Tool For Management Decisions Research Articles

The The E-Learning Module Arrangement Budgeting Based on Activity-Based Budgeting Model (Case Study: The IT Enterprise in Jakarta)

Budget is one of the management decision-making tools, from activities to finance. One of the budgeting model can be applied is an Activity-Based Budgeting (ABB) model. The objective of this research is to propose the application of the ABB model in IT Enterprise in Jakarta. The object in this research is budgeting for e-learning projects that carried out by IT Enterprise in Jakarta. In the present time, the budgeting model applied is included in the traditional budgeting system, namely the Incremental budgeting model, in which the budgeting is conducted based on the budget in the previous year therefore sometimes the information used is less accurate. This research shows the differences between the ABB model and the Incremental budgeting model, as well as the evaluation of the application of each model. This research is a qualitative research, with descriptive exploratory research type in a case study. Research data was obtained from face to face interviews, observation of activities and documentation. ABB modeling is carried out by detailing activities in e-learning projects including human resources used, then compiling employee costs for these activities. The results of ABB modeling show that ABB has capabilities to provide more accurate information about activities, costs for activities, work process time, amount of human resources needed, total employee costs and project profit / loss. It can be concluded that the ABB model can provides the budgeting model needs of IT Enterprise.

Fertilizer Use Efficiency and Profitability of Irrigated Rice in Mali and Niger

Nutrient response functions for irrigated rice in the Sahel were determined. Yield response of irrigated rice to applied N and P has good profit potential. Response to micronutrients occurred in Mali but not in Niger. The response functions can be used in fertilizer use optimization decision tools. Rice (Oryza sativa L. and O. glaerrima Steud.) is an important food crop in Africa. Maximizing profitability of fertilizer use requires determination of nutrient response functions. Five trials were conducted in the Niger River valley of Mali and Niger. The objectives included determination of nutrient response functions for irrigated rice, other nutrient deficiencies, and profitability of fertilizer use. Average trial grain yields were 3.07, 4.09 and 5.49 Mg ha−1 in Niger and on Danga and Moursi soil types in Mali, respectively. Nitrogen response was curvilinear to plateau in all cases except for a linear response for Danga soil in Mali. Yield increases with 150 kg ha−1 N ranged from 0.7 to 1.7 Mg ha−1. Responses to P were curvilinear with grain yield increases of approximately 0.3 and 1.7 Mg ha−1 in Niger and Mali, respectively, with 30 kg ha−1 P. The economically optimal rate (EOR) for N when fertilizer use cost was 4.5 times the value of rice grain (kg kg−1) ranged from 62 to >150 kg ha−1. The EOR of P ranged from 27 to 33 kg ha−1 in Mali and from 12 to 16 kg ha−1 in Niger, depending on the relative cost of fertilizer P. Agronomic efficiency of N varied from <10 to 20 kg kg−1, and of P with 10 kg ha−1 P from 49 to 95 kg kg−1, depending on location. Net returns to N and P use exceeded 100%. This information is applicable in nutrient management decision tools oriented to farmer profitability in Mali and Niger.

Análisis financiero: enfoques en su evolución

El presente artículo tiene como propósito analizar los avances teóricos del análisis financiero, luego de una revisión detallada, selectiva y crítica de la bibliografía publicada en torno a la temática. Para ello, inicialmente se establecieron criterios de búsqueda de fuentes bibliográficas de trayectoria internacional (pertinencia, originalidad e índice de citación), bajo los cuales se identificaron libros de editoriales arbitradas y artículos de revistas indexadas en bases de datos de reconocida trayectoria como WEB OF SCIENCE, SCOPUS, SCIENCE DIRECT y EBSCO. Con ello, se conformaron categorías de análisis y síntesis relacionadas en procesos deductivo-inductivos, para dar paso a la interpretación teórica global. Los resultados evidencian que el análisis financiero es un tema abordado por muchos autores desde diferentes enfoques. Sobresalen el tradicional o común, ampliamente estudiado por las principales escuelas de negocios y académicos de universidades a nivel mundial. Otros autores defienden la idea de que el análisis financiero debe complementarse con datos cualitativos en igualdad de importancia que los cuantitativos –generalmente extraídos de los estados financieros e información conexa–. Los autores han denominado a este enfoque sinérgico. Se concluye que el análisis financiero, independientemente del enfoque donde se ubique, es actualmente una herramienta de suma importancia para la gestión empresarial y toma estratégica de decisiones.

