Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 8455

Search results for: materials demand quantity

8455 Forecasting Materials Demand from Multi-Source Ordering

Authors: Hui Hsin Huang


The downstream manufactures will order their materials from different upstream suppliers to maintain a certain level of the demand. This paper proposes a bivariate model to portray this phenomenon of material demand. We use empirical data to estimate the parameters of model and evaluate the RMSD of model calibration. The results show that the model has better fitness.

Keywords: recency, ordering time, materials demand quantity, multi-source ordering

Procedia PDF Downloads 394
8454 Improving Order Quantity Model with Emergency Safety Stock (ESS)

Authors: Yousef Abu Nahleh, Alhasan Hakami, Arun Kumar, Fugen Daver


This study considers the problem of calculating safety stocks in disaster situations inventory systems that face demand uncertainties. Safety stocks are essential to make the supply chain, which is controlled by forecasts of customer needs, in response to demand uncertainties and to reach predefined goal service levels. To solve the problem of uncertainties due to the disaster situations affecting the industry sector, the concept of Emergency Safety Stock (ESS) was proposed. While there exists a huge body of literature on determining safety stock levels, this literature does not address the problem arising due to the disaster and dealing with the situations. In this paper, the problem of improving the Order Quantity Model to deal with uncertainty of demand due to disasters is managed by incorporating a new idea called ESS which is based on the probability of disaster occurrence and uses probability matrix calculated from the historical data.

Keywords: Emergency Safety Stocks, safety stocks, Order Quantity Model, supply chain

Procedia PDF Downloads 264
8453 Optimal Production and Maintenance Policy for a Partially Observable Production System with Stochastic Demand

Authors: Leila Jafari, Viliam Makis


In this paper, the joint optimization of the economic manufacturing quantity (EMQ), safety stock level, and condition-based maintenance (CBM) is presented for a partially observable, deteriorating system subject to random failure. The demand is stochastic and it is described by a Poisson process. The stochastic model is developed and the optimization problem is formulated in the semi-Markov decision process framework. A modification of the policy iteration algorithm is developed to find the optimal policy. A numerical example is presented to compare the optimal policy with the policy considering zero safety stock.

Keywords: condition-based maintenance, economic manufacturing quantity, safety stock, stochastic demand

Procedia PDF Downloads 388
8452 Intermittent Demand Forecast in Telecommunication Service Provider by Using Artificial Neural Network

Authors: Widyani Fatwa Dewi, Subroto Athor


In a telecommunication service provider, quantity and interval of customer demand often difficult to predict due to high dependency on customer expansion strategy and technological development. Demand arrives when a customer needs to add capacity to an existing site or build a network in a new site. Because demand is uncertain for each period, and sometimes there is a null demand for several equipments, it is categorized as intermittent. This research aims to improve demand forecast quality in Indonesia's telecommunication service providers by using Artificial Neural Network. In Artificial Neural Network, the pattern or relationship within data will be analyzed using the training process, followed by the learning process as validation stage. Historical demand data for 36 periods is used to support this research. It is found that demand forecast by using Artificial Neural Network outperforms the existing method if it is reviewed on two criteria: the forecast accuracy, using Mean Absolute Deviation (MAD), Mean of the sum of the Squares of the Forecasting Error (MSE), Mean Error (ME) and service level which is shown through inventory cost. This research is expected to increase the reference for a telecommunication demand forecast, which is currently still limited.

Keywords: artificial neural network, demand forecast, forecast accuracy, intermittent, service level, telecommunication

Procedia PDF Downloads 71
8451 An Optimal Algorithm for Finding (R, Q) Policy in a Price-Dependent Order Quantity Inventory System with Soft Budget Constraint

Authors: S. Hamid Mirmohammadi, Shahrazad Tamjidzad


This paper is concerned with the single-item continuous review inventory system in which demand is stochastic and discrete. The budget consumed for purchasing the ordered items is not restricted but it incurs extra cost when exceeding specific value. The unit purchasing price depends on the quantity ordered under the all-units discounts cost structure. In many actual systems, the budget as a resource which is occupied by the purchased items is limited and the system is able to confront the resource shortage by charging more costs. Thus, considering the resource shortage costs as a part of system costs, especially when the amount of resource occupied by the purchased item is influenced by quantity discounts, is well motivated by practical concerns. In this paper, an optimization problem is formulated for finding the optimal (R, Q) policy, when the system is influenced by the budget limitation and a discount pricing simultaneously. Properties of the cost function are investigated and then an algorithm based on a one-dimensional search procedure is proposed for finding an optimal (R, Q) policy which minimizes the expected system costs .

