Mr. Moola, the owner of Moola Farms is attempting to decide which of three crops he should plant on his 100 acre farm. The profit from each crop is strongly dependent on the rainfall during the growing season. He has categorized the amount of the rainfall as substantial, moderate or light. He estimates his profit for each crop as shown in the table below: Open table as spreadsheet Rainfall Estimated Profit () Crop A Crop B Crop C Substantial 7,000 2,500 4,000 Moderate 3,500 3,500 4,000 Light 1,000 4,000 3,000 Based on the weather in previous seasons and the current projection for the coming season, he estimates the probability of substantial rainfall as 0.2, that of moderate rainfall as 0.3, and that of light rainfall as 0.5. Furthermore, services of forecasters could be employed to provide a detailed survey of current rainfall prospects as shown in the table. Open table as spreadsheet Rainfall Estimated Profit () Crop A Crop B Crop C Substantial 0.70 0.25 0.05 Moderate 0.30 0.60 0.10 Light 0.10 0.20 0.70 You in the capacity of Block Advisor to farmers are expected to suggest Which crop should Mr. Moola plant based on existing data? (Whether it would be economical for the farmer to hire the services of a forecaster. If yes, then how will the result affects the decision process.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Mr. Moola, the owner of Moola Farms is attempting to decide which of three crops he should plant on his 100 acre farm. The profit from each crop is strongly dependent on the rainfall during the growing season. He has categorized the amount of the rainfall as substantial, moderate or light. He estimates his profit for each crop as shown in the table below:
Open table as spreadsheet
|
Rainfall |
Estimated Profit () |
||
|
Crop A |
Crop B |
Crop C |
|
|
Substantial |
7,000 |
2,500 |
4,000 |
|
Moderate |
3,500 |
3,500 |
4,000 |
|
Light |
1,000 |
4,000 |
3,000 |
Based on the weather in previous seasons and the current projection for the coming season, he estimates the probability of substantial rainfall as 0.2, that of moderate rainfall as 0.3, and that of light rainfall as 0.5.
Furthermore, services of
Open table as spreadsheet
|
Rainfall |
Estimated Profit () |
||
|
Crop A |
Crop B |
Crop C |
|
|
Substantial |
0.70 |
0.25 |
0.05 |
|
Moderate |
0.30 |
0.60 |
0.10 |
|
Light |
0.10 |
0.20 |
0.70 |
You in the capacity of Block Advisor to farmers are expected to suggest
- Which crop should Mr. Moola plant based on existing data?
- (Whether it would be economical for the farmer to hire the services of a forecaster. If yes, then how will the result affects the decision process.
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