Derivation of the Optimal Solution for the Economic Production Quantity Model with Planned Shortages without Derivatives

In this paper, we study a reformulation of the Economic Production Quantity (EPQ) problem. We study a more general version of the problem first and derive the conditions for an optimal solution, as well as the optimal solution itself, all without using derivatives. Then, we apply the approach to the reformulated EPQ problem. This version of the EPQ problem has been tackled by a number of researchers, wherein they have derived the conditions for the optimal solution and proposed algebraic derivations. However, their derivations for the conditions, as well as the optimal solution, have been shown to be questionable. Other than being questionable, the existing approaches are so complicated that they defeat the purpose of simplifying the optimization by using a derivative-free approach. We propose a correct and more succinct, much less complicated approach to derive the conditions and the optimal solution without using derivatives.

Black, Caspian Seas and Central Asia Silk Association (BACSA) for the Future of Sericulture in Europe and Central Asia

The history and recent activities of the Black Caspian Seas and Central Asia Silk Association are presented in this paper: the countries that participated in its foundation, the FAO’s action to revitalize sericulture in Eastern Europe and Central Asia, the following widening of the Association geographical limits of to enclose other European countries, which were not well-represented in other similar organizations. Some statistical data are illustrated for a better description of the scenario in which the BACSA executive board acted: the world silk production quantity and the relative production of BACSA countries in respect to the Chinese expansion. The themes treated in the BACSA conferences are reported to explain which matters the Executive Board considered the most relevant for the relaunch of this activity in relationships to the international challenges in the subsequent years; the project proposals that were presented to international donors are summarized. A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is shown, where key-factors in determining the strengths and weaknesses of this organization and its member countries for a successful re-establishment of sericulture, are considered. In addition, future trends of sericulture with regard to innovative productions and the Green Deal are examined.

CAPITAL AND MARKET: BAGAIMANA MENINGKATKAN PRODUKSI “BIHUN KUNTUL”

Vermicelli is a type of food originating from China, vermicelli are white noodles made from processed rice flour. Kuntul vermicelli is a rice vermicelli produced by company Gizi Pangan Nusantara. There is an increasing demand for vermicelli but the production quantity is difficult to increase, this problem can be caused by several factors, therefore the researcher will explore the factors that can affect the production of Kuntul vermicelli. The purpose of this study is to determine the factors that can affect Kuntul vermicelli production to increase the quantity of Kuntul vermicelli that can be produced. Respondents in this study are vermicelli companies registered on the website of the ministry of industry. The number of samples used was 50 respondents. The research approach was carried out quantitatively by using exploratory factor analysis method. The data collection method used a questionnaire based on 4 variables which are thought to be factors that influence the production of Kuntul vermicelli. The results of this study indicate that there are 2 factors that are formed, namely factor 1 consists of personal capital and the amount of market demand while factor 2 consists of business condition after adding capital and raw material inventory.

Nonlinear pentagonal intuitionistic fuzzy number and its application in EPQ model under learning and forgetting

In this current era, the concept of nonlinearity plays an important and essential role in intuitionistic fuzzy arena. This article portrays an impression of different representation of nonlinear pentagonal intuitionistic fuzzy number (PIFN) and its classification under different scenarios. A new de-intuitification technique of non-linear PIFN is addressed in this article along with its various graphical representations. Additionally, in this paper, we have observed this by applying it in an economic production quantity model where the production is not perfect and defective items are produced which are reworked. The model is considered under learning and forgetting, where learning is considered as linear, nonlinear PIFN and crisps arena. It is observed from the numerical study that high learning effects in rework lead to decrease in production of defective item, which, besides an economic advantage, may have a positive effect on the environment. Even though forgetting has an adverse effect, the average total cost is much less than that of the basic model which ignores worker learning and forgetting. Finally, comparative and sensitivity analysis result shows the utility of this noble work.

FACTORS INFLUENCING THE GROWTH OF CRAFT BUSINESS IN BOGOR CITY

Bogor City has been the tourist destination for a long time, making this sector as the leading sector for the city. Tourism activities in Bogor City encourage the growth of creative industry especially craft business that reap the benefit through direct sales to the tourists as souvenirs. Many argue that unlike other industry in the economy, there are factors that influence the growth of creative industry beside factors of production. This study aims to identify factors that are significantly influencing the growth of craft business in Bogor City. Multiple regression analysis was used to analyze data collected through interviews with 35 owners of craft business which randomly selected from the sample framework. The data obtained including (1) number of workers, (2) capital, (3) raw materials, (4) showroom ownership, (5) participation in exhibitions, (6) business permit ownership, (7) market orientation, and (8) production quantity. The first three data correspond with factors of production in classical economy, while the rest are related to the characteristics of creative-cultural industry. The result shows that none of the variables related to the classical economy factors of production are statistically significant in this model, instead the variables that are related to characteristics of creative-cultural industry are significant. Among other significant variables, participation in exhibition is the most significant variable in affecting the growth of craft business in Bogor City.

Price negotiation and coordination in outsourcing supply chain under yield and demand uncertainties

This paper considers the issues of pricing, lot-sizing decisions and coordination in a supply chain consisting of one original equipment manufacturer (OEM) and one contract manufacturer (CM). A Bayesian game accounting for asymmetric information is established to optimize the CM’s outsourcing price and the OEM’s selling price. A Stackelberg game incorporating yield and demand uncertainties is subsequently modeled to optimize the CM’s production quantity and the OEM’s order quantity. Finally, a shortage penalty with surplus purchase contract is proposed to coordinate the supply chain. It is found that the optimal outsourcing price is either the lower limit or the stationary point of the common price domain, while the optimal selling price is the upper limit. Whether the CM adopts a conservative or an aggressive production strategy depends on the threshold of the outsourcing price. Moreover, the coordination contract offers great flexibility in parameter selection. By setting the order quantity, penalty price and surplus purchase price properly, the supply chain can realize a win-win situation.

The problem of measuring the quantity of output in the input–output model by W. Leontief in modeling the trends in economic reproduction of nations and regions

Subject. This article deals with the problem of constructing a Leontief's input–output matrix. Objectives. The article aims to determine the rules for constructing a Leontief's input–output matrix on the basis of data on production time and quantity of product output. Methods. For the study, I used the methods of logical and mathematical analyses. Results. The article formulates the rules for constructing a Leontief's input–output matrix, taking into account differences in the time of production, quantity of output, as well as the conditions for the reproduction of the resources expended. It summarizes these rules for the J. von Neumann model. Conclusions. The proposed approach to the analysis of the material mechanism of economic reproduction defines the relationship between the quantitative and cost characteristics of the production and consumption of products and resources. This relationship opens up new opportunities for the application of input–output models to create simple and accurate algorithms for identifying and predicting the macroeconomic trends.