team member 20092401윤영규 20092358임정욱 20092386박유환. select subjectsolution of...
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Finding Optimal solution For Agriculture business
Industrial engineer-ingTeam member
20092401 윤영규20092358 임정욱20092386 박유환
Select subject1) Why we select this subject?2) The aim of project3) Our plan
Analysis of agriculture business1) Analysis of agriculture business2) Analysis of our business
Solution of optimization(1)1) Finding solution through brain storming2) Demanding forecast3) Finding assign people as using binary LP model4) Finding appropriate amount of quota of seed5) Finding appropriate amount of quota of raw materials
CON-TENTS
Solution of optimization(2)1) Finding appropriate amount of rice for selling through using LP model2)sensitivity analysis3)Finding solution for producing many amount of packing rice through using maximum flow problem
Solution of optimization(3)1) For progress market share, try to use game theory2) recommendation3) result
(1)Select subject
01Why we select this subject?
# Case It is real situation : one of the team member face with selling rice (Family Business)
we are due to directly delivery to people that want rice. it means that we directly sell rice to shops or individuals so, we will be consulting Business with industry engineering mind.
1.To directly sell rice is profit better than to
sell rice from government or NH.
2.Maximize productivity and decline inventory
3.for stable income , and we want to use Scientific
techniques of industry engineering.
4.We want to know whether the income is how much
improved than in the past when we use to scientific
techniques of industrial engineering.
02Why we select this subject?
ㆍ Green rice: 19,500 (5kg) ㆍ Newly harvested rice :
48,000 (20kg)
(Rice production
this year)
ㆍ Black rice : 27,500 (5kg) ㆍ old rice : 34,000 (20kg)
(Rice for more than
one year)
ㆍ White rice : 15,000 (5kg)
ㆍ Brown rice : 18,000 (5kg)
Select Seedlings Plant Seedling Rice harvest Production
of Rice Delivery
ㆍ You can maximize the benefit through supply company selection.ㆍ Select the kind of seedling through Customer demand forecast.
ㆍ Demonstrated through the quality con-trol of green riceㆍ Delivery management through the sup-ply chain management
# Kind of Rice Production and price
# Rice production process
03
The aim of project
1. for consulting business , we will analyze as 6 sigma about current situation. ( in each step, we are expected to be used statistics, optimization, simulation, etc.)
2. and we will improve business as using op-timization and additionally using method of industry engineering
“we will use Optimization”
So, we will aim at efficient management and operation by using scientific man-agement techniques of industry engi-neering in uncertain circumstances.
04
Our plan
# Project progress
1. select delivery company , seek about gaining maximum efficient for maximizing
sales.
- Using Techniques : Linear Programming, Integer Programming.
- Examples of vendors Nong Hyup, Agricultural Cooperative, A private distribution.
2. Select seedlings though customer demand forecasts and what seedlings are planted
in limited land
- Using Techniques : Time Series Analysis, Least Squares Method , linear program-
ing, markov chain
- Examples of seedlings green rice, brown rice, white rice
First Semester
Second Semester
1. Rice production through agricultural quality control receive certification mark. - Using Techniques : Statistical Quality Control
- The Sampling through the green rice should be eco-friendly certification mark
2. By type of rice to effectively manage the supply chain
- Using Techniques : Supply Chain Management
# Project objectives
The project is aims at increasing profits and decreasing in-ventory in the agriculture through scientific management during the semester.
05
Our plan
# Gantt Chart
Detailed Schedule of First Semester
(2)Analysis of agriculture business
01
Analysis of agriculture business
1. Food reality of korea
가 . food self-sufficiency in 2009 is 51.4% and korea is low rank among the OECD countries
나 . The 2000 ton of domestic necessary grain depends on imports about 3/4
다 . Self- sufficiency rate of rice sustained reduction.
구분 1990 1995 2000 2003 2005 2006 2007 2008 2009
식량자급률 70.3 55.7 55.6 53.3 53.4 52.7 51.6 51.7 51.4
( 한국 식량 자급률 추이 (%) 출처 : 농림수산 식품부 )
2. Rice is in crisis
Ⅰ. Annual rice consumption has decreased from 136kg in 1979 to 77kg in 2009 ,so
It is expected to be further reduced.
Ⅱ. Rather than productivity of rice, safety of demands and higher quality of food
consumer want to increas, Productivity of rice is showing stagnation phenomenon.
Ⅲ. As well as cultivation area is decreasing gradually.
( 2003 년 102 만 ha 에서 2010 년 89 만 ha 로 감소 )
01
Analysis of agriculture business
3. Problem of domestic rice industry
가 . Rice production decrease and reduction of consumption of rice inventory cost of rice is cause of reduction because of over supplying.
나 . Government policy FTA is approved, consumers began to use more imported rice So, in the price and quality , consumer do not look for rice
다 . Young farmer leave to country, so farmar is aging
It is faced with eco-nomic deteroioration.
Also, it is national se-curity.
So, it is important prob-lem.
-Distribution phase is very complex. In addition, the quality differentiation of distribution is not made .
가 we have found the cause of the quality and management of the rice . (it want quality management)
- because people want to eat high quality rice.and the people tend to regard as high flavor.and information of rice is insufficient.
나 . Various problem in the distribution stage
다 . Problem of rice storage system
State of storage system is not good, also, it results in many problem (quality)
4. The cause of problem
01
Analysis of agriculture business
5. The importance of riceProduction area of rice that forms the mainstream of grain production in Korea is about 53% of the total area, About 75% of all farmers are growing rice.
** 매년 재배면적 감소되고 있어 생산량이 점차 줄어드는 추세
Ⅰ. The rice is our main source of nutrition.
Ⅱ. Geographical conditions of our country, rice cultivation (Soil conservation, flood control, water quality and air purification function) There is a high value in terms of the country environmental protection.
Ⅲ Rice is an important source of income of farm economy, which accounts about 30% of farm in-come, 70% of the agricultural income.
6. Amount of rice production, Trend of stock
01
Analysis of agriculture business
Ⅰ. Change the structure factor of the income of the RICE
□As with the concept of agricultural income general, income of rice, is composed of operating costs
production volume, and price,
○ Rice income = Production per unit area × Unit Price - Operating expenses
○ in the assume not change, Each component, the effect on the income of the rice
<<<< Production per unit area ( 단수 ) increase (decrease) → Rice income increase (decrease)
<<<< Unit Price increase (decrease) → Rice income increase (decrease)
<<<< Operating expenses increase (decrease) → Rice incime decrease (increase)
○ Therefore, the income of rice, can be changed by interaction in accordance with the increase or de-
crease of the component.
