The processed meats operation of a typical Viiginia meat-packing firm was analyzed to investigate the possibilities of improving the operation. Linear programming was chosen as the analytical tool. Large firms in competing areas have adopted programming and found it profitable. Little information has been available relative to the usefulness of programming to the size of operations typical in Virginia. Least-cost ingredient mixes were developed for the various processed products. Optimum product combinations were ascertained under various conditional restraints. The marginal value products of restrictive resources were estimated. The possibility of improving the pattern of production was investigated and an optimum array of prices portrayed for an established operation. Regardless of the competitive situation faced by the firm, linear programming will be useful in decreasing the cost of the ingredient mixes and in directing the purchase of restrictive ingredients. The feasibility of adjusting an operation in accordance with an optimum product combination and/or an optimum array of prices will be determined largely by the competitive situation faced by a particular firm. Since no two firms operate under the same conditions or face the same competitive situation, the applicability of programming will therefore vary from firm to firm. The results suggest that programming can be an extremely valuable management tool for Virginia packers when used to suggest ways of decreasing operating costs and to provide guidelines for the many decisions involved in the production and sale of processed meats. / Master of Science

Costs and production records from six 1/ Virginia meat packers and processors were analyzed by departments to obtain the interfirm variation in man-hours required and in the costs of labor and selected resources. In addition, four firms that were unable to supply departmental data supplied total plant labor records and selected other costs. These four firms were combined with the other six and analyzed for interfirm variation of the selected resources for the total operation. The total analysis included the following costs in addition to labor efficiency: labor, supply, maintenance, office, insurance, sales, depreciation, rent, and utility. Graphic analysis was used to investigate relationships between volume and labor efficiency and volume and costs. The standard deviation and coefficient of variation were calculated to measure the variation that existed among firms. Considerable interfirm and interdepartmental variation was found. In most instances the coefficient of variation exceeded 30. In the departmental analysis there was a relationship between volume and labor efficiency only in calf kill and fabricating. There was no meaningful relationship between volume and costs in the departmental analysis. In the total analysis there was neither a meaningful relationship between volume and labor efficiency nor volume and costs. All firms were inefficient in some areas of operation. The norms and measures of variation as discovered should prove to be valuable management tools when used with individual plant records to delineate problem areas within a firm. / Master of Science