Robust production allocation model for an agricultural cooperative with yield uncertainty and similar revenue constraints
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Publication Details
Author list: Pakawanich, Peerapong; Udomsakdigool, Apinanthana; Khompatraporn, Charoenchai;
Publisher: Elsevier
Publication year: 2020
Volume number: 168
ISSN: 0168-1699
eISSN: 1872-7107
Languages: English-United States (EN-US)
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Abstract
Crop production planning (CPP) is a complex task as it often encompasses numerous decision variables and uncertainties. This paper presents a robust crop production model applied to an agricultural cooperative. The objective of the model is to maximize the total revenue of the cooperative. The social aspect is addressed through a similarity in farmer revenues. Moreover, crop yield uncertainty, which results from the difference in skills of the farmers, is integrated in the robust model. The crop production plan must satisfy the market demand for each crop. Consequently, crop production that exceeds the demand is penalized. The models are solved by an optimization software, and the results indicate that when the model robustness increases, the value of the objective function decreases. However, the decision maker can make a decision tradeoff between the probability of constraint satisfaction and the value of the objective function. Finally, the managerial recommendations are discussed. © 2019 Elsevier B.V.
Keywords
Crop production, Production Planning, Robust optimization
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