7. Profitability of the rice industry
10a 당 = 303 평
39554 평 기준 농민 1 인 소득 = 129,000,000
하지만 , 지역 별 쌀 가격의 편차가 크기 때문에
농민 1 인 소득의 편차도 클거라 추정
01
Analysis of agriculture business
** Trend of production operating cost in rice ( 단위 : 원 /10a)
구분 2005 2006 2007 2008 2009 2010 2011 증감율 (’11/‘05)
쌀 경영비 333,635 349,599 364,293 389,620 395,126 388,068 398,097 20.50%
가 . 2005 년 10a 당 경영비가 333,635 원에서 2011 년 398,097 원으로 20.5% 상승나 . , 쌀 생산 경영비에서 높은 비중을 차지하는 비료 · 농약 비 , 위탁 영농비 , 토지 임차료 등의 상승이 경영비 증가의 주요 원인
** The rate of change of the operating expenses of pro-duction of rice
DivisionRatio in charge
of manage-ment costs
Growth
종묘비 3.5 22.6
비료 ·농약비
17.9 30
기타 재료비
3.3 78.5
영농광열비 1.7 89.9
농구비 12 6.4
고용노동비 2.4 △9.2
위탁영농비 28.9 24.6
토지임차료 28.6 6.7
기타비용 1.7 256.5
( 단위 : %)
( 자료 : 통계청 )
8. Trend of operating costs in rice production
nowadays, it is trend to decreasing in manage-ment costs.
So we should have to reduce management costs.
01
Analysis of agriculture business
9. 쌀의 유통 과정
□ R.P.C-Rice Processing Complex
- Current situation : 1991year(2),1997year(253),2004year(400) plan
□ Rice distribution margin analysis (10~15%)
- Polishing company(4~5%) → Sell(6~11%) *Margin is also reduced according to compete.
Production place Consumer
Producer(100%)
wholesale merchant Retailers
도정업체
Consumer
NH(48%)
민간(32%)
정부수매(20%)
10%
10%
축소경향→ 유통주체 의 변경
02
Analysis of our business
1. Current status of rice production
Rice cultivation area: 130758.64 (39554.4886 평 )
The number of rice paddy : 48
Rice types : 일미 , 새누리 , 친환경 , 흑미
production : about 82(ton)
02
Analysis of our business
Cultivars물벼
Weight(kg)
conver-sion
weight(kg)
cost delivery cost/(kg) Etc..
새누리 (2013 년산 ) 2,975.40 2,601 3,446,325 농협 1325
새누리 (2012 년산 ) 13,680 13,680,000 농협 1000 재고
일미 21149.4 18,400 24,840,000 정부수매 1350 제한된 유통
새누리 10888.4 9,364 13,226,650 정부수매 1412.5 제한된 유통
친환경 쌀 9361.7 8,800 11,880,000 정부수매 1350 제한된 유통
일미 , 새누리 23178.2 20,165 24,400,000 개인정미소 1210
흑미 14480.5 12,598 18,267,400 개인정미소 1450
합계 82,033.60 85,608 109,740,375
2. Our delivery situation
02
Analysis of our business
Product cost : 9,600,000( 원 )
3. Current state of net income
(management costs) costs
비료 , 농약비 2,054,400
기타 재료비 316,800
영농 광열비 163,200
농구비 1,152,000
위탁영농비 3,705,600
고용노동비 2,016,000
기타 163,200
Revenue : 109,740,375( 원 )
Net income : 109,740,375( 원 ) – 9,600,000( 원 ) = 100,140,375
(Rice types) Sales profits
새누리 (2013 년산 ) 3,446,325
새누리 (2012 년산 ) 13,680,000
일미 24,840,000
새누리 13,226,650
친환경 쌀 11,880,000
일미 , 새누리 24,400,000
흑미 18,267,400
가 . Production costs 나 . income situation
02
Analysis of our business
3. Annual Situation of production and net income
years production Net income
2013 82,034 109,740,375
2012 82,634 113,657,000
2011 83,031 114,451,000
2010 82,833 113,700,000
2009 82,134 110,450,000
2008 81,312 107,421,000
2007 81,000 105,120,000
Average 82,140 110,648,482
Standard deviation
765.365505 3,527,673.75
2006 2007 2008 2009 2010 2011 2012 2013 201479,500
80,000
80,500
81,000
81,500
82,000
82,500
83,000
83,500
production
2006 2007 2008 2009 2010 2011 2012 2013 2014100,000,000
102,000,000
104,000,000
106,000,000
108,000,000
110,000,000
112,000,000
114,000,000
116,000,000
Net income
Sigma level: 1.9778
Sigma level : 1.7123
We want to go into 3 sigma level!
02
Analysis of our business
problem objective
through analysis for agro industry situation and our business, we have come to know.
1. Quality management - quality mark and information of
rice are insufficient.- consumers want good quality about flavor.
2. delivery way is not good.
3. problem of inventory management.
4. many cost of management have been con-sumed.
1. we will improve quality with being used quality management and analysis of variance.
2. as using optimize, we will reduce cost of delivery process . and we will choose good delivery com-panies.
3. problem of inventory management will be solved with using scm.
4. we will seek to solution of decline in cost of management.
"what is problem?" and "what is object of solution?"
so, we got a large objective through analyzing current situation.
from next presentation, we will have the time to analyze a object detail.
(3)Solution of optimization(1)
01Finding solution through brain storming
We had meeting for finding solution Based on last presentation
Quality management - quality mark and information of rice are insufficient.- consumers want good quality about flavor.
1.
Delivery way is not good.2.
Problem of inventory management.3.
many cost of management have been consumed.4.
problem
01Finding solution through brain storming
We had meeting for finding solution Based on last presenta-tion
We have to find demanding forecast1.
We have to find better delivery course.2.Cost optimization as using linear programming3.We have to optimize assign employee & we will seek assign of rice 4.
solution
5.6.
