Or Project
Or Project
• 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
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
• 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:
• 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.
25%
43%
5%
27%
Questions