Date

12-2016 12:00 AM

Major

Supply Chain Management; Economics

College

Business

Project Advisor

Bobby Martens

Project Advisor's Department

Supply Chain and Information Systems

Description

Malawi is food insecure due, in part, to lack of consistent marketplace access. This essay analyzes a linear simulation model in excel. The purpose of the model is to understand which variables affect the quantity of pigeon peas shipped from farm to market in small villages. The model’s objective function maximizes small farmers’ profits in Malawi. The variables in the model are base price, infrastructure rate, distance traveled, warehouse rate, and days to sell date. Due to inconsistent data in rural Africa, the model’s input variables may be easily changed. For example, the user of the model could see how changes in base price affect the quantity shipped. The quantity shipped is used to calculate the small farmers’ profits. The results of the model show the importance of economies of scale and differences in transportation and warehousing costs.

File Format

application/pdf

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Dec 1st, 12:00 AM

Malawi Market Link: Understanding small farmers’ profits through an excel model

Malawi is food insecure due, in part, to lack of consistent marketplace access. This essay analyzes a linear simulation model in excel. The purpose of the model is to understand which variables affect the quantity of pigeon peas shipped from farm to market in small villages. The model’s objective function maximizes small farmers’ profits in Malawi. The variables in the model are base price, infrastructure rate, distance traveled, warehouse rate, and days to sell date. Due to inconsistent data in rural Africa, the model’s input variables may be easily changed. For example, the user of the model could see how changes in base price affect the quantity shipped. The quantity shipped is used to calculate the small farmers’ profits. The results of the model show the importance of economies of scale and differences in transportation and warehousing costs.