Landscape Based Agricultural Water Demand Modeling—A Tool for Water Management Decision Making in British Columbia, Canada

Regional water managers face challenges managing water demand and supply in response to climate change. In British Columbia (BC), less than 5% of the total land surface is suitable for cultivation and consequently, urban development and agriculture co-exist on lower elevation sites and compete for water. Surface and ground water supply all uses, affecting in-stream habitats and aquifer levels. To assess water needs, we used a GIS-based water demand model for agricultural water use, with layers for detailed land use, soils, a digital elevation model, sub-basins, aquifers, and socio-political jurisdictional boundaries. The model was driven by gridded daily minimum and maximum temperatures and precipitation at a 500m spatial resolution using historical data (1961-2010) and downscaled climate scenarios (1961-2100) derived from five CMIP5 climate models under two greenhouse gas concentration scenarios (RCP4.5 and RCP8.5). Two case studies were examined: 1. Changes in water use were determined for scenarios of climate change and expanded cropping within the BC Agricultural Land Reserve for 17 agricultural regions. Potential increases in irrigation water demand (IWD) in response to climate change ranged from 21-58% and 30-114% under low and high emissions scenarios respectively. Land use change scenarios resulted in very large potential increases in water demand, up to 2400%. Output from this work forms the basis for a web-based agricultural water licence calculator. 2. Effects of crop production systems on IWD were examined in the Okanagan region. Combinations of pasture and forage crops with inefficient irrigation systems were most vulnerable to drought as indicated by two indices: relative vulnerability index (IWD/ETo) and allocation vulnerability index (IWD/Maximum annual water allocation). In drought years, up to 70% of the irrigated area was vulnerable. A comparison of detailed land use surveys made in 2006 and 2014 indicated a large shift to highly efficient irrigation systems in the horticultural sector from 38% to 68% of the irrigated acreage. Similar shifts for other agricultural sectors may require financial support. On-going development of regional drought management will require collaborative decision making by water suppliers and users.

Mapping hypothermia death vulnerability in Korea

Despite largely indisputable evidence of global warming, abnormally cold temperatures frequently affect regions of the Northern hemisphere. As a result of cold, several countries have sustained considerable property damage and numerous human fatalities. To reduce mortality from cold-related events, this study aims to analyze the vulnerability of people who die as a result of cold temperatures. The data used for the analysis is comprised of cold-related mortality statistics and 20 variables. We define cold-related deaths as those attributable to hypothermia during the winter and broadly classify the 20 variables, as they relate to climate, demographics, and socioeconomic factors, into three categories: exposure, sensitivity, and adaptive capacity. From the 20 variables, we enter three of them (i.e., aging rate, financial reliance, and the number of days below −10 ℃) into a generalized linear regression model, accounting for statistical correlation and multicollinearity, to estimate the spatial distribution of cold-related deaths. The resulting correlation coefficient for the final model is approximately 0.82. Then, from the final model, we adopt estimated values to construct a hypothermia death vulnerability map and find that the sociodemographic distribution has a greater effect on hypothermia vulnerability than climate exposure and that residents of rural areas are more vulnerable than those of urban areas. The hypothermia death vulnerability map could be a useful scientific tool for future cold-related disaster management decisions and policies, which should ultimately reduce the number of human fatalities.

ОЦЕНКА ПОКАЗАТЕЛЕЙ ДЕЯТЕЛЬНОСТИ ТРАНСПОРТНЫХ ОРГАНИЗАЦИЙ НА ОСНОВЕ МЕТОДОВ ЭКОНОМИЧЕСКОГО АНАЛИЗА

In order to achieve high economic performance, modern organizations need to obtain reliable and efficient analytics which helps to assess the influence of efficiency of transport maintenance onto economic indexes of transport enterprise. One of the most promising areas of implementation of this task is the improvement of analytical tools for management decisions related to the planning and organizing of transportation. The article provides an overview and classification of existing research in the field of methods of economic analysis and their classification. There has been carried out a comparative analysis of the available methods aimed at determining the efficiency of transport companies, including the following aspects: elimination; joining the unallocated balance to one factor; chain substitutions; relative (absolute) differences; combining the logarithmic method and the method of equity participation; full differential; integral. There were given examples of comparative calculations using the most popular methods (differential, chain substitutions and integral). It is proposed to use new planning methods based on analytical models, which will contribute to the improvement of tools for decision-making in planning and organization of transport. On the basis of quantitative calculations it is proved that the integral method provides unambiguous and correct estimates of the influence of factors on the resulting performance of transport organizations. The result of the analysis show that the accuracy and absence of restrictions on the number of factors taken into account allow this method to make an unambiguous assessment of the efficiency of the transport company, and its use makes it possible to develop a strategy aimed at improving the level of service in the integrated transport and technological system of cargo delivery.