We will do Quality management
we will solve inventory management problem
02
Demanding forecast
1. Saenuri Demand forecasting
Regression analysis statistic
Multiple correlation coefficient 0.069408461
R-squared 0.004817534
Adjustment R-squared -0.16104621
Standard error 728.3912489
Observed value 8
Analysis of variance
ф Sum of squares Root mean
squareF price Adopt F
Regression 115410.0059
515410.00595
0.029045133
0.870276503
Residual 63183322.86
9530553.8115
Total 73198732.87
5 Term a seasonal index estimate
Term Demand Tendency average demand Term- seasonal index
2006 25812
25518.75
1.01
2007 25905 0.99
2008 24123 0.95
2009 26235 1.03
2010 26203
25811.5
1.02
2011 25951 1.01
2012 25639 0.99
2013 25453 0.99
Seasonal index
S1 1.01
S2 1.00
S3 0.97
S4 1.01
02
Demanding forecast
2. Ilmi Demand forecasting (kg)Regression analysis statistic
Multiple correlation coefficient 0.517056531
R-squared 0.267347457
Adjustment R-squared 0.145238699
Standard error 1316.772999
Observed value 8
Analysis of variance
ф Sum of squares Root mean
squareF price Adopt F
Regression 1 3796217.3573796217.35
72.189420
8310.189452524
Residual 6 10403346.78 1733891.13
Total 7 14199564.14 Modulus
Standard error
T statistic P-pricelow rank
95%high rank
95%low rank 95.0%
high rank 95.0%
Y rag-ment
29067.68214
1026.021254
28.33048733
1.28023E-07
26557.09858
31578.2657
26557.09858
31578.2657
X 1300.6428
571203.18248
481.479669
1630.1894525
24
-196.5267
719
797.8124862
-196.52677
19797.8124862
Term a seasonal index estimate
Term DemandTendency average
demandTerm- seasonal in-
dex2006 29134
30323.65
0.96 2007 30031 1.01 2008 30142.6 0.99 2009 31987 1.05 2010 28945.1
30517.5
0.95 2011 29142.4 0.95 2012 31244 1.02 2013 32738.5 1.07
Seasonal index
S1 0.95
S2 0.98
S3 1.01
S4 1.06
02
Demanding forecast
3. Green rice Demand forecasting Regression analysis statistic
Multiple correlation coefficient 0.968079115R-squared 0.937177172Adjustment R-squared 0.926706701Standard error 189.7208581Observed value 8
Analysis of vari-ance
ф Sum of squares Root mean square F price Adopt F
Regression 1 3221703.965 3221703.96589.5066846
77.93796E-05
Residual 6 215964.0239 35994.00399Total 7 3437667.989
Modulus Standard error T statistic P-pricelow rank
95%high rank
95%low rank 95.0% high rank 95.0%
Y rag-ment 6966.864286 147.8293016 47.12776296 6.1174E-09
6605.139016
7328.589555 6605.139016 7328.589555
X 1 276.9607143 29.27456396 9.460797253 7.93796E-05205.32843
69348.59299
16 205.3284369 348.5929916
Seasonal indexS1 0.96 S2 0.99 S3 1.01 S4 1.05
Term a seasonal index estimate
Term DemandTendency average de-
mandTerm- seasonal
index2006 7512.3
7643.2
0.98 2007 7562 1.01 2008 7642.4 1.00 2009 7856.1 1.03 2010 8215
8783.175
0.94 2011 8541.4 0.97 2012 9014.6 1.03 2013 9361.7 1.07
Green rice Demand forecasting (kg)
Term
De-man
dLevel Trend
a seasonal index
Predictive value
Prediction error
06966.864286
276.9607143
2006
7512.3
7323.142183
278.5470579
0.96 6947.496
9382007
75627678.939413
280.0920614
0.99 7537.876
2462008
7642.4
8035.455628
281.6205445
1.01 8063.469
9022009
7856.1
8393.11051
283.1412312
1.05 8706.823
6622010
82158761.719971
284.8505958
0.972439886
8437.133256
2011
8541.4
9133.816545
286.5955154
0.990238618
8958.263532
2012
9014.6
9511.483691
288.416948
1.000714569
9427.143594
2013
9361.7
9892.251711
290.2639694
1.024692435
10041.88404
2014
0.972439886
9901.88439
02
Demanding forecast4. Black rice Demand forecasting
Regression analysis statistic Multiple correlation coef-ficient
0.025891107
R-squared 0.000670349Adjustment R-squared -0.165884592Standard error 604.2859572Observed value 8
Seasonal indexS1 1.02 S2 1.01 S3 1.01 S4 0.96
Term a seasonal index estimate
Term DemandTendency average de-
mandTerm- seasonal in-
dex2006 15227
15127.95
1.01 2007 15328.4 0.99 2008 15129 1.00 2009 14827.4 0.98 2010 16129.8
15569.225
1.04 2011 15942 1.02 2012 15724.6 1.01 2013 14480.5 0.93
Modulus Standard error T statistic P-pricelow rank
95%high rank
95%low rank 95.0%
high rank 95.0%
Y ragment15321.967
86470.8558245 32.54067819
5.60147E-08
14169.82516
16474.11055
14169.82516
16474.11055
X 15.9154761
993.24334754 0.063441268
0.951475866
-222.24277
59
234.0737283
-222.242775
9234.0737283
Analysis of vari-ance
ф Sum of squares Root mean
squareF price Adopt F
Regression 1 1469.70006 1469.70006 0.004024794 0.951475866Residual 6 2190969.109 365161.5181Total 7 2192438.809
Black rice Demand forecasting (kg)
Term
De-man
dLevel Trend
a sea-sonal in-
dex
Predic-tive
value
Predic-tion er-
ror
015321.96786
5.91547619
2006
15227
15343.79211
6.233651663
1.02 15654.0
05572007
15328.4
15366.27033
6.558543074
1.01 15433.4
22712008
15129
15388.88124
6.879590357
1.01 15450.0
69892009
14827.4
15412.28424
7.210058533
0.96 14704.5
282010
16129.8
15436.37692
7.547710996
1.015498786
15658.47774
2011
15942
15460.80443
7.885307059
1.003853511
15503.43797
2012
15724.6
15485.40325
8.219577255
1.000642093
15478.62207
2013
14480.5
15509.761
8.542340738
0.956492069
14819.52736
2014
1.015498786
11860.81821
02
Demanding forecast
Rice demand forecasting through winter model
Saenuri Demand forecasting
26952(kg)
Ilmi Demand forecasting
Green rice Black rice
33055(kg)
9901(kg) 11860(kg)
유환’ s father informed us that he employ 8 people. But we think that many employee worked in the field and we think that it was wasted money .So, we ask to 유환’ s father . how many people can you employ at least? He said “at least, 5 people”so we did determine to solving this problem.
Objective : we seek for proper employee necessary condition
① Only , employ 5 people② choose employee of min- cost value③ chosen employee is send toward each area ( we are due to send employee close area )
1. Current situation
03Finding assign people as using binary LP model
2. Solve this problemProduction cost/Kg per
em-ployee1
em-ployee2
em-ployee3
em-ployee4
em-ployee5
em-ployee6
em-ployee7
em-ployee8
LHSexpectedCost /5kg
(RHS)
sanuri 806 881 862 843 845 885 1002 858 4237<= 4250
Illmi 797 815 838 835 836 874 921 849 4191<= 4300
Green rice
0 0 0 0 0 950 0 0 950<= 950
Black rice 907 1000 978 949 951 994 1004 965 4766<= 4800
Last totalCost
3265 3451 3433 3382 3387 2845 3682 3427Object function
16306
necessary employ people
0 0 0 0 0 1 0 0 1= 1
x 1 0 0 1 1 1 0 1 5= 5
① we did solve this chart through using linner pro-graming.② we did make this chart by past record - blank of middle is production cost of each rice - RHS is our wanted cost value③ SO, we used excel program . we got object value and employee .
Employ : 1,4,5,6,8Expected total cost (5kg): 16306 won
03Finding assign people as using binary LP model
Introduce present situation Using mini cost method Using Step-stone method solution
Employee( A)
Employee( B)
Employee( C)
Employee( D)
Employee( E)
Supply(kg)
Saenuri
510 469 471 431 458 26952
Ilmi
483 445 444 406 431 33055
Green rice
463 9901
Black rice
543 501 503 456 485 11860
Demand(kg)
( 필자 11)/ 18700
( 필자 8 )/13600
( 필자 5) / 8500
( 필자 13) / 22100
( 필자 11) / 18700
8176881600
1. Introduce present situation → This chart is made based on past record→ supply is expected value through demand forecasting→ demand is also expected value , it also was used from expectation method based on past record→ value in the middle blank is respective profit of rice in the each area , it also was used from expectation method based on past record
So, we will find an appro-priate assign of seeds for employee in the respective areaIn the Next slide, we show initial solution for optimiza-tion
(Unit : profit)
04
Finding appropriate amount of quota of seed
Employee( A)Employee( B)Employee( C)Employee( D
) Employee( E) Supply(kg)
Saenuri33 74 72 112 85 26952
Ilmi60 98 99 137 112 33055
Green rice543 543 543 80 543 9901
Black rice 0 42 40 87 58 11860
Demand(kg) ( 필자 11)/ 18700
( 필자 8 )/13600
( 필자 5) / 8500
( 필자 13) / 22100
( 필자 11) / 18700
8176881600
2. mini cost method① first , we have to change from profit model to cost model
② so, we calculated the difference between best profit and respec-tive profit
③ look at the chart , you can check the changed fact that we calculated the differ-ence.
Employee( A)
Employee( B)
Employee( C)
Employee( D)
Employee( E) Dummy Supply(kg)
Saenuri33 74 72 112 85 0 26952
Ilmi60 98 99 137 112 0 33055
Green rice543 543 543 80 543 0 9901
Black rice 0 42 40 87 58 0 11860
Demand(kg)
( 필자 11)/ 18700
( 필자 8 )/13600
( 필자 5) / 8500
( 필자 13) / 22100
( 필자 11) / 18700
168 81768
④ next, we can check the fact that sum of demand and sum of supply are different.⑤ so, we perform that the those become equal.⑥ look at second chart, next step con-ducted that we made dummy. So, we made sum of demand and sum of supply equal.
04
Finding appropriate amount of quota of seed
Area ( A) Area ( B) Area ( C) Area ( D) Area ( E) DummySupply(kg
)
Saenuri33 74 72 112 85 0 26952
6840 11612 8500
Ilmi60 98 99 137 112 0 33055
1988 12199 18700 168
Green rice543 543 543 80 543 0 9901
9901
Black rice 0 42 40 87 58 0 11860
11860Demand(k
g)( 필자 11)/
18700필자 8 = 13600
필자 5 = 8500
필자 13 = 22100
필자 11 = 18700
168 81768
2. mini cost method
① finally , we solved this problem as using mini cost method.
② we was known as looking this chart, we got amount of certain rice and What amount of the rice are planted in what area ? Total cost : (33*6840) + (74 * 11612) + (72 * 8500)▪▪▪ +
(0*11860) = 6449575 wonArea (a) – saenuri , black riceArea (b) – saenuri , ilmiArea (c) – saenuriArea (d) – ilmi, green riceArea € - ilmi Dummy – ilmi ( so , we do not plant ilmi seed of 168 kg)
But , it is not op-timization
03Finding assign people as using binary LP model
I D : 112 - 137 + 98 - 74 = -1I E : 85 - 112 + 98 – 74 = -3II A : 60 – 33 + 74 – 98 = 3II C : 99 – 98 + 74 – 72 = 3III A : 543 – 33 + 74 – 98 + 137 – 80 = 543 III B : 543 – 98 + 137 – 80 = 502III C : 543 – 72 + 74 – 98 + 137 – 80 = 504 III E : 543 – 80 + 137 – 112 = 488IV B : 42 – 0 + 33 – 74 = 1IV C : 40 – 0 + 33 – 72 = 1 IV D : 87 – 0 + 33 – 74 + 98 – 137 = 7IV E : 58 – 0 + 33 – 74 + 98 – 112 = 3I DUM : 0 – 0 + 98 – 74 = 24III DUM : 0 – 80 + 137 – 0 = 57IV DUM : 0 – 0 + 33 – 74 + 98 – 0 = 57
+0
-18700+1988
- 11612
3. Using Step-stone method
For optimizing , we use step- stone methodThe process of using step – stone method is omitted.
04
Finding appropriate amount of quota of seed
Employee( A)
Employee( B)
Employee( C)
Employee( D)
Employee( E) Dummy Supply(kg)
Saenuri33 74 72 112 85 0 26952
6840 0 8500 11612
Ilmi60 98 99 137 112 0 33055
13600 12199 7088 168
Green543 543 543 80 543 0 9901
9901
black0 42 40 87 58 0 11860
11860Demand(k
g)( 필자 11)/
18700필자 8 = 13600
필자 5 = 8500
필자 13 = 22100
필자 11 = 18700
168 81768
3. Using Step-stone method
I B : 74 – 85 + 112 – 98 = 3I D : 112 – 85 + 112 – 137 = 2I DUM : 0 – 0 + 112 – 85 = 27II A : 66 – 33 + 85 – 112 = 6II C : 99 – 72 + 85 – 112 = 0III A : 543 – 33 + 85 – 112 + 137 – 80 = 540III B : 543 – 98 + 137 – 80 = 502III C : 543 – 72 + 85 – 112 + 137 – 80 = 501III E : 543 – 80 + 137 – 112 = 488III DUM : 0 – 80 + 137 – 0 = 57IVB : 42 – 0 + 33 – 85 + 112 – 98 = 4 IVC : 40 – 0 + 33 – 72 = 1IVD : 87 – 0 + 33 – 85 + 112 – 137 = 10 IVE : 58 – 0 + 33 – 85 = 6IVDUM : 0 – 0 + 33 – 85 + 112 – 0 = 60
**verification work
① After this work , we did change this chart (blue letters are changed letters)② next, we performed verification work through using step-stone method③ we got final chart
**analyzeTotal cost : (33*6840) + (72 * 8500)▪▪▪ + (0*11860) = 6414739 wonArea (a) – saenuri , black riceArea (b) – ilmiArea (c) – saenuriArea (d) – ilmi, green riceArea € - ilmi , saenuri Dummy – ilmi ( so , we do not plant ilmi seed of 168 kg)
Difference is 30000wonAnd transportation of rice is changed in area (b) and area( e).In the past, the purchase cost of rice seed is 8000000 wonBut we did decrease in cost as about 6400000 won
04
Finding appropriate amount of quota of seed
We make LP model through present condition
1. We will get appropriate quota of raw materials to employee as using LP.2. And we will use given purchase cost of rice (= 6414739 won )
necessary condition
( 논 1 필당 ) Maximum raw material inputs
seonuri Ilmi Grean rice Black rice
Seedlings 210 210 210 210
Fertilizer 7.5 7.5 10
Herbicides 5 5 5
분요 15
Head of Local varieties ( head of maximum through ratio )
A area B area C area D area E area
Seonuri 4 7 5
Ilmi 1 7 11
Green rice 6
Black rice 7
total 11 8 5 13 11
Cost of rice (1 seedling)
Seonuri IlmiGreen rice
Black rice
700 700 700 790
Cost of fertilizer
8000 8000 0 8000Cost of herbi-cides
7700 7700 0 7700
area ( a) area(b) area © area(d) area(e)
sanuri black sanuri ilmi sanuri ilmi green ilmiSeedlings( 판 )Fertilizer(포 )Herbi-cides( 통 )분요 ( 포 ) 0 0 0 0 0 0 0
05
Finding appropriate amount of quota of raw materials
3. We solved lp model as using excel
area ( a) area(b) area © area(d)area(e)
sanuri black sanuri ilmi sanuri ilmi green ilmiSeedlings( 판 )
1155 1155 1470 210 735 1470 12601560.4
13Fertilizer(포 )
30 70 52.5 7.5 37.5 52.5 0 82.5
Herbi-cides( 통 )
20 35 35 5 25 35 0 55
분요 ( 포 ) 0 0 0 0 0 0 90 0object function
11573739
subject to
모종의 금액 6414739
<=64147
39
모종의 양(a)
2310<= 2310
8085= 8085
모종의 양(b)_
1680<= 1680
1470= 1470
모종의 양©
735<= 1050
모종의 양 (d)
2730<= 2730
8820= 8820
모종의 양 (e)
1560.413
<= 2310
새누리 모종 3360<= 3360
일미의 모종 3240.413
<= 3990
친환경의 모종
1260<= 1260
흑미의 모종 1155<= 1470a 지역의 비료 10
0<= 100
B 지역의 비료 60<= 60
C 지역의 비료 37.5
<= 37.5
D 지역의 비료 52.5
<= 52.5
E 지역의 비료 82.5
<= 82.5
새누리 비료 120
<= 120
일미 비료142.5
<= 142.5
흑미 비료 70<= 70
A 지역의 제초제
55<= 55
B 지역의 제초제
40<= 40
C 지역의 제초제
25<= 25
D 지역의 제초제
35<= 35
E 지역의 제초제
55<= 55
새누리 제초제 80<=
80
일미의 제초제 95<=
95
흑미의 제초제 35<=
35
D 지역의 분요
90<= 90
**analyze
① we got an appro-priate quota of raw materials to em-ployee(look at chat : red blank is raw mate-rials )② we can know that cost of raw mate-rial is about 11570000 won
03Finding assign people as using binary LP model
(4)Solution of optimization(2)
1. Finding proper amount(kg) for sale?We will find proper amount of each rice for sale, and we made limitation condition in current situation So, aim of our is to maximize profit.
