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Decision points:
1. Soil condition.
2. Survey.
-No of sites recommended for drilling by survey.
Decision variables:
1. Additional Per foot charge taken for successful cases (x per
foot) .
2. Government subsidy for special and normal cases in failed
wells (the number of special cases).
3. Cost of digggging in various cases.
Objectvee:
To reduce burden on farmer with unsuccessful wells by charging
appropriate amount from successful ones.
Constraints:
Additional charge per foot on successful wells should be greater
than zero( i.e. x>0).
The two options available are with survey digging and without
survey digging, we need to find the cost implication in both the
cases. Considering we have a total of 800 sites to be dug.
A.WITH SURVEY:
Considering recommended wells are 560 out of the 800 for
drilling (average depth of 200 feet).
Success rate is 80%, for 560 it will be 448.
A.1 SUCCESS CASE: