then	
  able	
  to	
  
construct	
  the	
  P-­‐Bar	
  Chart.	
  See	
  Exhibit	
  2,	
  Appendix	
  B	
  for	
  the	
  full	
  P-­‐Bar	
  Chart	
  calculations.	
  
	
  
Looking	
  at	
  our	
  P-­‐Bar	
  Chart,	
  represented	
  below,	
  we	
  can	
  see	
  that	
  the	
  data	
  varies	
  widely	
  in	
  respect	
  to	
  P-­‐
Bar,	
  UCL,	
  and	
  LCL.	
  There	
  are	
  two	
  key	
  reasons	
  for	
  this	
  vast	
  amount	
  of	
  variation.	
  First,	
  each	
  sample	
  
corresponds	
  to	
  a	
  particular	
  room,	
  and	
  some	
  rooms	
  contained	
  significantly	
  more	
  expired	
  goods	
  due	
  to	
  
the	
  types	
  of	
  items	
  that	
  they	
  stored.	
  For	
  example,	
  Room	
  4	
  (samples	
  7,	
  8,	
  and	
  9)	
  stores	
  goods	
  that	
  have	
  
a	
  relatively	
  short	
  shelf	
  life	
  like	
  bread.	
  In	
  comparison,	
  Room	
  3	
  (samples	
  4,	
  5,	
  and	
  6)	
  mostly	
  stores	
  items	
  
with	
  extended	
  shelf-­‐lives	
  such	
  as	
  canned	
  soups.	
  Second,	
  it	
  was	
  not	
  uncommon	
  to	
  find	
  a	
  group	
  of	
  cans	
  
several	
  years	
  expired	
  sitting	
  next	
  to	
  a	
  loaf	
  of	
  bread	
  that	
  was	
  set	
  to	
  expire	
  in	
  a	
  few	
  days,	
  when	
  we	
  
conducted	
  our	
  survey.	
  These	
  two	
  factors	
  created	
  significant	
  variation	
  in	
  the	
  data.	
  
	
  
	
  
	
  
While	
  the	
  data	
  fluctuates	
  significantly,	
  it	
  is	
  important	
  to	
  point	
  out	
  samples	
  that	
  fall	
  either	
  
considerably	
  below	
  the	
  LCL	
  or	
  considerably	
  above	
  the	
  UCL.	
  One	
  sample	
  that	
  fell	
  significantly	
  below	
  
the	
  LCL	
  was	
  sample	
  4,	
  which	
  had	
  no	
  defects.	
  Two	
  samples	
  that	
  significantly	
  exceeded	
  the	
  UCL	
  were	
  
samples	
  12	
  and	
  15,	
  each	
  of	
  which	
  had	
  six	
  defects.	
  Such	
  outliers	
  may	
  be	
  due	
  to	
  random	
  sampling	
  
chance,	
  given	
  the	
  fact	
  that	
  on	
  average,	
  about	
  3.4	
  out	
  of	
  every	
  10	
  goods	
  at	
  Toco	
  Hills	
  Community	
  are	
  
expected	
  to	
  be	
  defective.	
  It	
  is	
  also	
  possible	
  that	
  these	
  values	
  are	
  partially	
  due	
  to	
  the	
  rooms	
  where	
  the	
  
sample	
  was	
  taken,	
  as	
  discussed	
  earlier.	
  For	
  instance,	
  when	
  compared	
  with	
  the	
  other	
  two	
  samples	
  
from	
  the	
  refrigeration	
  room,	
  samples	
  13	
  and	
  14,	
  sample	
  15	
  does	
  not	
  stand	
  out	
  as	
  an	
  outlier.	
  
	
  
4.4	
  R-­‐Chart	
  Construction	
  and	
  Analysis	
  	
  
In	
  addition	
  to	
  making	
  a	
  P-­‐Bar	
  Chart,	
  we	
  also	
  created	
  an	
  R-­‐Chart.	
  We	
  decided	
  to	
  make	
  an	
  R-­‐Chart	
  
because	
  we	
  wanted	
  to	
  analyze	
  the	
  range	
  of	
  the	
  defective	
  goods-­‐–how	
  long	
  the	
  goods	
  in	
  each	
  sample	
  
 
	
  
	
  
10	
  
had	
  been	
  expired,	
  relative	
  to	
  the	
  day	
  that	
  we	
  took	
  the	
  sample	
  (April	
  5,	
  2017).	
  Ideally,	
  the	
  range	
  would	
  
be	
  more	
  accurate	
  if	
  we	
  had	
  information	
  on	
  when	
  the	
  item	
  was	
  donated	
  to	
  the	
  pantry;	
  after	
  all,	
  some	
  
goods	
  may	
  have	
  already	
  been	
  expired	
  when	
  donated.	
  However,	
  since	
  Toco	
  Hills	
  did	
  not	
  collect	
  this	
  
information,	
  we	
  decided	
  that	
  we	
  could	
  best	
  estimate	
  this	
  figure	
  by	
  comparing	
  expiration	
  dates	
  to	
  the	
  
date	
  we	
  took	
  the	
  samples.	
  To	
  calculate	
  the	
  range	
  for	
  each	
  sample,	
  we	
  found	
  the	
  good	
  with	
  the	
  most	
  
recent	
  expiration	
  date,	
  and	
  subtracted	
  it	
  from	
  the	
  good	
  with	
  the	
  oldest	
  expiration	
  date.	
  Next,	
  we	
  
found	
  the	
  average	
  of	
  the	
  15	
  sample	
  ranges,	
  or	
  R-­‐Bar,	
  which	
  we	
  calculated	
  to	
  be	
  10.357	
  months.	
  As	
  
with	
  the	
  P-­‐Bar	
  Chart,	
  we	
  found	
  the	
  UCL	
  and	
  LCL,	
  which	
  were	
  18.3457	
  months	
  and	
  2.2785	
  months,	
  
respectively.	
  These	
  control	
  limits	
  were	
  determined	
  using	
  the	
  D4	
  and	
  D3	
  values	
  on	
  page	
  185	
  of	
  the	
  
Bus351	
  Textbook.	
  Calculations	
  for	
  the	
  R-­‐Chart	
  can	
  be	
  seen	
  in	
  Exhibit	
  3	
  of	
  Appendix	
  A.	
  