Keywords: (R, Q) policy, stochastic demand, backorders, limited resource, quantity discounts

Procedia PDF Downloads 567
8450 Commitment Based Revenue Sharing Contract

Authors: Muhammad Shafiq, Huynh Trung Luong


In this paper, we proposed a commitment based revenue sharing contract for a supply chain comprising one manufacturer and one retailer facing highly uncertain demand of a short life span fashionable product. In our model, the retailer reserves a commitment level with the manufacturer prior to the selling season. In response, the manufacturer allocates and produces a specific quantity which is the maximum available quantity for the retailer. The retailer is motivated to commit more by offering higher revenue sharing percentage for reserved capacity than non-reserved capacity. Due to asymmetric information, it is found that the manufacturer can optimize quantity allocation decision while the commitment level decision of the retailer may not be optimal.

Keywords: supply chain coordination, revenue sharing contract, commitment based revenue sharing, quantity allocation

Procedia PDF Downloads 407
8449 Strategy of Inventory Analysis with Economic Order Quantity and Quick Response: Case on Filter Inventory for Heavy Equipment in Indonesia

Authors: Lim Sanny, Felix Christian


The use of heavy equipment in Indonesia is always increasing. Cost reduction in procurement of spare parts is the aim of the company. The spare parts in this research are focused in the kind of filters. On the early step, the choosing of priority filter will be studied further by using the ABC analysis. To find out future demand of the filter, this research is using demand forecast by utilizing the QM software for windows. And to find out the best method of inventory control for each kind of filter is by comparing the total cost of Economic Order Quantity and Quick response inventory method. For the three kind of filters which are Cartridge, Engine oil – pn : 600-211-123, Element, Transmission – pn : 424-16-11140, and Element, Hydraulic – pn : 07063-01054, the best forecasting method is Linear regression. The best method for inventory control of Cartridge, Engine oil – pn : 600-211-123 and Element, Transmission – pn : 424-16-11140, is Quick Response Inventory, while the best method for Element, Hydraulic – pn : 07063-01054 is Economic Order Quantity.

Keywords: strategy, inventory, ABC analysis, forecasting, economic order quantity, quick response inventory

Procedia PDF Downloads 296
8448 An Economic Order Quantity Model for Deteriorating Items with Ramp Type Demand, Time Dependent Holding Cost and Price Discount Offered on Backorders

Authors: Arjun Paul, Adrijit Goswami


In our present work, an economic order quantity inventory model with shortages is developed where holding cost is expressed as linearly increasing function of time and demand rate is a ramp type function of time. The items considered in the model are deteriorating in nature so that a small fraction of the items is depleted with the passage of time. In order to consider a more realistic situation, the deterioration rate is assumed to follow a continuous uniform distribution with the parameters involved being triangular fuzzy numbers. The inventory manager offers his customer a discount in case he is willing to backorder his demand when there is a stock-out. The optimum ordering policy and the optimum discount offered for each backorder are determined by minimizing the total cost in a replenishment interval. For better illustration of our proposed model in both the crisp and fuzzy sense and for providing richer insights, a numerical example is cited to exemplify the policy and to analyze the sensitivity of the model parameters.

Keywords: fuzzy deterioration rate, price discount on backorder, ramp type demand, shortage, time varying holding cost

Procedia PDF Downloads 114
8447 A Robust Optimization for Multi-Period Lost-Sales Inventory Control Problem

Authors: Shunichi Ohmori, Sirawadee Arunyanart, Kazuho Yoshimoto


We consider a periodic review inventory control problem of minimizing production cost, inventory cost, and lost-sales under demand uncertainty, in which product demands are not specified exactly and it is only known to belong to a given uncertainty set, yet the constraints must hold for possible values of the data from the uncertainty set. We propose a robust optimization formulation for obtaining lowest cost possible and guaranteeing the feasibility with respect to range of order quantity and inventory level under demand uncertainty. Our formulation is based on the adaptive robust counterpart, which suppose order quantity is affine function of past demands. We derive certainty equivalent problem via second-order cone programming, which gives 'not too pessimistic' worst-case.

Keywords: robust optimization, inventory control, supply chain managment, second-order programming

Procedia PDF Downloads 320
8446 Application of Support Vector Machines in Forecasting Non-Residential

Authors: Wiwat Kittinaraporn, Napat Harnpornchai, Sutja Boonyachut


This paper deals with the application of a novel neural network technique, so-called Support Vector Machine (SVM). The objective of this study is to explore the variable and parameter of forecasting factors in the construction industry to build up forecasting model for construction quantity in Thailand. The scope of the research is to study the non-residential construction quantity in Thailand. There are 44 sets of yearly data available, ranging from 1965 to 2009. The correlation between economic indicators and construction demand with the lag of one year was developed by Apichat Buakla. The selected variables are used to develop SVM models to forecast the non-residential construction quantity in Thailand. The parameters are selected by using ten-fold cross-validation method. The results are indicated in term of Mean Absolute Percentage Error (MAPE). The MAPE value for the non-residential construction quantity predicted by Epsilon-SVR in corporation with Radial Basis Function (RBF) of kernel function type is 5.90. Analysis of the experimental results show that the support vector machine modelling technique can be applied to forecast construction quantity time series which is useful for decision planning and management purpose.

Keywords: forecasting, non-residential, construction, support vector machines

Procedia PDF Downloads 345
8445 An Application of Bidirectional Option Contract to Coordinate a Dyadic Fashion Apparel Supply Chain

Authors: Arnab Adhikari, Arnab Bisi


Since the inception, the fashion apparel supply chain is facing the problem of high demand uncertainty. Often the demand volatility compels the corresponding supply chain member to incur substantial holding cost and opportunity cost in case of the overproduction and the underproduction scenario, respectively. It leads to an uncoordinated fashion apparel supply chain. There exist several scholarly works to achieve coordination in the fashion apparel supply chain by employing the different contracts such as the buyback contract, the revenue sharing contract, the option contract, and so on. Specially, the application of option contract in the apparel industry becomes prevalent with the changing global scenario. Exploration of existing literature related to the option contract reveals that most of the research works concentrate on the one direction demand adjustment i.e. either to match the demand upwards or downwards. Here, we present a holistic approach to coordinate a dyadic fashion apparel supply chain comprising one manufacturer and one retailer with the help of bidirectional option contract. We show a combination of wholesale price contract and bidirectional option contract can coordinate the under expanded supply chain. We also propose a framework that captures the variation of the apparel retailer’s order quantity and the apparel manufacturer’s production quantity with the changing exercise price for the different ranges of the option price. We analytically explore that corresponding cost parameters of the supply chain members along with the nature of demand distribution play an instrumental role in the coordination as well as the retailer’s ordering decision.

Keywords: fashion apparel supply chain, supply chain coordination, wholesale price contract, bidirectional option contract

Procedia PDF Downloads 374
8444 Applying (1, T) Ordering Policy in a Multi-Vendor-Single-Buyer Inventory System with Lost Sales and Poisson Demand

Authors: Adel Nikfarjam, Hamed Tayebi, Sadoullah Ebrahimnejad


This paper considers a two-echelon inventory system with a number of warehouses and a single retailer. The retailer replenishes its required items from warehouses, and assembles them into a single final product. We assume that each warehouse supplies only one kind of the raw material for the retailer. The demand process of the final product is assumed to be Poissson, and unsatisfied demand of the final product will be lost. The retailer applies one-for-one-period ordering policy which is also known as (1, T) ordering policy. In this policy the retailer orders to each warehouse a fixed quantity of each item at fixed time intervals, which the fixed quantity is equal to the utilization of the item in the final product. Since, this policy eliminates all demand uncertainties at the upstream echelon, the standard lot sizing model can be applied at all warehouses. In this paper, we calculate the total cost function of the inventory system. Then, based on this function, we present a procedure to obtain the optimal time interval between two consecutive order placements from retailer to the warehouses, and the optimal order quantities of warehouses (assuming that there are positive ordering costs at warehouses). Finally, we present some numerical examples, and conduct numerical sensitivity analysis for cost parameters.

Keywords: two-echelon supply chain, multi-vendor-single-buyer inventory system, lost sales, Poisson demand, one-for-one-period policy, lot sizing model

Procedia PDF Downloads 241
8443 Inventory Decisions for Perishable Products with Age and Stock Dependent Demand Rate

Authors: Maher Agi, Hardik Soni


This paper presents a deterministic model for optimized control of the inventory of a perishable product subject to both physical deterioration and degradation of its freshness condition. The demand for the product depends on its current inventory level and freshness condition. Our model allows for any positive amount of end of cycle inventory. Some useful conditions that characterize the optimal solution of the model are derived and an algorithm is presented for finding the optimal values of the price, the inventory cycle, the end of cycle inventory level and the order quantity. Numerical examples are then given. Our work shows how the product freshness in conjunction with the inventory deterioration affects the inventory management decisions.

