Canadian Regional Agriculture Model: Positive Mathematical Programming Applied to the Beef Sector in Canada

This paper describes the Positive Mathematical Programming (PMP), the method for calibrating models of agricultural livestock production and resource use using a nonlinear total cost function. The PMP method is applied to agricultural sectoral models to study changes in policy and market signals. The Canadian Regional Agriculture Model (CRAM) is a regional, multi-sectoral, comparative static, partial equilibrium, mathematical programming model developed and maintained by Agriculture and Agri-Food Canada (AAFC) since mid-eighties. The PMP process converts a linear model using flexibility constraints into a nonlinear model in the absence of the flexibility constraints. A component of CRAM is the beef sector. The elements of the set of total cost curves are defined as quadratic function in terms of the number of cows and calves in the beef production activities. The marginal cost curves are then approximated using the shadow values from linear programming solution with linear curves. Once the flexibility constraints were removed, the model automatically calibrates to the base year production levels. The results from four scenarios indicated the beef sector of CRAM could predict the impact of the scenarios on the size of beef herd. In Scenario 1 where cash costs were increased by 10 percent, the breeding herd size decreased from 3.73 percent in New Brunswick to 0.0 percent in Ontario and Quebec. In Scenario 2 where barley costs were decreased by 10 percent, the breeding herd size increased from 0 percent for British Columbia, Alberta, Ontario, Quebec, Prince Edward Island and Nova Scotia to 1.93 percent for New Brunswick. In Scenario 3 where carcass weight per beef cow could be increased by 10 percent, the increase in beef herd size ranged from 0 percent for Ontario and Quebec to 2.56 percent for New Brunswick. In Scenario 4 where world beef prices were increased by 10 percent increase in beef herd size ranged from 4.48 percent for Manitoba to 25.78 percent for New Brunswick.

Author(s):  
Timothy Colwill ◽  
Ravinderpal Gill

This paper describes the Positive Mathematical Programming (PMP), the method for calibrating models of agricultural livestock production and resource use using a nonlinear total cost function. The PMP method is applied to agricultural sectoral models to study changes in policy and market signals. The Canadian Regional Agriculture Model (CRAM) is a regional, multi-sectoral, comparative static, partial equilibrium, mathematical programming model developed and maintained by Agriculture and Agri-Food Canada (AAFC) since mid-eighties. The PMP process converts a linear model using flexibility constraints into a nonlinear model in the absence of the flexibility constraints. A component of CRAM is the beef sector. The elements of the set of total cost curves are defined as quadratic function in terms of the number of cows and calves in the beef production activities. The marginal cost curves are then approximated using the shadow values from linear programming solution with linear curves. Once the flexibility constraints were removed, the model automatically calibrates to the base year production levels. The results from four scenarios indicated the beef sector of CRAM could predict the impact of the scenarios on the size of beef herd. In Scenario 1 where cash costs were increased by 10 percent, the breeding herd size decreased from 3.73 percent in New Brunswick to 0.0 percent in Ontario and Quebec. In Scenario 2 where barley costs were decreased by 10 percent, the breeding herd size increased from 0 percent for British Columbia, Alberta, Ontario, Quebec, Prince Edward Island and Nova Scotia to 1.93 percent for New Brunswick. In Scenario 3 where carcass weight per beef cow could be increased by 10 percent, the increase in beef herd size ranged from 0 percent for Ontario and Quebec to 2.56 percent for New Brunswick. In Scenario 4 where world beef prices were increased by 10 percent increase in beef herd size ranged from 4.48 percent for Manitoba to 25.78 percent for New Brunswick.


