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Updated: Sep 19, 2025

Spatial Multiobjective Optimization of Agricultural Conservation Practices using a SWAT Model and an Evolutionary Algorithm
Published on: December 9, 2012
Optimizing forest sector performance based on life cycle cost analysis and real options
Gustavo Alves de Melo1, Thuliany Fernandes Araújo Paes2, Jaqueline Severino da Costa2
1Federal University of Lavras, Department of Agroindustrial Management, P.O. Box 3037, Lavras 37200-000, MG, Brazil.
Abstract:
This study assessed the life cycle costs of eucalyptus production in a Brazilian forestry company. The analysis combined traditional Economic Feasibility Analysis with Monte Carlo Simulation and Real Options to account for uncertainty. Results confirmed the project's economic viability, with the Reform/Coppice or Reform/Conduction scenarios offering the highest returns. Wood price and production levels were the most influential factors. The most cost-effective approach involved chemical fertilization and manual ant control. The study highlights the value of integrating probabilistic methods into cost analysis, enhancing decision-making and identifying opportunities to reduce costs in the eucalyptus production cycle.
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