HidroMap: A New Tool for Irrigation Monitoring and Management Using Free Satellite Imagery

Proper control and planning of water resource use, especially in those catchments with large surface, climatic variability and intensive irrigation activity, is essential for a sustainable water management. Decision support systems based on useful tools involving main stakeholders and hydrological planning offices of the river basins play a key role. The free availability of Earth observation products with high temporal resolution, such as the European Sentinel-2B, has allowed us to combine remote sensing with cadastral and agronomic data. This paper introduces HidroMap to the scientific community, an open source tool as a geographic information system (GIS) organized in two different modules, desktop-GIS and web-GIS, with complementary functions and based on PostgreSQL/PostGIS database. Through an effective methodology HidroMap allows monitoring irrigation activity, managing unregulated irrigation, and optimizing available fluvial surveillance resources using satellite imagery. This is possible thanks to the automatic download, processing and storage of satellite products within field data provided by the River Surveillance Agency (RSA) and the Hydrological Planning Office (HPO). The tool was successfully validated in Duero Hydrographic Basin along the 2017 summer irrigation period. In conclusion, HidroMap comprised an important support tool for water management tasks and decision making tackled by Duero Hydrographic Confederation which can be adapted to any additional need and transferred to other river basin organizations.

Evaluating internal and external markers versus fecal sampling procedure interactions when estimating intake in dairy cows consuming a corn silage-based diet

Feed intake assessment is a valuable tool for herd management decisions. The use of markers, either internal or external, is currently the most used technique for estimating feed intake in production animals. The experiment used 10 multiparous Holstein cows fed a corn silage-based diet, with 55:45 forage-to-concentrate ratio, the average fecal recovery (FR) of TiO2 was higher than FR of Cr2O3, and both FR were more than unity. With internal markers, acetyl bromide lignin and cutin FR were lower than unity, and average FR for indigestible neutral detergent fiber (iNDF) and indigestible acid detergent fiber (iADF) was 1.5. The FR was unaffected by the fecal sampling procedure and appears to be an intrinsic property of each molecule and how it interacts with digesta. Of the 2 external markers, only Cr2O3 produced accurate fecal output (FO) estimates and the same happened to dry matter digestibility (DMD) when iNDF and iADF were used. Estimates for DMD and FO were affected by sampling procedure; 72-h bulk [sub-sample from total feces collection (TFC)] sampling consistently produced accurate results. The grab (sub-samples taken at specific times during the day) sampling procedures were accurate when using either of the indigestible fibers (iNDF or iADF) to estimate DMD. However, grab sampling procedures can only be recommended when concomitant TFC is performed on at least one animal per treatment to determine FR. Under these conditions, Cr2O3 is a suitable marker for estimating FO, and iNDF and iADF are adequate for estimating DMD. Moreover, the Cr2O3+iADF marker pair produces accurate dry matter intake estimates and deserves further attention in ruminant nutrition studies. The method of dosing the external markers is extremely important and greatly affects and determines results. Whichever the method, it must allow the animals to display normal feeding behavior and not affect performance. The grab sampling procedures can replace TFC (once FR is established), which may open new possibilities for pasture-based or collectively housed animals.

Development of an Enhanced Decision-Making Tool for Pavement Management Using a Neural Network Pattern-Recognition Algorithm

AbstractNetwork-level pavement maintenance and rehabilitation (M&R) decisions are typically based on pavement surface condition thresholds, which may lead to inadequate treatment selection and loss...

Competitiveness of Electronics manufacturing industry in India: an ISM–fuzzy MICMAC and AHP approach

