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Optimal Water Sourcing Strategy for Mango and Wheat Farms by Mr. Lashari

Mr. Akbar Lashari faces a water shortage in his Mango and Wheat farms. He can buy water from Mr. Ayaz Soomro at Rs. 4/0 per acre-feet and from Mr. Abdul Lateef Khatri at Rs. 5/0 per acre-feet. Transportation costs vary. Help Mr. Lashari determine the most cost-effective water purchasing plan for each farm.

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Optimal Water Sourcing Strategy for Mango and Wheat Farms by Mr. Lashari

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  1. Class work

  2. Buy Water Mr. Akbar Lashari has two farms: Mango farm and Wheat farm. In this drought season he will need to purchase 35 acre-feet additional water for mango farm and 30 acre-feet for wheat farm. He can buy from a neighboring well of Mr. Ayaz Soomro. Mr. Soomro says, “I shall sell water on rate of Rs.4/0 per acre-feet.” Transportation of water will cost to Rs. 1/0 for mango farm and Rs. 3/0 for wheat farm. However Mr. Soomro can sell 50 acre-feet of water in total. Mr. Lashari can also buy from another well of Mr. Abdul Lateef Khatri. Mr. Khatri offers Rs. 5/0 per acre-feet, and transportation charges from there are: Rs. 1/0 and Rs. 3/0 to mango farm and wheat farm respectively. Mr. Khatri can provide 60 acre-feet of water in total. Help Mr. Lashari in deciding the amount of water from each well and which farm he should provide that water, so that it requires minimum cost.

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