Step 1) we find VariablesStep 2) we make a object functionStep 3) we make a limitation conditionStep 4) we use lindo program
Variables
Variable Table
saenuri ilmi green rice black rice
Un-dried rice
Paddy drying
rice PackingUn-
dried rice
Paddy drying
rice PackingUn-
dried rice
Paddy drying
rice PackingUn-
dried rice
Paddy drying
rice Pack-ing
Nonghyup A₁₁ A₁₂ A₁₃ A₁₄ B₁₁ B₁₂ B₁₃ B₁₄ C₁₁ C₁₂ C₁₃ C₁₄ D₁₁ D₁₂ D₁₃ D₁₄
Government A₂₁ A₂₂ A₂₃ A₂₄ B₂₁ B₂₂ B₂₃ B₂₄ C₂₁ C₂₂ C₂₃ C₂₄ D₂₁ D₂₂ D₂₃ D₂₄
Rice mill A₃₁ A₃₂ A₃₃ A₃₄ B₃₁ B₃₂ B₃₃ B₃₄ C₃₁ C₃₂ C₃₃ C₃₄ D₃₁ D₃₂ D₃₃ D₃₄
Individual Dis-tribution
A₄₁ A₄₂ A₄₃ A₄₄ B₄₁ B₄₂ B₄₃ B₄₄ C₄₁ C₄₂ C₄₃ C₄₄ D₄₁ D₄₂ D₄₃ D₄₄
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?
Object function
NH Purchase
Saenuri Ilme Green rice Black rice
A₁₁ A₁₂ A₁₃ A₁₄ B₁₁ B₁₂ B₁₃ B₁₄ C₁₁ C₁₂ C₁₃ C₁₄ D₁₁ D₁₂ D₁₃ D₁₄
Price 1325
Null
1300
Null
1400
Null Null
Dry cost 0 0 0
Rice polishing cost
0 0 0
Packing cost 0 0 0Measuring
cost 0 0 0
Test cost 0 0 0
Delivery cost 0 0 0
Margin 1325 1300 1400
Government PurchaseSaenuri Ilme Green rice Black rice
A₂₁ A₂₂ A₂₃ A₂₄ B₂₁ B₂₂ B₂₃ B₂₄ C₂₁ C₂₂ C₂₃ C₂₄ D₂₁ D₂₂ D₂₃ D₂₄
Price 13501412.
5
Null
1300 1350
Null
1400 1500
Null
1400 1430
Null
Dry cost 0 48 0 48 0 48 0 50Rice polishing
cost 0 0 0 0 0 0 0 0
Packing cost 0 0 0 0 0 0 0 0Measuring
cost 0 0 0 0 0 0 0 0
Test cost 0 0 0 0 0 0 0 0Delivery cost 0 0 0 0 0 0 0 0
Margin 13501364.
5 1300 1302 1400 1452 1400 1380
1) This chart is profit when we sell to NH
2) This chart is profit when we sell to Gov-ernment
01
Finding appropriate amount of rice for selling through using LP model
2. Finding proper amount(kg) for sale?Object function
3) This chart is profit when we sell to individual rice mill
4) This chart is profit when we sell to individual distribution
Individual rice mill
Saenuri Ilme Green rice Black rice
A₃₁ A₃₂ A₃₃ A₃₄ B₃₁ B₃₂ B₃₃ B₃₄ C₃₁ C₃₂ C₃₃ C₃₄ D₃₁ D₃₂ D₃₃ D₃₄
Price 1210 1300 1780
Null
1210 1300 1830
Null
1350 1500 2080
Null
1400 1450 1900
Null
Dry cost 0 48 48 0 48 48 0 48 48 0 50 50
Rice polishing cost
0 0 290 0 0 350 0 0 350 0 0 290
Packing cost 0 0 0 0 0 0 0 0 0 0 0 0Measuring
cost 0 0 0 0 0 0 0 0 0 0 0 0
Test cost 0 0 30 0 0 30 30 30 61 0 0 30
Delivery cost 0 0 0 0 0 0 0 0 0 0 0 0
Margin 1210 1252 1412 1210 1252 1402 1320 1422 1621 1400 1400 1530
Individual distributionSaenuri Ilme Green rice Black rice
A₄₁ A₄₂ A₄₃ A₄₄ B₄₁ B₄₂ B₄₃ B₄₄ C₄₁ C₄₂ C₄₃ C₄₄ D₄₁ D₄₂ D₄₃ D₄₄
Price
Null
2250
Null
2200
Null
2450
Null
2550
Dry cost 48 48 48 50
Rice polishing cost 290 350 350 290
Packing cost 100 100 100 100Measuring
cost 120 120 120 120
Test cost 30 30 61 30
Delivery cost 175 175 175 175
Margin 1487 1377 1596 1785
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?
Object function
maximize 1325a11+ 1300b11+ 1400c11+1350a21+1364.5a22+1300b21 +1302b22+1400c21+1452c22+1400d21+1380d22 +1210a31+1252a32+1412a33+1210b31+1252b32+1402b33 +1320c31+1422c32+1400d31+1400d32 +1530d33+1487a44+1377b44+1596c44+1785d44
Explanation of limitation condition
1) Mulbyeo the drying, processing of the net weight decreases with each step away.
2) Agricultural Agricultural farmers as members of a mandatory 30% of the total production of rice delivery
3) Government purchase of rice to 20% of total production goes.
4) Saenuri farmers by the Agricultural Production 50% of the contract farming.
Undried rice Paddy drying rice
Decrease in weight 20%
Decrease in weight 10%
Limitation condition
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?
