Using the information below develop a linear program to determine the best course of action for Harvest Farm 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. One member of your team will submit in Blackboard the following:
- An Excel file with your LP output
- Executive summary
Harvest Farm Enterprises operates 3 ranches in the West. The acreage and irrigation water available for the three ranches are shown below:
|
Farm
|
Acreage
|
Water Available (Acre Feet)
|
|
1
|
400
|
1,500
|
|
2
|
600
|
2,000
|
|
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 described below:
|
Crop
|
Total Harvesting Capacity (In Acres)
|
Water Requirements (In Acre-Feet/Acre)
|
Expected Profit (In $/Acre)
|
|
Rye
|
700
|
6
|
400
|
|
Corn
|
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. Please explicitly state any assumptions that go into your analysis.
No of Pages: 4 Pages.