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【2020 Application Example】 Textile Industry Challenges Fast Fashion, AI Inventory Forecast Reduces Error Rate by 35%

Fast fashion in clothing, small quantities, diverse styles, short delivery times

The textile industry faces the impact of the fast fashion trend among clothing brands, affecting the entire supply chain. Global brand channels are promoting zero inventory, short delivery periods, and small-scale customization. Balancing production time, quality, and cost is challenging. Often, there is a discrepancy between ODM predictions and actual demands from brand owners, causing issues in material management and excessive inventory costs.

Due to inaccurate demand forecasts from customers, it often leads to difficulties in material preparation. Excessive materials can increase leftover stock, while insufficient materials may delay delivery. This project aims to establish an AI-based material demand forecast model specifically for major domestic manufacturers.

AI calculates sales trends to further predict demand

The advisory team collaborates with Shentong Information Technology to mainly use the LSTM algorithm for the AI foundation. The goal is to predict the next sales cycle based on past sales records, utilizing simple regression to complex 'Time Series Analysis' in statistics. Usually, a period's sales volume closely relates to the previous period's, unless there is a major event, in which case it would typically follow a pattern.

There are various patterns of sales volume forecasts, including revenue, profit, customer counts, park visits, sales number/amount, etc. This will take the example of a factory's monthly shipment batches, using the LSTM model to predict the next month's shipment batches.

Material Demand Analysis Execution Framework

▲Material Demand Analysis Execution Framework

This project plans to establish a customer-specific material demand AI prediction model. During the planning phase, three different machine learning algorithms were used to prototype the AI model:

 Logistic Regression Algorithm

 Gradient Boosting Algorithm

 Deep Learning Algorithm

Material Demand AI Prediction Model Planning

▲Material Demand AI Prediction Model Planning

Demand forecast error reduced from a maximum of 70% to 35%, significantly reducing inventory volumes

This project estimates customer demands, required material types, supply sources, and customer delivery dates using machine learning to establish a primary material procurement prediction system. It reduces the prediction error of demand from the top five international customers from a high of 70% to 35%, significantly lessening the amount of inventory needed.

「Translated content is generated by ChatGPT and is for reference only. Translation date:2024-05-19」

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【導入案例】維繫遊艇王國美譽 嘉信遊艇導入國內第一套FRP複材超音波智慧檢測
Maintaining the reputation of the “Kingdom of Yachts” - Kha Shing Enterprise introduces the first domestic FRP ultrasonic smart inspection of composite materials

