Variable Production Costs Research Articles

FAKTOR-FAKTOR YANG MEMENGARUHI PENDAPATAN NELAYAN PANCING DI DESA KOLO BAWAH KECAMATANMAMOSALATO KABUPATEN MOROWALI UTARA

This study aims to determine the effect of production costs, fishing experience, fishing distance, and
 fish prices on the income of fishing rods in Kolo Bawah Village, Mamosalato Subdistrict, North Morowali 
 Regency. This research was conducted from June to July 2021. The determination of respondents in this 
 study was carried out using a random sample method, with a total sample of 44 respondents from a total 
 population of 270 people. The analysis used is multiple linear regression analysis. The results of the analysis 
 show that the variable cost of production is 0.059, experience at sea is 31.039, the distance to sea is 13.710, 
 and the price of fish is 10.540, has a real and significant effect both partially and simultaneously on the 
 income of fishing fishermen in Kolo Bawah Village, Mamosalato District, North Morowali Regency.

168 Evaluation and Improvement of the Nutritional Value of Cereal and Pulse Grains for Swine

Abstract Feed represents the greatest variable cost of swine production, with feed energy as its largest component. In most swine production systems, cereal grains such as corn, wheat, or barley provide historically the most energy in feed. Cereal grains contain >50% starch and < 20% crude protein. Pulse grains such as field pea, faba bean, and chick pea are now widely grown on the Great Plains for human consumption and crop diversification. Pulse grains contain 30 to 40% starch and 20 to 30% crude protein. Apparent total tract digestibility (ATTD) of starch does not differ between cereal and pulse grain. However, apparent ileal digestibility (AID) of starch is lower for pulse grains; thus, apparent hindgut fermentation of starch is greater. Both AID and ATTD of total dietary fiber are greater for pulse than cereal grains. Calculated net energy (NE) value is greater for cereal than pulse grains. Standardized ileal digestibility (SID) of lysine is greater for pulse than cereal grains. Cereal and pulse grains are milled prior to diet mixing, and particle size reduction can increase ATTD of energy. Whereas steam pelleting may not increase nutrient digestibility of pulse grains, extrusion may increase digestibility of both energy and amino acids. Fiber-degrading enzymes can increase nutrient digestibility of grains by depolymerizing the fiber matrix. In phase-3 nursery diets that are formulated to equal NE value and SID lysine, barley grain can replace wheat grain without reducing growth. Similarly, pulse grains can replace part of cereal grain and soybean meal in phase-3 nursery diets without reducing growth. In conclusion, pulse grains are alternative energy sources to cereal grains but can also replace protein feedstuffs such as soybean meal in sustainable swine feeding programs and provide agronomic benefits like rhizobia N fixation and reduced carbon footprint.

Farm income and production impacts from the use of genetically modified (GM) crop technology 1996-2020

ABSTRACT This paper updates previous estimates for the global value of using genetically modified (GM) crop technology in agriculture at the farm level. It examined impacts on yields, important variable costs of production, including the cost of the technology, direct farm (gross) income, and impacts on the production base of the main crops where the technology is used (soybeans, corn, cotton, and canola). Over the period 1996 to 2020, the economic benefits have been significant with farm incomes for those using the technology having increased by $261.3 billion US dollars. This equates to an average farm income gain across all GM crops grown in this period of about $112/hectare. In 2020, the farm income gains were $18.8 billion (average of $103/ha). The cumulative farm income gains have been divided 52% to farmers in developing countries and 48% to farmers in developed countries. Seventy-two percentage of the gains have derived from yield and production gains with the remaining 28% coming from cost savings. These yield and production gains have made important contributions to increasing global production levels of the four main crops, having, for example, added 330 million tonnes and 595 million tonnes respectively, to the global production of soybeans and maize since the introduction of the technology in the mid-1990s. In 2020, the extra global production of the four main crops in which GM technology is widely used (85 million tonnes), would have, if conventional production systems been used, required an additional 23.4 million ha of land to be planted to these crops. In terms of investment, for each extra dollar invested in GM crop seeds (relative to the cost of conventional seed), farmers gained an average US $3.76 in extra income. In developing countries, the average return was $5.22 for each extra dollar invested in GM crop seed and in developed countries the average return was $3.00.

