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<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Forecasting the Risk of the Resource Demand for Dairy Farms Basing on Machine Learning</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Lviv National Agrarian University</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Dubliany</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Lviv Region</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Ukraine trianamik@gmail.com</string-name>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Lutsk National Technical University</institution>
          ,
          <addr-line>Lvivska str., 75, Lutsk, Ukraine, 43018</addr-line>
          ,
          <country country="UA">Ukraine</country>
        </aff>
      </contrib-group>
      <fpage>0000</fpage>
      <lpage>0001</lpage>
      <abstract>
        <p>The work supplies analysis of the conditions of use of the intellectual systems of support for managerial decision making in agrarian production. The authors argue the expediency of forecasting the risk of the resource demand for dairy farms on the base of application of machine learning tools. In the article, the authors propose the approach to forecasting the risk of the resource demand for dairy farms, which is based on machine learning and suggests fulfilment of eight stages. The approach peculiarity is that formation of the bases of data and knowledge is completed with consideration of the features of the set project environment. It is argued that computer modeling of the case branch secures system consideration of the variable factors of costs for fodder production and its market price. The proposed approach creates a basis for improvement of quality and accelerated formation of the database for forecasting the resource reserve basing on machine learning. Referring to the developed approach and computer program in the Python language, the authors substantiate a base of knowledge. The knowledge base is represented by the tendencies of a change of the forecasted figures of the risk of the resource demand for dairy farms in the set project environment. The computer modeling is conducted on the example of Zabolottsi amalgamated territorial community in Brody district of Lviv region. The obtained figures of the limits and tendencies of a change of the volume of the reserve of hay, made of perennial herbs, and field area for its growing serve as markers for conducting machine learning with a teacher. The further research should be conducted concerning the choice of a method and development of an algorithm of machine learning for forecasting the risk of the resource demand for dairy farms.</p>
      </abstract>
      <kwd-group>
        <kwd>Forecasting</kwd>
        <kwd>risk</kwd>
        <kwd>resources</kwd>
        <kwd>dairy farms</kwd>
        <kwd>machine learning</kwd>
        <kwd>model</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>Every year, machine learning is getting more popular in different fields of people’s life
and activities. It is also true for agrarian production, which has its specificity and needs
consideration of a set of factors for adequate managerial decision-making.</p>
      <p>
        Nowadays, in Ukraine, there is sufficient amount of resources for production of milk
as raw material of the appropriate quality [
        <xref ref-type="bibr" rid="ref1 ref2 ref3">1-3</xref>
        ]. However, the major amount of milk is
produced by family dairy farms, which require implementation of the projects on
establishment of cooperatives for their fodder supply. Thus, forecasting of the resource
demand for dairy farms is one of the most important tasks of such project management,
which involves machine learning [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ].
      </p>
      <p>
        Considering the fact that the project environment of the projects of establishment of
fodder supplying cooperatives is characterized by the changeable nature, which is
caused by a complex of factors, it is impossible to achieve the appropriate quality of
the approved managerial decisions without the intellectual systems of the decision
support [
        <xref ref-type="bibr" rid="ref5 ref6 ref7">5-7</xref>
        ]. Particularly, the use of an efficient intellectual analysis of statistical data on
the market value of some kinds of fodder, costs of its production, and yield capacity
secures foresting the need to create a reserve as a response to the risk of resource supply
for dairy farms. Moreover, the adequate forecasting of the resource demand for dairy
farms can be done on the base of application of the methods and algorithms of machine
learning.
2
      </p>
      <p>Analysis of Published Data and Problem Setting
The managerial problems of creation of new and development of the existing systems
of support for decision making in agrarian production, which is based on the
peculiarities of the domain and methods of artificial intellect, is currently widely used.</p>
      <p>
        The scientific works [
        <xref ref-type="bibr" rid="ref10 ref8 ref9">8-10</xref>
        ] supply the analysis of the possible use of the data mining
tools for solution of the managerial problems. Those tools involve traditional models.
      </p>
      <p>
        In their researches, some authors [
        <xref ref-type="bibr" rid="ref11 ref12 ref13">11-13</xref>
        ] solve the scientific-applied problems of
support for managerial decision making by applying the algorithms of forecasting.
Their principal advantages include the adequate assessing of profit, obtained by
enterprises. However, it is impossible to use them for forecasting the resource demand for
dairy farms, because they do not consider peculiarities of the domain.
