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Tires for You, Inc. Tires for You, Inc. (TFY),...




Tires for You, Inc. Tires for You, Inc. (TFY), founded in 1987, is an automotive repair shop specializing in replacement tires. Located in Altoona, Pennsylvania, 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 TFYs 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 stock outs 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 years individual tire sales by month: MonthTires Used January510 February383 March1,403 April1,913 May1,148 June893 July829 August638 September2,168 October1,530 November701 December636 Total12,752 Case Questions: Katie has hired you to determine the best technique for forecasting TFY demand based on the given data. 1.Calculate a forecast using a three-period weighted moving average. Use weights of 0.60, 0.25, and 0.15 for the most recent period, the second most recent period, and the third most recent period, respectively.


Paper#2863 | Written in 18-Jul-2015

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