Manufacturing Productivity with Worker Turnover

To maximize productivity, manufacturers must organize and equip their workforces to efficiently handle variable workloads. Their success depends on their ability to assign experienced and skilled workers to specialized tasks and coordinate work on production lines. Worker turnover may disrupt such efforts. We use staffing, productivity, and pay data from within a major consumer electronics manufacturer’s supply chain to study how firms should manage worker turnover and its effects using production decisions, wages, and inventory. We find that worker turnover impedes coordination between assembly line coworkers by weakening knowledge sharing and relationships. Publicly available unit-cost estimates imply that worker turnover accounts for $206–274 million in added direct expenses alone from defectively assembled units failing the firm’s stringent quality control. To evaluate managerial alternatives, we structurally estimate a dynamic equilibrium model (an Experience-Based Equilibrium) encompassing (1) workers’ endogenous turnover decisions and (2) the firm’s weekly planning of its production scheduling and staffing in response. In counterfactual analyses, a less turnover-prone, hence more productive, workforce significantly benefits the firm, reducing its variable production costs by 4.5%, or an estimated $928 million for the studied product. Such benefits justify paying higher efficiency wages even to less skilled workforces; furthermore, interestingly, rational inventory management policies incentivize self-interested firms to reduce rather than tolerate turnover. This paper was accepted by Vishal Gaur, operations management. Funding: The authors gratefully acknowledge support from the data sponsor, and K. Moon gratefully acknowledges support from the Wharton Dean’s Research Fund and the Claude Marion Endowed Faculty Scholar Award of the Wharton School. Supplemental Material: The online appendices are available at https://doi.org/10.1287/mnsc.2022.4476 .

Analisis Faktor-faktor Produksi Yang Mempengaruhi Pendapatan Petani pada Usahatani Kentang Varietas Granola di Probolinggo

The purpose of this study is to determine the factors of production that affect the income of farming businesses. The factors of production used are the cost of production used, land area and labor use. The data of this study were carried out in a primary and secondary manner. Primary data was conducted by interview with Granola Potato farmers in Sumber District, Probolinggo Regency while secondary data was obtained from related agencies. The data analysis method used uses quantitative descriptive methods. The results obtained from this study are (1) The total cost with the average production of potato harvests of 19,000 kg is Rp.57,205,000 generated by the Granola variety potato farming income of Rp.105,295,000. (2) Variables of arable land area (X1) and labor (X3) partially affect positively and significantly affect the income of Granola Potato farmers. Meanwhile, the variable cost of production (X2) has a negative and insignificant effect. (3) Variables of arable land area (X1), production costs (X2) and labor (X3) simultaneously have a positive and significant effect on the income of Granola Potato farmers in Sumber District, Probolinggo Regency
 Keywords: Production factors: income: Granola potato farmers

Cow milk production cost in a semi-specialized system in the mountainous region of Veracruz, Mexico

Objective: To analyze cow milk production cost in farm production units (UPPs), in a semi-specialized system, in the mountainous region of Veracruz, Mexico. Design/Methodology/Approach: A questionnaire was applied to milk producers; additionally, the production units were visited. Results: The main elements of the variable cost of milk production included: feeding, animal health, and fuel (86% of the total). The workforce accounted for 35 to 60% of the fixed costs. The production cost per liter fluctuated between USD$0.26 and USD$0.352 and the selling price ranged from USD$0.28 to USD$0.30; consequently, the profit margin is low. The profit per liter of milk fluctuated between USD$0.02 and USD$-0.04. The improvement in milk quality can increase profitability. Study Limitations/Implications: The analysis focuses in the last year of operations and only takes into account six production units; therefore, the conclusions are only valid in that context. Findings/Conclusions: Some UPPs have a positive profit; however, the combination of production factors must be reviewed. Additionally, in order to guarantee that more producers obtain a profit, some adjustments must be made.

Multi-criteria evaluation of nuclear option

When evaluating power system expansion scenarios there is a need to take into consideration a range of measurable and non-measurable impacts. Measurable impacts are fixed and variable production costs and, recently, external costs. Nonmeasurable impacts include public attitude to a certain energy technology and investor's risk in achieving the expected profit. Public attitude has a large, and sometimes essential impact on decision-making and can be divided in objective and subjective part. Investor's risk in achieving the expected profit is mostly associated with possible changes of domestic or foreign regulations or policy that can influence power plant operation and long-term fuel availability and price. The objective of multi-criteria evaluation, after weighting and quantification of all impacts, is to determine the most acceptable power system expansion option. In the article a simplified quantification was made of measurable and nonmeasurable elements that affect future investment decision. For that purpose possible relative values of non-measurable impacts of different options will be determined (their weights and impact on relative increase of annual costs). Four possible technologies will be compared: nuclear power plant, coal power plant, combined cycle gas plant and wind power plant in combination with gas plant. The expected change of non-measurable impacts on investment decision in the period 2010-2030 was analysed as well as the influence of those changes on future investment decisions.