	
  
The	
  R-­‐Chart,	
  shown	
  below	
  for	
  the	
  Toco	
  Hills	
  Community	
  Alliance,	
  shows	
  data	
  that	
  appears	
  to	
  have	
  no	
  
distinct	
  pattern,	
  except	
  a	
  few	
  samples	
  (samples	
  13,	
  14,	
  and	
  15).	
  Some	
  samples	
  had	
  a	
  range	
  of	
  0	
  
months	
  (significantly	
  below	
  the	
  LCL),	
  which	
  would	
  indicate	
  that	
  all	
  of	
  the	
  defective	
  goods	
  in	
  the	
  
sample	
  had	
  the	
  same	
  expiration	
  date.	
  Such	
  an	
  R	
  value	
  makes	
  sense	
  for	
  samples	
  13,	
  14,	
  and	
  15	
  
because	
  these	
  samples	
  were	
  from	
  the	
  refrigeration	
  room,	
  where	
  items	
  are	
  likely	
  to	
  have	
  a	
  short-­‐term	
  
shelf	
  life,	
  and	
  are	
  consequently	
  likely	
  to	
  have	
  expiration	
  dates	
  close	
  to	
  one	
  another.	
  Meanwhile,	
  
some	
  samples	
  had	
  an	
  enormous	
  range,	
  such	
  as	
  samples	
  7	
  and	
  9,	
  which	
  were	
  significantly	
  above	
  the	
  
UCL	
  and	
  had	
  ranges	
  of	
  42	
  and	
  41	
  months,	
  respectively.	
  The	
  significant	
  variation	
  among	
  R	
  values,	
  as	
  
well	
  as	
  the	
  presence	
  of	
  some	
  incredibly	
  high	
  values	
  (R=41,	
  R=42),	
  indicates	
  that	
  the	
  food	
  bank	
  does	
  
not	
  have	
  a	
  way	
  to	
  monitor	
  the	
  expiration	
  of	
  goods,	
  therefore	
  the	
  data	
  suggests	
  the	
  need	
  for	
  some	
  
type	
  of	
  organizational	
  system	
  to	
  ensure	
  that	
  the	
  food	
  pantry	
  serves	
  customers	
  items	
  that	
  have	
  not	
  
yet	
  expired.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
11	
  
4.   Recommendation	
  
Our	
  analysis	
  using	
  the	
  P-­‐Bar	
  Chart	
  and	
  R-­‐Chart	
  demonstrates	
  that	
  the	
  Toco	
  Hills	
  Community	
  Alliance	
  
needs	
  an	
  organization	
  schedule	
  by	
  expiration	
  date.	
  To	
  address	
  this	
  issue,	
  we	
  suggest	
  that	
  the	
  pantry	
  
implement	
  a	
  First-­‐In	
  First-­‐Out	
  (FIFO)	
  system	
  to	
  prevent	
  donated	
  items	
  from	
  reaching	
  their	
  expiration	
  
date	
  while	
  in	
  storage.	
  Under	
  our	
  proposed	
  system,	
  goods	
  would	
  continue	
  to	
  be	
  organized	
  by	
  food	
  
type,	
  but	
  they	
  would	
  also	
  be	
  arranged	
  by	
  expiration	
  date.	
  For	
  example,	
  if	
  a	
  bag	
  of	
  apples	
  is	
  donated,	
  
the	
  item	
  would	
  not	
  only	
  be	
  placed	
  in	
  a	
  room	
  with	
  similar	
  items,	
  but	
  would	
  also	
  be	
  placed	
  near	
  items	
  
which	
  had	
  a	
  similar	
  expiration	
  date.	
  Items	
  that	
  are	
  close	
  to	
  their	
  expiration	
  date	
  would	
  in	
  the	
  front	
  of	
  
the	
  room,	
  while	
  items	
  that	
  have	
  a	
  longer	
  time	
  before	
  expiration	
  would	
  be	
  placed	
  towards	
  the	
  back	
  of	
  
the	
  room.	
  This	
  layout	
  would	
  encourage	
  shoppers	
  to	
  choose	
  items	
  that	
  are	
  close	
  to	
  their	
  expiration	
  
date	
  because	
  those	
  items	
  would	
  be	
  in	
  their	
  direct	
  line	
  of	
  sight	
  when	
  entering	
  the	
  room.	
  This	
  model	
  
mimicks	
  how	
  grocery	
  stores	
  stock	
  their	
  shelves.	
  We	
  believe	
  the	
  total	
  percentage	
  of	
  expired	
  goods	
  at	
  
the	
  Toco	
  Hills	
  Community	
  Alliance	
  would	
  decrease	
  under	
  this	
  proposal,	
  as	
  goods	
  that	
  are	
  close	
  to	
  
expiration	
  will	
  exit	
  the	
  pantry	
  sooner.	
  	
  
	
  
6.	
  Future	
  Considerations	
  
While	
  we	
  believe	
  that	
  our	
  recommendation	
  will	
  reduce	
  the	
  amount	
  of	
  expired	
  goods	
  at	
  the	
  Toco	
  Hills	
  
Community	
  Alliance	
  at	
  a	
  given	
  time,	
  we	
  do	
  not	
  believe	
  that	
  the	
  inventory	
  quality	
  problem	
  can	
  be	
  
completely	
  resolved	
  by	
  implementing	
  this	
  recommendation.	
  This	
  is	
  due	
  to	
  the	
  complicated	
  reasons	
  
why	
  the	
  food	
  pantry	
  has	
  expired	
  goods	
  in	
  the	
  first	
  place.	
  For	
  example,	
  a	
  large	
  portion	
  of	
  the	
  pantry’s	
  
food	
  donations	
  come	
  from	
  major	
  grocery	
  stores	
  in	
  the	
  surrounding	
  area.	
  These	
  stores,	
  however,	
  
primarily	
  donate	
  items	
  that	
  are	
  either	
  close	
  to	
  their	
  expiration	
  date	
  or	
  are	
  already	
  past	
  it.	
  This	
  raises	
  
the	
  issue	
  of	
  whether	
  Toco	
  Hills	
  Community	
  Alliance	
  and	
  other	
  similar	
  institutions	
  should	
  dispose	
  of	
  
items	
  once	
  they	
  expire.	
  Such	
  a	
  policy	
  would	
  eliminate	
  the	
  pantry’s	
  food	
  quality	
  problem	
  –	
  goods	
  
simply	
  would	
  not	
  remain	
  in	
  storage	
  past	
  their	
  expiration	
  date.	
  	
  Many	
  might	
  find	
  this	
  solution	
  to	
  be	
  
wasteful	
  and	
  impractical.	
  The	
  disposal	
  of	
  expired	
  items	
  might	
  be	
  a	
  net	
  negative,	
  as	
  it	
  would	
  reduce	
  
the	
  amount	
  of	
  food	
  available.	
  Also,	
  some	
  opponents	
  of	
  the	
  disposal	
  method	
  might	
  argue	
  that	
  food	
  
products	
  are	
  often	
  “good”	
  well	
  past	
  their	
  expiration	
  date,	
  and	
  that	
  eating	
  them	
  would	
  not	
  cause	
  
serious	
  illness.	
  For	
  these	
  reasons,	
  we	
  ultimately	
  refrained	
  from	
  implementing	
  a	
  disposal	
  policy	
  for	
  
expired	
  goods.	
  	
