The Northwest Flower Company Owns a Greenhouse, Which Furnishes Roses

question 36

Essay

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 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.
a.What is the objective function if the company wants to maximize its profits?
b.What is the constraint for the square footage assuming X1 corresponds to roses?
c.What is the optimal solution point for this problem?
d.What is the optimal value of the objective function?

Calculate the inventory costs and valuation using different inventory costing methods.

Identify and correct errors in inventory reporting and understand their effects on financial statements.

Explain the impact of inventory management decisions on cash flow.

Apply the lower of cost or net realizable value rule in inventory valuation.

---

Definitions:

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring.

Expressed

Conveyed or made known one's thoughts, feelings, or ideas through words, actions, or art.

Dormant

In a state of temporary inactivity or rest, with the potential to awaken or activate.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, impacting an organism's development and functioning.