Optimal Input Combinations in Farm Management
Optimal Input Combinations in Farm Management
ver
sit
yCol
legeofAgr
icul
tur
e
Depar
tmentofagr
icul
tur
aleconomi
cs
Cour
seNamef
arm management
Gr
oupAssi
gnment
GroupMember
s Idno
SAMRAWITDEGELO 1226/
15
TARIKUTAMIRAT 1351/
15
SEMUSENBETO 1280/
15
SOLOMONEZEZEW 2085/
15
SURAFELABATE 1334/
15
SULTANJEMAL 2086/
15
Submi
tt
edt
oMr
.Ti
rusew
Submi
ssi
ondat
eTue,
29oct
ober
I
ntr
oduct
ion
Achi
evinganoptimum decisi
on,parti
cular
lyinthecontextofdet
ermini
ngtheleastcombinat
ion
ofi
nputs,canbeapproachedthroughv ari
ousmet hods:si
mplearit
hmeti
ccalculat
ions,
al
gebraicmethods,
andgr aphi
calrepresentat
[Link]'
sabreakdownofeachappr oach:
[Link]
mpl
eAr
it
hmet
icCal
cul
ati
on
Thismet
hodinv
olv
esst
rai
ght
for
war
dcal
cul
ati
onst
odet
ermi
net
hel
eastcombi
nat
ionofi
nput
s
basedongi
vendat
a.
Descr
ipt
ion:
Thismethodinv olveseval
uati
ngtheobj
ect
ivef
unct
ionatv
ari
ousf easi
blecombi
nat
ionsof
deci
sionvar
[Link]
rai
ghtf
orwar
dandworksbestf
orsmall
-scaleprobl
emswit
hal i
mit
ed
numberofvariables.
St
eps:
•Ident
if
yFeasi
bleSol
uti
ons:
Listoutpossi
blecombi
nat
ionsofv
ari
abl
eval
uest
hatsat
isf
yal
l
constr
aint
s.
•Calculat
etheObject
iveFunct
ion:
Foreachcombi
nat
ion,
comput
ethev
alueoft
heobj
ect
ive
functi
on(e.g.
,cost
,pr
ofit
).
•Compar
eVal
ues:
Det
ermi
newhi
chcombi
nat
iony
iel
dst
hel
east(
ormaxi
mum)v
alue.
Adv
ant
ages:
•Easyt
ounder
standandi
mpl
ement
.
•Nospeci
alt
ool
sorsof
twar
ear
erequi
red.
Li
mit
ati
ons:
•Notpr
act
ical
forl
argerpr
obl
emswi
thmanyv
ari
abl
esandconst
rai
nts.
•Ti
me-
cons
[Link]
gebr
aicMet
hod
Usi
ngal
gebr
a,y
oucanf
ormul
ateequat
ionst
orepr
esentconst
rai
ntsandobj
ect
ives.
Descr
ipt
ion:
Thismet hodinvolv
esf
ormul
ati
ngtheopt
imizat
ionprobl
em mathemati
cal
l
yusingequat
ions
andinequali
ti
[Link]
smoresy
stemati
candcanhandlecomplexprobl
emseffect
ivel
y.
St
eps:
•Def
inet
heObj
ect
iveFunct
ion:
Clear
lyst
atewhatneedst
obemi
nimi
zedormaxi
mized(
e.g.
,C
=ax+by).
•SetUpConst
rai
nts:
Wri
tedownal
lconst
rai
ntsasequat
ionsori
nequal
i
ties.
•SolveforVari
abl
es:
Useal
gebrai
ctechni
ques(
li
kesubst
it
uti
onorel
i
minat
ion)t
oexpr
essone
var
iableinter
msofanot
herort
oisolat
evari
abl
es.
•Opti
mize:Subst
it
utebackint
otheobject
ivef
uncti
onandsol
vef
orcr
it
ical
poi
nts,
oft
enusi
ng
methodsli
ketheSimplexal
gori
thm f
orlar
gerprobl
ems.
Adv
ant
ages:
•Canhandl
emul
ti
plev
ari
abl
esandconst
rai
nts.
