FujiFarm produces four types of vegetables with variable costs of $2.80, $3.54, $1.07, and $2.23 per acre.

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FujiFarm produces four types of vegetables with variable costs of $2.80, $3.54, $1.07, and $2.23 per acre. Due to an increment in the cost of fertilizers, the variable cost of each of the vegetables will increase by 3% at the beginning of next month. Demand forecasts for each vegetable are shown in the following table. There is a 50-acre land assigned for each vegetable that is ready to be harvested, and the farm wants to maintain a harvest amount equivalent to 50-acres of land of each product to be harvested at the end of each month. All four vegetables share a common farming and harvest process in which the farm workers work for six hours each per day, seven days per week. Farming process time requirements are 1.5 hours/acre of Vegetable 1, 0.97 hours/acre of Vegetable 2, 1.45 hours/ acre of Vegetable 3, and 1.72 hours/acre of Vegetable 4. The per-acre cost of maintaining the amount of harvest each month is estimated to be 5.5% of the cost of the vegetable. Develop an optimization model to meet demand and minimize the total cost. Assume 30 days per month. Implement your model on a spreadsheet and find an optimal solution with Solver.image

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Business Analytics

ISBN: 9781292339061

3rd Global Edition

Authors: James Evans

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