How many acres should olive grower devote to growing process

Assignment Help Operation Management

Reference no: EM131925898

Problem

The size of the yield of olives in a vineyard is greatly influenced by a process of branch pruning. If olive trees are pruned, trees can be planted more densely, and output is increased. (However, olives from pruned trees are smaller in size.) Obtaining a barrel of olives in a pruned vineyard requires 5 hours of labor and 1 acre of land. Obtaining a barrel of olives by the normal process requires only 2 labor hours but takes 2 acres of land. A barrel of olives produced on pruned trees sell for $20, whereas a barrel of regular olives has a market price of $30. An olive grower has 250 hours of labor available and a total of 150 acres available to plant. He has determined that because of uncertain demand, no more than 40 barrels of pruned olives should be produced. Find the combination of barrels of pruned and regular olives that will yield the maximum possible profit. Also, how many acres should the olive grower devote to each growing process?

Reference no: EM131925898

Questions Cloud

What type of market structure apple company : What type of market structure Apple Company can be considered to be in? Clearly explain your answer and provide at least 3 reasons to support your answer.

What is the cash now recovery from net working capital : Margarite's Enterprises is considering a new project. The project will require 325000 for new fixed assets s 60,000 for addnionalinventory and s 3000.

Dynamic pricing and the creation of product addicts : We have two very interesting readings for this week dynamic pricing and the creation of product addicts.

What is the appropriate amount to use as initial cash flow : What is the appropriate amount to use as the initial cash flow "CFO"? What is the appropriate amount to use as the annual operating cash flows from the project?

How many acres should olive grower devote to growing process : The size of the yield of olives in a vineyard is greatly influenced by a process. Also, how many acres should the olive grower devote to each growing process?

How has the organization changed over the years : How has the organization changed over the years - What strategic alliances has it created - you need information about the organization and its initiatives

Determine what is the npv for the project : Assume a project is expected to provide a positive cash flow of $14,000 per year for the next 5 years followed by a clean-up cost of 10,000 for year 6.

How many each of core and elective courses should scheduled : How many each of core and elective courses should be scheduled so that total faculty salaries are kept to a minimum?

Find the amount of the special payment : The expected return for the investment is 9.91 percent per year. What is X, the amount of the special payment that will be made to Sasha in 4 years?

User Account

All Pages