The Impact of the Positioning of Parts on the Variable Production Costs in the Case of Additive Manufacturing

Additive manufacturing is becoming increasingly widespread in many areas of life. One of the main reasons for this is that the machines, raw materials and manufacturing are becoming cheaper. The cheaper the technology, the more widespread it is. The cost of production is influenced by many factors. One of these shows the impact of the part's production positioning (placement in the working space) on costs in the following study. On this basis, we can simplify the traditional pricing strategy. From the results, we can determine how economically it is worth to place the parts in the work area of the machine.

Production routing for perishable products

This paper introduces the production routing problem for perishable products with fixed shelf life and gradual decay, where the age of products impacts the price that can be obtained when satisfying customer demands. In this problem, a single supplier is responsible for the production and distribution of perishable products to a set of customers. Fixed setup and variable production costs occur at the supplier location when production takes place, and routing costs are charged for the distribution activities. Additionally, inventory holding costs are incurred at both the production facility and the customer locations. Transshipments between customer locations are allowed on the basis of a unit transshipment cost. The objective is to maximise the total profit given by the sales revenue minus the sum of production, routing, inventory and transshipment costs. The problem is formulated as a mixed integer linear program and solved using a branch-and-cut and a hybrid, iterated local search-based heuristic. Based on the results of the computational experiments, we analyse the impact of perishability on the structure of the solutions. We explore perishability in the form of both product shelf life and decay, observing that larger decay rates lead to a reduction in total profit, as a result of both a decrease in revenues and an increase in the total cost. We further analyse the impact of different decay rates on the cost structure of the problem and the significance of transshipments for the management of perishability across the system. Finally, we adapt our hybrid method to solve the standard production routing problem. Comparison of our results with state-of-the-art solution methods on benchmark instances from the literature shows that our heuristic provides good quality solutions that are competitive with the scientific literature.

Analysis Of White Jellyfish (Aurelia Aurita) Processing Business In CV. Almahaera In Puupi Village Of Kolono Districct Of South Konawe Regency

This research aims to find out the process analysis of white jellyfish (aurelia aurita) processing business in cv. almahaera in puupi village of kolono districct of south konawe regency. Determination of the location of the study is done intentionally (purposive). Data collection is done by observation, interview and documeation methods. Respondents in the study were business owners, secretaries and several employees at jellyfish processing companies (Aurelia aurita). The study was analyzed using income analysis. The results showed that the variable total cost of production was produced by a production value of Rp957,435,000, total receipts of Rp2,430,400,000, total revenue of Rp 1,472,965,000 and R/C Ratio of 2.54.

Analisis perilaku Sticky Cost biaya produksi pada perusahaan BUMN sektor manufaktur periode 2014-2020

The purpose of this study is to find out if there are indications of sticky cost behavior that exists in production costs. Sticky cost can be indicated by the response of production costs to changes in net sales. This research is empirical research using multiple linear regression analysis. This research sample is a state-owned company, especially the manufacturing sector, which existed in the current period from 2014 to 2020. Samples are taken by purposive sampling method. The total number of samples of state-owned enterprises in the manufacturing sector used is as many as 49 samples. This research is expected to provide benefits that are used as a reference in the development of literature with regard to cost behavior or sticky costs. In addition, another hope of this sticky cost-related research can help provide benefits that can later be used as input to managers in planning costs, because not all costs can change proportionally. From the manager's side, of course, this research is an evaluation material that will later be used for reference in decision making so that there is no indication of sticky cost behavior.
 The conclusion of this study is that the production cost means that it shows that registered SOE manufacturing has sticky behavior where there is no decrease in production costs when net sales decrease, so that variable production costs are not affected. This is because the components in production costs are mostly fixed costs whose increases and also decreased costs are strongly influenced by changes in activity volume, and few variable cost components on production costs.

Modelling and optimising the capacity and production network planning in plastics processing factories

ABSTRACT This paper deals with the capacity planning and production network planning in plastics processing factories. We lay emphasis on the opportunity and – potentially – necessity to move machines, tools and material. Furthermore, we consider the option to outsource production to external suppliers. Demand is deterministic and has to be satisfied in the same period. We present a linear mixed integer programming model representing the problem to find a minimum-cost production plan where total cost accounts for variable production cost, setup cost, transportation cost, relocation cost and cost caused by machine purchases. The decisions to be made are the allocation of machines to plants. This includes to decide for investments or relocating machines between plants. In addition, the allocation of products to machines and the determination of the corresponding optimal quantities of production, purchase and transportation within the network of suppliers, plants and customers are decided. We provide a computational study validating the model and conduct a sensitivity analysis of the run time using an off-the-shelf solver. Finally, we present a real-world case of an international automobile supplier. Tackling the instance with an off-the-shelf solver the problem cannot be solved in reasonable time. Thus we apply a simple decomposition scheme to provide decision support for the real-world case.

