In: Operations Management
2 quintal of mango was harvested. 1.5% was wasted due to diseases during post-harvest, 1% was lost due to animal consumption.
Family consumption of mango is 25 kilograms, 5 kilograms was given to labor as wages, 5 kilograms was retained for farm needs, and 3 kilograms was retained for other purposes.
CALCULATE MARKETABLE SURPLUS
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Marketable surplus means the net produce which is available to the farmer for sales in market purpose. This quantity of marketable surplus is the net quantity from the total produce after deducting the loss due to disease, animal consumption, self-consumption, labor, farm need, and any other form of consumption. Only the final left over produce is considered as marketable surplus.
Total post-harvest loss due to disease and animal consumption accounts for 2.5% (1.5%+1% ) of 200 kg. it translates into the consumption/loss of 5 Kg.
Consumptions other than diseases and animal consumption:
Self consumption =25 kg
Labour charges = 5kg
farm need =5 kg
Another purpose =3 kg
Hence, Consumptions other than diseases and animal consumption = 25+5+5+3=38 Kg.
Total post harvest loss and consumption = 5+38 = 43 Kg.
Marketable surplus = Total produced quantity - Total loss and all forms of consumptions
= 200-43 kg = 157 Kg. Answer.
Hence, 157 Kg is available for the farmer to sell in the market and earn a profit.