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Figure 1. TMX Sales

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16 views

Figure 1. TMX Sales

a

Uploaded by

Neil Cutter
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Jack must go over with demand from the last 10 years and using this demand for its

forecast.
Demand forecasting will be a great help for them to come up with a good number of supply.
Demand Forecasting is a form of predictive analytics that focuses on predicting how much
customers want certain products and services (Luce, 2019). He need to monitor their inventory
to prevent overstocking and understocking TMX27.

Figure 1. TMX Sales

The short term solution for Jack’s dilemma would be ordering a higher amount of materials than
next year, but not too high that would increase its chance for overstocking which will give
financial issue to the company. Acceptable order size for TMX Medical would be 10,100 units.
Reasons:
1. Analyzing the past years demand shows that the lowest value were 9,733 and the highest is
10,115.
2. As seen in figure 1, the demand trend implies an increasing demand pattern.
3. As reflected on the Figure 3, lowest confidence is 9,863, and highest is 10,201. So any order
size from 9,863 to 10,201 is optimal, as it is not too high, nor too low.

4. Base on the case report, there is no expected increase of customers, and no any new
applications requires purchasing for TMX27, thus there is no need for ordering too many units.
5. As reflected in Figure 2, there is no sudden exponential increase in demand for TMX27.
Therefore, Jack is advised to purchase 10,100 units of TMX27, contrary to the forecast of
16,000 gears.

Figure 2. Exponential Graph

Figure 3. Demand Confidence

Reference:
Luce, L. (2019). Deep learning and demand forecasting. In Artificial Intelligence for Fashion (pp.
155-166). Apress, Berkeley, CA.

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