Optimization of the production structure of a crop farm in Sud-Muntenia development region of Romania Cover Image

Optimizarea structurii de producție a unei ferme vegetale amplasată în Regiunea de Dezvoltare Sud-Muntenia a României
Optimization of the production structure of a crop farm in Sud-Muntenia development region of Romania

Author(s): Bogdan Nicolae Ene, Ioana Panait, Marian-Cătălin Cucu
Subject(s): Business Economy / Management, Micro-Economics, Agriculture
Published by: EDITURA ASE
Keywords: optimization; production structure; farm; linear programming

Summary/Abstract: The production structure has a fundamental role in the farm's activity, it represents the link of the agricultural unit with the market and influences decisively the obtained results. The crop choice and their sizing are done based on reasoning related to: capitalization of natural factors, material and financial resources, as well as the labor force that the farm disposes of, market requirements, crop profitability, and so on. In order to identify the optimal production structure, which maximizes the farm's profit, the mathematical model of linear programming is used. The solution identified after applying the model could bring the farm a maximum profit estimated at 176.051,3 lei. Based on the identified production structure, it has been determined the economic result in case that yields per hectare obtained are medium, corresponding to those from the Sud-Muntenia development region, also it has been determined the yields that ensures 0 profit.