  
	
  
Before	
  reaching	
  our	
  current	
  recommendation,	
  we	
  considered	
  the	
  idea	
  of	
  implementing	
  a	
  
spreadsheet	
  system	
  to	
  record	
  every	
  item	
  the	
  pantry	
  received	
  as	
  a	
  donation.	
  The	
  proposed	
  
spreadsheet	
  would	
  record	
  an	
  item’s	
  date	
  of	
  arrival,	
  food	
  type,	
  storage	
  room,	
  location	
  in	
  the	
  storage	
  
room,	
  expiration	
  date,	
  and	
  date	
  of	
  exit.	
  After	
  further	
  consideration,	
  however,	
  we	
  felt	
  that	
  this	
  
suggestion	
  was	
  impractical	
  given	
  the	
  human	
  capital	
  available	
  of	
  the	
  Toco	
  Hills	
  Community	
  Alliance.	
  
Indeed,	
  the	
  pantry	
  is	
  relatively	
  small	
  and	
  run	
  by	
  a	
  few	
  volunteers,	
  and	
  such	
  a	
  solution	
  might	
  prove	
  to	
  
be	
  too	
  time-­‐consuming.	
  Thus,	
  instead	
  of	
  recommending	
  a	
  spreadsheet,	
  we	
  decided	
  to	
  recommend	
  a	
  
new	
  organization	
  system,	
  a	
  relatively	
  simple	
  change	
  that	
  we	
  feel	
  is	
  better-­‐suited	
  to	
  the	
  Toco	
  Hills	
  
Community	
  Alliance’s	
  current	
  capabilities.	
  However,	
  if	
  the	
  pantry	
  increases	
  in	
  size	
  or	
  gains	
  more	
  full-­‐
time	
  volunteers	
  we	
  suggest	
  that	
  the	
  pantry	
  consider	
  the	
  idea	
  of	
  a	
  spreadsheet	
  system.	
  	
  
	
  
 
	
  
	
  
12	
  
Lastly,	
  it	
  is	
  important	
  to	
  mention	
  that	
  we	
  had	
  previously	
  planned	
  to	
  analyze	
  the	
  effect	
  that	
  President	
  
Trump’s	
  proposed	
  budget	
  cuts	
  might	
  have	
  on	
  increasing	
  food	
  insecurity	
  in	
  the	
  United	
  States.	
  
However,	
  after	
  research,	
  it	
  became	
  apparent	
  that	
  government	
  programs	
  such	
  as	
  the	
  Supplemental	
  
Nutrition	
  Assistance	
  Program	
  (SNAP),	
  which	
  helps	
  millions	
  of	
  low-­‐income	
  individuals	
  in	
  the	
  US	
  afford	
  
groceries,	
  would	
  likely	
  be	
  unaffected	
  by	
  these	
  broad	
  budget	
  cuts.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
13	
  
7.	
  Appendix	
  A	
  
Exhibit	
  1	
  
	
  
	
  
Exhibit	
  2	
  
	
  
	
  
Exhibit	
  3	
  
	
  
	
   	
  
 
	
  
	
  
14	
  
8.	
  Appendix	
  B	
  
Exhibit	
  1	
  –	
  Actual	
  Historical	
  Data	
  (Household	
  Food	
  Security	
  in	
  the	
  United	
  States	
  in	
  2015)	
  
	
  
	
  
Exhibit	
  2	
  –	
  Forecasting	
  Historical	
  Data	
  using	
  Exponential	
  Smoothing	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
15	
  
Exhibit	
  3	
  
	
  
	
  
Exhibit	
  4	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
16	
  
Exhibit	
  5	
  
	
  
	
  
Exhibit	
  6	
  
	
  
	
  
	
  
 
	
  
	
  
17	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
 
	
  
	
  
18	
  
Exhibit	
  7	
  
	
  
	
  
Exhibit	
  8	
  
	
  
 
	
  
	
  
19	
  
9.	
  Works	
  Cited	
  
Coleman-­‐Johnson,	
  Alisha,	
  Matthew	
  P.	
  Rabbitt,	
  Christian	
  A.	
  Gregory,	
  and	
  Anita	
  Singh.	
  Household	
  Food	
  
Security	
  in	
  the	
  United	
  States	
  in	
  2015.	
  Rep.	
  United	
  States	
  Department	
  of	
  Agriculture,	
  Sept.	
  
2016.	
  Web.	
  25	
  Mar.	
  2017.	
  
Echevarria,	
  Samuel,	
  Robert	
  Santos,	
  Emily	
  Engelhard,	
  Elaine	
  Waxman,	
  and	
  Theresa	
  Del	
  Vecchio.	
  Food	
  
Banks:	
  Hunger's	
  New	
  Staple.	
  Rep.	
  Feeding	
  America,	
  2011.	
  Web.	
  20	
  Mar.	
  2017.	
  
"Our	
  Organization."	
  Toco	
  Hills	
  Community	
  Alliance.	
  Web.	
  25	
  Mar.	
  2017.	
  
"Policy	
  Basics:	
  Introduction	
  to	
  the	
  Supplemental	
  Nutrition	
  Assistance	
  Program	
  (SNAP)."	
  Center	
  on	
  
Budget	
  and	
  Policy	
  Priorities,	
  18	
  Aug.	
  2016.	
  Web.	
  1	
  Apr.	
  2017.	
  
"Supplemental	
  Nutrition	
  Assistance	
  Program	
  (SNAP)."	
  Food	
  and	
  Nutrition	
  Service.	
  United	
  States	
  
Department	
  of	
  Agriculture,	
  30	
  Jan.	
  2017.	
  Web.	
  25	
  Mar.	
  2017.	
  
Wunderlich,	
  Gooloo	
  S.,	
  and	
  Janet	
  L.	
  Norwood.	
  "Chapter	
  3."	
  Food	
  Insecurity	
  and	
  Hunger	
  in	
  the	
  United	
  
States:	
  An	
  Assessment	
  of	
  the	
  Measure.	
  Washington,	
  D.C.:	
  National	
  Academies,	
  2006.	
  41-­‐54.	
  
Print.	
  
