In: Economics
Sorghum |
Corn |
Wheat |
|
Land (acres) |
1.0 |
1.0 |
1.0 |
Labor (hours) |
0.4 |
0.2 |
0.3 |
Tractor (hours) |
0.5 |
0.2 |
0.4 |
Identify decision variable
Land for Sorghum = S acre
Land for Corn = C acre
Land for Wheat = W acres
Write objective function
Rancher would want to maximize profit on the crop that she cultivates on the land.
Max (S * $55) + (C * $60) + (W * $50)
Write constraints
Total land for cultivation in 500 acres. so our land constraint equation is
Constraint 1: (S * 1.0) + (C * 1.0) + (W * 1.0) <= 500
=> S + C + W <= 500
She is able to supply 3000 hours per year of farm labor. This provides us the upper cap for labor hours constraint
Constraint 2: (S * 0.4) + (C * 0.2) + (W * 0.3) <= 3000
She has 4500 hours of tractor time. This provides us the upper cap for tractor hours constraint
Constraint 3: (S * 0.5) + (C * 0.2) + (W * 0.4) <= 4500
non negativity restriction
The values of S, C and W are greater than or equal to 0.
S, C, W >= 0