PurposeThe purpose of this paper is to identify and build a hierarchy of the factors influencing competitiveness of electronics manufacturing industry (EMI) at the industry level and apply the interpretive structural modeling, fuzzy Matriced’ Impacts Croisés Multiplication Appliquée á UN Classement (i.e. the cross-impact matrix multiplication applied to classification; MICMAC) and analytic hierarchy process (AHP) approaches. These factors have been explained with respect to managerial and government policymakers’ standpoint in Indian context.Design/methodology/approachThis study presents a hierarchy and weight-based model that demonstrates mutual relationships among the significant factors of competitiveness of the Indian EMI.FindingsThis study covers a wide variety of factors that form the bedrock of the competitiveness of the EMI. Interpretive structural modeling and fuzzy MICMAC are used to cluster the influential factors of competitiveness considering the driving and dependence power. AHP is used to rank the factors on the basis of weights. Results show that the “government role” and “foreign exchange market” have a significantly high driving power. On the other hand, the “capital resource availability” and “productivity measures” come at the top of the interpretive structural modeling hierarchy, implying high dependence power.Research limitations/implicationsThe study has strong practical implications for both the manufacturers and the policymakers. The manufacturers need to focus on the factors of competitiveness to improve performance, and at the same time, the government should come forward to build a suitable environment for business in light of the huge demand and frame suitable policies.Practical implicationsThe lackluster performance of the industry is because of the existing electronics policies and environmental conditions. The proposed interpretive structural modeling and fuzzy MICMAC and AHP frameworks suggest a better understanding of the key factors and their mutual relationship to analyze competitiveness of the electronics manufacturing industry in view of the Indian Government’s “Make in India” initiatives.Originality/valueThis paper contributes to the industry level competitiveness and dynamics of multi-factors approach and utilize the ISM–fuzzy MICMAC and AHP management decision tool in the identification and ranking of factors that influence the competitiveness of the EMI in the country.

Characterization and benchmarking of seven managed aquifer recharge systems in south-western Europe

The European MARSOL project includes different examples of managed aquifer recharge (MAR) facilities in the Mediterranean area. A methodical characterization of the whole recharge process has been carried out to ensure that all functions and facilities are clearly comparable independent of size, budget or location. The seven selected MAR demo sites are located in two countries. Four are in Portugal—Rio Seco and Noras (Campina de Faro Aquifer), S. Bartolomeu de Messines and Cerro do Bardo (Querenca-Silves) in Algarve, and three are in Spain—Llobregat (Catalonia), Santiuste and El Carracillo (Castilla y Leon). The systems have been defined using a form divided into four sections, including alpha-numerical data, orthophotographs, sketches and schedules. A first draft using a bibliography was reviewed by the authors, who recorded a detailed analysis and further reports to complete the characterization, as shown in several tables. The article covers MAR benchmarking serial steps for infrastructure measurements (surfaces, lengths, facilities, costs), functions categorization (transport, infiltration, treatment, restoration) and evolution in time and space (maps, sketches and calendars). MAR measuring displays contrasting interpretations depending on scale. The benchmarking process was found to be difficult to apply to seven sites with different sizes, aims, operational procedures and time scales. However, some parameters, such as mean infiltration rate, have shown their potential as management decision tools in the long term. Mediterranean areas, characterized by water supply irregularity, which is likely to be exacerbated by climate change models, can benefit from the use of MAR as a water management technique and from its diverse functions, although these objectives have not generally been attached to recharge. Null energy cost and low initial investment can also play important roles in boosting MAR development as a feasible alternative in short-term water planning.

Sensor‐based nitrogen fertilization for midseason rice production in southeast Missouri

Sensor‐based nitrogen (N) decision management tools have shown potential to improve N fertilizer efficiency, yield, and profitability. Small‐plot experiments were conducted to evaluate the use of sensor‐based management in guiding midseason N application decisions. Earn 1 CEU in Nutrient Management by reading this article and taking the quiz at www.certifiedcropadviser.org/education/classroom/classes/536.

Smallholder farmers’ compliance with GlobalGAP standard: the case of Ghana

Subject area Agricultural Trade, Farm Management, Economics of Food Safety Study level/applicability Both undergraduate and postgraduate studies in Agribusiness and Agricultural Economics. Case overview The pineapple production sector plays a very significant role in the Ghanaian horticultural industry. Production and export of fresh pineapple has been Ghana’s most developed high-value supply chain. However, the introduction of the GlobalGAP food safety standard in 2007 resulted in a fall in smallholder farmers’ participation in exportable pineapple production and subsequently led to declining trends in pineapple exports. The Ghanaian horticultural industry received quite a number of interventions over the years aimed at revitalizing the horticultural export sector and enhancing international competitiveness. However, the pineapple export sub-sector is still constrained with production and market access challenges meaning the sector struggles to survive. Expected learning outcomes The GlobalGAP standard compliance case is an appropriate way of explaining how smallholder farmers make informed decisions concerning the adoption of new farm practices. The case presents a careful evaluation of technical, institutional and socio-economic factors influencing a farmer’s decision to comply or not to comply with the GlobalGAP standard. Students should be able to apply farm management decision-making concepts and tools such as profit maximization and binary choice modelling techniques to explain a farmers’ final decisions on GlobalGAP standard compliance. This case should enable students to appreciate key factors constraining agricultural export trade performance in developing countries. The case should also contribute to students’ understanding of smallholder farmers’ decisions on food safety standards compliance, particularly GlobalGAP, and the challenges associated with the entire compliance process. Moreover, this case should provide students with possible policy considerations geared towards making food safety standards compliance easier, effective and sustainable in developing countries so as to enhance market access while ensuring food quality and safety along high-value food supply chains. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 7 Management Science

