Optimisation of production and modelling of production costs in farms

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