1. Team member 20092401윤영규 20092358임정욱 20092386박유환

2. Select subjectSolution of optimization(1)Solution of optimization(2)Solution of optimization(3)

3. (1)Select subject

5. Select SeedlingsPlant SeedlingRice harvest Production of Rice Delivery

6. So, we will aim at efficient management and operation by using scientific management techniques of industry engineering in uncertain circumstances.

7. First Semester Second Semester

8. Detailed Schedule of First Semester

10. 10 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 199019952000200320052006200720082009 식량자급률 70.355.755.653.353.452.751.651.751.4 ( 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. ( 2003년 102만 ha 에서 2010년 89만 ha 로 감소)

11. 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 economic deteroioration. Also, it is national security. So, it is important problem. -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

12. 5. The importance of rice Production 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 income, 70% of the agricultural income. 6. Amount of rice production, Trend of stock

13. 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 decrease of the component. 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 decrease 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 추 정

14. ** Trend of production operating cost in rice ( 단위 : 원 /10a) 구분 2005200620072008200920102011 증감율 (’11/‘05) 쌀 경영비 333,635349,599364,293389,620395,126388,068398,09720.50% 가. 2005 년 10a 당 경영비가 333,635 원에서 2011 년 398,097 원으로 20.5% 상승 나., 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 production of rice Division R atio in charge of management costs Growth 종묘비 3.522.6 비료 · 농약 비 17.930 기타 재료 비 3.378.5 영농광열 비 1.789.9 농구비 126.4 고용노동 비 2.4△9.2 위탁영농 비 28.924.6 토지임차 료 28.66.7 기타비용 1.7256.5 ( 단위 : %) ( 자료 : 통계청 ) 8. Trend of operating costs in rice production nowadays, it is trend to decreasing in management costs. So we should have to reduce management costs.

15. 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 placeConsumer Producer(100%) wholesale merchant Retailers 도정업체 Consumer NH (48%) 민간 (32%) 정부수매 (20%) 10% 축소경향 → 유통주체 의 변경

16. 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)

17. Cultivars 물벼 Weight(kg) conversion weight(kg) costdeliverycost/(kg)Etc.. 새누리 (2013 년산 ) 2,975.402,6013,446,325 농협 1325 새누리 (2012 년산 ) 13,68013,680,000 농협 1000 재고 일미 21149.418,40024,840,000 정부수매 1350 제한된 유통 새누리 10888.49,36413,226,650 정부수매 1412.5 제한된 유통 친환경 쌀 9361.78,80011,880,000 정부수매 1350 제한된 유통 일미, 새누리 23178.220,16524,400,000 개인정미소 1210 흑미 14480.512,59818,267,400 개인정미소 1450 합계 82,033.6085,608109,740,375 2. Our delivery situation

18. 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

19. 3. Annual Situation of production and net income yearsproductionNet income 201382,034109,740,375 201282,634113,657,000 201183,031114,451,000 201082,833113,700,000 200982,134110,450,000 200881,312107,421,000 200781,000105,120,000 Average 82,140110,648,482 Standard deviation 765.3655053,527,673.75 Sigma level: 1.9778 Sigma level : 1.7123 We want to go into 3 sigma level !

20. 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 consumed. 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 companies. 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?" s o, we got a large objective through analyzing current situation. from next presentation, we will have the time to analyze a object detail.

21. (3)Solution of optimization(1)

22. Quality management -quality mark and information of rice are insufficient. -consumers want good quality about flavor. Delivery way is not good. Problem of inventory management. many cost of management have been consumed. problem

23. We have to find demanding forecast We have to find better delivery course. Cost optimization as using linear programming We have to optimize assign employee & we will seek assign of rice solution We will do Quality management we will solve inventory management problem

24. 1. Saenuri Demand forecasting Regression analysis statistic Multiple correlation coefficient0.069408461 R-squared0.004817534 Adjustment R-squared-0.16104621 Standard error728.3912489 Observed value8 Analysis of variance ф Sum of squares Root mean squareF priceAdopt F Regression115410.00595 0.0290451330.870276503 Residual63183322.869530553.8115 Total73198732.875 Term a seasonal index estimate TermDemandTendency average demandTerm- seasonal index 200625812 25518.75 1.01 2007259050.99 2008241230.95 2009262351.03 201026203 25811.5 1.02 2011259511.01 2012256390.99 2013254530.99 Seasonal index S11.01 S21.00 S30.97 S41.01

