WCSE

Procurement Planning of Agricultural Products Using Truncated Distribution

Abstract— This paper aimed to apply a truncation distribution to improve a procurement model for agricultural products. A procurement planning of agricultural products is complex because there are many uncertain parameters. For example, the factory demand, the number of supply coconuts harvested at contracted farms, and the number of supply coconuts purchased from collectors. These factors have different distributions in each time interval. The mixed-integer non-linear programming was formulated. The model was run for 500 replications and 500 trials and represented the possible total cost under uncertainty. The result is improved to consider the scenarios with the truncated distributions. In addition, truncating the distribution interval in three cases: lower truncate case, upper truncate case, and doubly truncate case. By reducing the data interval by 5 to 20%. The importance of factors that are less likely to occur was reduced. The result is compared with the scenarios which could be applied as the decision-making tools.

Index Terms— agricultural product, procurement planning, mixed-integer non-linear programming, truncated distribution.

Siraprapha Deepradit
Engineering Management, Phranakhon Si Ayutthaya Rajabhat University, Phranakhon Si Ayutthaya, Thailand
Pongthorn Ruksorn
Engineering Management, Phranakhon Si Ayutthaya Rajabhat University, Phranakhon Si Ayutthaya, Thailand

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Cite: Siraprapha Deepradit, Pongthorn Ruksorn, " Procurement Planning of Agricultural Products Using Truncated Distribution, " WCSE 2022 Spring Event: 2022 9th International Conference on Industrial Engineering and Applications, pp. 1280-1287, Sanya, China, April 15-18, 2022.