This paper describes the Positive Mathematical Programming (PMP), the method for calibrating models of agricultural livestock production and resource use by a nonlinear total cost function. The PMP method is applied to agricultural sectoral models to study changes in policy and market signals. The Canadian Regional Agriculture Model (CRAM) is a regional, multi-sectoral, comparative static, partial equilibrium, mathematical programming model developed and maintained by Agriculture and Agri-Food Canada (AAFC) since mid-eighties. The PMP process converts a linear model using flexibility constraints into a nonlinear model in the absence of the flexibility constraints. A component of CRAM is the beef sector. The elements of the set of total cost curves are defined as quadratic function in terms of the number of cows and calves in the beef production activities. The marginal cost curves were then approximated using the shadow values from linear programming solution with linear curves. Once the flexibility constraints were removed, the model automatically calibrates to the base year production levels. The results from four scenarios indicated the beef sector of CRAM could predict the impact of the scenarios on the size of beef herd. In Scenario 1 where cash costs were increased by 10 percent, the breeding herd size decreased from 3.73 percent in New Brunswick to 0.0 percent in Ontario and Quebec. In Scenario 2 where barley costs were decreased by 10 percent, the breeding herd size increased from 0 percent for British Columbia, Alberta, Ontario, Quebec, Prince Edward Island and Nova Scotia to 1.93 percent for New Brunswick. In Scenario 3 where carcass weight per beef cow could be increased by 10 percent, the increase in beef herd size ranged from 0 percent for Ontario and Quebec to 2.56 percent for New Brunswick. In Scenario 4 where world beef prices were increased by 10 percent increase in beef herd size ranged from 4.48 percent for Manitoba to 25.78 percent for New Brunswick.


2012 ◽  
Vol 58 (No. 7) ◽  
pp. 324-331 ◽  
Author(s):  
R. Cortignani ◽  
S. Severini

European farmers face an increasing income uncertainty. The debate is growing on the role of the insurance schemes and on the support provided by the CAP in this field. Therefore, there is a need for the empirical analysis and the tools aimed at providing empirical evidences on this subject. This paper develops an innovative Positive Mathematical Programming model that takes into explicit consideration the risk aversion behaviour. This is used to investigate the implications of participating in the crop revenue insurance scheme. In particular, a quadratic mix integer program has been developed on a small group of crop farms in Italy and it has been used to simulate the impact of changes in the level of the insurance premium. The objective of this paper is to assess the soundness of the proposed approach and to identify its limitations. The obtained results suggest that this could be a useful tool to investigate the impact of participating in insurance schemes on production patterns, farm profitability and the role of public support.  


Author(s):  
Lucinio Asensio ◽  
Rosario Gómez de Barreda ◽  
Miguel Ruiz ◽  
José-Luis Miguel de Diego ◽  
Elvira Miqueleiz

In agricultural economics, one of the greatest weaknesses in mathematical programming models for the evaluation of agricultural processes is the calibration of the model in a base year. The reason for this is that it is extremely difficult, if not impossible, to introduce all the variables affecting farmers’ decisions in the models and thus obtain reliable results. This chapter presents a method for calibrating mathematical programming models using limited information. From the mathematical programming properties, by using the dual form of the original model, this methodology allows the model results to reproduce the situation existing in a baseline situation of the unit (farm, region) modelled. This method, called Positive Mathematical Programming, is currently being used in a great number of analyses of new agricultural policies. In this chapter it is applied to analyse the impact of recent measures of the European Common Agricultural Policy in Spain.


2014 ◽  
Vol 2 (1) ◽  
pp. 30-37
Author(s):  
Ashish Chandra ◽  
Dr. A. K. Dubey ◽  
Dr. Sachin Kumar Srivastava

This study covered 150 cooperative member milk producers and 150 non-member milk producers which were post- stratified into Landless, Marginal, small, medium and large herd size categories. Breakeven point is a point where no profit no loss status achieved where MR = MC. In this study breakeven point analysis was done to estimate the minimum quantity milk to be produced to cover the total cost on all categories (members and nonmembers) of households of milch animals (Cow and buffalo). And also in this study the researchers have find out the Total cost of milk production per liter for member and non member categories. This study is helpful to find out the total cost of milk production in all categories as well as members and nonmembers of dairy cooperative society are able to find out the breakeven point of the whole business.


