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Managing Risk in Fresh Produce Planning Considering Price Variability, Yield Variability, and Regional Complementarity

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Optimization Under Uncertainty in Sustainable Agriculture and Agrifood Industry

Abstract

Agricultural supply chains for fresh products exhibit higher levels of variability than those exhibited by other agri-food supply chains for products with longer shelf lives such as grains, cotton, or frozen foods. This variability takes different forms; chief among them are price and yield variability. These factors complicate the task of the grower of deciding when and how much of each crop to plant to maximize expected profits. In this chapter we discuss mathematical models for making planting decisions that are robust to the price and yield variability of fresh foods so that growers can maximize their expected profit. As part of the chapter, a case study is presented. The case study allocates production among complementary regions using a stochastic programming approach.

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Acknowledgments

This work was partially supported by the Foundation for Food and Agriculture Research [Award Number CA18-SS-0000000116].

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Correspondence to J. Rene Villalobos .

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Peinado-Guerrero, M. et al. (2024). Managing Risk in Fresh Produce Planning Considering Price Variability, Yield Variability, and Regional Complementarity. In: Albornoz, V.M., Mac Cawley, A., Plà-Aragonés, L.M. (eds) Optimization Under Uncertainty in Sustainable Agriculture and Agrifood Industry. Springer, Cham. https://doi.org/10.1007/978-3-031-49740-7_5

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