•Pr
ovi
desacl
earmat
hemat
ical
framewor
kforanal
ysi
s.
Li
mit
ati
ons:
•Requi
resagoodunder
standi
ngofal
gebr
aandmat
hemat
ical
concept
s.
•Maybecomecompl
exwi
thmanyv
ari
abl
esandconst
rai
nts.
[Link]
aphi
calMet
hod
Thi
smet
hodi
susef
ulf
orv
isual
i
zingt
hepr
obl
em,
especi
all
ywi
tht
wov
ari
abl
es.
Descr
ipt
ion:
Thi
smet hodispar
ti
cul
arl
yuseful
forvi
sual
izi
ngl
inearprogr
ammingprobl
emswithtwo
var
iabl
[Link]
l
owsforacl
earrepr
esent
ati
onoffeasibl
eregi
onsandopti
malsol
uti
ons.
St
eps:
•GraphConstr
aints:Pl
oteachconstr
aintonagr
apht
oident
if
ythef
easi
bler
egi
on(
thear
ea
whereal
lconstr
aintsaresati
sfi
ed)
.
•I
dent
if
yCor
nerPoi
nts:
Det
ermi
net
hev
ert
ices(
cor
nerpoi
nts)oft
hef
easi
bler
egi
on.
•Eval
uat
etheObj
ect
iveFunct
ion:
Cal
cul
atet
hev
alueoft
heobj
ect
ivef
unct
ionateachcor
ner
poi
nt.
•Fi
ndOpti
malSolut
ion:Thecor
nerpoi
ntt
haty
iel
dst
hel
owest(
orhi
ghest
)val
ueoft
he
obj
ect
ivef
unct
ionistheopti
malsol
uti
on.
Adv
ant
ages:
•Pr
ovi
desav
isual
repr
esent
ati
onoft
hepr
obl
em,
maki
ngi
teasi
ert
ounder
stand.
•Usef
ulf
oreducat
ional
pur
posesandsmal
l
-scal
epr
obl
ems.
Li
mit
ati
ons:
•Onl
yappl
i
cabl
etopr
obl
emswi
tht
wov
ari
abl
es(
oratmostt
hreei
n3D)
.
•Maynotbepr
eci
seenoughf
orcompl
expr
obl
ems.
Summar
y
Byemployingthesemet hods—simplearit
hmet i
ccalculat
ionsforstrai
ghtf
orwar dscenari
os,
al
gebrai
cformul at
ionsformorecompl exsit
uations,andgraphicalr
epresentati
onsfor
vi
suali
zat
ion—youcansy st
ematical
l
ydet er
mi netheleastcombi nat
ionofinputstoachievean
opti
mum [Link] t
sstrengthsandi ssui
tablefordi
fferentcontext
s
dependi
ngont hecompl exi
tyoftheproblem.
Eachmet hodhasi t
sownst rengthsandweaknesses,makingthem suit
abl
efordi
ff
erentt
ypes
ofoptimi zat
ionpr [Link]
mpl earit
hmeti
ccalcul
ati
onsar ebestf
orsmall-
scal
eprobl
ems,
algebraicmet hodsar eideal
f ormorecomplexsit
uati
ons,andgraphicalmet
hodsprovi
de
valuablev i
sualinsightswhendeal i
ngwit
htwo-vari
abl
escenar i
os.
1.
1Howistheopti
mum decisi
onachi
eved?(
Det
ermi
nat
ionofLeastcombi
nat
ionof
i
nput
susing gr
aphi
calmethod?)
Toidenti
fythi
sopti
mal i
nputcombinat
ion,
fir
msusei soquantcurveanaly
sis.I
soquantcurves
repr
esentallt
hedif
fer
entcombinati
onsofinput
sthatcanpr oduceagivenlevelofout
[Link]
anal
yzingthesecur
ves,fi
rmscanident
ifyt
heleast
-costinputcombinat
ionthatwill
producethe
desi
redlevelofout
put.
