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Paper The following article is Open access

Numeric model to predict the location of market demand and economic order quantity for retailers of supply chain

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Published under licence by IOP Publishing Ltd
, , Citation Edy Fradinata and Zurnila Marli Kesuma 2018 IOP Conf. Ser.: Mater. Sci. Eng. 352 012010 DOI 10.1088/1757-899X/352/1/012010

1757-899X/352/1/012010

Abstract

Polynomials and Spline regression are the numeric model where they used to obtain the performance of methods, distance relationship models for cement retailers in Banda Aceh, predicts the market area for retailers and the economic order quantity (EOQ). These numeric models have their difference accuracy for measuring the mean square error (MSE). The distance relationships between retailers are to identify the density of retailers in the town. The dataset is collected from the sales of cement retailer with a global positioning system (GPS). The sales dataset is plotted of its characteristic to obtain the goodness of fitted quadratic, cubic, and fourth polynomial methods. On the real sales dataset, polynomials are used the behavior relationship x-abscissa and y-ordinate to obtain the models. This research obtains some advantages such as; the four models from the methods are useful for predicting the market area for the retailer in the competitiveness, the comparison of the performance of the methods, the distance of the relationship between retailers, and at last the inventory policy based on economic order quantity. The results, the high-density retail relationship areas indicate that the growing population with the construction project. The spline is better than quadratic, cubic, and four polynomials in predicting the points indicating of small MSE. The inventory policy usages the periodic review policy type.

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10.1088/1757-899X/352/1/012010