2019 ◽  
Vol 6 (1) ◽  
pp. 48-50
Author(s):  
Ikram Uddin

This study will explain the impact of China-Pak Economic Corridor (CPEC) on logistic system of China and Pakistan. This project is estimated investment of US $90 billion, CPEC project is consists of various sub-projects including energy, road, railway and fiber optic cable but major portion will be spent on energy. This project will start from Kashgar port of china to Gwadar port of Pakistan. Transportation is sub-function of logistic that consists of 44% total cost of logistic system and 20% total cost of production of manufacturing and mainly shipping cost and transit/delivery time are critical for logistic system. According to OEC (The Observing Economic Complexity) currently, china is importing crude oil which 13.4% from Persian Gulf. CPEC will china for lead time that will be reduced from 45 days to 10 days and distance from 2500km to 1300km. This new route will help to china for less transit/deliver time and shipping cost in terms of logistic of china. Pakistan’s transportation will also improve through road, railway and fiber optic cabal projects from Karachi-Peshawar it will have speed 160km per hour and with help of pipeline between Gwadar to Nawabshah gas will be transported from Iran. According to (www.cpec.inf.com) Pakistan logistic industry will grow by US $30.77 billion in the end of 2020.


2019 ◽  
Vol 24 (6) ◽  
pp. 722-727
Author(s):  
Aladine A. Elsamadicy ◽  
Andrew B. Koo ◽  
Megan Lee ◽  
Adam J. Kundishora ◽  
Christopher S. Hong ◽  
...  

OBJECTIVEIn the past decade, a gradual transition of health policy to value-based healthcare has brought increased attention to measuring the quality of care delivered. In spine surgery, adolescents with scoliosis are a population particularly at risk for depression, anxious feelings, and impaired quality of life related to back pain and cosmetic appearance of the deformity. With the rising prevalence of mental health ailments, it is necessary to evaluate the impact of concurrent affective disorders on patient care after spinal surgery in adolescents. The aim of this study was to investigate the impact that affective disorders have on perioperative complication rates, length of stay (LOS), and total costs in adolescents undergoing elective posterior spinal fusion (PSF) (≥ 4 levels) for idiopathic scoliosis.METHODSA retrospective study of the Kids’ Inpatient Database for the year 2012 was performed. Adolescent patients (age range 10–17 years old) with AIS undergoing elective PSF (≥ 4 levels) were selected using the International Classification of Diseases, Ninth Revision, Clinical Modification coding system. Patients were categorized into 2 groups at discharge: affective disorder or no affective disorder. Patient demographics, comorbidities, complications, LOS, discharge disposition, and total cost were assessed. The primary outcomes were perioperative complication rates, LOS, total cost, and discharge dispositions.RESULTSThere were 3759 adolescents included in this study, of whom 164 (4.4%) were identified with an affective disorder (no affective disorder: n = 3595). Adolescents with affective disorders were significantly older than adolescents with no affective disorders (affective disorder: 14.4 ± 1.9 years vs no affective disorder: 13.9 ± 1.8 years, p = 0.001), and had significantly different proportions of race (p = 0.005). Aside from hospital region (p = 0.016), no other patient- or hospital-level factors differed between the cohorts. Patient comorbidities did not differ significantly between cohorts. The number of vertebral levels involved was similar between the cohorts, with the majority of patients having 9 or more levels involved (affective disorder: 76.8% vs no affective disorder: 79.5%, p = 0.403). Postoperative complications were similar between the cohorts, with no significant difference in the proportion of patients experiencing a postoperative complication (p = 0.079) or number of complications (p = 0.124). The mean length of stay and mean total cost were similar between the cohorts. Moreover, the routine and nonroutine discharge dispositions were also similar between the cohorts, with the majority of patients having routine discharges (affective disorder: 93.9% vs no affective disorder: 94.9%, p = 0.591).CONCLUSIONSThis study suggests that affective disorders may not have a significant impact on surgical outcomes in adolescent patients undergoing surgery for scoliosis in comparison with adults. Further studies are necessary to elucidate how affective disorders affect adolescent patients with idiopathic scoliosis, which may improve provider approach in managing these patients perioperatively and at follow-up in hopes to better the overall patient satisfaction and quality of care delivered.


