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Medium Profitability

Dust Cloud

#Agriculture
ProHub Comment

This case tests candidate ability to structure a complex logistics and profitability problem with multiple variables. The candidate must identify the trade-off between distance, cattle weight loss, labor costs, and animal mortality rates. The solution requires both quantitative analysis (calculating weight loss and revenue impact) and qualitative judgment (considering animal welfare and business relationships).

Estimated Time 15 minutes
Difficulty Medium
Source Columbia
50 / 100
Our client is the North Australian Pastoral Company (NAPCO). NAPCO is a 143-year-old agriculture enterprise that is one of the leading companies in the space in Australia. They operate 13 cattle stations in Queensland and Northern Territory. Cattle stations are large cattle farms or ranches that raise cattle for slaughter. NAPCO’s cattle stations cover over 60,000 square kilometers and they manage over 200,000 head of cattle. Their largest station is Alexandria Station in Northern Territory that is over 16,000 square kilometers and supports herds of over 55,000 head. 10,000 head are due to be delivered to Darwin next month, but due to heavy flooding in Northern Territory, the train tracks they normally use to deliver their mature cattle from Alexandria Station to market in Darwin are inaccessible and we will be unable to repair the damage until the end of the wet season next April. What factors would you consider in deciding how to advise NAPCO how to deliver the cattle?

Clarifying Information

  1. Cattle require 3% of their mature weight in grass feed per day. Cattle will lose half the unreplaced weight every day
  2. All cattle are Alexandria Composite and are sold by the pound. At mature weight they sell for $800 USD per head
  3. Alexandria Composite weigh 500 kilograms at mature slaughter weight
  4. Km Traveled - This is the distance the cattle are driven every day. Cattle are creatures of habit and during a drive need to be driven approximately the same distance every day