Subject to
1) Amount Of Undried rice through demand forecastinga11+a21+a31+a41 <= 26952 (senuri)b11+b21+b31+b41 <= 33055 ( ilmi)c11+c21+c31+c41 <= 9901 (green rice)d11+d21+d31+d41 <= 11860 (black rice)
2) This is total amout of each rice after we transform undried rice into ricea11+a12+a13+a14+a21+a22+a23+a24+a31+a32+a33+a34+a41+a42+a43+a44 <= 25500 (senuri)b11+b12+b13+b14+b21+b22+b23+b24+b31+b32+b33+b34+b41+b42+b43+b44 <= 32500 ( ilmi)c11+c12+c13+c14+c21+c22+c23+c24+c31+c32+c33+c34+c41+c42+c43+c44 <= 9400 (green rice)d11+d12+d13+d14+d21+d22+d23+d24+d31+d32+d33+d34+d41+d42+d43+d44 <= 11600 (black rice)
3) This is proportion about decreasing in rice of convert processsenuri0.8a11+0.8a21+0.8a31+0.8a41 - a12 - a22 -a32-a42 =0a13+a23+a33+a43 -0.9a12-0.9a22-0.9a32-0.9a42 = 0a13+a23+a33+a43 - a14-a24-a34-a44 =0
ilmi0.8b11+0.8b21+0.8b31+0.8b41 - b12 - b22 -b32-b42 =0b13+b23+b33+a43 -0.9b12-0.9b22-0.9b32-0.9b42 = 0b13+b23+b33+b43 - b14-b24-b34-b44 =0
Green rice0.8c11+0.8c21+0.8c31+0.8c41 - c12 - c22 -c32-c42 =0c13+c23+c33+c43 -0.9c12-0.9c22-0.9c32-0.9c42 = 0c13+c23+c33+c43 - c14-c24-c34-c44 =0
Black rice0.8d11+0.8d21+0.8d31+0.8d41 - d12 - d22 -d32-d42 =0d13+d23+d33+d43 -0.9d12-0.9d22-0.9d32-0.9d42 = 0d13+d23+d33+d43 - d14-d24-d34-d44 =0
Limitation condition
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?
Subject to
4) This is Expression that we give 30% of total amount to NHa11+b11+c11 -0.3a11-0.3a12-0.3a13-0.3a14-0.3a21-0.3a22-0.3a23-0.3a24-0.3a31-0.3a32-0.3a33-0.3a34-0.3a41-0.3a42-0.3a43-0.3a44-0.3b11-0.3b12-0.3b13-0.3b14-0.3b21-0.3b22-0.3b23-0.3b24-0.3b31-0.3b32-0.3b33-0.3b34-0.3b41-0.3b42-0.3b43-0.3b44-0.3c11-0.3c12-0.3c13-0.3c14-0.3c21-0.3c22-0.3c23-0.3c24-0.3c31-0.3c32-0.3c33-0.3c34-0.3c41-0.3c42-0.3c43-0.3c44-0.3d11-0.3d12-0.3d13-0.3d14-0.3d21-0.3d22-0.3d23-0.3d24-0.3d31-0.3d32-0.3d33-0.3d34-0.3d41-0.3d42-0.3d43-0.3d44>=0
5) This is Expression that we give 20% of total amount to Governmenta21+a22+b21+b22+c21+c22+d21+d22 -0.2a11-0.2a12-0.2a13-0.2a14-0.2a21-0.2a22-0.2a23-0.2a24-0.2a31-0.2a32-0.2a33-0.2a34-0.2a41-0.2a42-0.2a43-0.2a44-0.2b11-0.2b12-0.2b13-0.2b14-0.2b21-0.2b22-0.2b23-0.2b24-0.2b31-0.2b32-0.2b33-0.2b34-0.2b41-0.2b42-0.2b43-0.2b44-0.2c11-0.2c12-0.2c13-0.2c14-0.2c21-0.2c22-0.2c23-0.2c24-0.2c31-0.2c32-0.2c33-0.2c34-0.2c41-0.2c42-0.2c43-0.2c44-0.2d11-0.2d12-0.2d13-0.2d14-0.2d21-0.2d22-0.2d23-0.2d24-0.2d31-0.2d32-0.2d33-0.2d34-0.2d41-0.2d42-0.2d43-0.2d44>=0
6) It is mandatory that 50% of Total senuri rice delivery to NHa11-0.5a11-0.5a21-0.5a31-0.5a41 >= 0
Limitation condition
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?result
solve
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?result
A₁₁ A₁₂ A₁₃ A₁₄ B₁₁ B₁₂ B₁₃ B₁₄ C₁₁ C₁₂ C₁₃ C₁₄ D₁₁ D₁₂ D₁₃ D₁₄
7870 0 0 0 12928 0 0 0 2901 0 0 0 0 0 0 0
A₂₁ A₂₂ A₂₃ A₂₄ B₂₁ B₂₂ B₂₃ B₂₄ C₂₁ C₂₂ C₂₃ C₂₄ D₂₁ D₂₂ D₂₃ D₂₄
0 6296 0 0 0 10343 0 0 0 2321 0 0 3580 0 0 0
A₃₁ A₃₂ A₃₃ A₃₄ B₃₁ B₃₂ B₃₃ B₃₄ C₃₁ C₃₂ C₃₃ C₃₄ D₃₁ D₃₂ D₃₃ D₃₄
0 0 973 0 0 0 4614 0 0 0 0 0 0 2864 2578 0
A₄₁ A₄₂ A₄₃ A₄₄ B₄₁ B₄₂ B₄₃ B₄₄ C₄₁ C₄₂ C₄₃ C₄₄ D₄₁ D₄₂ D₄₃ D₄₄
0 0 0 5667 0 0 0 4614 0 0 0 2089 0 0 0 2578
we find out value of each rice.
1) we should have to sell undried rice for this year : A₁₁ + B₁₁ + C₁₁ + D₂₁ = 27279 (kg) 2) we should have to sell Paddy drying rice for this year : A₂₂ + B₂₂ + C₂₂ + D₃₂ = 21825 (kg)3) we should have to sell rice for this year : A₃₃ + B₃₃ + D₃₃ = 8165 (kg)4) We should have to sell packing rice for this year : A₄₄ + B₄₄ + C₄₄ + D₄₄ + 14948 (kg)
It is mean that we will get big profit when we sell amount of expected rice
analysis
We can know that how much rice should be dry and that how much rice should be polishedhow much rice should be dry for this year ? -> A₂₂ + B₂₂ + C₂₂ + D₃₂ + A₃₃ + B₃₃ + D₃₃ + A₄₄ + B₄₄ + C₄₄ + D₄₄ = 44938 (kg)How much rice should be polished for this year ? A₃₃ + B₃₃ + D₃₃ + A₄₄ + B₄₄ + C₄₄ + D₄₄ = 23113 (kg)
Furthermore,, we can know that respective rice should be how much dry ( look at red circle)Also, we can know that we sell packed rice is better. (look at blue square.)
01
Finding appropriate amount of rice for selling through using LP model
1. Finding proper amount(kg) for sale?
analysis
This is our profit when we sell rice.
If we do same as last year, we have got profit(=about 96000000won)However, we got more profit as using optimization.But, profit of Production ratio is decline in comparing to last year profitBecause growing of green rice make the profits is reduced.Harvest amount Of Undried rice
in last year : 82,033.6 (kg) sales revenue in last year: 109 740 375
(W))
forecasting harvest amount of undried rice in this year : 81769.9 (kg)
Forecast sales revenue in this year: 100.249,200 (W)
01
Finding appropriate amount of rice for selling through using LP model
2. Sensitivity Analysis 1) Objective coefficient ranges
analysis
if Objective coefficient ranges is changed, we can know that value of variable is not changed.As a results, we will know how much range is changed as possible asBased on this, we will find better delivery company that give more profits to us .
