Optimization of a production unit of the dairy agroin-dustry: Chapingo dairy technology unit case

Abstract

Objective: The optimization of a dairy production unit (UPL) was made by      using a mathematical programming model (PM). It is expected that by maximizing net income by at least 10%, the UPL will be more profitable than without optimized management.

Design/methodology/approach: The analysis was carried out under the economic approach to agricultural production, considering 11 decision variables in the objective function (FO), subject to 20 restrictions. They were proposed based on the requirements of the demand for dairy by-products and the use of technical coefficients (input-output relationship). The sensitivity report was obtained using the excel® solver® and the shadow prices and reduced costs were analyzed.

Results: Three scenarios were modeled, between the first and third scenario the income increased by $58,000.00 (41.02%). Between the second and third scenarios it increased by $63,840.00 (46.16%).

Limitations on study/implications: Dairy food processing is an important industry in the developed and developing economies of the world. Improving the performance of dairy production units (UPL) as a strategic development instrument is necessary due to the current times in which we live.

Findings/conclusions: Panela cheese obtained the highest shadow price of $72.85, which indicates that the UPL should concentrate on producing this type. It is concluded that the optimization of the UPL guarantees the efficient use of scarce resources and therefore generates a higher profit.