Question

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	4,793	I	3,493	I	3,196
II	3,493	II	2,693	II	2,097
III	4,293	III	3,493	III	2,693
IV	2,993	IV	2,393	IV	1,693

Use the decomposition technique to forecast demand for the next four quarters. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

    

Period	Forecast           (Units)
I
II
III
IV

Answer 1

the forecast calculated by decomposition technique using excel solver is given below: