Product allocation and forecasting process in supply chain management at Transcom Electronics Ltd.

Abstract

Transcom Electronics Ltd, a pioneer of electrical and electronics product manufacturer and supplier in Bangladesh, has diversified its product allocation to various levels, aiming products at consumers on specific levels of society. This requires a solid forecasting demand and a good forecasting will benefit a good product allocation. This paper aims to identify an effective product allocation and forecasting process for Transcom Electronics Ltd, taking into account product proliferation, volatility, customer demand, and stock out/overstock situations. A mock simulation and analysis will determine the effectiveness of the suggested approach. The report touches upon several facets of possible product allocation and forecasting, pointing to some of the challenges and best practices. The paper outlines optimization problems and simulation approaches and emphasizes the importance of forecasting for those in charge of supply chain management. In terms of key findings, the authors note that “forecasting should be structured and based on statistical and mathematical methods. This is related to the notion that ‘Transcom Electronics is now in a strong position to allocate products in a better way” due to the availability of more reliable demand data and the lack of any issues with inventory. As to improvements that could be made, it appears that better collaboration with the marketing department is needed to ensure that there is wider access to some kinds of customer data. At the same time, it may be beneficial to establish a forecast department and pay more attention to the quality of the control over the availability of historical data. Most importantly, the given paper shows that some systems could be used to make the process of forecasting as successful as possible when managing product allocation in connection to demand and supply chains.