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The model was solved and the optimal crop mix was determined to be 0.325 hectares of onion, 2.76 hectares of tomato, 1.78 hectares of potato, and 1.62

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0% found this document useful (0 votes)
25 views

Or Project

The model was solved and the optimal crop mix was determined to be 0.325 hectares of onion, 2.76 hectares of tomato, 1.78 hectares of potato, and 1.62

Uploaded by

Nabarun Pal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Farm Land Optimization Model

• Decision Variables
XO = Total area under cultivation for Onion
XT = Total area under cultivation for Tomato
XP = Total area under cultivation for Potato
XC = Total area under cultivation for Cauliflower

• Objective Function
Minimize total cost = 44602*(XO) + 34483*(XT) + 39120*(XP) + 39120*(XC)

• Constraints
• XO + XT + XP + XC = 6.5 [Total Land area]
• 12.92*XO + 7.16*XT + 8.8*XP + 9.04*XC <= 100 [Total Labors]
• 11.50*XO + 5.47*XT + 10*XP + 14.32*XC <= 60 [Total Machine Hours]
• 9.18*XO + 5.68*XT + 9.64*XP + 8.36*XC <= 60 [Total Irrigation]
• XO, XT, XP, XC >= 6.5*5% [Minimum land area under one crop]
• XO, XT, XP, XC <= 6.5*42.5% [Maximum land area under one crop]
• 4460 XO + 234483 XT + 39120 XP + 33856 XC = 275000 [Maximum Budget]
• XO, XT, XP, XC >=0
Cost Calculation
Data Crop Onion Tomato Potato Cauliflower Fixed Cost

a. Human Labour (man days/ha)


12.92 7.16 8.8 9.04 18600
b. Seeds (units/ha)
17 12 18 12 -
Variable Costs
c. Machinery (hours/ha)
11.5 5.47 10 14.32 16520
d. Irrigation (units/ha)
9.18 5.68 9.64 8.36 4500

Calculation of Variable Cost

Total Cost for Onion production (Rs/ha) a*200*8+b*800+c*100+d*1000 44602

Total Cost for Tomato production (Rs/ha) a*200*8+b*1400+c*100+d*1000 34483

Total Cost for Potato production (Rs/ha) a*200*8+b*800+c*100+d*1000 39120

Total Cost for Cauliflower production (Rs/ha) a*200*8+b*800+c*100+d*1000 33856

Cost of Seeds per unit for Onion, Potato and Cauliflower (Rs) 800
Calculation of Fixed Cost (Rs) Cost of Seeds per unit for Tomato (Rs) 1400
Cost of farm machinery per hour 100
a+c+d 39620
Cost of irrigation per unit 1000
Spreadsheet Data Model

Unsolved Model
Spreadsheet Data Model

Solved Model
Decision Variables
• The best crop mix for the farm

Crop Onion Tomato Potato Cauliflower


Area Under
0.325 2.76 1.78 1.62
Cultivation (ha)

• Analysing the sensitivity report, the allowable increase and decrease in the ‘Total Machine Hours’ is 4.90hr and 1.72hr respectively.
◦ Shadow Price of Machine Hours is Rs. -1218.51
◦ Hence increasing every hour of machine will reduce the cost by Rs. 1218.
• As per sensitivity report explained in the previous slide, 1 additional machine hour decreased the cost Rs1218. Any further increase will have no impact, but
decrease in the m/c hours by 6.63 will increase the total cost by Rs. 8078. Any further decrease beyond this will have no impact.

Decrease in cost
Increase in the machine hours
• Beyond 64.9073 m/c hours, any further increase will have no impact on the Total Cost, as is shown in the sensitivity report below:

No change in cost beyond 64.9073

No change in cost beyond 64.9073


Sensitivity Analysis

Sensitivity Analysis for Area Under Cultivation


• Any increase up to the allowable increase range in the area cultivated, will increase cost by Rs 2077.85 (0.0405*51305.185), beyond which there will be no
increase in costs.

• Also, the max decrease in total area cultivated can be 0.4407 ha. This will decrease the cost by Rs. 22610.195. Any further decrease in the total area under
cultivation will have no tangible effect on the total cost.

Sensitivity Analysis for Irrigation


• For irrigation, there is slack of 0.51 units. Also from the sensitivity report we can see that any decrease or increase in the units does not have any effect on
the cost.

Sensitivity Analysis for Labor


• For labor, there is slack of 45.6 man days. Also from the sensitivity report we can see that any decrease or increase in the man days does not have any effect
on the cost.
Graphical Representation of Crop Mix
Crop Mix

25%

43%

5%

27%
Questions

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