Xilinx (Pvt) is a California based manufacturer of electronic components that are used by major manufacturers of electronic products across the globe. The company was setup in Silicon Valley in 1984 and one of its first products was a new type of semiconductor known as ‘Field Programmable Gate Array (FGPA)’. 

Cisco Systems, world’s largest buyer of electronic components, is one of the major customers of Xilinx. Cisco’s major competency lies in outsourcing its manufacturing to its component suppliers and then integrating/assembling the whole systems. 

In 2002-03, there was a huge mismatch (worth US$2 Millions) between the number of components supplied by Xilinx and the number of components consumed at Cisco’s assembly facility. After this incident, Cisco decided to streamline its supply chain with existing suppliers. It was required that suppliers should have some ways to track the position of inventory at Cisco’s assembling facility and shipment should only be dispatched by them after analyzing demand at Cisco. 

Suppose, after a careful analysis Xilinx identifies that the quantity of FGPAs that they ship to Cisco’s assembly facility for a quarter depends on following factors:

Factor-1: Combined number of orders of UCS C-Series (Rack servers) and UCS B-Series (Blade servers) received by the assembly facility. 

Factor-2: Existing stock levels of FGPAs at the assembly facility 

Factor-3: Total quantity in orders from other buyers (other than Cisco) 

Factor-4: Total quantity in back-orders from Cisco 

Some past data is as below: 

Quantity Shipped	Factor-1	Factor-2	Factor-3	Factor-4
350000	1800	25000	54000	32000
280000	1560	43000	60000	19000
178000	1290	50000	65000	8000
200000	1350	75800	24000	12000
165000	1300	62000	72000	10000
270000	1770	32000	81000	20000

1. Xilinx decides to run linear regression on this data. Perform simple linear regression using Excel and answer the following. 

2. Suppose for the last quarter of 2020 Cisco had received 800 orders for Blade Servers and 1400 orders for Rack servers; Inventory stock of FGPAs at assembly site was 20,000 units; the Combined sum of orders received by Xilinx from other buyers was 100,000 and the total quantity in back-orders from Cisco itself was 40,000 FGPAs. Calculate the exact quantity Xilinx was supposed to ship to Cisco at the quarter start. 

3. What are the values of the Coefficient of correlation and Coefficient of Determination in this model? Write down your comments on these values? What do these represent?

Answer rating: 100% (QA)

a Regression analysis constructed by excel for Xili... View the full answer