Opening a Dairy and Arable Mixed Farm for Public Demand

 Diminishing profits of their business from milk and cereals activities trigger Fred and Gillian to decide to open up dairy and arable mixed farm for the demand of paying public. For the new business to be successful they devote all their saving and their time. They take different responsibilities for each of them and when Fred continued to run the commercial farming business Gillian took responsibility in making the factory to be suitable for the tour. The rough advertisement and creating awareness to the public the number of visitors to the farm increases through the years.

Gillian, who is responsible or the farm to the public each year from April to October inclusive. Other than this period conditions are not suitable to visit so it will not be opened for the public. Through experience, Gillian concludes that Saturday and Sunday are a high visiting season Ads than other days in a week The milking parlous which concern So Fred constitute 150 cows to milk. For the visiting purpose a player' is build which have facilitate that ease displays on the tour and it lasts be from 4:30 pm to 7:00 PM.

Gillian complains on this situation that early visitors come before 4:00 pm that neither Fred nor the cows are repaired eve if most of the visitors wait patiently till to open. Concerning about the ice-cream factory. It is operated 48 weeks per year and three employees who are farm workers wives are responsible to work in line with farm opening from April to October. The maximum capacity of the equipment found in the factory is 350 liters of ice-cream per day. And the stock rotation allowed in practice is not above 7000 liters. The recommended storage time is twelve weeks prior to retail sale.

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From the comment of Gillian farm shop only visitors are surprisingly regular customer of sales. Her report room experiences started that the demand on average is one out of two customer buys a one liter box. With a farm shop retail price $ 2. 00 per box, a car comes with four occupants, and two one -liter boxes are purchased. The other customers for ice-cream sales are farm shop only visitors. There is a separate, fenced road entrance that allows local customers to purchase good at a separate counter of the farm shop without payment to the other farm facilities.

At last when Gillian forward her findings, on 1998 the factory able a small return on capital employed and hence a reform must be made to increase profitability. To make the investment work better her first and ultimate decision is to increase the number of natural flavors from four to ten and the other is to increase farm visitors by 50% that can help the farm to meet the target. She conclude that I don't expect that fully to halt the decline in our sales to these outlets, and this is reflected in our sales forecast. Hen the form opened officially in 1993 Gillian took responsibility for visitors to come and visit the farm area asset is a farm to the paying public l. Order to increase the visitors Gillian a face saturation at first which is a low demand season were visitors are conditional for unsuitable regular tractor rides and of the animals being kept inside Gillian attempt to solve the situation by increasing the number of farm visitors to 50 percent in 1 999 that she intended to improve return on farm tour assets.

Regarding to increasing farm four she had also to choose whether to promote sales to coach firms or to focus on advertisement for attracting more local families in car. The milking parlous, the activity concerning to Fred, usually lasts form 4:30 p. To 07:00 pm gallery which is purposely built to exhibit this activity for visitors displays teen the indicated time interval. Here Gillian face another problem that sometimes on Saturdays and Sundays visitors' arrival early before 4:pm but unfortunately nothing is ready to display.

Even it most people are patient enough to wait until the activity to be opened it is obvious that this affect the return to farm tours on aggregate. Evaluating Shilling's proposal to increase the number of farm visitors in 1999 by 50 percent when Shilling's propose to increase the number of visitors she forest sales by taking sales of 1 998 as a base year. Taking 1998 as a base for January to December to evaluate the forecast. Even if the data on the appendix gives no separate records that separate sales to the paying farm visitors and to those who only visit the farm shop, Shilling's statement about the average sales to a paying farm visitors which says from two visitors one probably buy a one litter ice-cream gives a clue for evaluation purpose.

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