• Title/Summary/Keyword: Control of demand and supply

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Supply models for stability of supply-demand in the Korean pork market

  • Chunghyeon, Kim;Hyungwoo, Lee ;Tongjoo, Suh
    • Korean Journal of Agricultural Science
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    • v.49 no.3
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    • pp.679-690
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    • 2022
  • As the supply and demand of pork has become a significant concern in Korea, controlling it has become a critical challenge for the industry. However, compared to the demand for pork, which has relatively stable consumption, it is not easy to maintain a stable supply. As the preparation of measures for a supply-demand crisis response and supply control in the pig industry has emerged as an important task, it has become necessary to establish a stable supply model and create an appropriate manual. In this study, a pork supply prediction model is constructed using reported data from the pig traceability system. Based on the derived results, a method for determining the supply-demand crisis stage using a statistical approach was proposed. From the results of the analysis, working days, African swine fever, heat wave, and Covid-19 were shown to affect the number of pigs graded in the market. A test of the performance of the model showed that both in-sample error rate and out-sample error rate were between 0.3 - 7.6%, indicating a high level of predictive power. Applying the forecast, the distribution of the confidence interval of the predicted value was established, and the supply crisis stage was identified, evaluating supply-demand conditions.

Reinforcement leaning based multi-echelon supply chain distribution planning (강화학습 기반의 다단계 공급망 분배계획)

  • Kwon, Ick-Hyun
    • Journal of the Korea Safety Management & Science
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    • v.16 no.4
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    • pp.323-330
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    • 2014
  • Various inventory control theories have tried to modelling and analyzing supply chains by using quantitative methods and characterization of optimal control policies. However, despite of various efforts in this research filed, the existing models cannot afford to be applied to the realistic problems. The most unrealistic assumption for these models is customer demand. Most of previous researches assume that the customer demand is stationary with a known distribution, whereas, in reality, the customer demand is not known a priori and changes over time. In this paper, we propose a reinforcement learning based adaptive echelon base-stock inventory control policy for a multi-stage, serial supply chain with non-stationary customer demand under the service level constraint. Using various simulation experiments, we prove that the proposed inventory control policy can meet the target service level quite well under various experimental environments.

An Analysis of Production and Marketing Control Effect of Aqua-cultured Flounder Using Supply and Demand Models (수급모형을 이용한 양식넙치의 생산 및 출하조절 효과분석)

  • Ko, Bong-Hyun
    • The Journal of Fisheries Business Administration
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    • v.47 no.4
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    • pp.65-75
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    • 2016
  • The purpose of this study was to analyze the production and marketing control effects of aqua-cultured flounder required for stable income growth of aqua-cultured household. We analyzed the supply and demand structure of cultured flounder using the partial equilibrium model approach. And we estimated the optimal yield of cultured flounder and analyzed the effect of marketing control through constructed model. The main results of this study are summarized as follows. First, the fitness and predictive power of the estimated model showed that the RMSPE and MAPE values were less than 5% and Theil's inequality coefficient was very close to 0 rather than 1. It was evaluated that the prediction ability of the aqua-cultured flounder supply and demand model by dynamic simulation was excellent. Second, dynamic simulation based on policy simulation was conducted to analyze the price increase effect of production and shipment control of cultured flounder. As a result, if the annual production volume is reduced by 1%, 5%, and 10% among 32,852~37,520 tons, it is analyzed that the price increase effect is from 1.2% to 12.5%. Finally, this study suggests that the production and marketing control can increase the price of aqua-cultured flounder in the market. In this paper, we propose a policy implementation of the total supply system instead of conclusions.

Design of Direct Load Controller for use of Demand Side (수용가용 직접부하제어장치 설계)

  • Park, J.C.;Kim, H.G.;Jeong, B.H.;Kang, B.H.;Choe, G.H.
    • Proceedings of the KIPE Conference
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    • 2005.07a
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    • pp.149-151
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    • 2005
  • Recently, power supply-demand instability due to the dramatic increase in power usage suchas air-conditioning load at summertime has brought forecasts of decrease in power supply capability. Therefore improving the load factor through systematic load management, in other words, Direct Load Control became necessary. Direct Load Control(DLC) system is kind of a load management program for stabilization of electric power supply-demand. It's purpose is limiting the demand of the demand side selected at peak load or other time periods. The paper presented a Design of Direct Load Controller for control the amount of power demand in demand side. The proposed Controller is cheaper and has ability of storing more power data than pre-existing device.

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Adaptive Inventory Control Models in a Supply Chain with Nonstationary Customer Demand (비안정적인 고객수요를 갖는 공급사슬에서의 적응형 재고관리 모델)

  • Baek, Jun-Geol;Kim, Chang Ouk;Jun, Jin
    • Journal of Korean Institute of Industrial Engineers
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    • v.31 no.2
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    • pp.106-119
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    • 2005
  • Uncertainties inherent in customer demand patterns make it difficult for supply chains to achieve just-in-time inventory replenishment, resulting in loosing sales opportunity or keeping excessive chain wide inventories. In this paper, we propose two intelligent adaptive inventory control models for a supply chain consisting of one supplier and multiple retailers, with the assumption of information sharing. The inventory control parameters of the supplier and retailers are order placement time to an outside source and reorder points in terms of inventory position, respectively. Unlike most extant inventory control approaches, modeling the uncertainty of customer demand as a stationary statistical distribution is not necessary in these models. Instead, using a reinforcement learning technique, the control parameters are designed to adaptively change as customer demand patterns change. A simulation based experiment was performed to compare the performance of the inventory control models.