25. 2. Ilmi Demand forecasting (kg) Regression analysis statistic Multiple correlation coefficient0.517056531 R-squared0.267347457 Adjustment R-squared0.145238699 Standard error1316.772999 Observed value8 Analysis of vari ance фSum of squares Root mean s quare F priceAdopt F Regression13796217.357 2.1894208 31 0.189452524 Residual610403346.781733891.13 Total714199564.14 Modulus Standard err or T statisticP-price low rank 95 % high rank 95% low rank 95. 0% high rank 95.0% Y ragmen t 29067.6821 4 1026.021254 28.3304873 3 1.28023E-07 26557.0985 8 31578.265 7 26557.0985831578.2657 X 1 300.642857 1 203.1824848 1.47966916 3 0.189452524 - 196.526771 9 797.81248 62 - 196.5267719 797.8124862 Term a seasonal index estimate TermDemand Tendency average dem and Term- seasonal inde x 200629134 30323.65 0.96 2007300311.01 200830142.60.99 2009319871.05 201028945.1 30517.5 0.95 201129142.40.95 2012312441.02 201332738.51.07 Seasonal index S10.95 S20.98 S31.01 S41.06

26. 3. Green rice Demand forecasting Regression analysis statistic Multiple correlation coefficient0.968079115 R-squared0.937177172 Adjustment R-squared0.926706701 Standard error189.7208581 Observed value8 Analysis of varian ce фSum of squaresRoot mean squareF priceAdopt F Regression13221703.965 89.506684677.93796E-05 Residual6215964.023935994.00399 Total73437667.989 ModulusStandard errorT statisticP-price low rank 95 % high rank 95 % low rank 95.0 % high rank 95.0% Y ragment6966.864286147.829301647.127762966.1174E-096605.1390167328.5895556605.1390167328.589555 X 1276.960714329.274563969.4607972537.93796E-05205.3284369348.5929916205.3284369348.5929916 Seasonal index S10.96 S20.99 S31.01 S41.05 Term a seasonal index estimate TermDemandTendency average demand Term- seasonal in dex 20067512.3 7643.2 0.98 200775621.01 20087642.41.00 20097856.11.03 20108215 8783.175 0.94 20118541.40.97 20129014.61.03 20139361.71.07 Green rice Demand forecasting (kg) Ter m Dema nd LevelTrend a seasonal i ndex Predictive v alue Prediction error 0 6966.864 286 276.9607 143 200 6 7512. 3 7323.142 183 278.5470 579 0.96 6947.49693 8 200 7 7562 7678.939 413 280.0920 614 0.99 7537.87624 6 200 8 7642. 4 8035.455 628 281.6205 445 1.01 8063.46990 2 200 9 7856. 1 8393.110 51 283.1412 312 1.05 8706.82366 2 201 0 8215 8761.719 971 284.8505 958 0.97243988 6 8437.13325 6 201 1 8541. 4 9133.816 545 286.5955 154 0.99023861 8 8958.26353 2 201 2 9014. 6 9511.483 691 288.4169 48 1.00071456 9 9427.14359 4 201 3 9361. 7 9892.251 711 290.2639 694 1.02469243 5 10041.8840 4 201 4 0.97243988 6 9901.88439

