What does it do?
Optimization procedures, used in the previous sections, have used the existing cultivable land area and the existing equipment capacity upon which to base optimization calculations.
This calculator enables the user to review the impact upon aggregate gross margins of varying the capacity of equipment in anticipation of a possible purchase or use of equipment services.
As in previous simulations, the user has the option of selecting good (A), average (B) or poor (C) technologies.
The presentation of the results is in the form of a report containing the estimated aggregate gross margin for a farm plan. The report also states whether or not the new equipment capacity exceeds requirements (based upon land area) or if the proposed equipment capacity can be increased further. The total variable cost of achieving that result and the areas of the selected crops which contribute to that gross margin for each simulation are presented in the report.
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Information used
As in the normal planning calculator the user has to provide information on the total cultivable area together with the existing seasonal capacity of equipment (which can be varied) according to four crop classes (which use the same equipment).
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Formulae
In order to optimize (maximise aggregate gross margins) use is made of the Linear Programming SIMPLEX* method. This system reiterates many different combinations of crops subject to the constraints set by the proposed equipment capacities and the existing land area to support the production of different crops.
*SIMPLEX: See Agronet manual for more detailed description.
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