The Kaohsiung-based Kha Shing Enterprise Co, Ltd was established over 40 years ago, and is Taiwan's largest customized yacht company with customers all over America, Europe, Asia, and Australia, earning Taiwan the reputation of the "Kingdom of Yachts" Current FRP hull inspection still relies on traditional methods, such as visual inspection and knocking sounds, which is time-consuming and labor-intensive Kha Shing has applied PAUT array ultrasonic inspection to hull FRP composite materials for the first time, and combined it with AI to interpret ultrasound images, develop complete intelligent solutions, and create emerging markets for inspection companies Kha Shing Enterprise Co, Ltd was formerly Kha Shing Wood Industry Co, Ltd, and was a factory specializing in wood import in Kaohsiung Linhai Industrial Park when it was first established It began to design, manufacture, and sell yachts in 1977 After the second-generation successor of the company, President Kung Chun-Hao entered the company, he made a breakthrough in the previous manufacturing model that relied mainly on the skills of master craftsmen, introduced digital manufacturing to accelerate shipbuilding, and began to make larger yachts, ranking in the top 20 manufacturers worldwide among manufacturers of large yachts over 24 feet It also set a record of delivering 94 yachts within one year, earning Taiwan the reputation of "Kingdom of Yachts" Defect detection ensures yacht quality, using AI to replace humans to achieve higher efficiency Defect detection is very important to ensuring yacht quality At present, the yacht industry still uses very traditional defect detection methods The hull structure is usually made by hand lay-up or the vacuum infusion process, using visual inspection or knocking and the frequency of the sound to determine defects It requires time-consuming manual inspection If there are any defects, they must be reworked and repaired, and a gel coat subsequently sprayed The hull must be constructed in sections to facilitate inspection For large yachts over 24 meters long, construction in sections is very time-consuming and labor-intensive To shorten the time of the yacht manufacturing process, Kha Shing Enterprise will first carry out the gel coating process for the hull, and then perform the hand lay-on process The hull manufacturing process has two types of composite material test specimen structures In terms of 54-foot yacht hulls, the hull contains gel coat, core material, fiber and resin, and the total thickness is about 32cmplusmn01cm, which is twice the total thickness of FRP hull without core material of about 16cmplusmn01cm Defects such as incomplete impregnation of glass fiber or residual air bubbles between glass fiber and resin occasionally occur during the manufacturing process The types of defects include insufficient resin, voids, and delamination Once defects occur, the supply of hull materials will be insufficient and yacht delivery will be delayed Schematic diagram of types of FRP hull In order to solve this problem, Kha Shing Enterprise has engaged in technical cooperated with the metal materials industry and the AI technology industry, combining the ultrasonic inspection expertise of the metal materials industry with AI technologies developed by the AI technology industry in recent years to help solve issues of Kha Shing Enterprise with defect detection The method uses PAUT on the composite material structure of yachts, conducts FRP ultrasonic evaluation to determine the thickness of the yacht hull and material properties, and evaluates the ultrasonic probe frequency applicable to the hull structure based on professional ultrasonic experience After testing, a frequency of 5MHz and a probe width of 45mm can successfully find the location and size of defects in the simulated defect test specimen The three parties jointly found defect detection solutions from array ultrasonic evaluation, AI technology model development, and actual application in yachts The image inspected is an ultrasound image The image displays different colors based on the ultrasonic feedback signal An AI model that automatically identifies defective parts is established through the YOLO algorithm If the amount of abnormal data collected is insufficient for training, the CNN-based Autoencoder algorithm is used to collect normal image data for training and construct an AI model for abnormality detection The object detection YOLO model is trained by inputting image data marked as having defects, while the abnormality detection model is trained by inputting image data without defects Simulated defective specimen corresponding to PAUT results Defect detection by and AI system can shorten the construction period by 15 months and speed up determination by 50 After the development of this AI system is completed, it will be validated on actual 54-foot yachts of Kha Shing Enterprise, and can effectively resolve issues with defects The application of AI technology in ultrasonic inspection for intelligent determination is expected to accelerate determination by approximately 50, and will also shortens the construction period by 15 months, effectively improving the speed and quality of the yacht manufacturing process As Taiwan develops larger and more refined yachts, it will create opportunities for industry optimization and transformation, as well as opportunities for the development of key technologies The application of an AI ultrasonic inspection solution for composite materials is the first of its kind in the yacht industry, and is expected to attract more yacht manufacturers with inspection needs The AI ultrasonic inspection solution for composite materials has three major competitive advantages 1 Professional inspection experience and digital database to facilitate process management and analysis 2 Automatic AI determination and identification quickly identifies defects and provides immediate feedback to process engineers 3 High-efficiency process inspection provides defect repair recommendations, reduces damage rate, and improves the strength and quality of composite materials The application of AI technology can optimize the yacht manufacturing process, reduce manual inspection, create added value through the application of AI in Taiwanrsquos yacht industry, increase international purchase orders, and allow Taiwan yachts to continue to enjoy a good reputation in the world Furthermore, this business model has also spread to fields of application related to composite materials, increasing cross-sector market usage It is estimated to contribute approximately NT14 to NT2 billion in economic benefits to Taiwan's equipment maintenance and non-destructive testing market

【導入案例】AI嘛會煮咖啡 無人烘豆機靠AI 精準設點與培養忠實客群
AI Can Make Coffee! Autonomous Coffee Roasters Relying on AI for Precise Location Setting and Cultivating Loyal Customers

