Stochastic budgeting is used to simulate the business and financial risk and the performance over a six-year planning horizon on a Norwegian dairy farm. A major difficulty with stochastic whole-farm budgeting lies in identifying and measuring dependency relationships between stochastic variables. Some methods to account for these stochastic dependencies are illustrated. The financial feasibilit...

This paper addresses integrated scheduling, planning and budgeting with financial risk management in the batch chemical process industries. A cash flow and budgeting model is coupled with an advanced planning and scheduling procedure using a two-stage stochastic formulation. The results of the integrated model are compared with the results of the sequential use of scheduling followed by budgeti...

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ABSTRACT - Cultivation of legumes in crop rotations results in atmosphere nitrogen fixation. After harvesting, part of this external nitrogen remains in soil and is used by subsequent crops. This implies that producers would gain from lowering the amount of nitrogen fertilizer in their fields. In this study, stochastic simulation is used to generate probability distributions of net present valu...

BERTRAM, B.C. R. 1980. Vigilance and group sizes in ostriches. Anim. Behav. 28: 278-286. CARACO, T. 1979a. Time budgeting and group size: a test of theory. Ecology 60: 618-627. 1979b. Time budgeting and group size: a theory. Ecology 60: 611-617. 1980. Stochastic dynamics of avian foraging flocks. Amer. Natur. 115: 262-275. --, S. MakRTINDALE, & H. R. PULLIAM. 1980. Avian flocking in the presenc...

We propose a stochastic optimization model for the Multiperiod Multiproduct Advertising Budgeting problem, so that the expected profit of the advertising investment is maximized. The model is a convex optimization problem that can readily be solved by plain use of standard optimization software. It has been tested for planning a realistic advertising campaign. In our case study, the expected pr...

Real options theory suggests that managerial flexibility embedded within irreversible investments can account for a significant value in project valuation. Although the argument has become the dominant focus of capital investment theory over decades, yet recent survey literature in capital budgeting indicates that corporate practitioners still do not explicitly apply real options in investment ...