Variable Resource Programming

Our continuing experienced decline in the number of farms often provides an opportunity for the acreage expansion of the remaining units.In addition, the expansion of the farm’s size (acreage-wise or through intensification) requires a change in the capital investment.As these opportunities arise, it appears it would be deemed advantageous to have available a means of analyzing the influences of variability in the supply of the available resources.Because of the nature and scope of linear programming, it is thought that linear programming techniques are adaptable to this purpose.This study undertakes refinement of parametric programming methods, and is primarily devoted to methodology. Allowances for more than one resource to become variable are permitted. In undertaking this study the assumption was made that the objectives could be attained by linear programming techniques.The primary objective is to refine the methodology of continuous programming with variable resources.In so doing it is necessary to determine the optimum points (ridge lines) for each variable as it is expanded.Within these ridge lines a series of restrictive resource lines are devised.On contour maps, the marginal rates of substitution of variable resources will be depicted by a series of isoquants.The resources will be examined in both their complementary and competitive ranges to determine the influence of variable resources upon utilization.Finally, these methods will be employed in analyzing a more realistic and practical example. Advisor: Robert M. Finle