Achi
evi
nganopt
imum decisi
onusi
ngthegr
aphi
calmethodi
nvol
vessev
eralsy
stemat
icst
epst
o
det
ermi
nethel
eastcombinat
ionofi
nput
[Link]
e'sadet
ail
edgui
deonhowt odothi
s:
St
epst
oAchi
eveOpt
imum Deci
sionUsi
ngt
heGr
aphi
cal
Met
hod
St
ep1:
Def
inet
heObj
ect
iveFunct
ion
Thefi
rststepi
stoest
abl
i
shtheobject
ivef
unct
ionthaty
ouwantt
omi ni
mizeormaxi
[Link]
example,i
fyouwantt
omini
mizecostbasedoninput
sxand y,yourobj
ecti
vef
unct
ionmight
l
ookli
ket hi
s:
C=ax+by
wher
e a and b ar
ethecost
speruni
tofi
nput
sxand y.
St
ep2:
Est
abl
i
shConst
rai
nts
Next
,ident
if
ytheconst
rai
ntsthatl
imittheval
uesofyouri
[Link]
dber
esour
ce
l
imit
ati
ons,mini
mum requi
rements,oranyotherr
est
ri
cti
[Link]:
•x+y≤10 (
tot
alr
esour
cesav
ail
abl
e)
•x≥0
•y≥0
St
ep3:
Grapht
heConst
rai
nts
[Link]
ertI
nequal
i
tiest
oEquat
ions:
Changeeachconst
rai
nti
ntoanequat
ionf
orgr
aphi
ng.
•Forx+y≤10,
grapht
hel
i
ne x+y=10.
[Link]
ott
heLi
nes:
Onacoor
dinat
epl
ane,
ploteachl
i
necor
respondi
ngt
oyourconst
rai
nts.
[Link]:
Ident
if
ywhichsideofeachl
inesati
sfi
estheinequal
it
yandshade
thatar
[Link]
egioniswhereal
lshadedareasov
erlap,
repr
esenti
ngallpossi
ble
combinat
ionsofinputsthatmeetyourconst
raint
s.
St
ep4:
Ident
if
yVer
ti
cesoft
heFeasi
bleRegi
on
Theopti
malsolut
ionwil
ll
ieatoneoft
hev er
ti
ces(corner
s)ofthef
easi
bler
egi
[Link]
indt
hese
ver
ti
ces,l
ookforthei
nter
sect
ionpoi
ntsofthel
inesyouplot
ted.
St
ep5:
Eval
uat
etheObj
ect
iveFunct
ionatEachVer
tex
Cal
cul
atet
hev
alueofy
ourobj
ect
ivef
unct
ionateachv
ert
exoft
hef
easi
bler
egi
on.
•Forexampl
e,i
fyouhav
ever
ti
cesA(
0,10),B(
5,5),
and C(
10,
0),
cal
cul
ate:
•AtA(
0,10):C=a(
0)+b(
10)=10b
•AtB(
5,5):C=a(
5)+b(
5)=5a+5b
•AtC(
10,
0):C=a(
10)+b(
0)=10a
St
ep6:
Det
ermi
net
heOpt
imal
Sol
uti
on
Comparet hecal
cul
atedvaluesoftheobj
ecti
vefunct
ionateachver
[Link]
ertexwi
tht
he
l
owestv al
ue(formini
mizati
onproblems)orhi
ghestval
ue(formaxi
mizati
onprobl
ems)
repr
esentstheopti
malsoluti
on.
Exampl
e
Let
'ssayy
ouwantt
omi
nimi
zecostgi
venbyC=2x+3y,
subj
ectt
o:
•x+y≤10
•x≥0
•y≥0
[Link]
apht
heconst
rai
nts:
•Pl
otx+y=10.
•Shadebel
owt
hisl
i
nei
nthef
ir
stquadr
ant(
wher
ebot
h xand yar
enon-
negat
ive)
.
2.I
dent
if
yver
ti
ces:
•Thef
easi
bler
egi
onmi
ghthav
ever
ti
cesatpoi
ntsl
i
ke (
0,10),(
5,5),
and (
10,
0).
