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Linear programming has been used to a considerable extent as a method of developing the optimum combinations and scales of farm enterprises. The fixed costs associated with the farm plant are usually left out of these programs because of the difficulty of faithfully representing fixed costs in the linear programming model. The question must then inevitably be asked whether the enterprise combination and scale (the solution) would have been the same had the fixed costs been included. This paper develops a method for simultaneously minimizing the fixed costs of one class of farm machinery and incorporating these fixed costs into a general linear program.
programming for minimum-cost machinery and combinations
McHardy, F. V. 1966. PROGRAMMING FOR MINIMUM-COST MACHINERY AND COMBINATIONS. Canadian Agricultural Engineering 8(1):22-25.
22 - 25