An agricultural investment problem subject to probabilistic constraints

Motivated by a model introduced by Moiseev, we consider a problem of optimal investment into agricultural infrastructure (irrigation, storage) under uncertainty (demand, yield coefficients of soil). Unlike the risk-neutral approach of Moiseev, we formulate a risk-averse model based on joint probabil...

Full description

Saved in:
Bibliographic Details
Published inComputational management science Vol. 19; no. 4; pp. 683 - 701
Main Authors El Karfi, Kawtar, Henrion, René, Mentagui, Driss
Format Journal Article
LanguageEnglish
Published Berlin/Heidelberg Springer Berlin Heidelberg 01.10.2022
Springer Nature B.V
Subjects
Agricultural production
Agriculture
Business and Management
Cereals
Constraints
Costs
Decision making
Harvest
Irrigation
Normal distribution
Operations Research/Decision Theory
Optimization
Original Paper
Random variables
Statistical analysis
Reservoir management
Optimization with chance constraints
90B05
90C15
Probabilistic constraints
Agricultural investment
Online AccessGet full text

Cover

More Information
Summary:Motivated by a model introduced by Moiseev, we consider a problem of optimal investment into agricultural infrastructure (irrigation, storage) under uncertainty (demand, yield coefficients of soil). Unlike the risk-neutral approach of Moiseev, we formulate a risk-averse model based on joint probabilistic or chance constraints. We assume the random vector to obey a continuous Gaussian distribution. The probabilities of satisfying the demand of cereals and of not wasting excess harvest up to some given thresholds are calculated in dependence on the investment decisions in a multiperiod setting. Numerical results are presented for a small-dimensional example.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:1619-697X
1619-6988
DOI:10.1007/s10287-022-00431-1