Forecasting Inventory Needs for Apple

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Forecasting Inventory Needs for Apple Apple is very active in managing their inventory levels. In order to plan for the future they are likely to look at the past needs of the firm to use as a basis for looking forward. One approach which may be used is to look at the past data and create an index from that data to assess how the patterns are changing. There are a number of ways an index maybe created. In this case the index will be to assess the level of stock used in each year. The data is taken from the 10-k annual reports between years 2008 - 2012, using the data for the amount of inventory sold each year. The index is created taking the average for the entire period. Once the average for the five year period is calculated each year may be assessed to determine its proportionality to the average. This is undertaken by dividing each year's usage by the average usage. This is shown below in table 1. Table SEQ Table * ARABIC 1: Index for inventory usage Year Total inventory used Index score 2008 21,171 0.444041 2009 25,737 0.539809 2010 38,945 0.816834 2011 64,706 1.357146 2012 87,831 1.84217 Average 47,678 From this it is possible to see that there has been a significant increase in inventory use over the five year period. In the first year there was only a 0.44 use of the average, this increased to 0.81 in 2010 and by 2012 it has risen to 1.84. The amount used is increasing at a rapid rate. The benefit of using past figures is also
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