Have you had your morning coffee yet Over the past decade, Taiwan has gradually formed a coffee drinking culture With the advancement of AI technology, autonomous coffee roasters can now rely on AI for precise location setting while also cultivating a loyal customer base Let's see how this is done According to the International Coffee Organization ICO, Taiwanese consume approximately 285 billion cups of coffee annually, with the coffee market in Taiwan estimated at 80 billion TWD, growing about 20 each year In recent years, the 'drinking coffee' culture in Taiwan has become synonymous with popularity, with coffee being the most frequently chosen daily beverage by 65 of the population Coffee enthusiasts, particularly the more avid ones, are willing to pay more for coffee beans that suit their tastes An increasing number of unmanned drink kiosks have also begun to appear in the Taiwanese beverage market Unmanned coffee beverage shops face difficulties in expanding quickly, primarily due to two major issues one is the appropriateness of customer flow and machine placement locations which still rely on manual analysis the second is penetrating the market of mid to high-end coffee lovers accurately AI resolves two major challenges for autonomous coffee roasters suitable placement and cultivating a loyal customer base To tackle these issues and help autonomous coffee roasters quickly break into the market, Raysharp Electronics intends to implement AI for people flow counting analysis and unfamiliar face recognition These technologies aim to calculate the crowd size at potential roaster locations and classify consumers by gender and age for more precise market analysis They also provide multiple choices for the roasting of raw coffee beans, offering a more customized service tailored to the needs and tastes of professional coffee aficionados with a pack of 'high-quality roasted beans' Since 2018, the rise of unmanned stores has been mainly due to owners wanting to reduce persistently rising rent and personnel costs However, the initial assessment of store locations still requires hourly labor expenses for manual estimation of customer flow, leading to possible miscalculations of both on-site consumers and passerby traffic These inaccuracies may prevent precise real-time analysis of customer flow, or even misguided estimations of operational efficacy after a trial run, thus missing the optimal timing for loss-preventing location retraction Raysharp Electronics introduces autonomous coffee roasters equipped with AI-based people counting analysis and facial recognition Raysharp Electronics combines AI people counting analysis and facial recognition with the coffee trend known as 'black gold', addressing the preferences of numerous coffee connoisseurs in Taiwan who enjoy personally selecting coffee beans at bulk stores and frequenting high-quality grinding cafes or chain coffee shops A new concept for the first autonomous coffee roaster offering choices based on the origin, variety, and roasting methods of coffee beans has emerged AI coffee roasters enhance customer loyalty and materials management efficiency by 20 For the advanced development of autonomous coffee roasters, Raysharp Electronics engineers have equipped the AI NVIDIA development platform on the basis of TCNNFacenet Through AI, tens of thousands of images related to gender and age are used for sample training, allowing even first-time coffee roasting customers to be easily classified using unfamiliar face recognition This gains consumer trust, enhances willingness to use, and allows for recording purchase information and future product recommendations, leading to consumer purchase behavior analysis This information helps owners tailor future material preparation based on consumer preferences for different coffee beans, reducing raw material transportation and storage issues, and improving material management efficiency by 20 Moreover, by placing these autonomous coffee roasters in high-traffic areas, owners can use cameras to capture the crowd and assess whether the machine location has an adequate customer base, quickly analyzing whether to reposition the machines, and more easily targeting the best locations for middle and high-end coffee lovers The unmanned coffee roaster features a professional roasting mode interface, providing options based on the origin and variety of coffee beans, their roasting methods light, medium, deep, and related temperature, wind speed, and timing settings If improvement needs arise during the process, engineers can adjust firmware parameters and also assist in integration with the owner's ordering system Staff members briefly describe the operation of the autonomous coffee roaster 'Black Gold' penetrates deeper into coffee shops, science parks, and commercial buildings through AI This autonomous coffee roaster targets coffee connoisseurs and can be placed in middle to high-end coffee shops to roast more customized coffee beans than those available in bulk stores Upon completing a batch of coffee beans, it immediately provides them to professional technicians within the coffee shops for grinding and manual brewing The remaining roasted beans can also be taken home for brewing and enjoyment It also adds value to coffee shops by better understanding consumer preferences for coffee beans and launching more customer-attracting drink promotions and appropriate inventory management In addition to coffee shops, the autonomous coffee roaster can also utilize AI-based people counting analysis to precisely set up near scientific parks and commercial buildings, offering high-quality coffee beans for office brewing to internal employees with high coffee consumption needs Furthermore, implementing a physical membership system can initiate coffee bean purchase promotions or periodic payment incentives, thus attracting new clients and cultivating existing customer loyalty and retention The operation interface of the smart autonomous coffee roaster「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【導入案例】挺進智慧物流50 新竹物流醫材配送班表超高效率
Advancing to Smart Logistics 5.0: Hsinchu Logistics Delivers Medical Materials with Ultra-High Efficiency

