Let us suppose you can either grow apples or grapes. You profit $3.50/lb for gra

Question

Let us suppose you can either grow apples or grapes. You profit $3.50/lb for grapes, and $2.00/lb for apples.To grow a pound of apple, it takes 2 plots of land, while growing a pound of grape only takes 1 plot of land. There is a total of 20 plots of land. Apples are lower maintenance, which only requires 1 gallon of water, while grapes require 4 gallons of water. You have a total of 50 gallons of water. Similarly, apple requires 1 pound of fertilizer, but grapes require 3 pounds of fertilizer. You have a total of 30 pounds of fertilizer.

Let us suppose you farm optimally (because you are such an accomplished Operations Manager), how many pounds of apple would you farm?

Explanation / Answer

As an operational manager, I would grow apples because apples are lower maintenance and requires less fertilizer.

Now,

2 Plots of Land yield 1 pound of apple.

Therefore, 20 Plots of Land will yield 10 Pound of apples.

Despite, apples having less profit margin per pound than grapes, It is suggested to farm 10 pounds of apples to achieve optimum utlization of resources and maximum profit earned.

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