	
  
	
  

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Food Insecurity in America: A Macro and Micro-Level Analysis

  • 1.       1   Food Insecurity in America: A Macro and Micro-Level Analysis Virag Mody, Marielle Lenowitz, Aneesha Chowdhary, Eboni Freeman, Jasmyn Mackell and Ben Gross April 12, 2017          
  • 2.       2   TABLE  OF  CONTENTS       1.   Executive  Summary……………………………………………………………………………………..3     2.   Project  Goal…………………………………………………………………………………………………4     3.   Part  I:  A  Macro  Perspective  on  Food  Insecurity…………………………………………….4     3.1  Food  Insecurity  in  the  United  States……………………………………………4     3.2  Selection  of  Exponential  Smoothing  and  Alpha  Coefficient………….4       3.3  Exponential  Smoothing  Data  Analysis………………………………………….5     3.4  Forecasting  Food  Insecurity  with  Regression  Analysis………………….6     3.5  Comparing  Forecasts  –  Exponential  Soothing  vs.  Regression………..7     3.6  Note  on  Regression  Analysis………………………………………………………..7     4.  Part  II:  Quality  of  Inventory  at  a  Local  Food  Pantry…………………………………………7     4.1  Background  on  Toco  Hills  Community  Alliance………………………......7     4.2  Data  Collection……………………………………………………………………………8     4.3  P-­‐Bar  Chart  Construction  and  Analysis…………………………………….….8     4.5  R-­‐Chart  Construction  and  Analysis  …………………………………………….10     5.   Recommendation………………………………………………………………………………………..11     6.    Future  Considerations………………………………………………………………………………..11     7.   Appendix  A  (for  Part  II  data  and  graphs)……………………………………………………..13     8.   Appendix  B  (for  Part  I  data  and  graphs)………………………………………………………14     9.   Sources……………………………………………………………………………………………………….19        
  • 3.       3   1.  Executive  Summary   There  is  a  food  insecurity  epidemic  in  America.  In  2016  over  17  million  American  households  were-­‐  at   some  point-­‐  food  insecure  (USDA  Food  Security  Study).  The  taxpayer  burden  of  this  insecurity  is   massive;  in  fiscal  year  2015,  the  federal  government  spent  over  75  billion  dollars  on  supplemental   food  programs  (Center  for  Budget  and  Policy  Priorities).         While  some  of  the  hunger  burden  is  relieved  through  specific  federal  programs,  such  as  the  free  and   reduced  lunch  program  for  students,  SNAP,  and  WIC,  a  significant  amount  of  food  is  distributed   through  non-­‐profit  entities  such  as  food  banks  and  food  pantries.  In  fact,  1  of  out  every  7  US  families   at  least  partially  relied  on  a  food  bank  or  food  pantry  in  the  last  year  to  meet  their  needs  (Feeding   America  Study).     For  our  study,  we  first  wanted  to  focus  on  a  local  food  pantry  where  we  could  offer  a   recommendation  that  could  benefit  the  thousands  of  families  whom  it  serves  each  month.  We  chose   Toco  Hills  Community  Alliance  in  Druid  Hills  to  conduct  our  survey,  due  to  its  proximity  to  Emory  and   the  wide  range  of  food  products  it  receives  each  month.  By  visiting  the  food  pantry,  we  were  able  to   collect  both  qualitative  and  quantitative  observations  about  its  inventory  management  system  and   the  clientele  it  serves.       We  took  16  samples  of  Toco  Hill  Community  Alliance’s  inventory  in  an  attempt  to  calculate  the   approximate  number  of  goods  that  are  defective  (expired).  Using  this  data,  we  were  then  able  to   calculate  that  number  of  defective  goods  per  million,  as  well  as  construct  a  P-­‐Bar  Chart  for  the   number  of  expired  goods  present  in  each  sample.  Additionally,  we  created  an  R-­‐Chart  of  the  sample   ranges  to  better  understand  the  extent  of  quality  management  situation.  From  both  of  these  charts,   we  found  that  the  number  of  expired  goods,  as  well  as  the  range  in  expiration  for  expired  goods,   varied  widely.  Such  variation  showed  that  the  food  bank  most  likely  does  not  have  a  system  in  place   to  ensure  that  goods  expiring  soonest  are  distributed  first.     To  better  understand  our  data,  we  also  examined  broader  food  insecurity  trends  in  the  US.  Using   data  from  USDA  studies  on  food  insecurity  in  the  US  from  1998-­‐2015,  we  conducted  exponential   smoothing  forecasts  of  total  US  households  and  US  households  with  general  food  insecurity  (as  well   as  for  subsections  with  low  food  security  and  very  low  food  security).  These  forecasts  turned  out  to   be  consistent  with  actual  data  from  the  period.  We  also  ran  regressions  for  these  four  categories  as   well,  which  had  a  noticeably  higher  error  when  compared  with  real  data  from  the  period.  We  then   used  the  regression  models  to  forecast  the  the  number  of  food  insecure  households  the  next  5  years.       Based  on  our  analysis  of  the  Toco  Hills  Community  Alliance  data,  as  well  as  the  P-­‐Bar  and  R-­‐Charts  we   constructed,  we  recommend  that  the  food  pantry  create  a  system  that  organizes  goods  by  expiration   date.  Goods  that  are  expiring  sooner  should  be  placed  in  the  front  of  the  room  and  on  the  outermost   edge  of  the  shelves,  as  a  means  of  encouraging  shoppers  to  pick  those  goods.  Meanwhile,  goods  that   are  received  and  have  several  years  before  their  expiration  should  be  placed  towards  the  back,   because  they  have  a  significantly  longer  “use-­‐by”  date.  This  organizational  solution  will  not   completely  eliminate  the  food  pantry’s  problem  with  expired  goods;  indeed,  some  of  the  goods  the   food  pantry  receives  are  already  close  to,  if  not  past,  their  expiration  date.  The  implementation  of  