Effects of Production Costs and Operating Costs on Profit of PT Semen Baturaja (Persero) Tbk

The objectives of this research are to determine the effect of production costs and operating costs on company profits at PT. Semen Baturaja (Persero) Tbk. The data investigated is an annual income statement for the period 2012 - 2019. The data is then analyzed using multiple linear regression. Further statistical tests revealed the variable production costs do not have a positive effect on company profits, but on the other hand, business costs have a positive effect on company profits. Furthermore, the coefficient of determination (R2) obtained a value of 0.890. This means that the variable production costs and business costs can explain the company's profit by 89% the rest is influenced by other variables not included in this study.

Conservation agriculture based integrated crop management sustains productivity and economic profitability along with soil properties of the maize-wheat rotation

Field experiments were conducted to evaluate eight different integrated crop management (ICM) modules for 5 years in a maize-wheat rotation (MWR); wherein, ICM1&2-ˈbusiness-as-usualˈ (conventional flatbed maize and wheat, ICM3&4-conventional raised bed (CTRB) maize and wheat without residues, ICM5&6-conservation agriculture (CA)-based zero-till (ZT) flatbed maize and wheat with the residues, and ICM7&8- CA-based ZT raised bed maize and wheat with the residues. Results indicated that the ICM7&8 produced significantly (p < 0.05) the highest maize grain yield (5 years av.) which was 7.8–21.3% greater than the ICM1-6. However, across years, the ICM5-8 gave a statistically similar wheat grain yield and was 8.4–11.5% greater than the ICM1-4. Similarly, the CA-based residue retained ICM5-8 modules had given 9.5–14.3% (5 years av.) greater system yields in terms of maize grain equivalents (MGEY) over the residue removed CT-based ICM1&4. System water productivity (SWP) was the highest with ICM5-8, being 10.3–17.8% higher than the ICM1-4. Nevertheless, the highest water use (TWU) was recorded in the CT flatbed (ICM1&2), ~ 7% more than the raised bed and ZT planted crops with or without the residues (ICM4-8). Furthermore, the ICM1-4 had produced 9.54% greater variable production costs compared to the ICM5-8, whereas, the ICM5-8 gave 24.3–27.4% additional returns than the ICM1-4. Also, different ICM modules caused significant (p < 0.05) impacts on the soil properties, such as organic carbon (SOC), microbial biomass carbon (SMBC), dehydrogenase (SDH), alkaline phosphatase (SAP), and urease (URE) activities. In 0.0–0.15 m soil profile, residue retained CA-based (ICM5-8) modules registered a 7.1–14.3% greater SOC and 10.2–17.3% SMBC than the ICM1-4. The sustainable yield index (SYI) of MWR was 13.4–18.6% greater under the ICM7&8 compared to the ICM1-4. Hence, this study concludes that the adoption of the CA-based residue retained ICMs in the MWR could sustain the crop yields, enhance farm profits, save water and improve soil properties of the north-western plans of India.

Effects of variable setup cost, reliability, and production costs under controlled carbon emissions in a reliable production system

Effects of variable setup cost, reliability, and production costs under controlled carbon emissions in a reliable production system

Effects of variable setup cost, reliability, and production costs under controlled carbon emission in a reliable production system

Effects of variable setup cost, reliability, and production costs under controlled carbon emission in a reliable production system

Estimating the adequacy revenue considering long-term reliability in a renewable power system

The growing participation of variable renewable sources, with production costs close to zero, requires the review of electricity markets to guarantee security of supply. This work evaluates the dependence on additional revenue of different technologies that provide long-term reliability in a predominantly hydropower system, with model-based spot price, that considers generators variable production cost, and price cap. Using the future configuration of Brazilian Ten-Years Plan, each technology's revenue is estimated and then compared with investments required. Results demonstrate that, in systems with this market design, only technologies with a high dispatch factor can cover the investments solely with revenues from selling their production. For wind and solar plants, in 35% of scenarios, this income is sufficient to cover the investments. On the other hand, thermopower has more than 90% of scenarios where net income is nil, indicating that adequacy remuneration should cover investments. Battery storage and demand response are also analyzed. As the final income for a project will be given by the sum of different revenues, technologies that don't depend on a certain product may exercise market power and render ones that depend on that revenue infeasible, even if this solution isn't the most efficient for the system.