02
sensitivity analysis
2. Sensitivity Analysis
analysis
if right hand side is changed, we can know that value of variable is not changedso, we will know how much range of RHS is changed as possible asBased on this, we will know that the more rice is produced, the more profit is happened. .So, we have to find out how to product more rice.
2) Available Ranges of right hand side
02
sensitivity analysis
3. Solution through using maximum flow problem
we can know . when we sell packed rice, the profits is betterSo, we want to reduce inventory and we want to sell more rice than expected value
1. We got rice for transforming Undried rice into Packing(=54489kg) so, we will use this expected value2. We got information about respective Manufacturing process and we were known about capacity of respective Machine and product
ENDSTART
Drying area A
Drying area B
Drying area C
Rice mill A
Rice mill B
Packaging B
Packaging B
Packaging A
18163
18163
18163
13000
20000
12000
11310
8700
10440
8700
8000
5000
5000
8000
5850
5850
5850
5850
5000
25000
25000
5000
5000
5000
5000
4000
4000
4000
** so, we draw a network about respective manufacturing process
03
Finding solution for producing many amount of packing rice through using maximum flow problem
3. Solution through using maximum flow problem
** We used optimization (maximum flow problem in network)
Solution )
START Dry-ing
area A
Rice mill A
Packag-ing A
END18163 11310 5850 5000
START Dry-ing
area A
Rice mill A
Packag-ing A
END13163 6310 5850 5000
START Dry-ing
area A
Rice mill A
Packag-ing A
END18163 8700 5850 5000
Process of Each step)
03
Finding solution for producing many amount of packing rice through using maximum flow problem
3. Solution through using maximum flow problem
result )
ENDSTART
Drying area A
Drying area B
Drying area C
Rice mill A
Rice mill B
Packaging B
Packaging B
Packaging A
18163
18163
18163
13000
20000
12000
11310
8700
10440
8700
8000
5000
5000
8000
5850
5850
5850
5850
5000
2500
2500
5000
5000
5000
5000
4000
4000
4000
18163
8163
18000
23000
6310
1310
13000
18000
850
10000 0
9000
13163
25000
370010000
850
850 10000
7500
0
0
9000
9000
**analyze
1. We got the value (= 27000kg) through sending maximum each machine. so, we knew that value(=27000kg) of packing rice got through using maximum flow problem is better than value(= about 15000kg) through using LP model2. But , inventory still remain about 39489kg ; however, we will be going to solve inventory of Un-dried rice3. We knew that unnecessary machine(=drying C) exist, so we had better dispose of the machine.4. We got information that we make as much as possible (Paddy drying : 48000kg, rice mill :28000 , packing: 27500)
03
Finding solution for producing many amount of packing rice through using maximum flow problem
(5)Solution of optimization(3)
1. Current situationWe can sell only packing rice to three individual rice mill(A,B,C)., and only two company only two company sell to individual rice mill in 무안When we sell packing rice , amount of sold respective packing rice in individual rice mill was different. So, whenever we sell to individual rice mill, market share is different ,, in other words, we have to select correct individual rice mill
Another company유환’ s father
(a) Individual rice (b) Individual rice (c) Individual rice
(a) Individual rice 5% -2% -3%
(b) Individual rice 3% 1% 0%
(c) Individual rice -3% 2% 3%
2. explain(source : 무안군 영농 센터 )
•We got data from 무안 영농 센터 , but we don’t know that another company sell to individual rice mill with how much money.•If we sell to (a) and another company sell to (b) , another company occupies 52% share. •In other words, another company is higher 2% share than our share
02
For progress market share, try to use game theory
3. solveWe will use game theory method1) we confirm whether market share is situation of principle of dominance or not.
Another company유환’ s father
(a’) Individual rice (b’) Individual rice (c’) Individual rice
(a) Individual rice 5% -2% -3%
(b) Individual rice 3% 1% 0%
(c) Individual rice -3% 2% 3%
a) For example, (A) and (B) of 유환’ s father are compared to market share
(a) Individual rice 5% -2% -3%
(b) Individual rice 3% 1% 0%
>
>
It is not follow to principle of dominanceSo, we tried to compare to respective market share
When We compared to respective market share,Principle of domi-nance is not existed .So, we progress next step.
02
For progress market share, try to use game theory
3. solve
Another com-pany
유환’ s father
(a’) Individual rice
(b’) Individual rice
(c’) Individual rice Max-min
(a) Individual rice 5% -2% -3% -2
(b) Individual rice 3% 1% 0% 0
(c) Individual rice -3% 2% 3% -3
Min-max 5 2 3
Ans ) 0 <= Game Value (= V) <= 2In Our aspect, the larger than the zero value , the better to us.So, our objective function -> maximize z = v ( v is game value)
It is not same,So, we approached mixed strategy for solving the problem
1. Our Ratio to use the strategy -- { P1, P2, P3}
** We got a value for using < max- min and min-max> of decision making method
02
For progress market share, try to use game theory
3. solve2. Our position
A) Using (a ‘) individual rice mill : 5P1 + 3P2 – 3P3 >= V
B) Using (b ‘) individual rice mill : -2P1 + P2 + 2P3 >= V
C) Using ( c’) individual rice mill : -3P3 + 3P3 >= V
P1 + P2 + P3 = 1
3. Transposition
--
A) Using (a ‘) individual rice mill : (5P1 / V) + (3P2 / V ) – (3P3 / V) >= 1
B) Using (b ‘) individual rice mill : (-2P1 / V) + (P2 / V)+ (2P3 / V) >= 1
C) Using ( c’) individual rice mill : (-3P3 / V) + (3P3 / V) >= 1
(P1 + P2 + P3) / V = 1 / V
We divided v both side
02
For progress market share, try to use game theory
3. solveIF ) (P1/ V) = X1 , (P2/ V) = X2 , (P3/ V) = X3
4) So, we got the subject function
Subject to
5 x1 + 3 x2 - 3 x3 > = 1-2 x1 + x2 + 2 x3 > = 1-3 x1 + 3 x3 > = 1
x1 , x2 , x3 >= 0
5) Final step ( we made Lp model through game theory)
minimize Z = x1 + x2 + x3
Subject to 5 x1 + 3 x2 - 3 x3 > = 1-2 x1 + x2 + 2 x3 > = 1-3 x1 + 3 x3 > = 1
x1 , x2 , x3 >= 0
Objective function
Maximize Z = V
-- Minimize Z’ = 1/ V-- Minimize Z’ = x1 + x2 + x3
02
For progress market share, try to use game theory
3. solve6) Result ( we used lindo program)
Z’ = 1 - V = 1/ Z’ = 1 In other words, our game value is 1%
P1 = 0 %P2 = 67%P3 = 33%
So, we have to deliver packing rice to (b) and (c) individual rice mill ( respective 67% and 33%)
If we will do , we would 51% market share .In other words , we are higher 1 point than another company.