Composition and Operation of Direct Load Control(DLC) System for use of Demand Side (수용가용 직접부하제어시스템의 구성 및 운영)

  • Park J.C.;Choi M.G.;Lee Y.G.;Kim S.J.;Jeong B.H.;Choe G.H.
    • Proceedings of the KIEE Conference
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    • summer
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    • pp.1260-1262
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    • 2004
  • Direct Load Control(DLC) system is a load management program for stablization of electric power supply-demand. It is a series of acts limiting the demand of selected demand side at peak load or other time periods. Recently, power supply-demand instability due to dramatic increase in power usage such as summertime air-conditioning load has brought forecasts of decrease in power supply capability. Therefore heightening the load factor through systematic load management, in other words, Direct Load Control became necessary. By examining the composition and operation of the DLC system, this paper provides conceptional understanding of the DLC system and help in system research.

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Strategic Pricing Framework for Closed Loop Supply Chain with Remanufacturing Process using Nonlinear Fuzzy Function (재 제조 프로세스를 가진 순환 형 SCM에서의 비선형 퍼지 함수 기반 가격 정책 프레임웍)

  • Kim, Jinbae;Kim, Taesung;Lee, Hyunsoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.4
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    • pp.29-37
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    • 2017
  • This papers focuses on remanufacturing processes in a closed loop supply chain. The remanufacturing processes is considered as one of the effective strategies for enterprises' sustainability. For this reason, a lot of companies have attempted to apply remanufacturing related methods to their manufacturing processes. While many research studies focused on the return rate for remanufacturing parts as a control parameter, the relationship with demand certainties has been studied less comparatively. This paper considers a closed loop supply chain environment with remanufacturing processes, where highly fluctuating demands are embedded. While other research studies capture uncertainties using probability theories, highly fluctuating demands are modeled using a fuzzy logic based ambiguity based modeling framework. The previous studies on the remanufacturing have been limited in solving the actual supply chain management situation and issues by analyzing the various situations and variables constituting the supply chain model in a linear relationship. In order to overcome these limitations, this papers considers that the relationship between price and demand is nonlinear. In order to interpret the relationship between demand and price, a new price elasticity of demand is modeled using a fuzzy based nonlinear function and analyzed. This papers contributes to setup and to provide an effective price strategy reflecting highly demand uncertainties in the closed loop supply chain management with remanufacturing processes. Also, this papers present various procedures and analytical methods for constructing accurate parameter and membership functions that deal with extended uncertainty through fuzzy logic system based modeling rather than existing probability distribution based uncertainty modeling.

Coordination of Component Production and Inventory Rationing for a Two-Stage Supply Chain with a VMI Type of Supply Contract (적시 부품 공급 계약을 갖는 두 단계 공급망에서 부품 생산과 재고 분배의 통합적 구현)

  • Kim, Eun-Gab
    • Journal of the Korean Operations Research and Management Science Society
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    • v.37 no.2
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    • pp.45-56
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    • 2012
  • This paper considers a supply chain consisting of a component manufacturer and a product manufacturer. The component manufacturer provides components for the product manufacturer based on a vendor-managed inventory type of supply contract, and also faces demands from the market with the option of to accept or reject each incoming demand. Using the Markov decision process model, we examine the structure of the optimal production control and inventory rationing policy. Two types of heuristics are presented. One is the fixed-buffer policy and the other uses two linear functions. We implement a computational study and present managerial insights based on the observations.

Improvement plan for vegetables by introducing the production and shipment stabilization policy

  • Ryu, Sangmo;Han, Sukho;Jang, Heesoo;Kim, Donghwan
    • Korean Journal of Agricultural Science
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    • v.46 no.4
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    • pp.813-825
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    • 2019
  • This paper investigated the effects of a government production and shipment stabilization policy and the improvement plan for vegetables in Korea. In this study, a simulation focused on the changes in farm income for Chinese cabbages & radishes using scenarios. The result shows an increase in farm income according to the government policy. In the short-term, demand and supply are fixed, and the policy effect is positive due to the price support effect of the project. However, for mid- to long-term, the price decreases due to the expansion of supply by business beneficiaries, which is likely to be adversely affected by an unstable supply and demand. This increases the burden of government and local government subsidies. This phenomenon is expected to be amplified as the ratio of production and shipbuilding stabilization programs and items expand. When expanding items and adjusting and setting the percentage of participation in the project, it is desirable to set and operate the appropriate business ratio taking into consideration the demand. To improve the effectiveness of the policy, the following remedies were suggested. First, national supply and demand guidelines should be set up, and the autonomous supply and demand control of the producers should be guided by the different preservation according to the implementation of the supply and demand control obligation. As for detailed equipment, it is necessary to establish the reproduction price for each item, set the base price for each wholesale market, increase the incentive for the producers to participate, and fund a business budget to secure business stability.

Managing Inventories of Brand-New and Recovered Products in a Reverse Supply Chain with Downward Demand Substitution (하방 수요 대체가 허용되는 역공급망에서 신제품 및 재생제품 재고 관리)

  • Kim, Eungab
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.2
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    • pp.97-109
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    • 2014
  • This paper considers a reverse supply chain with simultaneous recovery of used products and manufacturing of brand-new ones. Recovered products are downgraded and have to be sold in a market different from that of brand-new products at a different price. In case of a shortage of recovered product inventory, a brand-new item, if available, can be offered at the price of a recovered product. In other words, one-way demand substitution is allowed. We address the joint decision of when to manufacture brand-new product, when to recover returned product, and how to control demand substitution to maximize the hybrid production system's profits. To this end, we propose a Markov decision Process model and investigate the structure of the optimal policy. Performance comparison is numerically implemented between the models with and without downward demand substitution option under different operating conditions of the system parameters.