Packing facility management: stochastic dominance analysis of cost allocation and revenue distribution rules

• Published in: Agribusiness (New York, N.Y.) Vol. 6; no. 4; pp. 355 - 369
• Main Authors: Falk, C.L. (New Mexico State University), Tilley, D.S
• Format: Journal Article
• Language: English
• Published: New York Wiley Subscription Services, Inc., A Wiley Company 01.07.1990; John Wiley & Sons, Ltd; Wiley; Wiley Periodicals Inc
• Series: Agribusiness
• Subjects: Agricultural cooperatives; Agricultural production; Agriculture; ANALISIS DE COSTOS; ANALYSE DES COUTS; CASE STUDIES; CLASIFICACION; CLASSIFICATION; COST ANALYSIS; Costs; Crops; DECISION MAKING; DEPOSITOS DE ALMACENAMIENTO; DISTRIBUCION DEL INGRESO; ECONOMIA; ECONOMICS; ECONOMIE; ENTREPOT; ESTADISTICA; ESTUDIOS DE CASOS PRACTICOS; ETUDE DE CAS; Farms; Fruits; GESTION; HANDLING; HORTALIZAS; INCOME DISTRIBUTION; LEGUME; MANAGEMENT; Management decisions; MANIPULACION; MANUTENTION; Marketing; MODELE; MODELOS; OKLAHOMA; PRECIOS; PRICES; PRISE DE DECISION; PRIX; REPARTITION DES REVENUS; RIESGO; RISK; RISQUE; Shrink wrapping; STATISTICS; STATISTIQUE; STOCHASTIC PROCESSES; STOREHOUSES; Sugarcane; TOMA DE DECISIONES; VEGETABLES
• ISSN: 0742-4477; 1520-6297
• DOI: 10.1002/1520-6297(199007)6:4<355::AID-AGR2720060407>3.0.CO;2-C

The impact of alternative cost allocation and revenue distribution rules in a multiproduct parking facility were modelled under conditions of stochastic prices and yields. Stochastic dominance with respect to a function was used to analyze the impacts on the riskiness of returns to growers. The returns of more risk averse growers with less diverse crop mixes were more sensitive to different combinations of rules. Cost allocation on the basis of hours of equipment operation and revenue distribution without pooling was the preferred alternative for fairly highly risk averse producers in seven of 10 classes of farms analyzed.