27. 4. Black rice Demand forecasting Regression analysis statistic Multiple correlation coefficie nt 0.025891107 R-squared0.000670349 Adjustment R-squared-0.165884592 Standard error604.2859572 Observed value8 Seasonal index S11.02 S21.01 S31.01 S40.96 Term a seasonal index estimate TermDemand Tendency average deman d Term- seasonal index 200615227 15127.95 1.01 200715328.40.99 2008151291.00 200914827.40.98 201016129.8 15569.225 1.04 2011159421.02 201215724.61.01 201314480.50.93 ModulusStandard errorT statisticP-price low rank 95 % high rank 95 % low rank 95.0 % high rank 95.0 % Y ragment15321.96786470.855824532.540678195.60147E-0814169.8251616474.1105514169.8251616474.11055 X 15.9154761993.243347540.063441268 0.95147586 6 - 222.2427759 234.0737283-222.2427759234.0737283 Analysis of variance фSum of squares Root mean squar e F priceAdopt F Regression11469.70006 0.0040247940.951475866 Residual62190969.109365161.5181 Total72192438.809 Black rice Demand forecasting (kg) Ter m Dem and LevelTrend a seasonal index Predictive value Prediction error 0 15321.9 6786 5.91547 619 200 6 1522 7 15343.7 9211 6.23365 1663 1.02 15654.005 57 200 7 1532 8.4 15366.2 7033 6.55854 3074 1.01 15433.422 71 200 8 1512 9 15388.8 8124 6.87959 0357 1.01 15450.069 89 200 9 1482 7.4 15412.2 8424 7.21005 8533 0.9614704.528 201 0 1612 9.8 15436.3 7692 7.54771 0996 1.0154987 86 15658.477 74 201 1 1594 2 15460.8 0443 7.88530 7059 1.0038535 11 15503.437 97 201 2 1572 4.6 15485.4 0325 8.21957 7255 1.0006420 93 15478.622 07 201 3 1448 0.5 15509.7 61 8.54234 0738 0.9564920 69 14819.527 36 201 4 1.0154987 86 11860.818 21

28. Saenuri Demand forecasting 26952(kg) Ilmi Demand forecasting Green riceBlack rice 33055(kg) 9901(kg) 11860(kg)

29. 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 people ② choose employee of min- cost value ③ chosen employee is send toward each area ( we are due to send employee close area ) 1. Current situation

30. 2. Solve this problem Production cost/Kg per employee1employee2employee3employee4employee5employee6employee7employee8LHS expected Cost /5kg (RHS) sanuri 80688186284384588510028584237<=4250 Illmi 7978158388358368749218494191<=4300 Green rice 0000095000 <=950 Black rice 907100097894995199410049654766<=4800 Last total Cost 32653451343333823387284536823427 Object function 16306 necessary employ people 000001001=1 x 100111015=5 ① we did solve this chart through using linner programing. ② we did make this chart by past record - blank of middle is production cost of each rice - RHS is our wanted cost value ③ SO, we used excel program. we got object value and employee. Employ : 1,4,5,6,8 Expected total cost (5kg): 16306 won

31. Employee( A)Employee( B)Employee( C)Employee( D)Employee( E)Supply(kg) Saenuri 51046947143145826952 Ilmi 48344544440643133055 Green rice 4639901 Black rice 54350150345648511860 Demand(kg) ( 필자 11)/ 18700 ( 필자 8 )/13600 ( 필자 5) / 8500 ( 필자 13) / 22100 ( 필자 11) / 18700 81768 81600 → 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 appropriate assign of seeds for employee in the respective area In the Next slide, we show initial solution for optimization (Unit : profit)

32. Employee( A)Employee( B)Employee( C)Employee( D)Employee( E)Supply(kg) Saenuri 3374721128526952 Ilmi 60989913711233055 Green rice 543 805439901 Black rice 04240875811860 Demand(kg) ( 필자 11)/ 18700 ( 필자 8 )/13600 ( 필자 5) / 8500 ( 필자 13) / 22100 ( 필자 11) / 18700 81768 81600 ① first, we have to change from profit model to cost model ② so, we calculated the difference between best profit and respective profit ③ look at the chart, you can check the changed fact that we calculated the difference. Employee( A ) Employee( B) Employee( C ) Employee( D ) Employee( E)DummySupply(kg) Saenuri 33747211285026952 Ilmi 609899137112033055 Green rice 543 8054309901 Black rice 042408758011860 Demand(kg) ( 필자 11)/ 18700 ( 필자 8 )/13600 ( 필자 5) / 8500 ( 필자 13) / 22100 ( 필자 11) / 18700 16881768 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 conducted that we made dummy. So, we made sum of demand and sum of supply equal.

