# A REPORT ON DECISION MAKING MODELS ASHISH SHARMA ROLL 201062 F0RE SCHOOL OF MANAGEMENT FMG 20B

Each acre of corn requires 100 bushels of storage and yields a profit of \$60.200 bushels and the farmer has only \$20. her expenses are \$100.000 on hand.X2>= 0 Now solving these equations using excel we get the solutions as depicted below . DECISION VARIABLES The number of acres of corn planted by the farmer(x1) The number of acres of soybeans planted by the farmer(x2) OBJECTIVE FUNCTION MAX Z =60X1 + 90X2 CONTRAINTS X1 + X2<= 320 50X1 + 100X2 <= 20000 (EXPENSES) 100X1 + 40X2 <= 19200 (STORAGE) X1.before solving the actual problem we will try to formulate the objective function and the constraints first.. her expenses are \$50 and for each acre of soybeans planted.QUESTION A farmer has a 320 acre farm on which she plants two crops: corn and soybeans. how many acres of each crop should she plant in order to maximize her profit? What will her profit be if she follows this strategy? PROBLEM FORMULATION This is a linear programming problem in maximization type. If the total amount of storage space available is 19. For each acre of corn planted. each acre of soybeans equires 40 bushels of storage and yields a profit of \$90.

0 Answer Report Worksheet: [excel.Microsoft Excel 12.xlsx]Sheet1 Report Created: 07-09-2011 03:39:45 Target Cell (Max) Cell \$C\$8 Name MAX Z Original Value 0 Final Value 20100 Adjustable Cells Cell \$C\$4 \$C\$5 Name CORN SOYBEANS Original Value 0 0 Final Value 140 130 Constraints Cell Name Cell Value Status Not 270 \$C\$11<=\$E\$11 Binding 19200 \$C\$12<=\$E\$12 Binding 20000 \$C\$13<=\$E\$13 Binding Formula Slack 50 0 0 \$C\$11 CONST 1 \$C\$12 CONST 2 \$C\$13 CONST 3 .

SENSITIVITY ANALYSIS Microsoft Excel 12.0 Sensitivity Report Worksheet: [excel. Side Increase Decrease 320 1E+30 50 19200 8000 11200 20000 6666.666667 10400 .xlsx]Sheet1 Report Created: 07-09-2011 04:35:17 Adjustable Cells Cell \$C\$4 \$C\$5 Name CORN SOYBEANS Final Reduced Objective Value Cost Coefficient 140 0 60 130 0 90 Allowable Allowable Increase Decrease 165 15 30 66 Constraints Cell Name \$C\$11 CONST 1 \$C\$12 CONST 2 \$C\$13 CONST 3 Final Value 270 19200 20000 Shadow Price 0 0.1875 0.H.825 Constraint Allowable Allowable R.

Gerald J.REFERENCES Problem inspired from Introduction to Operational Research Frederick S. Lieberman . Hillier.