  • 4.       4   such  a  system  could  make  an  impact  in  reducing  the  total  number  of  expired  goods  that  the  pantry   keeps  in  its  inventory.       2.  Project  Goal   This  project  aims  to  analyze  the  quality  of  inventory  at  the  Toco  Hills  Community  Alliance,  a  local  food   pantry  in  Atlanta,  Georgia.  Additionally,  to  understand  the  large  number  of  food  insecure  households   that  frequent  these  types  of  food  pantries,  this  project  also  sought  to  forecast  macro  level  data  about   food  insecurity,  such  as  the  total  number  of  food  insecure  households  each  year,  from  1998-­‐2015  (as   well  as  subsections  of  this  data,  such  as  those  with  very  low  food  security).   3.  Part  I:  A  Macro  Perspective  on  Food  Insecurity   3.1  Food  Insecurity  in  the  United  States   The  United  States  Department  of  Agriculture  (USDA)  defines  food  insecurity  as  a  state  in  which   “consistent  access  to  adequate  food  is  limited  by  a  lack  of  money  and  other  resources  at  times  during   the  year.”  Food  insecurity  exists  whenever  the  availability  of  healthy,  nutritionally  adequate,  and  safe   foods  is  limited,  or  the  ability  to  obtain  sufficient  foods  in  a  legitimate  and  socially  acceptable  way  is   uncertain.  An  estimated  1  in  7  Americans  struggles  with  food  insecurity.       We  were  interested  in  the  relationship  between  food  pantries  and  food  insecurity,  but  before  we   could  focus  specifically  on  our  local  food  pantry,  the  Toco  Hills  Community  Alliance,  we  wanted  to   understand  the  larger  food  insecurity  problem  in  the  United  States.  Using  data  from  the  USDA  report   entitled  “Household  Food  Security  in  the  United  States  in  2015,”  we  chose  to  forecast  Total  Food   Insecurity  as  a  function  of  Total  Households,  which  could  then  further  be  broken  down  into  Low  Food   Security  and  Very  Low  Food  Security  (Exhibit  8,  Appendix  B).  By  analyzing  this  data,  we  would  be  able   to  get  a  macro-­‐level  perspective  on  a  topic  that  affects  people  both  locally  within  the  Atlanta  area,  as   well  as  nationally.     3.2  Selection  of  Exponential  Smoothing  and  Alpha  Coefficient   To  properly  forecast,  the  first  step  is  to  identify  which  method  of  forecasting  is  most  appropriate  to   use.  The  five  methods  available  are  Naïve,  Moving  Average,  Weighted  Moving  Average,  Exponential   Smoothing,  and  Regression.  The  following  shows  our  analysis  and  applicability  of  each  method,   except  for  regression  analysis,  which  is  mentioned  later:   •        Naïve  Forecasting  –  This  method  does  not  appropriately  account  for  historical  data,  with   the  exception  of  the  previous  period.  At  a  minimum,  the  population  tends  to  grow  positively,   so  using  the  prior  period’s  data  point  would  be  empirically  wrong,  thus  eliminating  this   method  as  a  viable  option.   •        Moving  Average  –  This  method  weights  each  data  point  equally,  meaning  that  data  from   1998  is  just  as  relevant  as  data  from  2014.  Weighting  older  data  equally  to  recent  data  would   be  problematic  for  this  project  because  numerous  factors  influence  levels  of  food  security   over  time,  such  as  economic  trends,  immigration,  population  changes,  and  health.  These   factors  cause  food  insecurity  to  evolve  over  time,  meaning  that  more  current  factors  are  more   relevant  to  present  food  insecurity  trends.  Therefore,  the  historical  data  from  1998  should  not   have  as  much  weight  as  recent  years,  removing  the  Moving  Average  as  an  option.  
  • 5.       5   •        Weighted  Moving  Average  –  WMA  could  have  some  applicability,  but  without  knowing   how  to  weight  historical  data,  doing  so  would  be  arbitrary.  This  eliminates  WMA.   •        Exponential  Smoothing  –  This  forecasting  method  assigns  exponentially  decreasing   weights  as  the  observations  get  older,  allowing  us  to  put  more  weight  on  more  recent  and   more  relevant  data,  which  was  the  concern  pointed  out  in  the  Moving  Average  model.  This   means  that  Exponential  Smoothing  is  a  viable  method  for  forecasting  our  data.     Given  that  there  are  macro  factors  for  variability  in  food  insecurity,  including  immigration,  population   changes,  health,  and  economic  factors,  we  cannot  solely  rely  on  historical  data,  as  there  is  most  likely   not  a  consistent,  holistic  trend.  However,  we  cannot  assume  an  alpha  of  1  because  it  will  become   naive  forecasting.  Additionally,  immigration,  population  changes,  and  the  economy  often  follow   trends  and  cycles,  so  to  some  extent,  historical  data  is  useful.  Thus,  to  use  only  the  previous  years   would  be  inaccurate  and  naïve,  while  discounting  historical  data  altogether  would  make  for  a  poor   forecast.  In  order  to  appease  both  sides  of  this  narrative,  we  selected  an  alpha  value  of  0.5  as  a   median  between  discounting  historical  data  and  accounting  for  historical  information.     3.3  Data  Analysis  –  Exponential  Smoothing   After  forecasting  using  exponential  smoothing,  the  following  graphs  show  noteworthy  information.   The  raw  data  can  be  found  in  Exhibit  1  and  2  under  Appendix  B.  Exhibit  2  also  shows  the  MAPE  to   calculate  the  error.   •        Total  Households  –  Our  forecast  for  this  metric  is  fairly  accurate  in  tracking  Historical  Data,   with  a  MAPE  of  1.99%.  However,  except  for  1998,  forecasted  Total  Households  is  consistently   below  the  actual  data.  This  is  most  likely  because  there  were  variable  jumps  in  the  number  of   real  total  households,  which  could  not  be  accurately  accounted  for,  due  to  the  fact  that  our   exponential  smoothing  model  weights  the  previous  year’s  forecast  as  heavily  as  the  actual   data.  Thus,  any  lag  in  the  forecast  would  permanently  influence  future  predictions.      
  • 6.       6   •        Total  Food  Insecurity  –  Analysis  of  Total  Food  Insecurity  be  can  be  broken  up  into  “Pre   2007”  and  “Post  2007.”     •   Pre  2007  –  The  exponential  smoothing  forecasts  had  a  low  forecast  error  because  they   normalized  the  variability  in  total  food  insecurity.  The  dip  from  1998  to  2000  is  offset  by   the  increase  in  food  insecurity  from  2000  to  2004.  Because  the  model  accounts  for   historical  data  at  an  exponentially  decaying  rate,  the  variability  over  time  will  be  smoothed   in  our  forecasted  graph.     •   Post-­‐2007  –  The  massive  jump  in  Total  Food  Insecurity  likely  resulted  from  the  housing   market  collapse  and  subsequent  recession.  Our  forecast  model  didn’t  intersect  the  actual   data  from  2007  to  2013  due  to  our  use  of  a  0.5  alpha.  An  alpha  of  1  would  have  better   accounted  for  the  spike.       •        Low  Food  Security  and  Very  Low  Food  Security  –  These  graphs,  found  under  Exhibits  3  and  4  in   Appendix  B,  provide  a  very  similar  analysis  to  that  of  the  Total  Food  Insecurity  graph.  A  notable   difference  can  be  seen  in  the  Very  Low  Food  Security  Graph,  whose  forecast  lags  from  2000  to  2014.   This  lag  is  due  to  the  same  reason  cited  as  Total  Households;  Very  Low  Food  Security  has  been   steadily  increasing  for  years,  and  our  exponential  smoothing  model  has  lagged  as  it  continually   accounted  for  historical  data  at  an  exponentially  decreasing  rate.     