Keywords: inventory management, lot sizing, perishable products, deteriorating inventory, age-dependent demand, stock-dependent demand

Procedia PDF Downloads 101
8442 The Optimal Order Policy for the Newsvendor Model under Worker Learning

Authors: Sunantha Teyarachakul


We consider the worker-learning Newsvendor Model, under the case of lost-sales for unmet demand, with the research objective of proposing the cost-minimization order policy and lot size, scheduled to arrive at the beginning of the selling-period. In general, the New Vendor Model is used to find the optimal order quantity for the perishable items such as fashionable products or those with seasonal demand or short-life cycles. Technically, it is used when the product demand is stochastic and available for the single selling-season, and when there is only a one time opportunity for the vendor to purchase, with possibly of long ordering lead-times. Our work differs from the classical Newsvendor Model in that we incorporate the human factor (specifically worker learning) and its influence over the costs of processing units into the model. We describe this by using the well-known Wright’s Learning Curve. Most of the assumptions of the classical New Vendor Model are still maintained in our work, such as the constant per-unit cost of leftover and shortage, the zero initial inventory, as well as the continuous time. Our problem is challenging in the way that the best order quantity in the classical model, which is balancing the over-stocking and under-stocking costs, is no longer optimal. Specifically, when adding the cost-saving from worker learning to such expected total cost, the convexity of the cost function will likely not be maintained. This has called for a new way in determining the optimal order policy. In response to such challenges, we found a number of characteristics related to the expected cost function and its derivatives, which we then used in formulating the optimal ordering policy. Examples of such characteristics are; the optimal order quantity exists and is unique if the demand follows a Uniform Distribution; if the demand follows the Beta Distribution with some specific properties of its parameters, the second derivative of the expected cost function has at most two roots; and there exists the specific level of lot size that satisfies the first order condition. Our research results could be helpful for analysis of supply chain coordination and of the periodic review system for similar problems.

Keywords: inventory management, Newsvendor model, order policy, worker learning

Procedia PDF Downloads 332
8441 The Role of Information Technology in Supply Chain Management

Authors: V. Jagadeesh, K. Venkata Subbaiah, P. Govinda Rao


This paper explaining about the significance of information technology tools and software packages in supply chain management (SCM) in order to manage the entire supply chain. Managing materials flow and financial flow and information flow effectively and efficiently with the aid of information technology tools and packages in order to deliver right quantity with right quality of goods at right time by using right methods and technology. Information technology plays a vital role in streamlining the sales forecasting and demand planning and Inventory control and transportation in supply networks and finally deals with production planning and scheduling. It achieves the objectives by streamlining the business process and integrates within the enterprise and its extended enterprise. SCM starts with customer and it involves sequence of activities from customer, retailer, distributor, manufacturer and supplier within the supply chain framework. It is the process of integrating demand planning and supply network planning and production planning and control. Forecasting indicates the direction for planning raw materials in order to meet the production planning requirements. Inventory control and transportation planning allocate the optimal or economic order quantity by utilizing shortest possible routes to deliver the goods to the customer. Production planning and control utilize the optimal resources mix in order to meet the capacity requirement planning. The above operations can be achieved by using appropriate information technology tools and software packages for the supply chain management.

Keywords: supply chain management, information technology, business process, extended enterprise

Procedia PDF Downloads 299
8440 Analysis of Economic Order Quantity, Safety Stock, Maximum Inventory Control, Lot Size and Reorder Point for Engro Polymers and Chemicals

Authors: Ali Akber Jaffri, Asad Naseem, Javeria Khan, Zubair Hamza, Ishtiaq


The purpose of this study is to determine safety stock, maximum inventory level, reordering point, and reordering quantity by rearranging lot sizes for supplier and customer in MRO (maintenance repair operations) warehouse of Engro Polymers & Chemicals. To achieve the aim, physical analysis method and excel commands were carried out to elicit the customer and supplier data provided by the company. Initially, we rearranged the current lot sizes and MOUs (measure of units) in SAP software. Due to change in lot sizes, we have to determine the new quantities for safety stock, maximum inventory, reordering point and reordering quantity as per company's demand. By proposed system, we saved extra cost in terms of reducing time of receiving from vendor and in issuance to customer, ease of material handling in MRO warehouse and also reduce human efforts.

