Using the decomposition technique

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Wildcat Computer, Inc. (WC), 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 WC 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. Refer to the table below (about demand over the past 12 quarters -- from period 1 to period 12 in total) for answering next THREE questions (i.e. from Q6 to Q8).

2 Years Ago Last Year This Year

I 4,800 I 3500 I 3200

II 3,500 II 2700 II 2100

III 4300 III 3500 III 2700

IV 3,000 IV 2400 IV 1700

Forecast demand for SECOND quarter next year (i.e. period 14) using the decomposition technique

Based on the table above (at Q6), forecast demand for THIRD quarter next year (i.e. period 15) using the decomposition technique.

Based on the table above (at Q6), forecast demand for FOURTH quarter next year (i.e. period 16) using the decomposition technique.

Reference no: EM131229811

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