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 fi rm
has not been able to fi nd replacement chips for its product lines. Here is demand over the past 12 quarters:
Two
Last
This
Years Ago
Year
Year
I
4800
I
3500
I
3200
II
3500
II
2700
II
2100
III
4300
III
3500
III
2700
IV
3000
IV
2400
IV
1700
Use the decomposition technique to forecast demand for the next four quarters.