[Link]
aluat
etheobj
ect
ivef
unct
ion:
•At(
0,10):C=2(
0)+3(
10)=30
•At(
5,5):C=2(
5)+3(
5)=25
•At(
10,
0):C=2(
10)+3(
0)=20
[Link]
imal
sol
uti
on:
Themi
nimum costoccur
sat(
10,
0)wi
thacostof$20.
Concl
usi
on
Thegraphicalmet
hodisapowerful
toolforvi
sual
izi
ngandsolv
inglinearprogramming
probl
emswi thtwovar
iabl
[Link]
oll
owingthesesteps,
youcaneffecti
velydetermi
nethel
east
combinat
ionofinput
sneededtoachiev
eanopt i
mum decisi
on.
Usingt hi
sgraphicalmet hodall
owsforavisualrepresent
ati
onofhowdi ff
erentcombi
nat
ionsof
i
nput saffectyourobjectiv
efuncti
onwhil
eadher ingtoconstrai
[Link]
smethodispar
ti
cularly
usefulforproblemsinv olv
ingt
wov ar
iabl
esbutcanbeext endedt omorevari
abl
esusi
ngot her
optimizati
ontechniquesl i
keli
nearpr
ogrammi ng.
1.2Howistheopti
mum deci
sionachi
eved?(
Det
ermi
nati
onofLeast
combinat
ionofi
nputsusi
ngsi
mpl ear
hemati
ccal
cul
ati
on?)
Achi
ev i
nganoptimum deci
sionthroughsi
mpl eari
thmeti
ccalculat
ionsi
nvolvesasyst
emati
c
appr
oacht osol
vingl
i
nearprogrammi ngprobl
emswi thoutnecessari
lyr
ely
ingongraphi
cal
[Link]’
showy oucandet er
minetheleastcombinati
onofinputsusingar
it
hmetic
cal
culati
ons:
St
epst
oAchi
eveOpt
imum Deci
sionUsi
ngAr
it
hmet
icCal
cul
ati
on
St
ep1:
Def
inet
heObj
ect
iveFunct
ion
St
artbydefi
ningtheobject
ivef
uncti
onyouwantt
omi
nimi
zeormaxi
[Link]
e,i
fyou
wanttomini
mi zecost
sbasedoni nput
sxandy:
C=ax+by
wher
eaandbar
ecoef
fi
cient
srepr
esent
ingcost
speruni
tofi
nput
sxandy.
St
ep2:
Est
abl
i
shConst
rai
nts
I
dent
if
ytheconst
rai
ntst
hatl
i
mity
ouri
nput
[Link]
rai
ntscoul
dbei
nequal
i
tiessuchas:
•x+y≤10
•x≥0
•y≥0
St
ep3:
SetUpt
heSy
stem ofEquat
ions
Conv
ertt
heconst
rai
ntsi
ntoasy
stem ofequat
[Link]
e,i
fyouhav
e:
1.x+y=10
2.x≥0
3.y≥0
Youcanexpr
essonev
ari
abl
eint
ermsoft
heot
herf
rom t
heequat
ion.
St
ep4:
Sol
vef
orVar
iabl
es
Tofindpot
ent
ial
combinati
onsofi
nput
sthatsat
isf
ytheconst
rai
nts,
sol
vef
oronev
ari
abl
ein
ter
msofanother
.Forexample:
Fr
om x+y=10,
youcanexpr
ess:
y=10-x
St
ep5:
Subst
it
utei
ntot
heObj
ect
iveFunct
ion
Substi
tutetheexpr
essionf
rom St
ep4i
ntot
heobj
ect
ivef
unct
iont
ocr
eat
easi
ngl
e-v
ari
abl
e
funct
[Link]:
C=ax+b(
10-x)=ax+10b-bx=(
a-b)
x+10
St
ep6:
Anal
yzeCr
it
ical
Poi
nts
Tof
indt
heopt
imal
val
ue,
anal
yzet
hecr
it
ical
poi
ntsbasedont
heconst
rai
nts.I
fyouhav
ea
l
i
nearf
unct
ion,
eval
uat
eitatt
heboundar
ypoi
ntsdef
inedbyy
ourconst
rai
nts.