      </p>
      <p>
        In some publications [
        <xref ref-type="bibr" rid="ref14 ref15 ref16">14-16</xref>
        ], their authors argue the necessity to consider
peculiarities of the domain. It requires application of the personalized approach to development
of a system of support for decision-making. There are some works in that direction,
which are devoted to development of effective intellectual systems for agrarian
production [
        <xref ref-type="bibr" rid="ref3 ref6">3, 6, 17</xref>
        ]. However, all of the above-mentioned authors do not pay significant
attention to the study and analysis of different methods and algorithms of machine
learning.
      </p>
      <p>
        The scientific works [18-24] substantiate the main advantages of the methods and
algorithms of machine learning. Some researches [
        <xref ref-type="bibr" rid="ref12 ref6">6, 12, 17</xref>
        ] are devoted to
development of the tools of machine learning for agrarian production. Nevertheless, none of
them considers the possibility to use the methods and algorithms of machine learning
for forecasting the resource demand for dairy farms. Particularly, there is no a base of
knowledge, which could serve as a fundamental for the models of machine learning,
which secures forecasting the risk of the resource demand for dairy farms. It eliminates
the possibility to conduct machine learning with a teacher because of no markers.
      </p>
      <p>The aim of the work is to develop an approach and substantiate a knowledge base,
which secure forecasting the risk of the resource demand for dairy farms on the base of
machine learning, and are founded on modeling of a changeable project environment
of the domain.</p>
      <p>To reach the set goal, it is necessary to solve the following tasks:
– to propose an approach to forecasting the risk of the resource demand for dairy
farms with the use of the domain modeling;</p>
      <p>– to substantiate the knowledge base, which creates fundamentals for forecasting the
risk of the resource demand for dairy farms on the base of machine learning.
3</p>
      <p>The Approach to Forecasting the Risk of the Resource
Demand for Dairy Farms with the Use of the Domain</p>
      <p>Modeling
The work outlines the main stages of development of the model of forecasting the risk
of the resource demand for dairy farms, basing on machine learning (Fig. 1).</p>
      <p>The research studies the peculiarities of forecasting the demand of variable volumes
of fodder and field area for its growing with consideration of the risk of natural-climatic
conditions (variable durations of the periods of fodder supply of dairy farms, causing
variable amounts of some kinds of fodder and cropping area for its growing), as well
as the risk of the organizational-scale factor of the value, which are expressed in a
variable structure of a milking herd, determining the fodder demand.</p>
      <p>
        Thus, it is necessary to use the known method [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ], which suggests argumentation of
the resource demand for the projects of milk production with consideration of
changeable natural-agrometeorological conditions and milk yields during a lactation period.
However, that method does not consider the variable structure of the livestock number
in a milking herd (an organizational-scale constituent of the risk), which is specific for
the set project environment, and calculated for the average value (mathematical
expectation) of duration of the periods of a milking herd maintenance. To eliminate the
mentioned drawbacks and consider the impact of natural-climatic and organizational-scale
risks on the risk of their subject matter, it is proposed to make forecast of the demand
of variable amounts of fodder and field area for its growing in the following sequence.
      </p>
      <p>Collection of statistical data
about the domain conditions</p>
    </sec>
    <sec id="sec-2">
      <title>Preparation of the data for modeling</title>
    </sec>
    <sec id="sec-3">
      <title>Computer modeling</title>
    </sec>
    <sec id="sec-4">
      <title>Formation of a database concerning the reserve of resources for the set project environment</title>
    </sec>
    <sec id="sec-5">
      <title>Formation of a knowledge base for machine learning</title>
    </sec>
    <sec id="sec-6">
      <title>Choice of a method and development of an algorithm of machine learning</title>
    </sec>
    <sec id="sec-7">
      <title>Machine learning</title>
    </sec>
    <sec id="sec-8">
      <title>Check and testing of the model for forecasting the risk of the resource demand for dairy farms</title>
      <p>The annual demand Qkіjр  of k kinds of fodder for the j age group of a milking herd
with the p productivity is determined by the formula:</p>
      <p>Qkіjр  М Qkір   tbi  kkjр ,
(1)
where М Qkір  – stands for the mathematical expectation of the forecasted daily need
for k kinds of fodder with its p productivity in the i calendar year, c; tbi – stands for
duration of the b period of a milking herd maintenance, during which the k kinds of
fodder are used, days; kkjр – stands for the factor of a relative demand for the k kinds
of fodder for the j age group of a milking herd with the p productivity.</p>
      <p>
        The mathematical expectation М Qkір  of the forecasted daily demand for the k
kinds of fodder for a milking herd with its p productivity in the i calendar year is
determined by its energy and nutritive value, basing on the dependences, which are argued
in the work [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]. The duration tbi  of the b period of a milking herd maintenance is
determined on the base of performance of the first stage of that method. The factors
kkjр  of the relative demand of the k kinds of fodder for the j age groups of a milking
herd with the set p productivity are equal to 1.0 – for milking cows; 0.75 – for heifers
and young cows above two years old; 0.5 – for young cows from 1 to 2 years old; 0.25
– for calves under one year [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ].
