Abstract
This article emphasizes the use of scientific methods in management practices through a live decision problem. The problem under consideration is sampling of sugar cane plots for cross-verification of area in order to decide on the subsidy amount to be paid to the farmers. We have built a cost model for the determination of the sample size. It is also shown that the present method of area computation is biased, and the company stands to gain a recurring annual savings to the tune of Rs.2.5 million when the exact method is employed. The management intends to invest a part of this savings towards the development of high-yielding varieties of crop, which will lead to the benefit of farmers directly.
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