A portfolio theory approach to crop planning under environmental constraints

作者：Radulescu Marius^*; Radulescu Constanta Zoie; Zbaganu Gheorghita

来源：Annals of Operations Research, 2014, 219(1): 243-264.

DOI：10.1007/s10479-011-0902-7

• Crop planning
• Portfolio theory
• Multiobjective model
• Environmental risk
• Environmental level
• Mixed integer model

This paper presents a multiobjective model for crop planning in agriculture. The approach is based on portfolio theory. The model takes into account weather risks, market risks and environmental risks. Input data include historical land productivity data for various crops, soil types and yield response to fertilizer/pesticide application. Several environmental levels for the application of fertilizers/pesticides, and the monetary penalties for overcoming these levels, are also considered. Starting from the multiobjective model we formulate several single objective optimization problems: the minimum environmental risk problem, the maximum expected return problem and the minimum financial risk problem. We prove that the minimum environmental risk problem is equivalent to a mixed integer problem with a linear objective function. Two numerical results for the minimum environmental risk problem are presented.

• 出版日期2014-8