      </p>
      <p>The total annual demand of the k kinds of fodder for a milking herd, serviced by a
cooperative of fodder supply, is calculated by the formula:</p>
      <p> m n 
Qkі     Qkіjр  n jр   kвз  kвт  kвн , (2)</p>
      <p> j1 р1 
where n jр – stands for the livestock number in the j age group of a milking herd with
the set p productivity, cows; kвз ,kвт ,kвн – stand for the factors of losses of the k kinds
of fodder during the periods of storage, transportation and distribution respectively, as
well as due to not eating up by animals; т – stands for the number of age groups of a
milking herd, units; п – stands for the number of productivities of a milking herds, units.</p>
      <p>Referring to the obtained figures of the total demand Qkір  of the k kinds of
fodder for a milking herd with the p productivity in the i calendar year, it is possible to
determine the forecasted area of fields  Skір  , which should be used for the fodder
growing:</p>
      <p>Skір </p>
      <p>Qkір
М Уsі   Ks
,
(3)
where М Уsі  – stands for the mathematical expectation of the expected yield of the
s kind of fodder crop on the territory of a community in the i calendar year, c/ha; Kз –
stands for multiplicity of harvesting of the yield of the s kind of fodder crop, units.</p>
      <p>The expected yield Уsі of the s kind of fodder crops on the territory of a community
is variable, and to determine its quantitative characteristics, it is necessary to use
statistical data of the community. Using the methods of mathematical statistics and statistical
data on the yield Уsі of the s kind of fodder crop in the i calendar year, the researchers
obtain their multiplicity Уsі  , which make a basis for argumentation of the density
f Уs  of its law of distribution, and determination of its main characteristics:
mathematical
expectation
–</p>
      <p>j
М Уs   Уsі  Pi ,
i1</p>
      <p>j
D Уs   (Уsі Уsс )2  Pi ,
i1
 Уs  </p>
      <p>D Уs  ,  Уs    Уs  . Where Уsі – stands for yield Уsі of the s kind
М Уs 
of fodder crop in the previous i calendar year, c/ha.</p>
      <p>Referring to the forecast of the total annual demand Qkіjр  of the k kinds of fodder
for a milking herd with its p productivity and expected field area  Skір  , which should
be used for its growing, it is possible to make a set of calculations for the i calendar
years with the change of durations tbi  of the b-х periods of maintenance of a milking
herd, which are determined at the first stage of that method. The obtained set of figures
of the annual demands Qkіjр of the k kinds of fodder and forecasted field area Skір 
for its growing makes a basis for argumentation of its distribution and determination of
its main features, characterizing risks of the resource demand for dairy farms.</p>
      <p>The main responses to the risks of the resource demand for dairy farms are
manifested by creating the reserves of the k kinds of fodder for a milking herd. To argue the
responses to the case risks, it is first required to settle the limits of a change of the
demand for an annual reserve R Qkі  of the k kinds of fodder. To calculate a maximal
relative value of the annual reserve R Qkі  of the k kinds of fodder, the following
formula can be used:</p>
      <p>R Qkі  </p>
      <p>Qmax  M Qk  100 ,
k</p>
      <p>M Qk 
(4)
where Qmax – stands for the figure of an annual demand of the k kinds of fodder for a
k
milking herd, c; M Qk  – stands for the mathematical expectation of the annual
demand of the k kinds of fodder, c.</p>
      <p>Having found the limits of a possible change of a relative value of the reserve
R Qkі  of the k kinds of fodder for a milking herd, it is possible to determine
expenditures for creation of the reserve ВRQkі  within a set range of changes and expenditures
СRQkі  , caused by purchasing its deficit at the market (Fig. 2).</p>
      <p>.</p>
      <p>H
A
U
,
s
e
r
u
t
i
d
n
e
p
x
E</p>
    </sec>
    <sec id="sec-9">
      <title>Fodder reserve, , %</title>
      <p>buying its deficit at the market;  ВR – stands for total expenditures for creating the fodder
reserve</p>
      <p>The rational responses to the case risks of the resource demand for a dairy farm are
those, which secure minimal total costs for creation of the fodder reserve –  ВR  min .</p>
      <p>Considering the fact that the expected yield Уsі of the s kind of fodder crops, which
are planned for growing, is variable both on separate fields and in the i calendar years,
the reserve area should be calculated with consideration of its mean square deviation
 Уs  . However, the average expenditures (mathematical expectation of the total
costs) М  ВR  for determining the reserve of field area R  Sk  for growing of fodder
