Table 10 and Table 11

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Unit 2

• Table 10 and Table 11

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Table 10

• Table 10 is the labor available
• It is developed by taking information in the
  data you are given and organizing it to find
  labor for each period of the year.
• You may use monthly labor, or you may combine it
  into 2-month periods.

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From the Data (example)
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Table 10 Labor Force
Table 10 organizes the basic data into a
readable format.
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Table 10 a Labor Available
Based on approximate number of weeks in the
month. Numbers will not quite add up to 52 weeks.
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Alternative Table 10 A
Here, Ive divided the year into 6 periods. 52
weeks/12 8.6666. So sometimes I rounded to
8.67, sometimes to 8.66 to make it add up to 52.
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Simple LP Example
There are 5 possible enterprises on the farm
corn, soybeans, cotton, peanuts and
cow-calf. Enterprise budgets for these
three crops are available from ACES. They have
been modified, using Table 9 (previous notes.)
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Table 9
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Restrictions

• land 500 acres crop
• land 200 acres pasture
• labor from table 10a

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Putting together the tableau

• use the enterprise budgets
• the information on resource limits
• the labor requirements spreadsheet

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Look at Gross Margins

• Negative for corn do not include in table 11
• Positive for other four enterprises include in
  table 11

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Labor Requirements (on website)
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Cattle Labor Requirements
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Construct Tableau
One column for every enterprise, plus "type"
column, plus "rhs" column. One row for Objective
function and a row for each restriction
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Enter Obj Values from Budgets
Note If returns over variable costs are
negative, do not consider that enterprise!
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Enter RHS values
Labor limits come from table 10a. Land limits
from your data.
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Fill in Technical Coefficients
Table 11 is done.
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Solve it in Excel
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Using Solver
Solver is a tool inside Excel. It is not hard to
use once you figure it out. If you have Excel at
home, you may be able to add it by going to the
menu.
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Interpreting Solvers Report
Reduced Cost is the amount that net returns would
fall if one acre of an unselected enterprise were
produced. Shadow price is the amount the
objective function would increase if one more
unit of a limited resource were available.
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Notice
If an enterprise enters the solution (is selected
for the farm plan), it has no reduced cost. Only
enterprises not in the solution have a reduced
cost. If a resource is not completely used
up, it has a shadow price of 0. If you have
some resource left over, unused, you wouldn't
want to buy more of it.
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Shadow Price
Shadow price is the MVP of the limited resource.
If the MVP is greater than the cost of getting
another unit, you will want to get more of this
resource.