8 45 1 year 2 strawberries 3 wheat 1 2 3 680 340 150

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Unformatted text preview: le 640 930 650 975 700 1200 700 1200 700 1200 0 0 How this Works How The objective value includes all returns for 3 years of production ($1230) if we have enough time to complete 3 years of strawberries. If we have less than 3 years left, strawberry returns are reduced and a terminal value assigned explicitly. We could, instead, add that terminal value directly to the objective function in years 4 and 5. But if we do, it is harder to change the terminal value and track the effect. Obj land 1 water 1 Init straw 2 Init straw 3 Straw 1-2 y1 Straw 2-3 y1 land 2 water 2 Straw 1-2 y2 Straw 2-3 y2 land 3 water 3 Straw 1-2 y3 Straw 2-3 y3 land 4 water 4 Straw 1-2 y4 Straw 2-3 y4 land y5 water y5 Term straw 1 Term straw 2 Year 1 strawberries wheat 1 2 340 -150 700 1 1 1 1 0.8 4.5 1 Year 2 strawberries 3 wheat 1 2 3 680 340 -150 700 680 1 4.5 Year 3 strawberries wheat 1 2 340 -150 700 3 680 Year 4 strawberries wheat 1 2 340 -150 700 Year 5 strawberries 3 wheat 1 2 680 340 -150 700 Terminal Cond 3 680 1 160 2 110 1 -1 1 -1 1 1 1 0.8 -1 1 4.5 1 1 4.5 1 -1 1 1 1 0.8 -1 1 4.5 1 1 4.5 1 -1 1 1 1 0.8 -1 1 4.5 1 1 4.5 1 -1 1 1 1 0.8 -1 1 4.5 1 1 4.5 1 -1 Another way to solve this problem. The objective value will be different because this model includes all 700 acres in the first and second year. Decision variables have the same values as in the other solution. 1 Rhs le le le le le le le le le le le le le le le le le le le le le le 700 1200 50 10 0 0 700 1200 0 0 700 1200 0 0 700 1200 0 0 700 1200 0 0 Disequilibrium with Unknown Life Disequilibrium In some situations, the length of the activity must be determined by the model. For example, it may be possible to keep an acre of strawberries for either 3 years or 4 years, depending on which is more profitable for the situation at hand. Revised Strawberry In...
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