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Oil Mallee Farming Optimization Problem

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Farmer Joe is considering plant mallees (a type of eucalyptus) on part of his 90 hectares of land. Wheat profits is $120/ha, while mallee profit is $90/ha. He also knows that mallees will cost him 2 days of work/ha, while wheat costs 3 days/ha. He is a profit-maximizing farmer who has a maximum of 180 working days available (labor constraint).

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Use the sliders to explore how changing the Mallee area constraints and the labor constraint affects the feasible area for a solution to Joe's problem.

Use the "profit" slider to explore how much profit Joe could possibly make, while staying within the feasible solution region.

Can you see at which basic solution corner his profit-maximizing solution exist? What are the limiting constraints?

What is the characteristic of the optimal solution indicated by a black circle?

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Contributed by: Marit Kragt and Zhengqiang Jiang (September 2011)
Open content licensed under CC BY-NC-SA

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