Date of Award:

1971

Document Type:

Thesis

Degree Name:

Master of Science (MS)

Department:

Applied Economics

Department name when degree awarded

Agricultural Economics

Advisor/Chair:

Allen D. LeBaron

Abstract

This thesis considered the potential benefits of employing linear programming in cheese manufacturing plant as a decision tool for management. Its potential has been enhanced by the recent approval of acid orange 12 as a chemical for testing the percent protein in milk; therefore , a practical test is now available for monitoring protein as well as milk fat in milk manufacturing and fluid milk plants.

Seven models , each one differing only in the milk fat and protein percentages or means of standardizing the cheese milk, were manipulated individually and simultaneously to test the managerial benefits of linear programming under various plant and market conditions. Each model consisted of five cheese activities or variables , two butter activities, three powder activities, and a selling activity for each product produced.

The maximum price that could be paid the farm producer per hundred weight of milk and the minimum wholesale price per pound of manufactured product , to cover variable costs were determined for each variety of cheese and composition of milk.

7nere ·~as a cie;'ini t.e int.eract.ion between eacn of the activities. ~n~s causea the cos~ to nroduce a pound of cneese to vary according to t.ne alternative uses for milk, cream, ski~,ilk, and whey, ,J,ocn the simulated plant was beinl' utilized at or near full capacity and the cheese milk was standardized with non fat dry milk powder , total cheese yield increased as did tot.al profits , Wnen the plant was not beinl' utilize to :ull capacity, profits were hi~ner by not standardizing.

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