Operations Management Questions

1.     An electronics company exports personal computers.  Their PC sales in thousands over the past five years are given below:


Year                            Sales 

1                                             5

2                                             9

3                                             12

4                                             15

5                                             20


What is the regression equation if the company wants to use that method for forecasting sales?  Based on the coefficients of correlation and determination, would you recommend that they use this method?  Why, or why not?

1.     The Northwest Flower Company owns a greenhouse, which furnishes roses and carnations to florists in Oregon, Washington, and Idaho.  The greenhouse can grow any combination of the two flowers.  They sell the flowers in “bunches” with 25 blooms to a bunch.  They have up to 10,000 square feet available for planting this year.  Each bunch of roses takes about 4 square feet and each bunch of carnations about 5 square feet.  Special fertilizer is required for flowers; roses need 5 pounds and carnations 2 pounds.  The availability of the fertilizer is limited to 5000 pounds.  Sales commitments require the company to grow at least 500 bunches of roses.  Profit contributions are $6 per bunch of roses and $8 per bunch of carnations.  What is the optimum profit and planting for this situation?


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