33. Area ( A)Area ( B)Area ( C)Area ( D)Area ( E)DummySupply(kg) Saenuri 337472112850 26952 6840116128500 Ilmi 6098991371120 33055 19881219918700168 Green rice 543 805430 9901 Black rice 0424087580 11860 Demand(kg ) ( 필자 11)/ 18700 필자 8 = 13600 필자 5 = 8500 필자 13 = 22100 필자 11 = 18700 16881768 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 won Area (a) – saenuri, black rice Area (b) – saenuri, ilmi Area (c) – saenuri Area (d) – ilmi, green rice Area € - ilmi Dummy – ilmi ( so, we do not plant ilmi seed of 168 kg) But, it is not optimization

34. I D : 112 - 137 + 98 - 74 = -1 I E : 85 - 112 + 98 – 74 = -3 II A : 60 – 33 + 74 – 98 = 3 II C : 99 – 98 + 74 – 72 = 3 III A : 543 – 33 + 74 – 98 + 137 – 80 = 543 III B : 543 – 98 + 137 – 80 = 502 III C : 543 – 72 + 74 – 98 + 137 – 80 = 504 III E : 543 – 80 + 137 – 112 = 488 IV B : 42 – 0 + 33 – 74 = 1 IV C : 40 – 0 + 33 – 72 = 1 IV D : 87 – 0 + 33 – 74 + 98 – 137 = 7 IV E : 58 – 0 + 33 – 74 + 98 – 112 = 3 I DUM : 0 – 0 + 98 – 74 = 24 III DUM : 0 – 80 + 137 – 0 = 57 IV DUM : 0 – 0 + 33 – 74 + 98 – 0 = 57 +0+0 -18700+1988 - 11612 For optimizing, we use step- stone method The process of using step – stone method is omitted.

35. Employee( A) Employee( B) Employee( C) Employee( D) Employee( E) DummySupply(kg) Saenuri 337472112850 26952 68400850011612 Ilmi 6098991371120 33055 13600121997088168 Green 543 805430 9901 black 0424087580 11860 Demand(kg ) ( 필자 11)/ 18700 필자 8 = 13600 필자 5 = 8500 필자 13 = 22100 필자 11 = 18700 16881768 I B : 74 – 85 + 112 – 98 = 3 I D : 112 – 85 + 112 – 137 = 2 I DUM : 0 – 0 + 112 – 85 = 27 II A : 66 – 33 + 85 – 112 = 6 II C : 99 – 72 + 85 – 112 = 0 III A : 543 – 33 + 85 – 112 + 137 – 80 = 540 III B : 543 – 98 + 137 – 80 = 502 III C : 543 – 72 + 85 – 112 + 137 – 80 = 501 III E : 543 – 80 + 137 – 112 = 488 III DUM : 0 – 80 + 137 – 0 = 57 IVB : 42 – 0 + 33 – 85 + 112 – 98 = 4 IVC : 40 – 0 + 33 – 72 = 1 IVD : 87 – 0 + 33 – 85 + 112 – 137 = 10 IVE : 58 – 0 + 33 – 85 = 6 IVDUM : 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 method ③ we got final chart **analyze Total cost : (33*6840) + (72 * 8500) ▪▪▪ + (0*11860) = 6414739 won Area (a) – saenuri, black rice Area (b) – ilmi Area (c) – saenuri Area (d) – ilmi, green rice Area € - ilmi, saenuri Dummy – ilmi ( so, we do not plant ilmi seed of 168 kg) Difference is 30000won And transportation of rice is changed in area (b) and area( e). In the past, the purchase cost of rice seed is 8000000 won But we did decrease in cost as about 6400000 won

36. 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 1필당) Maximum raw material inputs seonuriIlmiGrean riceBlack rice Seedlings210 Fertilizer7.5 10 Herbicides55 5 분요 15 Head of Local varieties ( head of maximum through ratio ) A areaB areaC areaD areaE area Seonuri475 Ilmi 1 711 Green rice 6 Black rice7 total11851311 Cost of rice (1 seedling) SeonuriIlmi Green rice Black rice 700 790 Cost of fertilizer 8000 0 Cost of herbicides 7700 0 area ( a)area(b)area ©area(d)area(e) sanuriblacksanuriilmisanuriilmigreenilmi Seedlings( 판) Fertilizer( 포) Herbicides (통) 분요(포)0000000