[Link]
aluat
eatBoundar
ies:
•I
fx=0:
Cal
cul
ateC=a(
0)+b(
10)=10b
•I
fx=10:
Cal
cul
ateC=a(
10)+b(
0)=10a
[Link]
uat
eatI
nter
secti
onPoints:
Ifappl
i
cabl
e,ev
aluat
eatpoi
ntswher
econst
rai
ntsi
nter
sect(
if
youhavemul
ti
pleconst
rai
nts)
.
St
ep7:
Compar
eVal
ues
Comparethevaluesobt
ainedf
rom ev
aluat
ingt
heobj
ect
ivef
unct
ionatdi
ff
erentf
easi
blepoi
nts
orboundar
ies.
St
ep8:
Ident
if
yOpt
imal
Sol
uti
on
Thepoi
ntthatgi
vest
hemi
nimum (
ormaxi
mum,
dependi
ngony
ourobj
ect
ive)v
aluei
syour
opt
imalsol
uti
on.
Exampl
e
Let
’ssayy
ouwantt
omi
nimi
zecostgi
venby
:
C=2x+3y
subj
ectt
o:
1.x+y≤10
2.x≥0
3.y≥0
[Link]
ineconst
rai
nts:
•Fr
om x+y=10,
wecanexpr
essy=10-x.
[Link]
it
utei
ntoobj
ect
ivef
unct
ion:
•C=2x+3(
10-x)=2x+30-3x=-
x+30.
[Link]
aluat
eatboundar
ies:
•I
fx=0:C=-
0+30=30.
•I
fx=10:C=-
10+30=20.
4.I
dent
if
yopt
imal
sol
uti
on:
•Themi
nimum costoccur
satx=10,
y=0wi
thacostof$20.
Concl
usi
on
Byf ol
l
owingthesesteps,youcanachieveanopt
imum decisi
onthr
oughsi
mplearit
hmet
ic
calcul
ati
ons,
systematical
l
yev al
uati
ngcombinat
ionsofinput
sbasedonthedef
inedobj
ect
ive
functi
onandconstrai
ntswi t
houtneedi
nggraphi
calr
epresent
ati
on.
Thisari
thmeti
capproachall
owsy outosystemati
cal
lyev al
uat
ediff
erentcombinat
ionsofi
nput
s
tofi
ndtheleast-
costopt
ionwhileadher
ingtoconstr
aints.I
tisst
rai
ghtfor
wardbutmaybecome
cumbersomewi thmanyv ar
iabl
esorconstr
aint
s,i
nwhi chcasemor eadvancedmet hodsl
i
ke
l
inearprogr
ammi ngmightbeappropri
ate.
1.
3Howistheopt
imum deci
sionachieved?(Det
ermi
nat
ionofLeastcombi
nat
ionof
i
nput
susi
ngalgebri
cmethod(al
gebraical
ly
))
Toachiev
eanopt imum decisionusingalgebrai
cmet hods,par t
icul
arl
yint
hecontextofl
inear
progr
ammi ng,y
oucanf ol
lowast r
[Link] sinvolvesformul
ati
ngtheprobl
em,
defi
ningt
heobjecti
v efuncti
on,est
ablishi
ngconstraints,andt henusingal
gebrai
ctechni
questo
fi
ndtheoptimalsoluti
[Link]’sastep-by-
stepguide:
St
ep1:
Def
inet
hePr
obl
em
Ident
ifywhatyouwantt
oopti
mize(mini
mizeormaxi
mize)anddet
erminethevari
ablesi
nvol
ved.
Forexample,i
fyouwanttomi
nimizecost
sbasedoninput
sxandy, defi
nethoseinput
s
clear
ly.
St
ep2:
For
mul
atet
heObj
ect
iveFunct
ion
Cr
eat
eamat
hemat
ical
expr
essi
ont
hatr
epr
esent
syourgoal
.Fori
nst
ance,
ift
hecosti
sgi
venby
:
C=ax+by
wher
eaandbar
ecost
speruni
tofi
nput
sxandy.
