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Crop Planning Models with Symmetric Risk Measures

Marius RĂDULESCU1, Constanţa Zoie RĂDULESCU2
1 Institute of Mathematical Statistics and Applied Mathematics,
Casa Academiei Române,

13, 13 Septembrie Avenue, Bucharest 5, RO-050711, Romania
2 I C I Bucharest
(National Institute for R & D in Informatics)

8-10 Averescu Blvd.
011455 Bucharest 1, Romania

Abstract: In this paper the financial risk of crop plans is measured by two symmetric risk measures: variance and mean absolute deviation of the return. Several crop planning models with symmetric risk measures, based on the financial portfolio theory, are formulated. Among them minimum risk and maximum expected return models are of interest. The decision variables are the land areas allocated to crops. The models belong to mathematical programming with continuous variables. Some numerical examples for the minimum financial risk model are studied and efficient frontiers of the models are displayed.

Keywords: crop planning, symmetric risk measures, portfolio theory, efficient frontier, decision support.

>>Full text
Marius RĂDULESCU, Constanţa Zoie RĂDULESCU, Crop Planning Models with Symmetric Risk Measures, Studies in Informatics and Control, ISSN 1220-1766, vol. 23 (4), pp. 333-340, 2014.