Montes de oca Vilomar Equations

An Equation to Control Cost-Benefits
For Agricultural and Industries

By
T. Montes de Oca Vilomar










INDEX


ABSTRACT....................................................................3
INTRODUCTION..................................................................3
OBJECTIVES................................................................7
PROCEDURE.........................................................................8
RESULTS AND DISCUSSION.........................................................21
SUMMARY AND CONCLUSSION..................................................23
REFERENCES..................................................................24





An Equation to Control Cost-Benefit
for Agricultural and Food Industries


T. Montes de Oca Vilomar


ABSTRACT.An equation was developed to control agricultural and food industries production costs due to field abandonment and migration of farmers and workers. The equation was obtained using differential and integral calculus concepts. The benefits to farmers were qualified and quantified using two characteristics (Q) amount of money earned by farmer per unit of surface, and (R) the rate of change of (Q) with that year´s inflation. It was established that interval of the derivative was R<1>R and when R<1 the farmers will abandon the field.
Keywords : migration, production cost, nets benefits, differentiability and integration, equation.

INTRODUCTION

The tradition of the political economy of migration, as represented in the work of Castles and his various collaborators, and despite is real strengths, has failed to highlight and explain certain significant international migration, and to adequately specify the significance of the role of the state in organizing and regulating international migration flow since 1945. (Miles and Satzewich, 1990).



The author is T. Montes de Oca Vilomar, member engineer ASAE, and consultant planning of food industries,@mail:montevi_01yahoo.com, P.O. Box 30149, Santo Domingo, REPUBLICA DOMINICANA.
When the economy of agricultural and industries are lost. The workers, and employees migrate to others countries, increasing the international flow of migrations. Then, is necessary to mantain the agricultural and industries with benefits that to allow operate. To do that, mathematical model theoretical, buttressed in empirical evidence; can be use.
The mathematical models are formulations that postulate functional relationship between variables, expressed in the forms of equations (Gonzalez and Masa, 1976). The utility of certain production processes can be determined by multiplying the product quantity times its price (Bishop and Toussain, 1975).Fixed costs are those that remain constant regardles of whether or not changes in operations or policies are adapted. (De Garmo and Canada, 1978). They are named fixed, because are constants to differents production level (Gonzalez and Masa, 1976). Variable costs, increase with output (Mitchell, 1980).

The total cost is the sum of fixed and variable cost (Webb, 1985). For example in a coffee producing company integrated to the industry, the fixed costs include: the administration´s salary as well as the salaries of those employees named by the company, the machinery and building expenses. The variable costs includes payment to labor workers (harvesters), payment of handling the product (loading/unloading), the containers used for packaging, and transportation costs. The net benefits are the difference between the liquid benefit and the total cost. The net income is them equal to the total income minus the total cost. (Bishop, 1966).The dry and refrigeration process, diminish the disadvantage of post-harvest and industry. The cost of freeze dried foods lower by : (1) locating production plants in area where raw materials are abundant and inexpensive ; (2) optimizing equipment design in accordance with local area, eg ; condenser versus steam jets ; (3) Maximizing throughput ; (4) optimizing product quality, and (5) mechanization whenever possible (Heid and Joslyn, 1976).


Integration of the model

The increment in a variable that moves from one numerical value to another is the difference obtained by substracting the initial value from the final value (Granville et al, 1963). The increment correspondent to a tangent ordinate in a point is a differential (Granville et al, 1963).
To develope the mathematical model, four fundamental differential were obtained. Their behavior are economics laws.
They are :

1. The high interest rate of bank loans.
2. The low indexes of agricultural production.
3. The high prices of agricultural imput.
4. The market instability.



To obtain the differential of imputs to follow the same procedure of the market differential.


Sustituting in (4) Bb - Pc per Q we have :

(P + M + I + N) + Nb = Q (9)

An equation with Q and Nb known