St
ep3:
Est
abl
i
shConst
rai
nts
Ident
if
ytheconstr
aint
sthatl
imityouri
nput
[Link]
dber
esour
cel
i
mit
ati
ons,
budget
constr
aint
s,orot
herrest
ri
cti
[Link]
e:
•x+y≤10(
tot
alr
esour
cel
i
mit
)
•x≥0(
non-
negat
ivi
tyconst
rai
nt)
•y≥0
St
ep4:
SetUpt
heSy
stem ofEquat
ions
Conv
erttheconst
rai
ntsi
ntoequat
ionsori
nequal
i
ties.I
fyouhav
emul
ti
pleconst
rai
nts,
li
stt
hem
cl
ear
ly.
St
ep5:
Sol
vef
orOneVar
iabl
e
Chooseoneoft
heconst
rai
ntsandexpr
essonev
ari
abl
eint
ermsoft
heot
her
.Forexampl
e,f
rom
x+y=10:
y=10-x
St
ep6:
Subst
it
utei
ntot
heObj
ect
iveFunct
ion
Substi
tutetheexpr
essionf
rom St
ep5i
ntot
heobj
ect
ivef
unct
iont
ocr
eat
easi
ngl
e-v
ari
abl
e
funct
[Link]:
C=ax+b(
10-x)=ax+10b-bx=(
a-b)
x+10b
St
ep7:
Anal
yzeCr
it
ical
Poi
nts
Tofindpot
enti
alopt
imal
sol
uti
ons,
eval
uat
etheobj
ect
ivef
unct
ionatcr
it
ical
poi
ntsdef
inedby
yourconst
rai
nts.
[Link]
aluat
eatBoundar
ies:
•I
fx=0:
Cal
cul
ateC=a(
0)+b(
10)=10b
•I
fx=10:
Cal
cul
ateC=a(
10)+b(
0)=10a
[Link]
aluat
eatI
nter
sect
ionPoi
nts:
Ifappl
i
cabl
e,ev
aluat
eatpoi
ntswher
econst
rai
ntsi
nter
sect
.
St
ep8:
Compar
eVal
ues
Comparethevaluesobt
ainedf
rom ev
aluat
ingt
heobj
ect
ivef
unct
ionatdi
ff
erentf
easi
blepoi
nts
orboundar
ies.
St
ep9:
Ident
if
yOpt
imal
Sol
uti
on
Thepoi
ntt
hatgi
vest
hemi
nimum (
ormaxi
mum)v
aluei
syouropt
imal
sol
uti
on.
Exampl
e
Let
’sconsi
deranexampl
ewher
eyouwantt
omi
nimi
zecostgi
venby
:
C=2x+3y
subj
ectt
o:
1.x+y≤10
2.x≥0
3.y≥0
St
epst
oSol
ve:
[Link]
ineConst
rai
nts:
•Fr
om x+y=10,
expr
essy=10-x.
[Link]
it
utei
ntoObj
ect
iveFunct
ion:
•Subst
it
utei
ntoC=2x+3(
10-x)=2x+30-3x=-
x+30.
[Link]
aluat
eatBoundar
ies:
•I
fx=0:C=-
0+30=30.
•I
fx=10:C=-
10+30=20.
4.I
dent
if
yOpt
imal
Sol
uti
on:
•Themi
nimum costoccur
satx=10,
y=0wi
thacostof$20.
Concl
usi
on
Byfoll
owingtheseal gebrai
cst eps,youcansystematical
lydeter
minetheleastcombinati
onof
i
nputsneededt oachi eveanopt imum deci
sionwithoutrel
yingongraphi
calmet [Link]
s
approachispart
icularlyusefulforl
inearpr
ogrammi ngproblemsinvari
ousf i
eldssuchas
economics,operat
ionsr esearch,andresourcemanagement .
Usi
ngalgebrai
cmet hodsli
ketheSimplexMet hodallowsy outosystemati
cal
lyeval
uate
combinat
ionsofinputswhil
eadheri
ngt oconstrai
nts,ul
ti
mat el
yleadingt
oanopt i
mal deci
sion.
Forsi
mplercases,graphi
calmethodscanprov i
deintuit
iveinsi
ghtsintof
easi
blesolut
ions.