Keywords: maintenance repair operation, maximum inventory, reorder quantity, safety stock

Procedia PDF Downloads 187
8439 The Relationship of Building Information Modeling (BIM) Capability in Quantity Surveying Practice and Project Performance

Authors: P. F. Wong, H. Salleh, F. A. Rahim


The adoption of building information modeling (BIM) is increasing in the construction industry. However, quantity surveyors are slow in adoption compared to other professions due to lack of awareness of the BIM’s potential in their profession. It is still unclear on how BIM application can enhance quantity surveyors’ work performance and project performance. The aim of this research is to identify the capabilities of BIM in quantity surveying practices and examine the relationship between BIM capabilities and project performance. Questionnaire survey and interviews were adopted for data collection. Literature reviews identified there are eleven BIM capabilities in quantity surveying practice. Questionnaire results showed that there are several BIM capabilities significantly correlated with project performance in time, cost and quality aspects and the results were validated through interviews. These findings show that BIM has the capabilities to enhance quantity surveyors’ performances and subsequently improved project performance.

Keywords: Building Information Modeling (BIM), quantity surveyors, capability, project performance

Procedia PDF Downloads 255
8438 Response of Briquettes Application with Different Coating Materials on Yield and Quality of Cucumber [Cucumis sativus (L.)]

Authors: H. B. Torane, M. C. Kasture, S. S. Prabhudesai, P. B. Sanap, V. N. Palsande, J. J. Palkar


The present investigation entitled “Response of briquettes application with different coating materials on yield and quality of Cucumber [Cucumis sativus (L.)]” was conducted at Central Experiment Center, Wakawali during kharif season 2013. The field experiment was laid out in Factorial Randomized Block Design with three replicate. The four coating materials viz., Co – Non coating, C1 – Wax coating, C2 – Jaggary coating, and C3 – Tar coating was applied to Konkan Annapurna Briquette along with three sub treatments of application time i.e B1 – ½ at sowing, B2 - ½ at sowing and ½ at 30 days after sowing and B3 - 1/3 at sowing, 1/3 at 30 days after sowing and 1/3 at 60 days after sowing. It was observed that the application of tar coated Konkan Annapurna Briquettes (KAB) in three times @1/3 quantity of briquettes at sowing time, 1/3 quantity of briquettes at 30 days after sowing and 1/3 quantity of briquettes at 60 days after sowing was found promising to enhancing the cucumber fruit yield, higher vine length, number of fruits vine-1, girth of fruit, length of fruit. It was also observed that the quality of the cucumber fruit increased in terms of ascorbic acid. UB-Godavari forms of briquettes .i.e. are promising source of N, P2O5 and K2O fertilizers as compared to straight fertilizers for enhancing green cucumber fruit yield of Sheetal variety of cucumber in lateritic soil. Amongst the three types of coated briquettes, the tar coated briquettes application was found to be superior for increasing cucumber fruit yield applied in three times @1/3 quantity of briquettes at sowing time, 1/3 quantity of briquettes at 30 days after sowing and 1/3 quantity of briquettes at 60 days after sowing @ 5 briquettes per plant at an interval of 30 days after sowing.

Keywords: briquettes, coating, yield, tar, wax and quality

Procedia PDF Downloads 427
8437 The Competitive Newsvendor Game with Overestimated Demand

Authors: Chengli Liu, C. K. M. Lee


The tradition competitive newsvendor game assumes decision makers are rational. However, there are behavioral biases when people make decisions, such as loss aversion, mental accounting and overconfidence. Overestimation of a subject’s own performance is one type of overconfidence. The objective of this research is to analyze the impact of the overestimated demand in the newsvendor competitive game with two players. This study builds a competitive newsvendor game model where newsvendors have private information of their demands, which is overestimated. At the same time, demands of each newsvendor forecasted by a third party institution are available. This research shows that the overestimation leads to demand steal effect, which reduces the competitor’s order quantity. However, the overall supply of the product increases due to overestimation. This study illustrates the boundary condition for the overestimated newsvendor to have the equilibrium order drop due to the demand steal effect from the other newsvendor. A newsvendor who has higher critical fractile will see its equilibrium order decrease with the drop of estimation level from the other newsvendor.

