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The Effect of Quantity Flexibility Contract on the Military Medicine Inventory Using Dynamic Simulation  

Choi, Young-Su (국방대학교)
Moon, Seoung-Am (국립 국방대학교 국방관리학처)
Kim, Dong-Jin (부산대학교 국제전문대학원)
Publication Information
Journal of the military operations research society of Korea / v.34, no.2, 2008 , pp. 27-42 More about this Journal
Abstract
This study simulated the effect of the quantity flexibility contract(QFC) on the Korean military inventory system. The results shows that the QFC make the inventory system more efficient. For validity of this study, we assume the basic four demand patterns (increase, decrease, high variation and long seasonality) which are the exogenous variables of these simulation systems. We measured the difference of the traditional military inventory system's and new QFC system's performances. Under the all demand patterns, QFC models have little inventory than the traditional systems. We suggest, therefore, the military change the supply contract into QFC for decrease inventory and expect the results of this study applied to the company level.
Keywords
Supply Contract; Quantity flexibility Contract; System Dynamics;
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