Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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An integrated Single Vendor-Single Buyer Production Inventory System Incorporating Warehouse Sizing Decisions

창고 크기의사결정을 포함한 단일 공급자구매자 생산재고 통합관리 시스템

  • An, Heungjo (Department of Systems Engineering, King Fahd University of Petroleum and Minerals Dhahran) ;
  • Lee, Hyunsoo (School of Industrial Engineering, Kumoh National Institute of Technology)
  • 안흥조 (킹파드석유광물대학교 시스템공학과) ;
  • 이현수 (금오공과대학교 산업공학부)
  • Received : 2013.02.23
  • Accepted : 2013.09.04
  • Published : 2014.02.15
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Abstract

This study considers warehouse sizing decisions in an integrated single vendor-single buyer production inventory system by incorporating new decision variables and constraints associated with warehouse size into the formulations. Two typical inventory control policies proposed in the literature (i.e., Identical Delivery Quantity and Deliver What is Produced) have been investigated with consideration of warehouse investment costs. The numerical study shows that Deliver What is Produced is less flexible than Identical Delivery Quantity, resulting in the conclusion that the latter would be preferable when considering warehouse investment costs.

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References

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