37. 3. We solved lp model as using excel area ( a)area(b)area ©area(d)area(e) sanuriblacksanuriilmisanuriilmigreenilmi Seedlings( 판) 1155 147021073514701260 1560.41 3 Fertilizer(포)307052.57.537.552.5082.5 Herbicides( 통) 2035 52535055 분요(포)000000900 object function 115737 39 subject to 모종의 금 액 641473 9 <= 641473 9 모종의 양 (a) 2310<=2310 8085= 모종의 양 (b)_ 1680<=1680 1470= 모종의 양 © 735<=1050 모종의 양 (d) 2730<=2730 8820= 모종의 양 (e) 1560.41 3 <=2310 새누리 모 종 3360<=3360 일미의 모 종 3240.41 3 <=3990 친환경의 모종 1260<=1260 흑미의 모 종 1155<=1470 a지역의 비료 10 0 <=100 B지역의 비료60<=60 C지역의 비료 37. 5 <=37.5 D지역의 비료 52. 5 <=52.5 E지역의 비료 82. 5 <=82.5 새누리 비료 12 0 <=120 일미 비료 14 2.5 <=142.5 흑미 비료70<=70 A지역의 제초 제 55<=55 B지역의 제초 제 40<=40 C지역의 제초 제 25<=25 D지역의 제초 제 35<=35 E지역의 제초 제 55<=55 새누리 제초제80<=80 일미의 제초제95<=95 흑미의 제초제35<=35 D지역의 분요 90<=90 **analyze ① we got an appropriate quota of raw materials to employee (look at chat : red blank is raw materials ) ② we can know that cost of raw material is about 11570000 won

38. (4)Solution of optimization(2)

39. 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 Variables Step 2) we make a object function Step 3) we make a limitation condition Step 4) we use lindo program Variables Variable Table saenuriilmigreen riceblack rice Undried rice Paddy dr ying ricePacking Undried rice Paddy dr ying ricePacking Undried rice Paddy dr ying ricePacking Undried rice Paddy dr ying rice Packin g NonghyupA₁₁A₁₂A₁₃A₁₄B₁₁B₁₂B₁₃B₁₄C₁₁C₁₂C₁₃C₁₄D₁₁D₁₂D₁₃D₁₄ GovernmentA₂₁A₂₂A₂₃A₂₄B₂₁B₂₂B₂₃B₂₄C₂₁C₂₂C₂₃C₂₄D₂₁D₂₂D₂₃D₂₄ Rice millA₃₁A₃₂A₃₃A₃₄B₃₁B₃₂B₃₃B₃₄C₃₁C₃₂C₃₃C₃₄D₃₁D₃₂D₃₃D₃₄ Individual Distri bution A₄₁A₄₂A₄₃A₄₄B₄₁B₄₂B₄₃B₄₄C₄₁C₄₂C₄₃C₄₄D₄₁D₄₂D₄₃D₄₄

40. Object function NH Purchase SaenuriIlmeGreen riceBlack rice A₁₁A₁₂A₁₃A₁₄B₁₁B₁₂B₁₃B₁₄C₁₁C₁₂C₁₃C₁₄D₁₁D₁₂D₁₃D₁₄ Price1325 Null 1300 Null 1400 Null Dry cost000 Rice polishing cost 000 Packing cost000 Measuring cost000 Test cost000 Delivery cost000 Margin132513001400 Government Purchase SaenuriIlmeGreen riceBlack rice A₂₁A₂₂A₂₃A₂₄B₂₁B₂₂B₂₃B₂₄C₂₁C₂₂C₂₃C₂₄D₂₁D₂₂D₂₃D₂₄ Price13501412.5 Null 13001350 Null 14001500 Null 14001430 Null Dry cost0480 0 050 Rice polishing cost 00000000 Packing cost00000000 Measuring cost00000000 Test cost00000000 Delivery cost00000000 Margin13501364.5130013021400145214001380 1) This chart is profit when we sell to NH 2) This chart is profit when we sell to Government