2016 ◽  
Vol 07 (01) ◽  
pp. 43-58 ◽  
Author(s):  
Yu Li Huang

SummaryPatient access to care and long wait times has been identified as major problems in outpatient delivery systems. These aspects impact medical staff productivity, service quality, clinic efficiency, and health-care cost.This study proposed to redesign existing patient types into scheduling groups so that the total cost of clinic flow and scheduling flexibility was minimized. The optimal scheduling group aimed to improve clinic efficiency and accessibility.The proposed approach used the simulation optimization technique and was demonstrated in a Primary Care physician clinic. Patient type included, emergency/urgent care (ER/UC), follow-up (FU), new patient (NP), office visit (OV), physical exam (PE), and well child care (WCC). One scheduling group was designed for this physician. The approach steps were to collect physician treatment time data for each patient type, form the possible scheduling groups, simulate daily clinic flow and patient appointment requests, calculate costs of clinic flow as well as appointment flexibility, and find the scheduling group that minimized the total cost.The cost of clinic flow was minimized at the scheduling group of four, an 8.3% reduction from the group of one. The four groups were: 1. WCC, 2. OV, 3. FU and ER/UC, and 4. PE and NP. The cost of flexibility was always minimized at the group of one. The total cost was minimized at the group of two. WCC was considered separate and the others were grouped together. The total cost reduction was 1.3% from the group of one.This study provided an alternative method of redesigning patient scheduling groups to address the impact on both clinic flow and appointment accessibility. Balance between them ensured the feasibility to the recognized issues of patient service and access to care. The robustness of the proposed method on the changes of clinic conditions was also discussed.


2021 ◽  
pp. 097226292110435
Author(s):  
Anupama Prashar

The case helps students to understand the emerging concept of linear and circular economies. It facilitates to examine the implications of circular business models such as remanufacturing on operations management decisions. It also introduces them to the concept of total cost of ownership and impact of remanufacturing on reducing total cost of ownership. The cases help students to evaluate the challenges and opportunities of remanufacturing business in emerging economy like India. This case is among the first few cases on the application of circular economy principles in context of heavy-duty and off-road sector and the impact of these principles on product design and production planning and control decisions.


Resources ◽  
2021 ◽  
Vol 10 (11) ◽  
pp. 116
Author(s):  
Mariusz Jedliński ◽  
Mariusz Sowa

Despite the commonly observed trend towards mechanization and automation of operational processes, the potential benefits of wooden pallets as an essential element of the infrastructure of logistic processes are often overlooked in considerations related to sustainable development. Aspects that are mentioned more often include the very idea of the economy itself (circular economy), characteristics of logistics (green), features of the supply chain itself (sustainable) or expectations towards transport (ecological). The authors believe that the idea of total cost of ownership (TCO) in relation to wooden pallets can be a key component of holistic thinking in terms of sustainable development. In a situation where in relation to logistics, reasonable expectations for developing sustainable supply chains are made, paying attention to such a common logistic facility, namely a cargo pallet, which is given so little attention in research, is, in the opinion of the authors, absolutely justified. Therefore, the article presents an original approach to the problem of aggregation of all costs that cargo pallets generate in their operational life cycle, using the total cost of ownership (TCO) analysis methodology. The main goal of the article, however, is to show that the total cost of ownership of a pallet (not only owning it) can become an effective tool used to significantly reduce the costs of logistic activity of enterprises (as well as whole supply chains) and support the idea of sustainable development in practice. Using the primary data from questionnaire research, the focus was on considerations that were of identification character (cognitive and explanatory considerations), which are typical for basic research that aims to explain given phenomena. Thus, the presented cognitive process covers two main areas, namely: the general theory of sustainable development and the specificity of wooden pallets as carriers used in goods trading in terms of their total costs of ownership.


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