Assessment Of The Effectiveness Of Accounting Information As A Tool For Management Decision In Manufacturing Companies In Osun State, Nigeria

This study examined the relationship between accounting information and management decision with emphasis on the effect of accounting information on economic order quantity decision, human resources management decision and marketing decision of selected manufacturing organizations. Data were sourced primarily with the aid of structured questionnaire from one hundred and fifty top management staff statistically selected from the selected manufacturing companies in Osun State, Nigeria. Empirical research designs and inferential analysis were carried out with the aid of statistical package for social sciences (SPSS version 20). The t-test results carried out confirmed a positive relationship between accounting information and management decisions in manufacturing organizations. Based on this, the study recommends that adequate awareness and effective utilization of various accounting tools should be incorporated into decision making processes as this will impact on human resources investment and enhance appropriate strategies for introduction of new products into markets.

An overview of revenue management and dynamic pricing models in hotel business

Basic concepts and brief description of revenue management models and decision tools in the hotel business are presented. An overview of the relevant literature on dynamic pricing, forecasting methods and optimization models is provided. The main ideas of the authors’ customized revenue management method for the hotel business are presented.

Decision Management Tools for Trans-Boundary Water Management in Lake Chad Basin

The Lake Chad basin, one of Africa’s oldest river basin has shrank to one-tenth of its original size. The environmental degradation that had occurred in the basin over the years has had direct impact on the livelihood of people in the region. The problem in the Lake Chad Basin has also constituted social risks to populations of the region resulting in accelerating global climate change due to years of unsustainable resource use. The ecological degradation in the basin has further exacerbated conflict with attendant terrorism in the region. Using a coordinated science-policy market place of ideas, an event during the EU-AU Workshop in water-energy-food nexus held in Italy in 2016, a team of scientists and policymakers from both Africa and European Union looked at the reason for the water loss and how to make the solution of inter-basin water transfer proffered practicable. Sustainability tools were recommended in the basin to provide policy advice for decision makers while also developing a nexus framework to enhance future sustainability of the basin. This paper also addresses cooperation among different stakeholders by suggesting new governance pattern and opening up the basin to external collaborators to reverse the declining fortune of Lake Chad basin.

Reverse time-dependent effect of alphafetoprotein and disease control on survival of patients with Barcelona Clinic Liver Cancer stage C hepatocellular carcinoma.

AIMTo characterize the survival of cirrhotic patients with Barcelona Clinic Liver Cancer (BCLC) stage C hepatocellular carcinoma (HCC) and to ascertain the factors predicting the achievement of disease control (DC).METHODSThe cirrhotic patients with BCLC stage C HCC evaluated by the Hepatocatt multidisciplinary group were subjected to the investigation. Demographic, clinical and tumor features, along with the best tumor response and overall survival were recorded.RESULTSOne hundred and ten BCLC stage C patients were included in the analysis; the median overall survival was 13.4 mo (95%CI: 10.6-17.0). Only alphafetoprotein (AFP) serum level > 200 ng/mL and DC could independently predict survival but in a time dependent manner, the former was significantly associated with increased risk of mortality within the first 6 mo of follow-up (HR = 5.073, 95%CI: 2.159-11.916, P = 0.0002), whereas the latter showed a protective effect against death after one year (HR = 0.110, 95%CI: 0.038-0.314, P < 0.0001). Only patients showing microvascular invasion and/or extrahepatic spread recorded lower chances of achieving DC (OR = 0.263, 95%CI: 0.111-0.622, P = 0.002).CONCLUSIONThe BCLC stage C HCC includes a wide heterogeneous group of cirrhotic patients suitable for potentially curative treatments. The reverse and time dependent effect of AFP serum level and DC on patients’ survival confers them as useful predictive tools for treatment management and clinical decisions.

