Dharwar Drilling Society: Case Analysis Report

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DHARWAR DRILLING SOCIETY

Case Analysis Report
Submitted By : Ankur Sinha (03), Arvind Kumar(05), Gunreet Kaur Thind(11), Karri Kartik(18), Pradyoth C John (23), Sandeep Sayal (28), Abhijeet Panwar(35)
TABLE OF CONTENTS
1. INTRODUCTION 1.1 Case Background-----------------------------------------------------------2 1.2 Objective---------------------------------------------------------------------2 1.3 Problem Statement--------------------------------------------------------2
2. ANALYSIS
2.1 Alternate Courses of Action---------------------------------------------3 2.2 Decision Tree----------------------------------------------------------------3 2.3 Graph------------------------------------------------------------------------- 7
3. CONCLUSION AND RECOMMENDATIONS----------------------------8
1. INTRODUCTION 1.1 CASE BACKGROUND
Mr Nijalingappa, Managing Director of Dharwar Drilling Society (DDS) is facing problem in deciding how to reduce the risk of farmers who are unable to get water for irrigation purposes even after drilling in the land. His societys stated Objective has been to encourage farmers to take risk and do drilling so as to increase the area under irrigation in the state. But his society doesnt have the financial resources to bail out all the unsuccessful farmers. Also doling out easy money to the farmers will run contrary to the avowed objective of the society. Mr Nijalingappa wants a balanced approach to this problem wherein he subsidizes some of the unsuccessful farmers and levy extra charges from successful ones. Therefore, he has invited a group of management students from a well-known institute WIMWI to help him out in resolving this issue.
1.2 OBJECTIVE
The objective is to help unsuccessful farmers by subsidizing their drilling operation as well as maintain balanced financial position for the DDS by levying extra charge from successful farmers ,thereby trying to fulfil the long-term goal of making the farmers self-reliant and increasing the irrigation area in the state.
1.3 PROBLEM DEFINITION
The problem is in realizing the long term objective of the society of making farmers selfreliant in irrigation under financial constraints of the society.
2. ANALYSIS 2.1 ALTERNATE COURSES OF ACTION

1> When there is no information and we drill up to 200 meters. 2> When there is no information and we drill up to 250 meters. 3> When survey is taken up by the farmer and he digs till 200 meters.
2.2 DECISION TREE
Let Rs. X be the amount that the society should charge all individual farmers. and Rs. Y is the amount that the society should charge from farmers for whom drilling has yielded a successful well.
Alternative 1: If there is no information and we drill up to 200 metres
The decision tree is drawn as under.
Solving the tree using x and y variables

0.6(x+y)*200+ 0.4 (x+8)(0.9)*250 + 0.4*0.1*(x+20)*200 = 50*200 x+0.6y = 46.32
Alternative 2: If there is no information and we dig up to 250 metres
The decision tree for this scenario is drawn as under
Solving the tree for x and y

0.6(x+y)*200+ 0.4*0.8*0.9*(x+8)*200 + 0.4*0.8*0.1*(x+20)*200+ 0.4*0.2*0.3*(x+y)*250+0.4*0.2*0.7*0.9*(x+8)*250+ 0.4*0.2*0.7*0.1*(x+20)*250=???? x+0.624y = 46.5
Alternative 3: If the survey is taken by the farmer.
The decision tree for this case is shown below:
Solving the tree for x and y

0.7[0.8*(x+y)*200+ 0.2*(x+8)*0.9*200 + 0.2*0.1*(x+20)*200]= 490+0.7*200*50 x+0.8y =51.6
2.3 GRAPH
80 70 60 50 40 30 20 10 0 -10 -20 1 2 3 4 5 6 Series1 Series2 Series3
SERIES 1: X + 0.6Y = 46.32 SERIES 2: X + 0.642Y = 46.5 SERIES 3: X + 0.8Y = 51.66
3. CONCLUSION AND RECOMMENDATION
We have three equations for the three situations From the three decision trees, we have three equations x+0.6y = 46.32 x+0.624y = 46.5 x+0.8y = 51.66
Approximating these equations and solving them, we get Y=26.7 X=30.3
So as per the values we got by solving the three equations, we would recommend the society to charge RS. 30.3 to all the farmers and Rs. 26.7 to all the farmers who have got a well by drilling, in case the farmers have opted to take the geophysical survey.

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[TYPE THE COMPANY NAME]

DHARWAR DRILLING SOCIETY

1. INTRODUCTION 1.1 Case Background-----------------------------------------------------------2 1.2 Objective---------------------------------------------------------------------2 1.3 Problem Statement--------------------------------------------------------2

2.1 Alternate Courses of Action---------------------------------------------3 2.2 Decision Tree----------------------------------------------------------------3 2.3 Graph------------------------------------------------------------------------- 7

3. CONCLUSION AND RECOMMENDATIONS----------------------------8

1. INTRODUCTION 1.1 CASE BACKGROUND

1.3 PROBLEM DEFINITION

2. ANALYSIS 2.1 ALTERNATE COURSES OF ACTION

2.2 DECISION TREE

The decision tree is drawn as under.

Solving the tree using x and y variables

Alternative 2: If there is no information and we dig up to 250 metres

The decision tree for this scenario is drawn as under

Solving the tree for x and y

Alternative 3: If the survey is taken by the farmer.

The decision tree for this case is shown below:

Solving the tree for x and y

80 70 60 50 40 30 20 10 0 -10 -20 1 2 3 4 5 6 Series1 Series2 Series3

SERIES 1: X + 0.6Y = 46.32 SERIES 2: X + 0.642Y = 46.5 SERIES 3: X + 0.8Y = 51.66

3. CONCLUSION AND RECOMMENDATION

Approximating these equations and solving them, we get Y=26.7 X=30.3

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