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

  title={Capacity Management in Agricultural Commodity Processing and Application in the Palm Industry},
  author={Onur Boyabatli and Jason Nguyen and Tong Wang},
  journal={Manufacturing & Service Operations Management},
This paper studies the capacity investment decisions of an agri-processor that uses a commodity input to produce a commodity output and a byproduct. Using a multiperiod model, we study the one-time processing and (output) storage capacity investment decisions, and the periodic processing and inventory decisions in the presence of input and output spot price uncertainties and uncertain production yield. We identify three capacity investment strategies, investing in storage-dominating… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.


Publications referenced by this paper.
Showing 1-10 of 24 references

The value of operational flexibility in uncertain supply and demand environments with oil refinery applications

  • L Dong, P Kouvelis, X Wu
  • Management Sci. (forthcoming)
  • 2014
1 Excerpt

Financial hedging and optimal procurement policies under correlated price and demand. Working Paper

  • A Goel, F Tanrısever
  • Financial hedging and optimal procurement…
  • 2013
2 Excerpts

Managing storable commodity risks: Role of inventories and financial Hedges. Manufacturing Service Oper

  • P Kouvelis, R Li, D Qing
  • Management
  • 2013
1 Excerpt

Similar Papers

Loading similar papers…