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Operations Research

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Operations Research
Chapter 1
Introduction
This chapter gives the background of the study, the statement of the problem, its significance and the scope and limitation of the operations research.

Company Background
Pao Pao Farms is located in San Isidro, Castilla in the province of Sorsogon, which is approximately 500 km away from Manila. The total land area of the farm is 10 hectares and mostly composed of productive coconut trees and has a natural free flowing water source located in the middle of the property.
The operation of Pao Pao Farms started on March 28, 2008 with an initial 6,000 heads of ready to lay layer pullets sourced from Batangas. At the start, it only had 4 workers and a farm technician who supervises the technical aspects of animal health. The owners realized the big potential of layer farming in Sorsogon because almost 50 to 70 percent of the local egg supply comes from Albay and Camarines Sur which makes the relatively prices higher.

The farm has currently 40,000 heads of laying pullets which have different ages and are housed in 8-layer buildings equipped with a semi-hot dipped galvanized caging system composed of light materials like wood and good lumber. The building structures are of mixed concrete and wood because they make the building more resilient in times of typhoon or strong winds. There are also 4 growing/rearing buildings which house the pullets where they are grown from day-old chicks until the 16th week (the start of the laying period) and then transferred to the layer building.
Generally, Pao Pao Farms’ core business operation is table egg production. But in the course of the operating cycle, there are by-products which add revenue to the overall performance of the company. One of the byproducts is chicken dung or chicken waste. A natural fertilizer sold to local farmers and some to viajeros who prefer cheap and organic inputs to their farming activities. Another one is after the laying period of the layer pullets (1.5 years), they are

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