Exponential  smoothing  limited  our  ability  to  forecast  into  the  future  to  only  one  year  ahead,  2016.  If   we  wanted  to  forecast  further  into  the  future,  we  would  have  to  use  a  regression  analysis.       3.4  Forecasting  Food  Insecurity  with  Regression  Analysis   We  used  regression  analysis  because  this  method  allows  for  forecasting  beyond  a  single  year,  unlike   Exponential  Smoothing.  Additionally,  regression  analysis  predicts  linear  trends  more  accurately  than   exponential  smoothing.  The  regression  model  used  the  same  data  as  exponential  smoothing  (data   which  can  be  found  in  Exhibit  1,  Appendix  B).  In  analyzing  the  regression  results,  P-­‐values  for  all   different  regressions  are  less  than  0.05,  which  indicates  significance.  We  thus  felt  comfortable  using   the  regression  analysis  to  forecast.  Additionally,  looking  at  the  R2  values:  
  • 7.       7   •        The  high  R-­‐Square  value  of  98  percent  for  the  “Total  Households”  regression  indicates  that   the  regression  is  representative,  though  there  may  be  concerns  of  overfitting  data,  which  may   account  for  noise  that  could  impede  future  projections.   •        The  R-­‐Square  values  of  the  regressions  for  Total  Food  Insecurity,  Low  Food  Security,  and   Very  Low  Food  Security  ranged  between  64  percent  and  84  percent,  which  indicates  that   there  is  a  higher  amount  of  variability  in  the  actual  data  relative  to  that  of  our  regression.   (Raw  numbers  for  p-­‐values  and  R-­‐squared  are  shown  in  Exhibit  5,  Appendix  B)     3.5  Comparing  Forecasts  –  Exponential  Soothing  vs.  Regression   (Graphs  of  regression  analysis  can  be  found  in  Exhibit  6,  Appendix  B)   Exponential  smoothing  is  limited  in  how  far  into  the  future  we  can  forecast  data,  but  it  excels  at  its   ability  to  fit  actual  data  closely.  This  is  shown  by  the  differences  in  MAPE  for  the  comparative  models.   MAPE  for  the  regression  models  is  higher  for  nonlinear  trends  than  it  is  for  linear  trends.  Indeed,  the   only  linear  trend  that  we  found  was  for  the  regression  for  total  households.  The  MAPE  calculations   can  be  seen  in  Exhibit  7,  Appendix  B.  MAPE  for  total  households  is  much  lower  when  the  regression   model  is  used  than  when  the  exponential  smoothing  model  is.  For  total  households,  there  are  more   predictable  causal  reasons  for  a  linear  trend.  Ultimately,  it  is  the  least  squares  component  of   regression  that  does  a  better  job  of  accounting  for  causal  factors  of  change  in  the  number  of  total   households.       3.6  Note  on  Regression  Analysis   The  regression  model,  while  applicable  for  periods  in  which  there  is  historical  data  following  a  linear   trend,  has  future  forecasts  for  years  2016-­‐2020  that  are  likely  inaccurate  (forecasts  for  those  years   can  be  found  in  Exhibit  7,  Appendix  B).  This  is  due  to  the  fact  that  the  regression  model  only  looks  at   aggregate  numbers  and  doesn’t  account  for  causal  factors.  A  multivariable,  non-­‐linear  regression   model  would  have  been  a  more  appropriate  way  to  forecast,  but  we  didn’t  have  the  capability  to  do   that  for  this  analysis.     Now  that  we  have  analyzed  overall  food  insecurity  in  the  United  States,  we  can  address  the  issues   faced  by  our  one  of  Atlanta’s  own  food  pantries,  Toco  Hills  Community  Alliance.       4.  Part  II:  Quality  of  Inventory  at  a  Local  Food  Pantry   4.1  Background  on  Toco  Hills  Community  Alliance     A  food  pantry  is  defined  as  a  charitable  organization  that  provides  those  in  need  with  food  and   grocery  products  for  use  and  consumption  at  home.  The  food  pantry  we  analyzed,  Toco  Hills   Community  Alliance,  is  a  food  pantry  that  serves  DeKalb  County  and  several  of  the  zip  codes  in  the   surrounding  area.  According  to  its  website,  Toco  Hills  Community  Alliance’s  chief  goal  is  “to  provide   assistance  and  support  for  individuals  and  families…  who  face  the  possibility  of  the  loss  of  housing   and/or  who  are  without  sufficient  food  for  themselves  of  their  families”  (Toco  Hills  Community   Alliance  Website).  The  pantry  receives  a  wide  variety  of  food  donations  from  both  local  grocery  stores   and  individuals  in  the  community.  These  goods  are  then  organized  into  different  rooms,  based  on  the   type  of  food  item,  by  the  employees  at  the  food  pantry.  For  example,  one  room  consists  of  mainly   canned  goods  and  breads,  while  another  room  contains  mostly  snacks.    
  • 8.       8   The  food  pantry  follows  a  specific  routine  when  serving  its  patrons.  Individuals  enter  the  building  that   houses  the  pantry  and  must  prove  that  they  qualify  for  assistance.  Next,  they  are  placed  on  a  waiting   list  and  provided  with  forms  to  complete.  One  by  one,  Toco  Hills  Community  Alliance  workers  guide   these  individuals  through  the  different  food  storage  rooms.  Qualifying  individuals  are  allowed  to   select  the  types  of  items  they  want,  but  only  workers  can  physically  collect  the  groceries.  At  the  end   of  the  shopping  period,  the  workers  weigh  the  selected  groceries  and  record  the  amount.         Following  our  initial  visit  to  the  Toco  Hills  Community  Alliance,  we  decided  to  focus  on  the  “quality”   of  the  inventory.  For  our  purposes,  a  poor  quality  food  item  is  one  that  is  past  its  expiration  date.  We   chose  this  aspect  for  analysis  because  the  pantry’s  primary  goal  is  providing  food  to  those  in  need,   and  thus  it  is  important  that  it  is  serving  quality  food  that  won’t  make  people  sick.       Since  Toco  Hills  Community  Alliance  does  not  collect  information  on  the  donations  they  receive,  we   had  to  use  a  heuristic  that  would  represent  the  quality  of  inventory.  We  ultimately  decided  on  the   expiration  date  heuristic.  By  collecting  expiration  date  data,  we  hoped  to  determine  whether  a   quality  issue  existed  and  to  give  a  possible  recommendation  to  address  this  problem,  if  this  turned   out  to  be  the  case.     4.2  Data  Collection     To  analyze  the  quality  of  the  inventory  and  tracking  system  at  the  Toco  Hills  Community  Alliance,  we   visited  the  food  pantry  to  collect  samples.  