Problem:
1. 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 rt 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 LAST THIS
AGO UNITS YEAR UNITS YEAR UNITS
I 4.813 I 3.510 I 3,160
II 3.513 II 2.710 II 2.110
III 4.313 III 3.510 III 2.685
IV 3.313 IV 2.410 IV 1.665
Use the decomposition technique to forecast demand for the next four quarters. (Do not round intermediate calculations. Round your answers to the nearest whole number.)
2. Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand. so Nina expects demand for headsets to also expand. because, as yet. no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
|
MONTH
|
DEMAND
(UNITS)
|
|
January
|
4.220
|
|
February
|
4.320
|
|
March
|
4.020
|
|
ApN
|
4.420
|
|
May
|
5.020
|
|
June
|
4.720
|
|
July
|
5.320
|
|
August
|
4.920
|
|
September
|
5.420
|
|
October
|
5.720
|
|
November
|
6.320
|
a. Using linear regression analysis. what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
|
Month
|
Forecast
|
|
January
|
6286.67
|
|
February
|
0478.97
|
|
March
|
6671.28
|
|
April
|
6803.59
|
|
May
|
7055.9
|
|
June
|
7248.21
|
|
July
|
7440.51
|
|
August
|
7632.82
|
|
September
|
7825.13
|
|
October
|
8017.44
|
|
November
|
8209.74
|
|
December
|
8402.05
|
b. To be reasonably confident of meeting demand. Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confclenoe7 (Do not round intermediate calculations. Round your answer to the nearest whole number.)