A techno-economic analysis of biochar production and the bioeconomy for orchard biomass.

It is well established that the global practice of burning crop residues, such as orchard biomass, harms human health and the environment. A bioeconomy for orchard biomass may reduce open burning, facilitate the recovery of nutrients that improve soil health, and boost economic growth. We present a techno-economic analysis for converting orchard waste into biochar, a charcoal-like substance that shows promise for improving soil health, but that is considered an experimental product with emerging efficacy and limited market demand. We impute values derived from a cost analysis of biochar production in California's Central Valley into a regional economic input-output model to demonstrate economic growth and a bioeconomy for biochar made with orchard waste. Results from a stochastic Monte Carlo simulation show a probable range of biochar production costs between $448.78 and $1,846.96 (USD) Mg-1, with 90% probability that costs will range between $571 and $1,455Mg-1. A sensitivity analysis shows that production costs are most responsive to biochar production rates. A modifiable Excel-based biochar enterprise budget that includes fixed and variable biochar production costs is provided as Supplementary Material. The regional economic analysis demonstrates positive economic growth as defined by job creation, labor compensation, value-added product, and gross output. Stochastic cost estimates and net positive regional economic impacts support economic feasibility of a circular bioeconomy for waste orchard biomass when coupled with governmental policy initiatives. Results may contribute to developing a circular bioeconomy for biochar and orchard biomass in the study region and elsewhere in the world.

Variable cost evaluation of heating plants in district heating systems considering the temperature impact

District heating systems (DHSs) play an important role for urban areas as they enable an efficient and cost-effective heat supply. Existing DHSs are primarily based on fossil fuel energy and therefore need to be transformed in the coming years to meet the climate goals of the Paris Agreement. Lowering system temperatures is relevant to convert the fossil-based generation to renewable energy sources. However, there is a lack of a systemic methodology that can properly promote the required changes of the system temperatures during operation. This paper contributes a first part to such a methodology: a method to evaluate the average variable costs of heating plants that supply DHSs. The novelty of the approach lies in a systematic way to consider the impact of supply temperature and momentary thermal power on the variable costs of a plant. The method’s requirements, application, results, and conclusions are demonstrated in three case studies of renewable heating plants: a solar thermal, a geothermal and an industrial surplus heating plant. The specific results of these case studies show that different set-points for the supply temperature and for thermal power of each plant have an impact on the variable cost of production. A comparison of the results demonstrates that the method increases the cost transparency in general. It is concluded that the supply temperature should be used as a variable in the operational optimization in DHSs. Further, the method should be part of a more comprehensive methodology for entire DHS infrastructures including storages, the network, and the customers.

SEPARATION OF FIXED AND VARIABLE COSTS FROM MIXED COSTS AT A WATER AND SEWERAGE OPERATOR

Knowing the costs of some activity is essential to a financial manager. Within costs it is important to group them into variable costs and fixed costs. The operation of an enterprise generates costs that with the help of the accounting records fail to group costs into the two large categories and a third category of costs arises, namely mixed costs. Mixed costs contain both fixed and variable costs and can only be separated by statistical methods. With the least-squares method, we can make this separation of mixed costs, respecting the conditions imposed by a statistical analysis. Very many use this method without analyzing the parametricity of the data, and the results obtained are of poor quality. In this article we have reviewed the literature on variable, mixed and fixed costs and the statistical model applied. In the research we applied the least-squares regression analysis to the water and sewage operator in Harghita County for the water activity for 2020 and 2019, comparing the results over the two years. The results were also verified with the help of the IBM SPSS analysis program. The conclusion we have reached is that the method of the least-squares is very well applicable for the separation of mixed costs if the data collected at the accounting level are parametric as happens at the regional water operator Harviz S. A., where at the accounting level fixed, mixed and variable production costs are analytically highlighted. The decisions made on the basis of these costs are relevant and enable the undertaking to make the right decisions knowing its break-even point and the fixed costs it can incur. Decisions are also relieved by the fact that fixed costs are highlighted in the two subcategories, namely: short-term fixed costs and long-term fixed costs. As a final conclusion, the decrease in production caused by the reduction in consumption in 2020 did not substantially change the variable costs separated from the mixed costs, so the method used provides support for correct decisions.