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 cultivable land area in anticipation of deciding whether or not to purchase or rent more land.
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 area selected exceeds existing equipment capacity or if land area 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 (which can be varied) together with the existing seasonal capacity of equipment according to four crop classes (which use the same equipment). This information is supplied by the equipment capacity calculators in previous sections.
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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 variable land area and the existing (fixed) limitations of the capacity of equipment to support the production of different crops.
*SIMPLEX: See Agronet manual for more detailed description.
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