Professional Documents
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001_case 1
001_case 1
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, Ian Overbaugh. Since
tire replacement is a major portion of TFY's business (it also performs oil changes, small
mechanical repairs, etc.), Ian was surprised at the lack of forecasts for tire consumption for
the company. His senior mechanic, Skip Grenoble, told him 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 tune. Ian 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 individual tire sales by
month:
2018
October 9,797
November 11,134
December 10,687
2019
January 9,724
February 8,786
March 9,254
April 10,691
May 9,256
June 8,700
July 10,192
August 10,751
September 9,724
October 10,193
November 11,599
December 11,130
Ian has hired you to determine the best technique for forecasting TFY demand based on
the given data.