After incorporating AI technology, traditional logistics companies have seen significant improvements in transportation efficiency and reductions in transportation costs, especially in the transfer of medical materials which involves timely service and rights of hospitals and patients The implementation of intelligent logistics can save medical material businesses the cost of constructing GDP warehouses and other expenses up to millions A major domestic logistics leader, Hsinchu Transport HCT, owns a fleet of 3,500 vehicles and a storage area of 60,000 square meters, providing customized logistics solutions including logistics, commerce, finance, information, distribution, storage, and processing The company handles up to 580,000 parcels per day, with a maximum capacity reaching 900,000 parcels, making the enhancement of transshipment efficiency crucial for HCT Medical materials transportation at hospitals need optimization of current operational processes and enhancements in systematization and intelligence Especially the transportation of hospital medical materials, which encounters various challenges Medical materials suppliers need to cater to varying customer product demands, temperature requirements, and delivery times through multiple logistics providers This highly depends on the experience and careful control of operations staff Whether it is the product shipment or actual logistics process, each step must be interconnected Any human errors can impact the service timing and rights of the hospitals and patients Thus, all concerned businesses, along with the government and hospitals, are working to optimize current operational processes and elevate the level of systematization, automation, and intelligence to minimize service errors and cost losses HCT's distribution process prior to AI implementation Currently, with the government's push for standardized platform operations on the demand side of hospitals, supply-side businesses collaborate through data coordination to improve the accuracy and efficiency of product shipments, enhancing operational quality and management benefits at the demand side At the same time, some businesses are also investing in the standardization and systematization of internal operational processes, thus enhancing operational efficiency and quality In the freight logistics sector, logistics companies' warehouse staff need to expend labor to control different logistics shipment operations If they often receive emergency task notifications for shipments to medical facilities, they usually depend on small regional logistics providers to provide customized delivery services Although this improves delivery times, it does not allow for integrated informational services The new GDP regulations for medical materials require suppliers to undergo GDP compliance certification Therefore, Hsinchu Transport, assisted by the Ministry of Economic Affairs' AI coaching program, not only extends existing logistics services compliant with GDP regulations but will also use data integration and optimized AI technologies to help medical material businesses streamline and improve their logistics operations Complex logistics issues are solved using the Simulated Annealing SA algorithm To meet the 'Good Distribution Practices for Medical Devices,' Hsinchu Transport is not only actively introducing new logistics vehicles but will also implement artificial intelligence-based mathematical optimization technologies to assist in intelligent scheduling at nationwide business points and transshipment stations They aim to optimize the routing of medical materials between business points or regions thereby enhancing efficiency in the distribution process Currently, during the transshipment process of medical materials at Hsinchu Transport, detachable tractor heads and containers are used Each business point and transshipment station differ in location design and staffing, impacting the throughput per unit of time Furthermore, daily cargo conditions size, destination vary, and due to these fluctuating and distinct demands, the deployment of tractor heads and containers changes accordingly Under these circumstances, Hsinchu Transport relies on past experiences to schedule departures at each satellite depot and adjusts daily according to the cargo needs Due to the reliance on empirical scheduling, it is often difficult to consider all variables and considerations, leaving room for improvement in the current departure schedules The cargo delivery planning inherently constitutes an NP-Hard problem, difficult to solve with traditional analytical methods Hsinchu Transport, in collaboration with Singular Infinity, utilizes the Simulated Annealing SA algorithm to find solutions The new logistic service introduced by Hsinchu Transport is 'GDP Container Shift Planning' This planning involves estimating future volumes of medical materials between stations and scheduling container truck shifts accordingly, ensuring timely and quality delivery of medical materials while maximizing operational benefits and reducing travel distances Hsinchu Transport introduces AI-optimized shift planning, constructing the most efficient route from its origin to destination Hsinchu Transport introduces 'Optimized Shift Planning' service, reducing transportation costs by 5 The introduction method involves using cloud software services Hsinchu Transport regularly inputs 'Interchange Item Tables' from station to station into the 'Optimized Shift Planning' service After setting the algorithm parameters, a GDP container shift schedule is generated At the same time, developing a Hsinchu Transport medical material scheduling system allows Hsinchu Transport's medical transport units to compile suitable schedules through the Interchange Item Tables Under the same level of service, it's estimated that this can reduce transportation costs by 5, saving medical material businesses millions in construction costs for GDP warehouses and distribution Due to its requirements for sanitation, temperature, and its fragility, the transportation and transshipment of medical materials should be minimized to reduce exposure and risk However, logistics efficiency and costs must still be considered AI designs the most efficient route for each cargo from its origin to destination, effectively completing daily transportation tasks In response to the future high development demand of industrial logistics, distribution and transshipment AI optimization will be a key issue Through this project, a dedicated project promotion organization will be established, staffed with AI technology, IT, and process domain talents After accumulating implementation experience, the application of AI will gradually expand, comprehensively optimizing and transforming Hsinchu Transport's operational system, and partnering with AIOT and various AI domain partners to accelerate and expand the achievement of benefits「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」