Keywords: bias, competing newsvendor, Nash equilibrium, overestimation

Procedia PDF Downloads 184
8436 Analysis of Inventory Control, Lot Size and Reorder Point for Engro Polymers and Chemicals

Authors: Ali Akber Jaffri, Asad Naseem, Javeria Khan


The purpose of this study is to determine safety stock, maximum inventory level, reordering point, and reordering quantity by rearranging lot sizes for supplier and customer in MRO (maintenance repair operations) warehouse of Engro Polymers & Chemicals. To achieve the aim, physical analysis method and excel commands were carried out to elicit the customer and supplier data provided by the company. Initially, we rearranged the current lot sizes and MOUs (measure of units) in SAP software. Due to change in lot sizes we have to determine the new quantities for safety stock, maximum inventory, reordering point and reordering quantity as per company's demand. By proposed system, we saved extra cost in terms of reducing the time of receiving from vendor and in issuance to customer, ease of material handling in MRO warehouse and also reduce human efforts. The information requirements identified in this study can be utilized in calculating Economic Order Quantity.

Keywords: carrying cost, economic order quantity, fast moving, lead time, lot size, MRO, maximum inventory, ordering cost, physical inspection, reorder point

Procedia PDF Downloads 168
8435 Reliability of the Estimate of Earthwork Quantity Based on 3D-BIM

Authors: Jaechoul Shin, Juhwan Hwang


In case of applying the BIM method to the civil engineering in the area of free formed structure, we can expect comparatively high rate of construction productivity as it is in the building engineering area. In this research, we developed quantity calculation error applying it to earthwork and bridge construction (e.g. PSC-I type segmental girder bridge amd integrated bridge of steel I-girders and inverted-Tee bent cap), NATM (New Austrian Tunneling Method) tunnel construction, retaining wall construction, culvert construction and implemented BIM based 3D modeling quantity survey. we confirmed high reliability of the BIM-based method in structure work in which errors occurred in range between -6% ~ +5%. Especially, understanding of the problem and improvement of the existing 2D-CAD based of quantity calculation through rock type quantity calculation error in range of -14% ~ +13% of earthwork quantity calculation. It is benefit and applicability of BIM method in civil engineering. In addition, routine method for quantity of earthwork has the same error tolerance negligible for that of structure work. But, rock type's quantity calculated as the error appears significantly to the reliability of 2D-based volume calculation shows that the problem could be. Through the estimating quantity of earthwork based 3D-BIM, proposed method has better reliability than routine method. BIM, as well as the design, construction, maintenance levels of information when you consider the benefits of integration, the introduction of BIM design in civil engineering and the possibility of applying for the effectiveness was confirmed.

Keywords: BIM, 3D modeling, 3D-BIM, quantity of earthwork

Procedia PDF Downloads 370
8434 Meat Products Demand in Oyo West Local Government: An Application of Almost Ideal Demand System (LA/AIDS)

Authors: B. A. Adeniyi, S. A. Daud, O. Amao


The study investigates consumer demand for meat products in Oyo West Local Government using linear approximate almost ideal demand system (LA/AIDS). Questions that were addressed by the study include: first, what is the type and quantity of meat products available to the household and their demand pattern? Second is the investigation of the factors that affect meat products demand pattern and proportion of income that is spent on them. For the above purpose cross-sectional data were collected from 156 households of the study area and analyzed to reveal the functional relationship between meat products consumption and some socio-economic variables of the household. Results indicated that per capita meat consumption increased as household income and education increased but decreased with age. It was also found that male tend to consume more meat products than their female counterparts and that increase in household size will first increased per caput meat consumption but later decreased it. Price also tends to greatly influence the demand pattern of meat products. The results of elasticity computed from the results of regression analysis revealed that own price elasticity for all meat products were negative which indicated that they were normal products while cross and expenditure elasticity were positive which further confirmed that meat products were normal and substitute products. This study therefore concludes that the relevance of these variables imposed a great challenge to the policy makers and the government, in the sense that more cost effective methods of meat production technology have to be devised in other to make consumption of meat products more affordable.

Keywords: meat products, consumption, animal production, technology

Procedia PDF Downloads 162
8433 Inventory Optimization in Restaurant Supply Chain Outlets

Authors: Raja Kannusamy


The research focuses on reducing food waste in the restaurant industry. A study has been conducted on the chain of retail restaurant outlets. It has been observed that the food wastages are due to the inefficient inventory management systems practiced in the restaurant outlets. The major food items which are wasted more in quantity are being selected across the retail chain outlets. A moving average forecasting method has been applied for the selected food items so that their future demand could be predicted accurately and food wastage could be avoided. It has been found that the moving average prediction method helps in predicting forecasts accurately. The demand values obtained from the moving average method have been compared to the actual demand values and are found to be similar with minimum variations. The inventory optimization technique helps in reducing food wastage in restaurant supply chain outlets.

