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http://dx.doi.org/10.7737/KMSR.2013.30.3.017

Application of Purchase Dependence in Inventory Management  

Park, Changkyu (울산대학교 경영대학 경영학부)
Seo, Junyong (울산대학교 경영대학 경영학부)
Publication Information
Korean Management Science Review / v.30, no.3, 2013 , pp. 17-31 More about this Journal
Abstract
The purpose of this paper is to illustrate the importance of identifying and considering 'purchase dependence' when purchase of an item is dependent on availability of other items demanded in the same order. This paper is the first study to develop an inventory model for purchase-dependent inventory systems. Through simulation experiments, we demonstrate that the developed inventory model incurs less inventory operations cost than other inventory models that ignore purchase dependence. For empirical validation of the developed inventory model, the actual inventory data at the Hyundai Engine Europe Service Center is used. We explain the process of identifying purchase dependencies among items through a data mining technique. The empirical study results in similar results to the simulation experiment, demonstrating that the developed inventory model is applicable to real situations.
Keywords
Purchase Dependence; Inventory Model; Association Rule; Data Mining; Ship Engine Spare Parts;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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