Operations Management: Other Operations Management Problems – #29460


Question: Question 4: A farm in the south-west of Western Australia comprises 300 hectares and has available water of 250,000 litres per season, and costs $100 per planted hectare per season to operate. Wheat, corn and barley can be grown on the property. The following information is pertinent:

Crop Selling Price ($/tonne) Water Requirement (litres/hectare) Yield (tonnes/hectare)
Wheat 25 1,000 20
Corn 20 1,500 15
Barley 15 1,800 40

The farm forecasts a maximum demand of wheat of 5,000 tonnes; for corn, 6,000 tonnes, and for barley, 4,000 tonnes. Also, the farm has a contract to supply at least 2,500 tonnes of wheat to a particular customer. The objective is to determine the number of hectares of each crop that should be planted on the farm in order to maximise profit? You are not required to solve this problem. Simply show:

a) Objective Function (1 mark)

b) The constraints on water and on land. (1 mark)

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