ANALYSIS OF OPTIMAL COSTS FOR RESERVES OF SPARE PARTS FOR AGRICULTURAL MACHINES

  • Marjan Mirčevski, PhD Military Medical Academy, Belgrade, Belgrade
  • Milan Mihajlović, PhD Military Academy, University of Defence, Belgrade
  • Milan Milunović, PhD Budget Department, Ministry of Defense, Belgrade
  • Ivan Milojević, PhD General Staff of the Serbian Armed Forces, Belgrade
  • Radovan Damnjanović General Staff of the Serbian Armed Forces, Belgrade
  • Rade Žugić, PhD School of Economisc and Management Studies, Kragujevac
  • Miloš Miljković, MSc student Military Academy, University of Defence, Belgrade
  • Slobodan Stanojević, PhD Modern Bussines School, Belgrade

Abstract

Managing reserves of spare parts for agricultural machinery in agricultural farms represents one of the most important activities in securing smooth functioning, especially having in mind the imperative of continuous agricultural production. Aims of this study were to show how efficiency of the agricultural farms as a business subject can be secured by determining timely purchase of spare parts by using a stochastic model of supplies on one side and reduce the time of malfunction of agricultural machinery on the other. Study of optimal inventory level was conducted in agricultural holdings on the territory Banat in 2015 based on data on spare parts purchase and malfunction of agricultural machinery. Acquired data was related to frequency of defects and the need for spare parts, as well as the price of spare parts, where the data was processed with the use of stochastic model of supplies. The optimal number of spare parts for the observed equipment in the observed period was y*=4 with the probability of 85% that this amount of spare parts will be sufficient for all malfunctions on the equipment to be eliminated, while taking a 15% risk that one or two spare parts will be acquired with emergency procurements in case of extraordinary circumstances. The model of managing supplies represented in such a way provides an opportunity to be easily applied in agricultural farms, where the values of an optimal solution would be effectively got with previously chosen values of suitable parameters, thus minimizing total expected costs, which would include fxed costs, expenses caused by unsatisfied requests, where the time of waiting for the observed equipment to be fxed would be taken into account.

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Published
2018-01-20
How to Cite
MIRČEVSKI, Marjan et al. ANALYSIS OF OPTIMAL COSTS FOR RESERVES OF SPARE PARTS FOR AGRICULTURAL MACHINES. Economics of Agriculture, [S.l.], v. 65, n. 1, p. 81-92, jan. 2018. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/7>. Date accessed: 16 aug. 2018. doi: https://doi.org/10.5937/ekoPolj1801081M.
Section
Original scientific papers