Zeus Computer Chips, Inc., used to have major contracts to

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 quad- 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 THIS YEAR LAST YEAR YEARS AGO 4,800 3,500 4,300 3,000 3,500 2,700 3,500 2,400 3,200 2,100 2,700 1,700 II IV II II IV

Use the decomposition technique to forecast demand for the next four quarters.


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