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Full-Text Articles in Business
Economic And Environmental Implications Of Biomass Commercialization In Agricultural Processing, Bin Li, Onur Boyabatli, Buket Avci
Economic And Environmental Implications Of Biomass Commercialization In Agricultural Processing, Bin Li, Onur Boyabatli, Buket Avci
Research Collection Lee Kong Chian School Of Business
Motivated by the agricultural industries, this paper studies the economic and environmental implications of biomass commercialization; that is, converting organic waste into a saleable product, from the perspective of a processor that uses a commodity input to produce both a commodity output and biomass. We characterize the economic value of biomass commercializa- tion and examine how input and output spot price uncertainties affect this value. Using a model calibration, we find that lower input spot price variability or higher output spot price variabil- ity or correlation between the two spot prices increases this value for a typical palm oil mill. …
Integrated Optimization Of Farmland Cultivation And Fertilizer Application: Implications For Farm Management And Food Security, Onur Boyabatli, Lusheng Shao, Yangfang (Helen) Zhou
Integrated Optimization Of Farmland Cultivation And Fertilizer Application: Implications For Farm Management And Food Security, Onur Boyabatli, Lusheng Shao, Yangfang (Helen) Zhou
Research Collection Lee Kong Chian School Of Business
Motivated by the fresh produce industry, this paper studies a farmer's joint cultivation and fertilizer (a representative farm input) application decisions facing uncertainties in crop's open market price, harvesting cost, and farm yield, where yield is stochastically increasing in the fertilizer application rate. We develop a two-stage stochastic program that captures the trade offs facing a farmer growing a commodity crop in a single season to maximize the expected profit. We then use the model to evaluate the expected optimal harvest volume (a measure of food security). Our analytical analysis is complemented with numerical experiments calibrated to data. We characterize …
Crop Planning In Sustainable Agriculture: Dynamic Farmland Allocation In The Presence Of Crop Rotation Benefits, Onur Boyabatli, Javad Nasiry, Yangfang (Helen) Zhou
Crop Planning In Sustainable Agriculture: Dynamic Farmland Allocation In The Presence Of Crop Rotation Benefits, Onur Boyabatli, Javad Nasiry, Yangfang (Helen) Zhou
Research Collection Lee Kong Chian School Of Business
This paper examines crop planning decision in sustainable agriculture---that is, how to allocate farmland among multiple crops in each growing season when the crops have rotation benefits across growing seasons. We consider a farmer who periodically allocates the farmland between two crops in the presence of revenue uncertainty where revenue is stochastically larger and farming cost is lower when a crop is grown on rotated farmland (where the other crop was grown in the previous season). We characterize the optimal dynamic farmland allocation policy and perform sensitivity analysis to investigate how revenue uncertainty of each crop affects the farmer's optimal …
Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang
Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang
Research Collection Lee Kong Chian School Of Business
This paper examines the capacity investment decisions of a processor that uses a commodity input to produce both a commodity output and a byproduct in the context of agricultural industries. We employ a multi-period model to study the optimal one-time processing and (output) storage capacity investment decisions---in addition to the periodic processing and inventory decisions---when both input and output spot prices as well as production yield are uncertain. We characterize the optimal decisions and perform sensitivity analysis to investigate how spot price uncertainty affects the processor's optimal capacity and profitability. Using a calibration based on the palm industry, we study …
Supply Management In Multiproduct Firms With Fixed Proportions Technology, Onur Boyabatli
Supply Management In Multiproduct Firms With Fixed Proportions Technology, Onur Boyabatli
Research Collection Lee Kong Chian School Of Business
This paper studies the supply management of a primary input, where this input gives rise to multiple products in fixed proportions. My objective is twofold. First, I study fixed proportions technology under demand uncertainty in comparison with flexible and the dedicated technologies. I show that fixed proportions technology has a cost- pooling value over dedicated technology, which is larger than the capacity-pooling value of flexible technology over dedicated technology. I identify the critical role that demand correlation plays with the fixed proportions technology: In contrast to the capacitypooling value which decreases in demand correlation, the cost-pooling value increases in demand …