• Journal of the Korea Society of Computer and Information
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• v.14 no.2
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• pp.211-219
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• 2009

The logistic environment of Korean companies faces very challenging circumstances due to lack of resources and tough price competitions. It is obvious that such a load of logistic cost becomes an obstacle to national or business competition advantages in the era of unlimited market competition. Prior studies concerning these issues sought to express a large-scale distribution network in a unified numerical formula using defined symbols and could take systematic approaches to distribution network. But inventory policy and operation in material distribution system have been limited to conventional methodology. so they are exposed to many questions in practical applications. This study analyzed distribution system cost and developed a relevant model for operation policy of distribution system for the efficeient treating of stockout. allowing practical applications, so that it will contribute to saving operational cost related to material distribution system.