TIRES FOR YOU - Forecast & EOQ Forecast Tires for You, Inc. (TFY), founded in 1987, is an automotive repair shop specializing in replacement tires. Located in Altoona, PA, TFY has grown successfully over the past few years because of the addition of a new general manager, Katie McMullen. Since tire replacement is a major portion of TFY's business (it also performs oil changes, small mechanical repairs, etc.), Katie was surprised at the lack of forecasts for tire consumption for the company. Her senior mechanic, Skip Grenoble, told her that they usually stocked for this year what they sold last year. He readily admitted that several times throughout the season stockouts occurred and customers had to go elsewhere for tires. Although many tire replacements were for defective or destroyed tires, most tires were installed on cars whose original tires had worn out. Most often, four tires were installed at the same time. Katie was determined to get a better idea of how many tires to hold in stock during the various months of the year. Listed below is a summary of last year's individual tire sales by month: TIRES FOR YOU, Inc. Month Tires Used January 550 February 375 March 1,500 April 2,000 May 1,300 June 875 July 850 August 600 September 2,300 October 1,500 November 700 December 600 TOTAL 13,150 Tires Katie has hired you to determine the best technique for forecasting TFY demand based on the given data. (It would be helpful to graph your analyses for comparative purposes.) 1. Calculate forecasts (along with Bias, Bias Average and Absolute Deviation) according to the following methods: 1. Simple Moving Average 2. Weighted Moving Average (weights = .60, .25, .15 for the most recent, 2nd most recent and 3rd most recent time periods, respectively) 3. Exponential Smoothing, alpha = 0.1 (assume 1,080 for period 1 forecast) 4. Exponential Smoothing, alpha = 0.3 (assume 1,080 for period 1 forecast) 5. Exponential Smoothing, alpha = .5 (assume 1,080 for period 1 forecast) 6. Exponential Smoothing, alpha = 0.7 (assume 1,080 for period 1 forecast) INVENTORY NEXT Help Katie determine the Economic Order Quantity and Total Costs for holding inventory auto computer products that they offer customers: Annual demand for computers 2000 units Cost per order $392 Holding Cost/Unit $76 1. Determine EOQ (Economic Order Quantity) 2. Determine # of Orders per Year (at EOQ) 3. Calculate Total Cost of Computer Inventory based on EOQ, Q=100, Q=200 This is the link to the excel: https://docs.google.com/spreadsheets/d/1RMK91ZcrJuj0Z3ggupdHrJeRw9SlJ6zS/edit?usp=sharing&ouid=107187626869992601074&rtpof=true&sd=true If you copy and open it in a new tab, it will work. I am having difficulty with the question. I am really good with supply so i need help. thank you!
TIRES FOR YOU - Forecast & EOQ
Forecast
Tires for You, Inc. (TFY), founded in 1987, is an automotive repair shop specializing in replacement tires. Located in Altoona, PA, TFY has grown successfully over the past few years because of the addition of a new general manager, Katie McMullen. Since tire replacement is a major portion of TFY's business (it also performs oil changes, small mechanical repairs, etc.), Katie was surprised at the lack of forecasts for tire consumption for the company. Her senior mechanic, Skip Grenoble, told her that they usually stocked for this year what they sold last year. He readily admitted that several times throughout the season stockouts occurred and customers had to go elsewhere for tires.
Although many tire replacements were for defective or destroyed tires, most tires were installed on cars whose original tires had worn out. Most often, four tires were installed at the same time. Katie was determined to get a better idea of how many tires to hold in stock during the various months of the year. Listed below is a summary of last year's individual tire sales by month:
TIRES FOR YOU, Inc.
Month Tires Used
January 550
February 375
March 1,500
April 2,000
May 1,300
June 875
July 850
August 600
September 2,300
October 1,500
November 700
December 600
TOTAL 13,150 Tires
Katie has hired you to determine the best technique for
1. Calculate forecasts (along with Bias, Bias Average and Absolute Deviation) according to the following methods:
1. Simple Moving Average
2. Weighted Moving Average (weights = .60, .25, .15 for the most recent, 2nd most
recent and 3rd most recent time periods, respectively)
3. Exponential Smoothing, alpha = 0.1 (assume 1,080 for period 1 forecast)
4. Exponential Smoothing, alpha = 0.3 (assume 1,080 for period 1 forecast)
5. Exponential Smoothing, alpha = .5 (assume 1,080 for period 1 forecast)
6. Exponential Smoothing, alpha = 0.7 (assume 1,080 for period 1 forecast)
INVENTORY
NEXT Help Katie determine the Economic Order Quantity and Total Costs for holding inventory auto computer products that they offer customers:
Annual demand for computers 2000 units
Cost per order $392
Holding Cost/Unit $76
1. Determine EOQ (Economic Order Quantity)
2. Determine # of Orders per Year (at EOQ)
3. Calculate Total Cost of Computer Inventory based on EOQ, Q=100, Q=200
This is the link to the excel: https://docs.google.com/spreadsheets/d/1RMK91ZcrJuj0Z3ggupdHrJeRw9SlJ6zS/edit?usp=sharing&ouid=107187626869992601074&rtpof=true&sd=true
If you copy and open it in a new tab, it will work. I am having difficulty with the question. I am really good with supply so i need help. thank you!
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