Authors: Ivana Janeska Stamenkovska, Dragi Dimitrievski, Emil Erjavec, Jaka Žgajnar, Aleksandra Martinovska-Stojcheska
Keywords: linear programming, hypothetical vegetable farm, production planning, Republic of Macedonia
Abstract
The aim of the paper is to develop an optimization model to support the analysis of decision-making on Macedonian family farms. Normative linear programming paradigm is applied, utilising its optimization potential. The model is applied on a hypothetical vegetable farm case. The optimal structure in all scenarios indicates that the optimal solution is given on production of tomato, pepper, cabbage, carrot and bean. The base scenario reveals a gross margin of 17,924 € which is highest compared to other scenarios. The working capital available is a binding constraint in second and third scenario, where the optimal solution reveals that the land resource is not exhausted. Gross margin sensitivity was examined using the working capital parameterisation. The model is quite flexible thus enabling different crop enterprises to be added additionally.
[Agroeconomia Croatica 3:2013 (1) 1-8]