41. 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 SaenuriIlmeGreen riceBlack rice A₃₁A₃₂A₃₃A₃₄B₃₁B₃₂B₃₃B₃₄C₃₁C₃₂C₃₃C₃₄D₃₁D₃₂D₃₃D₃₄ Price121013001780 Null 121013001830 Null 135015002080 Null 140014501900 Null Dry cost048 0 0 050 Rice polishing c ost 002900035000 00290 Packing cost000000000000 Measuring cost000000000000 Test cost003000 610030 Delivery cost000000000000 Margin1210125214121210125214021320142216211400 1530 Individual distribution SaenuriIlmeGreen riceBlack rice A₄₁A₄₂A₄₃A₄₄B₄₁B₄₂B₄₃B₄₄C₄₁C₄₂C₄₃C₄₄D₄₁D₄₂D₄₃D₄₄ Price Null 2250 Null 2200 Null 2450 Null 2550 Dry cost48 50 Rice polishing cost 290350 290 Packing cost100 Measuring cost120 Test cost30 6130 Delivery cost175 Margin1487137715961785

42. 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 ricePaddy dryingrice Decrease in weight 20% Decrease in weight 10% Limitation condition

43. Subject to 1) Amount Of Undried rice through demand forecasting a11+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 rice a11+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 process senuri 0.8a11+0.8a21+0.8a31+0.8a41 - a12 - a22 -a32-a42 =0 a13+a23+a33+a43 -0.9a12-0.9a22-0.9a32-0.9a42 = 0 a13+a23+a33+a43 - a14-a24-a34-a44 =0 ilmi 0.8b11+0.8b21+0.8b31+0.8b41 - b12 - b22 -b32-b42 =0 b13+b23+b33+a43 -0.9b12-0.9b22-0.9b32-0.9b42 = 0 b13+b23+b33+b43 - b14-b24-b34-b44 =0 Green rice 0.8c11+0.8c21+0.8c31+0.8c41 - c12 - c22 -c32-c42 =0 c13+c23+c33+c43 -0.9c12-0.9c22-0.9c32-0.9c42 = 0 c13+c23+c33+c43 - c14-c24-c34-c44 =0 Black rice 0.8d11+0.8d21+0.8d31+0.8d41 - d12 - d22 -d32-d42 =0 d13+d23+d33+d43 -0.9d12-0.9d22-0.9d32-0.9d42 = 0 d13+d23+d33+d43 - d14-d24-d34-d44 =0 Limitation condition

44. Subject to 4) This is Expression that we give 30% of total amount to NH a11+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 Government a21+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 NH a11-0.5a11-0.5a21-0.5a31-0.5a41 >= 0 Limitation condition

45. result solve

46. result A₁₁A₁₂A₁₃A₁₄B₁₁B₁₂B₁₃B₁₄C₁₁C₁₂C₁₃C₁₄D₁₁D₁₂D₁₃D₁₄ 78700001292800029010000000 A₂₁A₂₂A₂₃A₂₄B₂₁B₂₂B₂₃B₂₄C₂₁C₂₂C₂₃C₂₄D₂₁D₂₂D₂₃D₂₄ 06296000103430002321003580000 A₃₁A₃₂A₃₃A₃₄B₃₁B₃₂B₃₃B₃₄C₃₁C₃₂C₃₃C₃₄D₃₁D₃₂D₃₃D₃₄ 009730004614000000286425780 A₄₁A₄₂A₄₃A₄₄B₄₁B₄₂B₄₃B₄₄C₄₁C₄₂C₄₃C₄₄D₄₁D₄₂D₄₃D₄₄ 0005667000461400020890002578 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 polished how 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.)

47. 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 profit Because 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)

48. 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 as Based on this, we will find better delivery company that give more profits to us.

49. analysis if right hand side is changed, we can know that value of variable is not changed so, we will know how much range of RHS is changed as possible as Based 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

50. we can know. when we sell packed rice, the profits is better So, 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 value 2. We got information about respective Manufacturing process and we were known about capacity of respective Machine and product END START Drying area A Drying area B Drying area C Rice mill A Rice mill B Packaging B Packaging B Packaging A 18163 13000 20000 12000 11310 8700 10440 8700 8000 5000 8000 5850 5000 25000 5000 4000 ** so, we draw a network about respective manufacturing process

51. 3. Solution through using maximum flow problem ** We used optimization (maximum flow problem in network) Solution ) START Drying area A Rice mill A Packaging A END 181631131058505000 START Drying area A Rice mill A Packaging A END 13163631058505000 START Drying area A Rice mill A Packaging A END 18163870058505000 Process of Each step)