Keywords: food wastage, restaurant supply chain, inventory optimisation, demand forecasting

Procedia PDF Downloads 4
8432 Cartel Formation with Differentiated Products, Asymmetric Cost, and Quantity Competition: The Case of Three Firms

Authors: Burkhard Hehenkamp, Tahmina Faizi


In this paper, we analyze the formation of cartels along with the stability of the cartel for the case of three firms that produce differentiated products and differ in their cost of production. Both cost and demand are linear, and firms compete in quantities once a cartel has been formed (or not). It turns out that the degree of product differentiation has a direct effect on the incentive to form a cartel. Firstly, when goods are complements or close substitutes, firms form a grand coalition. Secondly, for weak and medium substitutes, the firm with the lowest cost prefers to remain independent, while both other firms form a coalition. We also find that the producer profit of the stable coalition structure is nonmonotonic in the degree of product differentiation.

Keywords: collusion, cartel formation, cartel stability, differentiated market, quantity competition, oligopolies

Procedia PDF Downloads 4
8431 An Estimation Process for Progress Rate Based on Labor-Quantity in Republic of Korea

Authors: Dong-Ho Kim, Zheng-Xun Jin, Yong-Woon Cha, Su-Sang Lim, Sang-Won Han, Chang-Taek Hyun


As construction is a labor-intensive industry, it is important to identify and manage labor quantities for accurate progress management of the construction project. However, the progress management that focuses on construction cost calculated based on materials rather than labor quantities has led to a difference in the implementation of cost and progress of the actual construction. In addition, since it is not easy to predict accurate labor quantities in the estimation of labor quantity-based progress rate, there have been limited researches into the progress rate estimation based on labor quantity. Accordingly, this study proposed a process for labor quantity-based progress rate estimation using a standard of estimate to predict accurate progress rate of the construction project in Republic Korea. It is expected that the utilization of the proposed process will help to identify the progress rate closer to that of the actual site management and adjust the workforce in each construction type, thereby contributing to improving construction efficiency.

Keywords: labor based, labor cost, progress management, progress rate, progress payment

Procedia PDF Downloads 253
8430 Modelling Patient Condition-Based Demand for Managing Hospital Inventory

Authors: Esha Saha, Pradip Kumar Ray


A hospital inventory comprises of a large number and great variety of items for the proper treatment and care of patients, such as pharmaceuticals, medical equipment, surgical items, etc. Improper management of these items, i.e. stockouts, may lead to delay in treatment or other fatal consequences, even death of the patient. So, generally the hospitals tend to overstock items to avoid the risk of stockout which leads to unnecessary investment of money, difficulty in storing, more expiration and wastage, etc. Thus, in such challenging environment, it is necessary for hospitals to follow an inventory policy considering the stochasticity of demand in a hospital. Statistical analysis captures the correlation of patient condition based on bed occupancy with the patient demand which changes stochastically. Due to the dependency on bed occupancy, the markov model is developed that helps to map the changes in demand of hospital inventory based on the changes in the patient condition represented by the movements of bed occupancy states (acute care state, rehabilitative state and long-care state) during the length-of-stay of patient in a hospital. An inventory policy is developed for a hospital based on the fulfillment of patient demand with the objective of minimizing the frequency and quantity of placement of orders of inventoried items. The analytical structure of the model based on probability calculation is provided to show the optimal inventory-related decisions. A case-study is illustrated in this paper for the development of hospital inventory model based on patient demand for multiple inpatient pharmaceutical items. A sensitivity analysis is conducted to investigate the impact of inventory-related parameters on the developed optimal inventory policy. Therefore, the developed model and solution approach may help the hospital managers and pharmacists in managing the hospital inventory in case of stochastic demand of inpatient pharmaceutical items.

