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Anant Tiwari 33005
Ashish Agrawal 33007
Niket Vanker 33031
Prachi Patel 33035Priyanka Mehta 33038
Puja Barman 33039
Varun nagar agricultural co-
operative society
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Case summary
VNACS had with it 100 tones of paddy in storage,payment of which
was due to t he members of the
society. Mr. Agarwal, manager of the society was
planning to sell at about Rs. 5000/- per ton. But
there is a possibility that if the society waited forsix months
it could get better returns. After
meeting all the expenses of the operations of the
society and before repaying the overdraft o fthe
bank. The society had a cash balance of Rs.500000/-. The bank
charged an annual interest of
10%. NFC was offering 2000 bags of fertilizer at a
special price of Rs. 250/- per bag, if the deliveries
accepted within two weeks.
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Objectives
Long term :-
To ensure sustainability of the cooperative through:
1. Confidence of farmers.
2. Confidence of bank
Short term :-
To decide on the purchase plan for fertilizers and
the selling plan of paddy, so as to ensure maximum returnsto
farmers without incurring any losses to the cooperative
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Assumption
In September we will repay the bank overdraftalong with
interest.
Fertilizers required after six months.
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Criteria
1.Prompt payment to farmers against their paddyproduce
2.Profit maximization through sell of paddy and
purchase of fertilizers.
.Repayment of bank overdraft along with interest.
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Alternatives
VNACS.xlsx
http://localhost/var/www/apps/conversion/tmp/scratch_5/VNACS.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_5/VNACS.xlsx
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Contingency plan
In case the price of the paddy doesnt go up toRs. 6000/- per
ton, then we may not be able to
provide fertilizers at Rs. 274/- per bag. In the
worst case, if the market price of fertilizers also
falls then we shall provide fertilizer at its marketprice. In
this case, the loss to the co-operative will
be covered through the bank overdraft which will
not be repaid in September.