We  took  three  samples  from  each  of  the  food  bank’s  five   storage  rooms,  for  a  total  of  15  samples.  Each  sample  was  obtained  randomly  and  contained  a  mix  of   10  perishable  and  non-­‐perishable  items.    For  every  sample,  we  recorded  the  number  of  defective   (expired)  goods  found  amongst  the  ten  items  surveyed.  The  expiration  date  of  an  item  was  recorded   if  the  item  was  found  to  be  defective.  See  Exhibit  1  in  Appendix  A  for  the  raw  sample  data.  By  taking   an  average  of  the  15  samples,  we  found  that  34%  of  the  sample  goods  were  defective.  This  finding   indicates  that,  on  average,  3.4  out  of  every  10  goods  at  the  Toco  Hills  Community  Alliance  should  be   expired.  Converting  this  number  to  defective  goods  per  million,  we  can  expect  that  340,000  out  of   every  million  goods  donated  to  Toco  Hills  Community  Alliance  will  be  defective.     4.3  P-­‐Bar  Chart  Construction  and  Analysis     After  collecting  our  data  and  calculating  the  average  number  of  defective  goods  per  million  at  the   food  bank,  we  constructed  a  P-­‐Bar  Chart.  We  created  a  P-­‐Bar  Chart  because  it  can  be  an  efficient  tool   to  analyze  the  number  of  defective  goods  relative  to  the  UCL  and  LCL,  as  well  as  show  whether  a   process  is  out  of  control  or  not.  In  our  case,  we  wanted  to  see  the  variation  in  defective  goods  among   the  five  sample  rooms  and  determine  whether  any  specific  rooms  fell  significantly  outside  of  the   average.         To  begin  the  construction  of  the  P-­‐Bar  Chart,  we  used  P-­‐Bar,  previously  found  to  be  0.34,  and  the   parameters  of  three  sigmas,  to  calculate  the  Upper  Control  Limit  (UCL)  and  the  Lower  Control  Limit   (LCL)  of  the  data.  The  UCL  and  LCL  were  found  to  be  0.45603  and  0.22396,  respectively.  It  is   important  to  note  that  we  are  not  analyzing  a  machine  or  production  process;  rather,  in  our  case,  the   UCL  and  LCL  serve  as  lower  and  upper  bounds  to  assess  if  our  data  goes  beyond  these  numbers  when  
  • 9.       9   analyzing  the  quality  of  the  inventory.  After  the  calculation  of  these  values,  we  were  then  able  to   construct  the  P-­‐Bar  Chart.  See  Exhibit  2,  Appendix  B  for  the  full  P-­‐Bar  Chart  calculations.     Looking  at  our  P-­‐Bar  Chart,  represented  below,  we  can  see  that  the  data  varies  widely  in  respect  to  P-­‐ Bar,  UCL,  and  LCL.  There  are  two  key  reasons  for  this  vast  amount  of  variation.  First,  each  sample   corresponds  to  a  particular  room,  and  some  rooms  contained  significantly  more  expired  goods  due  to   the  types  of  items  that  they  stored.  For  example,  Room  4  (samples  7,  8,  and  9)  stores  goods  that  have   a  relatively  short  shelf  life  like  bread.  In  comparison,  Room  3  (samples  4,  5,  and  6)  mostly  stores  items   with  extended  shelf-­‐lives  such  as  canned  soups.  Second,  it  was  not  uncommon  to  find  a  group  of  cans   several  years  expired  sitting  next  to  a  loaf  of  bread  that  was  set  to  expire  in  a  few  days,  when  we   conducted  our  survey.  These  two  factors  created  significant  variation  in  the  data.         While  the  data  fluctuates  significantly,  it  is  important  to  point  out  samples  that  fall  either   considerably  below  the  LCL  or  considerably  above  the  UCL.  One  sample  that  fell  significantly  below   the  LCL  was  sample  4,  which  had  no  defects.  Two  samples  that  significantly  exceeded  the  UCL  were   samples  12  and  15,  each  of  which  had  six  defects.  Such  outliers  may  be  due  to  random  sampling   chance,  given  the  fact  that  on  average,  about  3.4  out  of  every  10  goods  at  Toco  Hills  Community  are   expected  to  be  defective.  It  is  also  possible  that  these  values  are  partially  due  to  the  rooms  where  the   sample  was  taken,  as  discussed  earlier.  For  instance,  when  compared  with  the  other  two  samples   from  the  refrigeration  room,  samples  13  and  14,  sample  15  does  not  stand  out  as  an  outlier.     4.4  R-­‐Chart  Construction  and  Analysis     In  addition  to  making  a  P-­‐Bar  Chart,  we  also  created  an  R-­‐Chart.  We  decided  to  make  an  R-­‐Chart   because  we  wanted  to  analyze  the  range  of  the  defective  goods-­‐–how  long  the  goods  in  each  sample  
  • 10.       10   had  been  expired,  relative  to  the  day  that  we  took  the  sample  (April  5,  2017).  Ideally,  the  range  would   be  more  accurate  if  we  had  information  on  when  the  item  was  donated  to  the  pantry;  after  all,  some   goods  may  have  already  been  expired  when  donated.  However,  since  Toco  Hills  did  not  collect  this   information,  we  decided  that  we  could  best  estimate  this  figure  by  comparing  expiration  dates  to  the   date  we  took  the  samples.  To  calculate  the  range  for  each  sample,  we  found  the  good  with  the  most   recent  expiration  date,  and  subtracted  it  from  the  good  with  the  oldest  expiration  date.  Next,  we   found  the  average  of  the  15  sample  ranges,  or  R-­‐Bar,  which  we  calculated  to  be  10.357  months.  As   with  the  P-­‐Bar  Chart,  we  found  the  UCL  and  LCL,  which  were  18.3457  months  and  2.2785  months,   respectively.  These  control  limits  were  determined  using  the  D4  and  D3  values  on  page  185  of  the   Bus351  Textbook.  Calculations  for  the  R-­‐Chart  can  be  seen  in  Exhibit  3  of  Appendix  A.     The  R-­‐Chart,  shown  below  for  the  Toco  Hills  Community  Alliance,  shows  data  that  appears  to  have  no   distinct  pattern,  except  a  few  samples  (samples  13,  14,  and  15).  Some  samples  had  a  range  of  0   months  (significantly  below  the  LCL),  which  would  indicate  that  all  of  the  defective  goods  in  the   sample  had  the  same  expiration  date.  Such  an  R  value  makes  sense  for  samples  13,  14,  and  15   because  these  samples  were  from  the  refrigeration  room,  where  items  are  likely  to  have  a  short-­‐term   shelf  life,  and  are  consequently  likely  to  have  expiration  dates  close  to  one  another.  Meanwhile,   some  samples  had  an  enormous  range,  such  as  samples  7  and  9,  which  were  significantly  above  the   UCL  and  had  ranges  of  42  and  41  months,  respectively.  The  significant  variation  among  R  values,  as   well  as  the  presence  of  some  incredibly  high  values  (R=41,  R=42),  indicates  that  the  food  bank  does   not  have  a  way  to  monitor  the  expiration  of  goods,  therefore  the  data  suggests  the  need  for  some   type  of  organizational  system  to  ensure  that  the  food  pantry  serves  customers  items  that  have  not   yet  expired.                              