crops under the set figure of that reserve can be calculated by the following formula:</p>
      <p>RSk 
М  ВR   0,5  ВRSk   R Sk   ВRSk    R Sk   R Sk n   f  R Sk n   dR Sk n 
0

CRSk    R  Sk n  R  Sk   f  R Sk n   dR Sk n</p>
      <p>RSk 
where М  ВR  – stands for the mathematical expectation of the total costs for
determination of the reserve area for fodder crops growing, UAH; ВRSk  ,СRSk  – stand for
expenditures for creation of the reserve of field area and expenditures of dairy farms
because of their deficit, UAH; R  Sk  ,R  Sk n – stand for the set value of the reserve
of the area for fodder crops growing and the required reserve of it, %; f  R  Sk n 
stands for the density of distribution of the probability of need for the reserve of area
for fodder crops growing.</p>
      <p>The first summand of the formula (5) demonstrates that under no need of the area
reserve for fodder crops growing (probability is equal to 0.5), dairy farms will not
experience the expenditures equal to ВRSk  , multiplied by the value of that reserve. If the
current value of the reserve R  Sk n</p>
      <p>does not exceed the value R  Sk  , the
expenditures will be determined by the second summand of the formula (5). If the need of the
field area reserve R  Sk n for fodder crops growing exceeds the value R  Sk  , the
expenditures of dairy farms will be determined by the third summand of the formula (5).
(5)
4</p>
      <p>The Results of Argumentation of the Knowledge Base for
Forecasting the Risk of the Resource Demand for Dairy
Farms, Basing on Machine Learning
The statistical data on the domain conditions are gathered under conditions of Lviv
region, basing on the official statistical data. The project environment, which conforms
to the conditions of the agricultural servicing cooperative “Pokrova” in Brody district
of Lviv region while growing perennial herbs for hay, was taken as an example.</p>
      <p>To complete the appropriate and fast creation of the database concerning the
resource reserve for the set project environment, there is a developed computer program
in Python language, which supplies computer modeling for determination of the
resource demand for dairy farms. It is based on the above-presented approach to
forecasting the risk of the resource demand and supplies the figures of the components of the
case risks.</p>
      <p>The response to the case risks of the resource demand for dairy farms is manifested
by creation of the reserve of the k kinds of fodder. It is approved that the reserve can
be formed by purchasing some kinds of fodder at the market and their production at the
cooperative. The results of the analysis of statistical data on market prices (as of January
1, 2019) of some kinds of fodder on the territory of Lviv region determines their
statistical characteristics, which are presented in the Table 1.</p>
      <p>Using the formula (4) and the obtained data on the mathematical expectation of the
annual demand for hay, made of perennial herbs, the authors calculate the maximal
relative value of their annual reserve R Qkі  .
It supplies the opportunity to determine the limits of a possible change of the relative
value of the reserve R Qkі  of the k kinds of fodder for the set livestock number in a
milking herd (Fig. 3).</p>
      <p>170
,c 160
rev 150
e
se 140
r
ay 130
h
eh 120
t
fo 110
em100
u
l
o
V
-20</p>
      <p>-15 -10 -5 0 5 10 15
The share of a change of the livestock number in
a milking herd, %
20
The obtained dependences (Fig. 3) confirm that the amount of the reserve R Qkі  of
hay, made of perennial herbs, with a proportional change of the livestock number in a
milking herd Zn is changed by the polynomial dependences of the third order. They are
described by the corresponding equations:</p>
      <p>R Qсіі   0.0018  Zn3  0.0139  Zn2  2.0678  Zn  129.87, r  0.94 ,
(6)
The irregularity of a change of the amount of the reserve R Qkі  of hay, made of
perennial herbs, with the change of the structure of the livestock number in a milking herd
Zn is explained by a transformation of the structure and demand for that fodder under
a different productivity of the milking herd.</p>
      <p>Having obtained the results of the forecast of the demand for hay of perennial herbs
(Fig. 3), as well as their specific market price and specific costs of production in a
cooperative (Table 1), the researchers calculate the costs for creation of the reserve
ВRQkі  and expenditures of dairy farms СRQkі  , because of purchasing their required
volume at the market. It supplies the opportunity to compose a dependence of the
mentioned costs on the share of their reserve (Fig. 5).
