Agricultural Pricing: What Prices to Charge for Dairy Products


Input Data

The following data sets contain the input data that are used in this example:

/* missing supply indicates unbounded */
data raw_material_data;
   input raw $10. supply;
   datalines;
Fat       600000
DryMatter 750000
Water     .
;

data product_data;
   input product $ Fat DryMatter Water prev_demand prev_price;
   datalines;
Milk     4  9 87 4820000  297
Butter  80  2 18  320000  720
Cheese1 35 30 35  210000 1050
Cheese2 25 40 35   70000  815
;

data elasticity_data;
   input i $ j $ elasticity;
   datalines;
Milk    Milk    -0.4
Butter  Butter  -2.7
Cheese1 Cheese1 -1.1
Cheese2 Cheese2 -0.4
Cheese1 Cheese2  0.1
Cheese2 Cheese1  0.4
;