  • 11.       11   4.   Recommendation   Our  analysis  using  the  P-­‐Bar  Chart  and  R-­‐Chart  demonstrates  that  the  Toco  Hills  Community  Alliance   needs  an  organization  schedule  by  expiration  date.  To  address  this  issue,  we  suggest  that  the  pantry   implement  a  First-­‐In  First-­‐Out  (FIFO)  system  to  prevent  donated  items  from  reaching  their  expiration   date  while  in  storage.  Under  our  proposed  system,  goods  would  continue  to  be  organized  by  food   type,  but  they  would  also  be  arranged  by  expiration  date.  For  example,  if  a  bag  of  apples  is  donated,   the  item  would  not  only  be  placed  in  a  room  with  similar  items,  but  would  also  be  placed  near  items   which  had  a  similar  expiration  date.  Items  that  are  close  to  their  expiration  date  would  in  the  front  of   the  room,  while  items  that  have  a  longer  time  before  expiration  would  be  placed  towards  the  back  of   the  room.  This  layout  would  encourage  shoppers  to  choose  items  that  are  close  to  their  expiration   date  because  those  items  would  be  in  their  direct  line  of  sight  when  entering  the  room.  This  model   mimicks  how  grocery  stores  stock  their  shelves.  We  believe  the  total  percentage  of  expired  goods  at   the  Toco  Hills  Community  Alliance  would  decrease  under  this  proposal,  as  goods  that  are  close  to   expiration  will  exit  the  pantry  sooner.       6.  Future  Considerations   While  we  believe  that  our  recommendation  will  reduce  the  amount  of  expired  goods  at  the  Toco  Hills   Community  Alliance  at  a  given  time,  we  do  not  believe  that  the  inventory  quality  problem  can  be   completely  resolved  by  implementing  this  recommendation.  This  is  due  to  the  complicated  reasons   why  the  food  pantry  has  expired  goods  in  the  first  place.  For  example,  a  large  portion  of  the  pantry’s   food  donations  come  from  major  grocery  stores  in  the  surrounding  area.  These  stores,  however,   primarily  donate  items  that  are  either  close  to  their  expiration  date  or  are  already  past  it.  This  raises   the  issue  of  whether  Toco  Hills  Community  Alliance  and  other  similar  institutions  should  dispose  of   items  once  they  expire.  Such  a  policy  would  eliminate  the  pantry’s  food  quality  problem  –  goods   simply  would  not  remain  in  storage  past  their  expiration  date.    Many  might  find  this  solution  to  be   wasteful  and  impractical.  The  disposal  of  expired  items  might  be  a  net  negative,  as  it  would  reduce   the  amount  of  food  available.  Also,  some  opponents  of  the  disposal  method  might  argue  that  food   products  are  often  “good”  well  past  their  expiration  date,  and  that  eating  them  would  not  cause   serious  illness.  For  these  reasons,  we  ultimately  refrained  from  implementing  a  disposal  policy  for   expired  goods.       Before  reaching  our  current  recommendation,  we  considered  the  idea  of  implementing  a   spreadsheet  system  to  record  every  item  the  pantry  received  as  a  donation.  The  proposed   spreadsheet  would  record  an  item’s  date  of  arrival,  food  type,  storage  room,  location  in  the  storage   room,  expiration  date,  and  date  of  exit.  After  further  consideration,  however,  we  felt  that  this   suggestion  was  impractical  given  the  human  capital  available  of  the  Toco  Hills  Community  Alliance.   Indeed,  the  pantry  is  relatively  small  and  run  by  a  few  volunteers,  and  such  a  solution  might  prove  to   be  too  time-­‐consuming.  Thus,  instead  of  recommending  a  spreadsheet,  we  decided  to  recommend  a   new  organization  system,  a  relatively  simple  change  that  we  feel  is  better-­‐suited  to  the  Toco  Hills   Community  Alliance’s  current  capabilities.  However,  if  the  pantry  increases  in  size  or  gains  more  full-­‐ time  volunteers  we  suggest  that  the  pantry  consider  the  idea  of  a  spreadsheet  system.      
  • 12.       12   Lastly,  it  is  important  to  mention  that  we  had  previously  planned  to  analyze  the  effect  that  President   Trump’s  proposed  budget  cuts  might  have  on  increasing  food  insecurity  in  the  United  States.   However,  after  research,  it  became  apparent  that  government  programs  such  as  the  Supplemental   Nutrition  Assistance  Program  (SNAP),  which  helps  millions  of  low-­‐income  individuals  in  the  US  afford   groceries,  would  likely  be  unaffected  by  these  broad  budget  cuts.                                                                      
  • 13.       13   7.  Appendix  A   Exhibit  1       Exhibit  2       Exhibit  3        
  • 14.       14   8.  Appendix  B   Exhibit  1  –  Actual  Historical  Data  (Household  Food  Security  in  the  United  States  in  2015)       Exhibit  2  –  Forecasting  Historical  Data  using  Exponential  Smoothing                  
  • 15.       15   Exhibit  3       Exhibit  4          
  • 16.       16   Exhibit  5       Exhibit  6        
  • 17.       17                                      
  • 18.       18   Exhibit  7       Exhibit  8    
  • 19.       19   9.  Works  Cited   Coleman-­‐Johnson,  Alisha,  Matthew  P.  Rabbitt,  Christian  A.  Gregory,  and  Anita  Singh.  Household  Food   Security  in  the  United  States  in  2015.  Rep.  United  States  Department  of  Agriculture,  Sept.   2016.  Web.  25  Mar.  2017.   Echevarria,  Samuel,  Robert  Santos,  Emily  Engelhard,  Elaine  Waxman,  and  Theresa  Del  Vecchio.  Food   Banks:  Hunger's  New  Staple.  Rep.  Feeding  America,  2011.  Web.  20  Mar.  2017.   "Our  Organization."  Toco  Hills  Community  Alliance.  Web.  25  Mar.  2017.   "Policy  Basics:  Introduction  to  the  Supplemental  Nutrition  Assistance  Program  (SNAP)."  Center  on   Budget  and  Policy  Priorities,  18  Aug.  2016.  Web.  1  Apr.  2017.   "Supplemental  Nutrition  Assistance  Program  (SNAP)."  Food  and  Nutrition  Service.  United  States   Department  of  Agriculture,  30  Jan.  2017.  Web.  25  Mar.  2017.   Wunderlich,  Gooloo  S.,  and  Janet  L.  Norwood.  "Chapter  3."  Food  Insecurity  and  Hunger  in  the  United   States:  An  Assessment  of  the  Measure.  Washington,  D.C.:  National  Academies,  2006.  41-­‐54.   Print.