ISSN 2221-1055 · e-ISSN 2413-2322

Ekonomika APK

Optimisation of production and modelling of production costs in farms

Received: 20.10.2023 Revised: 02.01.2024 Accepted: 30.01.2024
Abstract

A significant area of improvement of the economic efficiency of agricultural enterprises, especially in the context of martial law, is to optimise production and use of resource potential. The purpose of this study was to develop scientific and practical recommendations for optimising the production activities of farms. The study employed the following methods: system analysis and synthesis to determine the reserves of the types of resources involved; economic-mathematical modelling and optimisation to determine best solutions; analytical-calculation method to calculate production indicators; correlation and regression analysis to determine the dependence of milk production costs on resource consumption; graphical method and extrapolation to find the values of the regression function. The principal stages and features of building an economic-mathematical model for optimising the resource potential of enterprise were identified. The model was used to analyse data, identify reserves of resource potential, find an optimisation solution for product sales volumes using the Solution Search spreadsheet tool, and adopt a strategy for improving economic efficiency. The study offered a solution for the economic and mathematical modelling of the best structure of production of a farm, which factors in the available production resources. The modelling found that the maximum income can be obtained by redistributing the production volumes of certain types of products and, accordingly, the resources for their production, considering the standard costs of production per unit of product, prices for products and resources. Using the modelling, the study obtained a regression dependence of the cost of milk produced in household farms on the cost of feed, labour costs, wages, and the number of cows. The study found the impact of certain types of resources on the production cost and builds the corresponding graphical dependencies. The practical value of the findings of this study lies in the possibility of using the recommendations directly by members of farms in planning, organising production activities, and optimising the use of resource potential

Keywords
optimisation of the production structure; modelling; regression analysis; production resources; household farming
Details
DOI https://doi.org/10.32317/2221-1055.202401010
Pages 10-18

[1] Audet, C., Bigeon, J., Cartier, D., Le Digabel, S., & Salomon, L. (2021). Performance indicators in multiobjective optimizationEuropean Journal of Operational Research, 292(2), 397-422.

[2] Bertsimas, D., & Kallus, N. (2019). From predictive to prescriptive analytics. Management Science, 66(3), 1025-1044. doi: 10.1287/mnsc.2018.3253.

[3] Borysenko, V. (2022). Simulation of performance indicators of field units on the base of knowledge bases of the fields of sciences as a component of the digital economy. Energy and Automation, 94-106. doi: 10.31548/energiya2022.04.094.

[4] Borysenko, V., & Bosiy, M. (2010). The basics of the methodology and methods of simulation modeling of the operation of field units to substantiate their effective use. Kyiv: RI “Ukrainian Industrial Productivity”.

[5] Domaskina, M., & Kolomoytsev, A. (2018). Automatic selection of the optimal solution in the agricultural householdUkrainian Black Sea Region Agrarian Science, 22(1), 95-104.

[6] Hassani, L., Kakhki, M.D., Sabouhi, M., & Ghanbari, R. (2019). The optimization of resilience and sustainability using mathematical programming models and metaheuristic algorithms. Journal of Cleaner Production, 228, 1062-1072. doi: 10.1016/j.jclepro.2019.04.324.

[7] Kharchenko, Y. (2021). Developing models for forecasting agricultural enterprises sales volume. Economic Scope, 167, 134-139. doi: 10.32782/2224-6282/167-24.

[8] Levina Kostiuk, M., Melnychuk, O., Danilenko, O., Lagodienko, V., & Tkachuk, H. (2021). Optimization of farm production activity using economic and mathematical methods. Ukrainian Journal of Applied Economics and Technology, 6(4), 112-120. doi: 10.36887/2415-8453-2021-4-13.

[9] Lomte, G.C., & Dhavale, S.R. (2022). Optimization techniques in agriculture sector. International Journal of Physics and Mathematics, 4(1), 47-49. doi: 10.33545/26648636.2022.v4.i1a.53.

[10] Lu, Y. (2019). Artificial intelligence: A survey on evolution, models, applications and future trends. Journal of Management Analytics, 6(1), 1-29. doi: 10.1080/23270012.2019.1570365.

[11] Malyarets, L., Babenko, V., Nazarenko, O., & Ryzhikova, N. (2019). The modeling of multi-criteria assessment activity in enterprise managementInternational Journal of Supply Chain Management, 8(4), 997-1004.

[12] Malyarets, L., Iastremska, O., Herashchenko, I., Iastremska, O., & Babenko, V. (2020). optimization of indicators for management of enterprise: Finance, production, marketing, personnel. Studies in Applied Economics, 38(4). doi: 10.25115/eea.v38i4.4028.

[13] Noeldeke, B., Winter, E., & Ntawuhiganayo, E.B. (2022). Representing human decision-making in agent-based simulation models: Agroforestry adoption in rural Rwanda. Ecological Economics, 200, article number 107529. doi: 10.1016/j.ecolecon.2022.107529.

[14] Nuzhna, S., & Samarets, N. (2018). Optimization of use of manufacturing resources by enterprises of the agricultural sectorEconomic Analysis, 28(4), 225-234.

[15] Pasechko, D.-V., Kushnerenko, V., & Dashevska, L. (2019). Use of correlation, regression and logistic models for the losses estimation of dairy industry from the heat stress. Ukrainian Black Sea Region Agrarian Science, 23(1), 77-83. doi: 10.31521/2313-092X/2019-1(101)-11.

[16] Report on the implementation of the thematic plan of research activities of the research institute “UkrAgroProductivity”. (n.d.). Retrieved from https://uapp.in.ua/naukovo-vidavnicha-dijalnist/zvit_16-20_ukragropromproduktyvnst-1-pdf/.

[17] Shyian, N., Moskalenko, V., Shabinskyi, O., & Pechko, V. (2021). Milk price modeling and forecasting. Agricultural and Resource Economics: International Scientific E-Journal, 7(1), 81-95. doi: 10.51599/are.2021.07.01.05.

[18] Skrynkovskyy, R., Pavlenchyk, N., Tsyuh, S., Zanevskyy, I., & Pavlenchyk, A. (2022). Economic-mathematical model of enterprise profit maximization in the system of sustainable development values. Agricultural and Resource Economics: International Scientific E-Journal, 8(4), 188-214. doi: 10.51599/are.2022.08.04.09.

[19] Vishnevsky, V., Harkushenko, O., Kniaziev, S., Lypnytskyi, D., & Chekina, V. (2020). Digitalization of the economy of Ukraine: Transformational potential. Kyiv: PH “Akademperiodika”.

[20] Zhmudenko, V., & Lishchuk, R. (2021). Optimization of resource potential as a strategic direction of enterprise development. Economic Scope, 165, 70-75. doi: 10.32782/2224-6282/165-12.

Borysenko, V., & Borysenko, D. (2024). Optimisation of production and modelling of production costs in farms. Ekonomika APK, 31(1), 10-18. https://doi.org/10.32317/2221-1055.202401010