Assessment of a computer simulation model for the flour-milling industry
1992
Liu, M.C. | Flores, R.A. | Deyoe, C.W. | Posner, E.S.
A computer simulation model was applied in two different studies of the wheat flour-milling industry. The first study evaluated the economic performance of a flour mill in two different years, 1982 and 1987. Changes in labor costs, production costs, working capital, and internal rate of return were obtained for metropolitan, nonmetropolitan, and average sized mills in the Midwest. The second study evaluated, based on wheat characteristics, the economic impact of the wheat characteristics of 99 wheat shipments to Japan (1987-1990). A relationship between total production costs and net income of the mill as a function of the characteristics of the wheat samples was developed.
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