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Finding Optimal solution For Agriculture business Industrial engineering Team member 20092401 윤윤윤 20092358 윤윤윤 20092386 윤윤윤

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Page 1: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

Finding Optimal solution For Agriculture business

Industrial engineer-ingTeam member

20092401 윤영규20092358 임정욱20092386 박유환

Page 2: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 3: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

(1)Select subject

Page 4: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.

Page 5: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 6: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.

Page 7: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.

Page 8: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

05

Our plan

# Gantt Chart

Detailed Schedule of First Semester

Page 9: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

(2)Analysis of agriculture business

Page 10: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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 )

Page 11: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 12: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 13: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 14: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.

Page 15: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 16: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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)

Page 17: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 18: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 19: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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!

Page 20: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.

Page 21: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

(3)Solution of optimization(1)

Page 22: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 23: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 24: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 25: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 26: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 27: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 28: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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)

Page 29: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 30: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 31: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 32: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 33: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 34: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 35: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 36: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 37: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 38: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

(4)Solution of optimization(2)

Page 39: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 40: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 41: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 42: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 43: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 44: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 45: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

1. Finding proper amount(kg) for sale?result

solve

01

Finding appropriate amount of rice for selling through using LP model

Page 46: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 47: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 48: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 49: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 50: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 51: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 52: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 53: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

(5)Solution of optimization(3)

Page 54: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)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

Page 55: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 56: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 57: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 58: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 59: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 60: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 61: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 62: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 63: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 64: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 65: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 66: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 67: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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

Page 68: Team member 20092401윤영규 20092358임정욱 20092386박유환. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

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.