Question
Amari Greene started a business growing organic produce to serve restaurants on the Grand Strand. Amari has concentrated on growing carrots and kale. For the
Amari Greene started a business growing organic produce to serve restaurants on the Grand Strand. Amari has concentrated on growing carrots and kale. For the past 6 years, Low Country Organic Farms has been able to charge the following prices for their vegetables:
Year | Carrots | Kale |
1 | $0.720
| $0.566 |
2 | $0.771 | $0.627 |
3 | $0.741 | $0.574 |
4 | $0.718 | $0.611 |
5 | $0.756 | $0.609 |
6 | $0.739 | $0.558 |
Carrots have a healthy yield, producing 20,000 pounds of carrots per acre. Kale is less dense, producing 16,000 pounds per acre. Growing carrots is labor intensive. Growing carrots requires 0.4 workers and 800 pounds of organic fertilizer per acre that is planted. Growing kale requires much less labor, but it requires more organic pesticide to protect the crops since it grows above ground. Growing kale requires 0.2 workers and 1,000 pounds of fertilizer per acre that is planted. Amari can hire up to 15 workers for $26,000 each, and his supplier of organic pesticide can deliver up to 35,000 pounds of fertilizer next year at $2.10 per pound. Low Country Organic Farms has 40 acres that can be planted.
Build a model to determine how the farm should use their resources: o Estimate the price of kale and carrots for year 7. Graph the prices and choose two appropriate methods to forecast. Determine which price to use in your model using MSE. Report prices to three decimal places: $x.xxx o Use Solver to find the best number of acres of carrots and kale to maximize profit. Save your model showing: o The optimal solution o Answer, Sensitivity, and Limits reports o Correct color coding.
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