Zeus Computer Chips, Inc., used to have major contracts to produce the Centrino-type chips. The market has been declining during the past three years because of the dual-core chips, which it cannot produce, so Zeus has the unpleasant task of forecasting next year. The task is unpleasant because the firm has not been able to find replacement chips for its product lines. Here is demand over the past 12 quarters: TWO YEARS AGO UNITS LAST YEAR UNITS THIS YEAR UNITS
I 4,785 I 3,485 I 3,150
II 3,485 II 2,685 II 2,085
III 4,285 III 3,485 III 2,720
IV 2,985 IV 2,385 IV 1,705
Use the decomposition technique to forecast demand for the next four quarters.
Period Forecast (Units)
I
II
III
IV