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Osman YetimEce Dinç

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Table of Contents

Why did we choose this case?........................................................................................................

Definition of the Problem..............................................................................................................

Acquiring Input Data.....................................................................................................................

he !teps to !olution.....................................................................................................................

he "esults.....................................................................................................................................

!ensiti$ity Analysis........................................................................................................................

"ecommendation............................................................................................................................%

"eferences.......................................................................................................................................

Appendi&es.....................................................................................................................................'

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Why did we choose this case?

Healthy nutrition is one of the most significant issues in today’s world. Obesity has becoming more and

more dangerous problem all around the world and especially in America. The governments and the non-

governmental organiations constantly create and implement strategies for struggling this problem. !os

of the e"perts believe that main reason of the nutrition problems comes from the agricultural cultivation.

We thin# the conflict between the purpose of farmers or food producers which is always profit

ma"imiation and re$uirements of being healthy is a crucial point in this case. Therefore% we wanted to

ma#e a linear programming for agricultural planning in order to show how they ma#e the production

 process.

&efinition of the 'roblem

We have ()) acres of land to produce orange% corn% peanut and sunflower. One of the most important

 priorities of our production strategy is to use our land with full efficiency. We assume that other details

are. The specified details are below*

We have + different plants for our + different plant to produce. ,aturally% each plant has different returns

and different re$uirements. t is not obliged to plant each product at the same amount.

The returns for each product is at the table below* all of the data are measured in dollars/*

'roduct 0evenue for each acre planted

Orange 12

3orn 1)

'eanut 11

4unflower 1(

The cultivation costs and environmental costs are at the table below*

3ost per unit 3ost per unit 5ertilier ,eed

Orange 61 2

3orn 6+ 2

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'eanut 6( +

4unflower 11 (

Also% there are of course operational re$uirement that oblige us to have some additional constraints*

• Acres of orange% peanut and sunflower planted cannot e"ceed half of the entire field% however

 planted corn can e"ceed.

• 7overnment regulation as to the $uotas re$uires that acres of planted corn and sunflower

combined should at least be 82)

• !a"imum fertilier can be used on ()) acres cannot e"ceed +)))

• Total budget is 62))

• Our ob9ective is to ma"imie our profit

Ac$uiring nput &ata

&ata regarding the $uotas come from !inistry of Agriculture and 5orests

&ata regarding ma"imum proportion of acres come from production planning and operations

department

5inancial data such as cost and profit comes from a management consultancy firm to whom we had outsourced the tas# 

The #nowledge of acres occupied comes from surface survey results

nternational agreement clauses come from the :nited ,ations

The 4teps to 4olution

;ariable ,ame What it means

<6 ,umber of acres of orange planted

<1 ,umber of acres of corns planted

<8 ,umber of acres of peanut planted

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<+ ,umber of acres of sunflower planted

Ob9ective function is*

!a" 6+ <6 = 2 <1 = + <8 = 2 <+

5ertilier limit constraint is

2 <6= 2 <1 = + <8 = ( <+ > +)))

udget constraint is

61 <6 = 6+<1 = 6(<8 = 11<+ > 62)))

Acres of field constraint is

<6 = <1 = <8 = <+ @ ())

!a"imum proportion constraint is

<6 > +))

<8 > +))

<+ > +))

7overnment $uota constraint is <1 = <+ 82)

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The 0esults

<6 @ 8)2.222B

<1 @ 82)

<8 @ )

<+ @ )

'rofit* 2+C8

4ensitivity Analysis

What if we did not fertiliser quotas?,TT 816 TD0! '0OED

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4olution would be to plant ++) acres of orange and 82) acres of corns. udget surplus? 3hange in

reduced cost? 3hange in shadow price? 3hange in revenue?

What if go$ernment increases corn plus sunflowers quota to #((?

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'roduce 8)) acres of orange% +)) acres of corn% 6)) acres of sunflower. udget surplus? 3hange inreduced cost? 3hange in shadow price? 3hange in revenue?

What is our consumers need #( acres of sunflower and we should produce it in orderto fulfil their needs?

Add new constraint of <+ C)

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udget surplus? 3hange in reduced cost? 3hange in shadow price? 3hange in revenue?

0ecommendationWe should plant 8)2%222B acres of orange and 82) acres of corn. We should not plant sunflower and

 peanut.

0eferencesWe did not use any references.

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Appendi"esHere is some further reading on ecological regulatory environment and also on organic food

trend.

http*FFen.wi#ipedia.orgFwi#iFDnvironmentalGlaw

http*FFen.wi#ipedia.orgFwi#iFD:-Dco-regulationhttp*FFwww.foodnavigator-usa.comF!ar#etsF:4-organic-food-mar#et-to-grow-6+-from- 1)68-6(

http*FFwww.ats-sea.agr.gc.caFinterF+82B-eng.htm

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