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http://dx.doi.org/10.11627/jkise.2016.39.4.137

Optimization Methodology for Sales and Operations Planning by Stochastic Programming under Uncertainty : A Case Study in Service Industry  

Hwang, Seon Min (Department of Logistics Management, Graduate School of Logistics, Incheon National University)
Song, Sang Hwa (Department of Logistics Management, Graduate School of Logistics, Incheon National University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.39, no.4, 2016 , pp. 137-146 More about this Journal
Abstract
In recent years, business environment is faced with multi uncertainty that have not been suffered in the past. As supply chain is getting expanded and longer, the flow of information, material and production is also being complicated. It is well known that development service industry using application software has various uncertainty in random events such as supply and demand fluctuation of developer's capcity, project effective date after winning a contract, manpower cost (or revenue), subcontract cost (or purchase), and overrun due to developer's skill-level. This study intends to social contribution through attempts to optimize enterprise's goal by supply chain management platform to balance demand and supply and stochastic programming which is basically applied in order to solve uncertainty considering economical and operational risk at solution supplier. In Particular, this study emphasizes to determine allocation of internal and external manpower of developers using S&OP (Sales & Operations Planning) as monthly resource input has constraint on resource's capability that shared in industry or task. This study is to verify how Stochastic Programming such as Markowitz's MV (Mean Variance) model or 2-Stage Recourse Model is flexible and efficient than Deterministic Programming in software enterprise field by experiment with process and data from service industry which is manufacturing software and performing projects. In addition, this study is also to analysis how profit and labor input plan according to scope of uncertainty is changed based on Pareto Optimal, then lastly it is to enumerate limitation of the study extracted drawback which can be happened in real business environment and to contribute direction in future research considering another applicable methodology.
Keywords
S&OP; Markowitz's MV Model; Recourse Model; Uncertainty; Pareto Optimal;
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Times Cited By KSCI : 3  (Citation Analysis)
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