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Over the past five years, the plastic packaging business has grown steadily. Demand for containers made from clear plastic comes from grocery stores, bakeries, and

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Over the past five years, the plastic packaging business has grown steadily. Demand for containers made from clear plastic comes from grocery stores, bakeries, and restaurants. Demand for black plastic trays comes from caterers and grocery stores who use them as packaging and serving trays. Demand for clear plastic containers peaks in the summer months, whereas demand for black plastic containers peaks in the fall. Capacity on the extruders is not sufficient to cover demand for sheets during the peak seasons. As a result, the plant is forced to build inventory of each type of sheet in anticipation of future demand. Table (b) and Figure(c) display historical quarterly demand for each of the two types (clear and black) of containers. This demand data was modified from ABC's sales data by the team to take into account the lost sales when ABC was out of stock. Without the customers involved in this team, ABC would never have known this information as they did not keep track of lost orders. Questions As a first step in the team's decision making, they want to forecast quarterly demand for each of the two types of containers for the years 6 to 8. Based on historical trends, demand is expected to continue to grow until year 8, after which it is expected to plateau. Jilly must select the appropriate forecasting method and estimate the likely forecast error

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