Application of the "boundary line analysis method" for the optimisation of the number of tractors used in an agricultural company

Miroslav Mimra, Miroslav Kavka, Karel Tomšík and Marián Struhár
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Miroslav Mimra: Department of Machinery Utilisation, Czech University of Life Sciences Prague, Prague, Czech Republic
Miroslav Kavka: Department of Machinery Utilisation, Czech University of Life Sciences Prague, Prague, Czech Republic
Karel Tomšík: Department of Economics, Czech University of Life Sciences Prague, Prague, Czech Republic
Marián Struhár: Department of Machinery Utilisation, Czech University of Life Sciences Prague, Prague, Czech Republic

Agricultural Economics, 2014, vol. 60, issue 1, 1-8

Abstract: The "boundary line analysis method" calculates the minimal total annual operational costs used for the optimisation of number of tractors owned by agricultural companies. This calculation reflects the actual need of tractors used in the selected time periods during a year. The above method is based on data gained during five day periods (so-called pentads) in the plant production Farm Estate Lány which belongs to the Czech University of Life Sciences Prague. Based on the annual use of tractors in the company, operational costs involve tractors owned and hired. The calculated curve changes in relation to the total annual costs for the owned tractors. The economically optimal number of the owned tractors would be reached at the minimum point where the total annual costs curve is low whilst all working operations in the company have been done. Due to the use of tractors during the pentads, it is recommended to own exactly the number of tractor-machine sets given by the calculated minimum. For all the other works, it is advisable to use hired tractors, operationally leased tractors or outsourced services.

Keywords: costs optimisation; tractors deployment; tractor number optimisation (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:60:y:2014:i:1:id:3-2013-agricecon

DOI: 10.17221/3/2013-AGRICECON

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