Capacity Management in Agricultural Commodity Processing and Application in the Palm Industry

• Main Authors: BOYABATLI, Onur, NGUYEN, Jason Quang Dang, WANG, Tong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: capacity management; multi-product firm; commodity risk management; spot market; agriculture; dynamic programming; processing; storage; Agribusiness; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3188; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4187/viewcontent/boyabatlinguyenwang_MSOM.pdf; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4187/filename/0/type/additional/viewcontent/boyabatlinguyenwang_unabridged.pdf
• Institution: Singapore Management University

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 investm...