Using the information below develop a linear program to determine the best course of action for Draper
Question:
Using the information below develop a linear program to determine the best course of action for Draper Agricultural Enterprises.
Using the results of the linear program prepare an Executive Summary of 1-2 pages outlining the best plan of action and justifying your decision.
Submit the following as separate attachments:
An Excel file with your LP output
Executive Summary
Draper Agricultural Enterprises operates 3 ranches in the West. The acreage and irrigation water available for the three ranches are shown below:
irrigation water
Farm Acreage Water Available (Acre Feet) 14001,500 26002,000 3300900
1. 400. 1500
2 600. 2000
3. 300. 900
Three crops can be grown; however, the maximum acreage which can be grown of each crop is limited by the amount of appropriate harvesting equipment available. The three crops are describe below:
Crops Harvest
Crop Total Harvesting Capacity (In Acres) Water Requirements (In Acre-Feet/Acre) Expected Profit (In $/Acre)
Rye 700 6 400
Con 800 4 300
Barley 300 2 100
Any combination of crops can be grown on a farm.
Your Executive Summary should lay out the most profitable production plan. It should also discuss how robust your plan is to commodity price changes or production input prices such as fuel costs, which would impact profitability. Also, it should identify scarce resources and the impact of acquiring additional water, land and harvesting capacity.
Note: Your Executive Summary should not be a how-to guide on developing a linear program. Rather it is a business report used for management decision making. As such, it should focus on what the business should do to operationalize the production plan and what aspects of the plan need to be closely monitored. Your Executive Summary should concisely make recommendations to start, then follow up with using the LP output to justify and support your plan.
Supply Chain Network Design Applying Optimization and Analytics to the Global Supply Chain
ISBN: 978-0133017373
1st edition
Authors: Michael Watson, Sara Lewis, Peter Cacioppi, Jay Jayaraman