Keywords: bed occupancy, hospital inventory, markov model, patient condition, pharmaceutical items

Procedia PDF Downloads 230
8429 Quantifying the UK’s Future Thermal Electricity Generation Water Use: Regional Analysis

Authors: Daniel Murrant, Andrew Quinn, Lee Chapman


A growing population has led to increasing global water and energy demand. This demand, combined with the effects of climate change and an increasing need to maintain and protect the natural environment, represents a potentially severe threat to many national infrastructure systems. This has resulted in a considerable quantity of published material on the interdependencies that exist between the supply of water and the thermal generation of electricity, often known as the water-energy nexus. Focusing specifically on the UK, there is a growing concern that the future availability of water may at times constrain thermal electricity generation, and therefore hinder the UK in meeting its increasing demand for a secure, and affordable supply of low carbon electricity. To provide further information on the threat the water-energy nexus may pose to the UK’s energy system, this paper models the regional water demand of UK thermal electricity generation in 2030 and 2050. It uses the strategically important Energy Systems Modelling Environment model developed by the Energy Technologies Institute. Unlike previous research, this paper was able to use abstraction and consumption factors specific to UK power stations. It finds that by 2050 the South East, Yorkshire and Humber, the West Midlands and North West regions are those with the greatest freshwater demand and therefore most likely to suffer from a lack of resource. However, it finds that by 2050 it is the East, South West and East Midlands regions with the greatest total water (fresh, estuarine and seawater) demand and the most likely to be constrained by environmental standards.

Keywords: climate change, power station cooling, UK water-energy nexus, water abstraction, water resources

Procedia PDF Downloads 224
8428 The Characteristics of Quantity Operation for 2nd and 3rd Grade Mathematics Slow Learners

Authors: Pi-Hsia Hung


The development of mathematical competency has individual benefits as well as benefits to the wider society. Children who begin school behind their peers in their understanding of number, counting, and simple arithmetic are at high risk of staying behind throughout their schooling. The development of effective strategies for improving the educational trajectory of these individuals will be contingent on identifying areas of early quantitative knowledge that influence later mathematics achievement. A computer-based quantity assessment was developed in this study to investigate the characteristics of 2nd and 3rd grade slow learners in quantity. The concept of quantification involves understanding measurements, counts, magnitudes, units, indicators, relative size, and numerical trends and patterns. Fifty-five tasks of quantitative reasoning—such as number sense, mental calculation, estimation and assessment of reasonableness of results—are included as quantity problem solving. Thus, quantity is defined in this study as applying knowledge of number and number operations in a wide variety of authentic settings. Around 1000 students were tested and categorized into 4 different performance levels. Students’ quantity ability correlated higher with their school math grade than other subjects. Around 20% students are below basic level. The intervention design implications of the preliminary item map constructed are discussed.

Keywords: mathematics assessment, mathematical cognition, quantity, number sense, validity

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8427 Cost-Optimized Extra-Lateral Transshipments

Authors: Dilupa Nakandala, Henry Lau


Ever increasing demand for cost efficiency and customer satisfaction through reliable delivery have been a mandate for logistics practitioners to continually improve inventory management processes. With the cost optimization objectives, this study considers an extended scenario where sourcing from the same echelon of the supply chain, known as lateral transshipment which is instantaneous but more expensive than purchasing from regular suppliers, is considered by warehouses not only to re-actively fulfill the urgent outstanding retailer demand that could not be fulfilled by stock on hand but also for preventively reduce back-order cost. Such extra lateral trans-shipments as preventive responses are intended to meet the expected demand during the supplier lead time in a periodic review ordering policy setting. We develop decision rules to assist logistics practitioners to make cost optimized selection between back-ordering and combined reactive and proactive lateral transshipment options. A method for determining the optimal quantity of extra lateral transshipment is developed considering the trade-off between purchasing, holding and backorder cost components.

Keywords: lateral transshipment, warehouse inventory management, cost optimization, preventive transshipment

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8426 Demand Response from Residential Air Conditioning Load Using a Programmable Communication Thermostat

Authors: Saurabh Chanana, Monika Arora


Demand response is getting increased attention these days due to the increase in electricity demand and introduction of renewable resources in the existing power grid. Traditionally demand response programs involve large industrial consumers but with technological advancement, demand response is being implemented for small residential and commercial consumers also. In this paper, demand response program aims to reduce the peak demand as well as overall energy consumption of the residential customers. Air conditioners are the major reason of peak load in residential sector in summer, so a dynamic model of air conditioning load with thermostat action has been considered for applying demand response programs. A programmable communicating thermostat (PCT) is a device that uses real time pricing (RTP) signals to control the thermostat setting. A new model incorporating PCT in air conditioning load has been proposed in this paper. Results show that introduction of PCT in air conditioner is useful in reducing the electricity payments of customers as well as reducing the peak demand.

Keywords: demand response, home energy management, programmable communicating thermostat, thermostatically controlled appliances

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