Articles
THE ECONOMIC EFFECT OF AVERSION TO RISK DURING TACTICAL PLANNING IN POT PLANT PRODUCTION
Article number
295_25
Pages
203 – 208
Language
Abstract
Two risk avers strategies are applied during tactical planning in pot plant production.
Production risk should be reduced by an extra optional week added to the cultivation-schedule and price risk should be reduced by a staggered selling-schedule.
However, the effect of these risk avers strategies after a simulated implementation of tactical plans is limited.
The first strategy results in a lower financial result.
And with respect to the second strategy no significant difference can be proved.
Therefore other approaches should be developed and attention should be directed to operational management.
Futhermore, the present study shows the relation between the financial result and the efficiency of space utilization.
Production risk should be reduced by an extra optional week added to the cultivation-schedule and price risk should be reduced by a staggered selling-schedule.
However, the effect of these risk avers strategies after a simulated implementation of tactical plans is limited.
The first strategy results in a lower financial result.
And with respect to the second strategy no significant difference can be proved.
Therefore other approaches should be developed and attention should be directed to operational management.
Futhermore, the present study shows the relation between the financial result and the efficiency of space utilization.
Publication
Authors
K.J. Leutscher
Keywords
Online Articles (32)