52. 3. Solution through using maximum flow problem result ) END START Drying area A Drying area B Drying area C Rice mill A Rice mill B Packaging B Packaging B Packaging A 18163 13000 20000 12000 11310 8700 10440 8700 8000 5000 8000 5850 5000 2500 5000 4000 18163 8163 18000 23000 6310 1310 13000 18000 850 10000 0 9000 13163 25000 3700 10000 850 10000 7500 0 0 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 model 2. But, inventory still remain about 39489kg ; however, we will be going to solve inventory of Undried rice 3. 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)

53. (5)Solution of optimization(3)

54. Another company 유환 ’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%

55. Another company 유환 ’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) Individual rice 5%-2%-3% (b) Individual rice 3%1%0% > > It is not follow to principle of dominance So, we tried to compare to respective market share When We compared to respective market share, Principle of dominance is not existed. So, we progress next step.

56. Another company 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 523 It is not same, So, we approached mixed strategy for solving the problem

60. Environmental Certification TypeStandard Organic Fertilizer produceNon Organosynthetic agricultural chemicals and chemical fertilizer produce of not using pesticides Non Organosynthetic agricultural chemicals, chemical fertilizer 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)

61. 6kg 10kg 14kg

62. Mixed water – soluble fertilizer type : Three level Level of type for putting fertilizer : three level Design factor result : 27’s test

63. Result of analysis of variance Fake data of production

64. Saenuri26952 Ilimi33055 Green rice9901 Black rice11860 Production cost/Kg per employee 1 employee 2 employee 3 employee 4 employee 5 employee 6 employee 7 employee 8 LHS expected Cost /5kg (RHS) sanuri 80688186284384588510028584237<=4250 Illmi 7978158388358368749218494191<=4300 Green rice 0000095000 <=950 Black rice 907100097894995199410049654766<=4800 Last total Cost 32653451343333823387284536823427 Object function 16306 necessar y employ people 000001001=1 x 100111015=5 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

65. Employee( A)Employee( B)Employee( C)Employee( D)Employee( E)DummySupply(kg) Saenuri 337472112850 26952 68400850011612 Ilmi 6098991371120 33055 13600121997088168 Green 543 805430 9901 black 0424087580 11860 Demand(kg) ( 필자 11)/ 18700 필자 8 = 13600 필자 5 = 8500 필자 13 = 22100 필자 11 = 18700 16881768 In the past, the purchase cost of rice seed is 8000000 won But we did decrease in cost as about 6400000 won Difference is 30000won 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

66. A₁₁A₁₂A₁₃A₁₄B₁₁B₁₂B₁₃B₁₄C₁₁C₁₂C₁₃C₁₄D₁₁D₁₂D₁₃D₁₄ 7870000 1292 8 00029010000000 A₂₁A₂₂A₂₃A₂₄B₂₁B₂₂B₂₃B₂₄C₂₁C₂₂C₂₃C₂₄D₂₁D₂₂D₂₃D₂₄ 06296000103430002321003580000 A₃₁A₃₂A₃₃A₃₄B₃₁B₃₂B₃₃B₃₄C₃₁C₃₂C₃₃C₃₄D₃₁D₃₂D₃₃D₃₄ 009730004614000000286425780 A₄₁A₄₂A₄₃A₄₄B₄₁B₄₂B₄₃B₄₄C₄₁C₄₂C₄₃C₄₄D₄₁D₄₂D₄₃D₄₄ 0005667000461400020890002578 analysis We can know that how much rice should be dry and that how much rice should be polished how 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.)

67. analysis result ) END STAR T Dryi ng area A Dryi ng area B Dryi ng area C Rice mill A Rice mill B Packagin g B Packagin g B Packagin g A 18163 13000 20000 12000 11310 8700 10440 8700 8000 5000 8000 5850 5000 2500 5000 4000 18163 8163 18000 23000 6310 1310 13000 18000 850 10000 0 9000 13163 25000 3700 10000 850 10000 7500 0 0 9000 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 model 2. But, inventory still remain about 39489kg ; however, we will be going to solve inventory of Undried rice 3. 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)

68. We conducted many thing, so we improve problem in current situation as using optimization And 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 simulation But 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.