Valoración económica de los servicios ecosistémicos de una Laguna del sudeste bonaerense (Argentina)

La valoración de servicios ecosistémicos es un tema ampliamente debatido y en constante producción. En Argentina existe poca evidencia empírica de aplicación de metodologías tendientes a dar valor económico a los beneficios asociados a ecosistemas específicos.Este trabajo explica la situación ambiental de una laguna endorreica en el sudeste de la provincia de Buenos Aires y la valoración económica de algunos servicios ecosistémicos asociados a ella.La Laguna de Los Padres es un humedal de importancia local debido a los servicios ecosistémicos que proporciona y como espacio recreativo de valor simbólico sociocultural para la población.La modelización por su carácter sintético y capacidad explicativa, permitió caracterizar el sistema y la selección de cuatro servicios ecosistémicos (SE) posibles de ser valorados física y crematísticamente considerando la disponibilidad de información. Los mimos son: el abastecimiento de agua, el secuestro de CO2, el control de la erosión y el valor de existencia de la biodiversidad.La valoración económica casi siempre infra o subvalora el ambiente; no obstante, puede ser un instrumento político útil para la toma de decisiones de planificación y gestión ambiental en general porque lleva la discusión al terreno monetario.La sumatoria de los servicios ambientales permitió aproximar un Valor Económico Total (VET) equivalente al 4,6% del presupuesto anual 2014 del Partido de Gral. Pueyrredón con una superficie de 1.453,44 km2, y 619.000 habitantes (Instituto de Estadísticas y Censos [INDEC], 2010).

Variation of seed dormancy and longevity in Raphanus raphanistrum L.

AbstractRaphanus raphanistrum (wild radish) is a highly competitive weed in winter crops. Integrated weed management practices and decision-making tools benefit from the ability to predict seed longevity and dormancy status in the soil seed bank, as well as time and density of emergence in the field. We wondered if unique values taken from databases could serve for modelling purposes, whatever the origins of the weed populations. We investigated dormancy and longevity of fruits buried in the soil over a four-year seed burial experiment of two highly contrasted populations that differ by their biogeographical origin (oceanic versus continental climate), their habitat (arable field versus undisturbed) and their fruit size (thick versus thin fruit wall). High viability persisted over two years, followed by a rapid reduction, especially for the ‘continental-undisturbed-thin’ population. Dormancy cycling, with dormancy at its lowest in October, was observed for the ‘oceanic-arable-thick’ population, whilst a slow decrease without clear seasonal pattern was found for the other population. These results indicate different ways of regulating seed persistence in the soil, which might be taken into account when building demographic models. These differences could be due to interactions between fruit wall thickness and the other factors; it is possible that a thicker fruit wall increases longevity by promoting dormancy by physical restriction, but depending on temperature. Thinner fruit walls would make plants display other adaptive strategies to maximize survival time in the soil seed bank. Studies involving more populations and isogenic material are needed to address this specific question.

Using geographical information system to generate a drought risk map for rice cultivation: Case study in Babahoyo canton (Ecuador)

Extreme weather events are occurring more frequently, and they affect people, infrastructure and crops. Drought is one of the most important hazards that threaten agriculture and livestock. Such adverse events can result in yield losses over large cropping areas. It is difficult for farmers to cope with prolonged periods of drought. In the absence of government support, rainfed farmers have very limited adaptation capabilities. In this study, we used geographical information system (GIS) tools to generate a drought risk map (DRM) for rice cropping in Babahoyo Canton, Ecuador. This map represents production risks incurred through the onset of a drought event based on the interaction between vulnerability and threat. The vulnerability of rice cropping is determined through a soil land evaluation for rice cropping and the availability of water during the crop cycle rather than approaching the issue based on drought indices, such as the standard precipitation index (SPI). Threat is the likelihood of the occurrence of a drought event that affects rice crops. The DRM was compared to another drought risk map that was generated based only on climatic variables as risk factors (DRcM). We adjusted the DRM and DRcM by adding a layer of operational irrigation projects and by removing drought hazards from areas that are currently irrigated. Based on Normalized difference vegetation index (NDVI) temporal series and drought claims insurance data, the obtained DRM and DRcM were validated. Both maps show a significant relationship between zone classification and NDVI values. However, the DRM adjusted better to insurance data than the DRcM, which does not consider soil variables. The DRM is an effective tool for agricultural risk management decision-making and it serves as an important source of information that could be used for index-based insurance implementation.