The obtained dependences (Fig. 5) confirm that the costs for creation of a hay reserve
depend both on the source of its reserve (purchasing at the market or production at the
cooperative), and on the reserve share. It is determined that the maximal volume of the
reserve should by equal to 15.2%.</p>
      <p>The least expenditures for creation of a hay reserve are observed in the variant, where
the whole reserve is produced at the cooperative. It will supply the opportunity to
reduce the impact of case risks, caused by hay deficit.</p>
      <p>The rational responses to the risk of the hay demand for dairy farms suggest
production of an argued amount of their reserve at the cooperative, securing minimal total
expenditures for its creation.</p>
      <p>As it is mentioned above, the expected yield Уsі of the s kind of fodder crops, which
is planned at the cooperative, is variable both on different fields and in different i
calendar years. Referring to the statistical data on the conditions of Lviv region, the authors
define the characteristics of distribution of the yields Уsі of hay, made of perennial
herbs (Table 2).
Using the computer program of formation of the database on the resource reserve for
the set project environment and obtained statistical data concerning characteristics of
distribution of the yield Уsі of hay, made of perennial herbs (Table 2), the research
determines limits of a possible change of the expected volume of the reserve of field
area R  Skі  for hay growing under a change of the livestock number in a milking herd,
serviced by the cooperative, for the conditions of the agricultural servicing cooperative
“Pokrova” in Brody district of Lviv region (Fig. 6).</p>
      <p>2,0
a
re 1,8
a
d
l
fe ,ah 1,6
i
f</p>
      <p>n
revo ticou 1,4
e d
s
re ro
teh ayp 1,2
f h
o r
e fo 1,0
m
u
l
o
V
-20
-15
-10
-5
0
5
10
15
20
Share of a change of the livestock number in a milking
herd, %
Fig. 6. The dependences of the volume of the reserve of field area R  Skі  for hay growing on a
change of the livestock number in a milking herd, serviced by the cooperative
The obtained dependences (Fig. 6) confirm that the forecasted volume of the reserve of
field area R  Skі  for growing of hay with a proportional change of the livestock
number in a milking herd Zn is changed by the polynomial dependences of the third order:
R Sсіі   2 10  5  Zn3  0.0002  Zn2  0.0227  Zn
 1.43, r  0.96 .</p>
      <p>(7)
Having obtained results of the forecast of the volume of the reserve of field area R  Skі 
for hay growing (Fig. 6), characteristics of distribution of its yield Уsі (Table 2) and
the specific costs of production at the cooperative (Table 1), as well as using the formula
(5), the authors calculate the average expenditures (mathematical expectation of the
total costs) М  ВR  for determination of the reserve of field area under perennial herbs
for hay.</p>
      <p>To perform the mentioned calculations, the researchers used the developed computer
program, which secured the opportunity to develop the dependences of the degree of
the reserve risk on the volume of the set field area R  Skі  for hay growing (Fig. 7).
The obtained dependences (Fig. 7) supply the opportunity to make quantitative
assessment of the degree of risk of the demand for hay, made of perennial herbs, for dairy
farms, depending on the volume of the reserve of field area R  Skі  for its growing. The
results of assessment of the degree of the mentioned risk are presented in the Table 3.</p>
      <p>Perennial
herbs for hay
The data of the Table 3 argue that for the set scale of the cooperative, the level of their
case risk influences the volume of the reserve of field area for growing of hay, made of
perennial herbs, for dairy farms within the set limits.</p>
      <p>The obtained figures of the limits and tendencies of changes of the volume of the
reserve of hay, made of perennial herbs, and field area for its growing are the markers
for the machine learning with a teacher. The further research should be conducted
concerning the choice of a method and development of an algorithm of machine learning
for forecasting the risk of the resource demand for dairy farms.
5</p>
      <p>Conclusions
The proposed approach to foresting the risk of the resource demand for dairy farms is
based on machine learning and suggests fulfilment of eight stages. The peculiarity of
that approach is that formation of the bases of data and knowledge is fulfilled on the
fundamentals of consideration of the peculiarities of the set project environment due to
computer modeling, which secures a system involvement of variable factors of the costs
of fodder production and their market value. It creates a basis for improvement of the
quality and acceleration of formation of the databases for forecasting the resource
reserve.</p>
      <p>Basing on the developed approach and computer program in the Python language,
the authors of the work argue a knowledge base, which is represented by the tendencies
of changes of the forecasted figures of the risk of the resource demand for dairy farms
on the example of Zabolottsi amalgamated territorial community in Brody district of
Lviv region. The obtained figures of the limits and tendencies of changes of the volume
of the reserve of hay, made of perennial herbs, and field area for its growing are used
as the markers for machine learning with a teacher. The further research should be
conducted concerning the choice of a method and development of an algorithm of
machine learning for forecasting the risk of the resource demand for dairy farms.
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