02
For progress market share, try to use game theory
1. We have to use analysis of vari-ance
Current situation) from now, content to explain is assumption. because we are unable to conduct its experiment. In other words, we are due to introduce analysis of variance for improving production of rice
Environmental Certification
Type Standard
Organic Fertilizer pro-duce
Non Organosynthetic agricultural chemicals and chemical fertilizer
produce of not using pesticides
Non Organosynthetic agricultural chemicals, chemical fer-tilizer using a under 1/3
Produce using lower pesticides
chemical fertilizer using a under ½, Safe use standard of agricultural chemicals under ½
(Environmental Certification type or standard)
It is environmental certification and standard to get respective type.by Last year, we sold produce of not using pesticides , but we will sell rice using organic Fertilizer. Because we want to improve production of rice and the exper-iment take a long time . Organic is 3 type . We recommend to finding relation between production of rice and organic Fertil-izer as using mini-tab program.In next page , we will show example about relation and how to use mini-tab
03
recommendation
2. Object of experiment and example data
** After the Object of experiment is to find meaning relation between production and fertilizer of 3 type,For finding fertilizer of optimization. So , we have to use respective dif-ferent amount of fertilizer of 3 type.But we have to make equal to condition of water and condition of soil etc..
A( ) B( ) C( )
6kg 6kg 6kg
10kg 10kg 10kg
14kg 14kg 14kg
a) It is amount of input of respective fertilizerb) It is made by us , so it is fake data
03
recommendation
3. How to use mini – tab program
Mixed water – soluble fertilizer type : Three level
Level of type for putting fertilizer : three level
Design factor result : 27’s test
we used a mini-tab pro-gram put into fertilize of 3 type, and we differently make amount of adding with 3 level As a result , we have to experiment total 27 test randomly.
03
recommendation
3. Result of experiment
Result of analysis of variance
It is not meaning data (result of fake data) . Because it take a long time and We are able to get data after reaping
But we hope to use this way.Because we want to find amount of Com-bination for seeking fertilizer of optimiza-tion
Fake data of production
04
result
During the first semester, we used eight or nine optimal method for finding result of opti-mization 1. Demanding Forecast
Saenuri 26952
Ilimi 33055
Green rice 9901
Black rice 11860
We used demanding forecast of winter modelIt is useful data , because it used Constraints in the total LP model
Production cost/Kg per
em-ployee1
em-ployee2
em-ployee3
em-ployee4
em-ployee5
em-ployee6
em-ployee7
em-ployee8
LHS
ex-pectedCost /5kg
(RHS)
sanuri 806 881 862 843 845 885 1002 858 4237<= 4250
Illmi 797 815 838 835 836 874 921 849 4191<= 4300
Green rice
0 0 0 0 0 950 0 0 950<= 950
Black rice
907 1000 978 949 951 994 1004 965 4766<= 4800
Last to-tal
Cost3265 3451 3433 3382 3387 2845 3682 3427
Object function
16306
neces-sary
employ people
0 0 0 0 0 1 0 0 1= 1
x 1 0 0 1 1 1 0 1 5= 5
2. Binary(0-1) integer programing
Employ : 1,4,5,6,8 ( 8people -> 5people)Expected total cost (5kg): 16306 won
We reduced employee from 8 people to 5people as using cost of minimization
04
result
3. give an appropriate quota of seeds to employee through using transportation model
Employee( A) Employee( B) Employee( C) Employee( D) Employee( E) Dummy Supply(kg)
Saenuri33 74 72 112 85 0 26952
6840 0 8500 11612
Ilmi60 98 99 137 112 0 33055
13600 12199 7088 168
Green543 543 543 80 543 0 9901
9901
black0 42 40 87 58 0 11860
11860
Demand(kg) ( 필자 11)/ 18700 필자 8 = 13600 필자 5 = 8500 필자 13 = 22100 필자 11 = 18700 168 81768
In the past,the purchase cost of rice seed is 8000000 wonBut we did decrease in cost as about 6400000 wonDifference is 30000won
4. We used Lp program for finding appropriate quota of raw materials to employee
① we got an appropriate quota of raw materials to employee as using excel program
② we can know that cost of raw material is about 11570000 won
**analyze
04
result
5. Finding proper amount(kg) for sale?
A₁₁ A₁₂ A₁₃ A₁₄ B₁₁ B₁₂ B₁₃ B₁₄ C₁₁ C₁₂ C₁₃ C₁₄ D₁₁ D₁₂ D₁₃ D₁₄
7870 0 0 01292
8 0 0 0 2901 0 0 0 0 0 0 0
A₂₁ A₂₂ A₂₃ A₂₄ B₂₁ B₂₂ B₂₃ B₂₄ C₂₁ C₂₂ C₂₃ C₂₄ D₂₁ D₂₂ D₂₃ D₂₄
0 6296 0 0 01034
3 0 0 0 2321 0 0 3580 0 0 0
A₃₁ A₃₂ A₃₃ A₃₄ B₃₁ B₃₂ B₃₃ B₃₄ C₃₁ C₃₂ C₃₃ C₃₄ D₃₁ D₃₂ D₃₃ D₃₄
0 0 973 0 0 0 4614 0 0 0 0 0 0 2864 2578 0
A₄₁ A₄₂ A₄₃ A₄₄ B₄₁ B₄₂ B₄₃ B₄₄ C₄₁ C₄₂ C₄₃ C₄₄ D₄₁ D₄₂ D₄₃ D₄₄
0 0 0 5667 0 0 0 4614 0 0 0 2089 0 0 0 2578
analysis
We can know that how much rice should be dry and that how much rice should be pol-ishedhow much rice should be dry for this year ? -> A₂₂ + B₂₂ + C₂₂ + D₃₂ + A₃₃ + B₃₃ + D₃₃ + A₄₄ + B₄₄ + C₄₄ + D₄₄ = 44938 (kg)How much rice should be polished for this year ? A₃₃ + B₃₃ + D₃₃ + A₄₄ + B₄₄ + C₄₄ + D₄₄ = 23113 (kg)
Furthermore,, we can know that respective rice should be how much dry ( look at red circle)Also, we can know that we sell packed rice is better. (look at blue square.)
04
result
5. Solution through using maximum flow problem
analysis
result )
ENDSTART
Dry-ing
area A
Dry-ing
area B
Dry-ing
area C
Rice mill A
Rice mill B Packag-
ing B
Packag-ing B
Packag-ing A
18163
18163
18163
13000
20000
12000
11310
8700
10440
8700
8000
5000
5000
8000
5850
5850
5850
5850
5000
2500
2500
5000
5000
5000
5000
4000
4000
4000
18163
8163
18000
23000
6310
1310
13000
18000
850
10000 0
9000
13163
25000
370010000
850
850 10000
7500
0
0
9000
9000
1. We got the value (= 27000kg) through sending maximum each machine. so, we knew that value(=27000kg) of packing rice got through using maxi-mum flow problem is better than value(= about 15000kg) through using LP model2. But , inventory still remain about 39489kg ; however, we will be going to solve inventory of Undried rice3. We knew that unnecessary machine(=drying C) exist, so we had better dis-pose of the machine.4. We got information that we make as much as possible (Paddy drying : 48000kg, rice mill :28000 , packing: 27500)
04
result
THANK YOU감사합니다
We conducted many thing , so we improve problem in current situation as using opti-mizationAnd we propose to use this way to 유환’ s father . However, we have many regret.Because we want to use decision making tree in situation to buy machine and want to use simulationBut in situation to get data, we had difficult experience . Due to the situation , we have studied hard . And we were known ,that optimization is very useful
In the Second semester, we will take a better subject than subject of first semester
Thank you.