• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.213-220
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• 2009

A revenue sharing contract is one of the mechanisms that coordinate decision makers in a decentralized supply chain toward the consensual goal. The transfer prices between different echelons in the supply chain influence the total supply chain profits. The study aims to explore various transfer pricing heuristics on the supply chain coordination in terms of the supply chain profits and their interactions with the revenue sharing rate. A model is proposed for formulating the collaborative production and distribution planning in a decentralized supply chain with the revenue sharing mechanism. Experiment results indicate that the transfer price and the revenue sharing rate affect significantly the coordination. Among the studied pricing heuristics, the variable-cost pricing method led to the best SC profits. Raising the revenue sharing rate reduced the SC profits no matter what heuristics were employed. Furthermore, the experiments provide us clues for finding the optimal transfer price for the supply chain.

• Management Science and Financial Engineering
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• v.6 no.2
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• pp.1-28
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• 2000

Supply chain management issues faced by a manufacturing company are considered in this paper. The supply chain consists of a manufacturing company and its suppliers. The manufacturer produces multiple products with inputs (e.g., raw materials) from the suppliers, but each product needs a different mix of these inputs. The market demand for the products is uncertain. We develop a mathematical model and algorithm, which can help the manufacturer to solve its procurement decision problem: how much of raw material to order from which supplier. The model incorporates such factors as market demand uncertainty, product's input requirement, supplier's as well as manufacturer's capacity, plus other costs comparable with those in a typical newsboy problem. Numerical examples are presented to see the interacting effects among critical parameters and variables.

• Journal of the Korean Operations Research and Management Science Society
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• v.29 no.3
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• pp.111-127
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• 2004

We consider a supply chain model with a make-to-order production facility and a single supplier. The model we treat here is a special case of a two-echelon inventory model. Unlike classical two-echelon systems, the demand process at the supplier is affected by production process at the production facility as well as customer order arrival process. In this paper, we address that how the demand variability impacts on the optimal replenishment policy. To this end, we incorporate Erlang and phase-type demand distributions into the model. Formulating the model as a Markov decision problem, we investigate the structure of the optimal replenishment policy. We also implement a sensitivity analysis on the optimal policy and establish its monotonicity with respect to system cost parameters.

• Journal of the Korea Institute of Building Construction
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• v.11 no.1
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• pp.91-99
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• 2011

Bayesian network is a form of probabilistic graphical model. It incorporates human reasoning to deal with sparse data availability and to determine the probabilities of uncertain cases. In this research, bayesian network is adopted to model the problem of construction project cost. General information, time, cost, and material, the four main factors dominating the characteristic of construction costs, are incorporated into the model. This research presents verify a model that were conducted to illustrate the functionality and application of a decision support system for predicting the costs. The Markov Chain Monte Carlo (MCMC) method is applied to estimate parameter distributions. Furthermore, it is shown that not all the parameters are normally distributed. In addition, cost estimates based on the Gibbs output is performed. It can enhance the decision the decision-making process.

• Journal of the Korean Operations Research and Management Science Society
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• v.29 no.3
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• pp.63-78
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• 2004

This paper deals with a supplier-managed inventory(SMI) control for a two-echelon supply chain model with a service facility and a single supplier. The service facility is allocated to customers and provides a service using items of inventory that are purchased from the supplier, Assuming that the supplier knows the information of customer queue length as well as inventory position in the service facility at the time when it makes a replenishment decision, we identify an optimal replenishment policy which minimizes the total supply chain costs by reflecting these information into the replenishment decision. Numerical analysis demonstrates that the SMI strategy can be more cost-effective when the information of both customer queue length and inventory position is shared than when the information of inventory position only is shared.

• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.147-160
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• 2007

In this paper, the optimal decision making strategy for resource management is viewed in terms of a combined strategy of planting and producing time. A model which can be used to determine the optimal management strategy is developed, and focuses on how to design the operation of a Markov chain so as to optimize its performance. This study estimated a dynamic stochastic model to compare alternative production style and used the net present value of returns to evaluate the scenarios. The managers in this study may be able to increase economic returns by delaying produce in order to market larder, more valuable commodities.

• Journal of the Korea Safety Management & Science
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• v.6 no.3
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• pp.187-196
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• 2004

By successful establishment of Supply Chain Management System they should make the supply chains speedy and combine production information system with the outcome system and thus they reinforce the competition of the production system of local enterprises in accordance with the rapid decision making. Supply chain coordination improves if all supplier of chain take actions that together increase total supply chain profits. To design of Modularity by the grouping supplier, the proposed method is to develop the most appropriate production system models through the reflection of JIT system in the Supply Chain Management which is necessity of the times and its importance. The objects of this study is to develop the most appropriate production system Model and optimal profit model in the process line and to provide the enterprises with the models which are based on the Supply Chain Management.

• Management & Information Systems Review
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• v.32 no.3
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• pp.107-125
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• 2013

This study deals with a strategic decision making in two level supply chain network design. This study presents more realistic mathematical model than the previous studies by considering simultaneous location of plants and distribution centers, determination of capacity level for both plants and distribution centers, and upper limit condition for numbers of locating plants and distribution centers. This paper tries to help the strategic decision making for two level supply chain network design. For this purpose, three different sized numerical examples are generated and optimal solutions are obtained by applying Excel Solver program. And sensitivity analysis is performed for the biggest sized example problem, which has 10 potential plants, 20 potential distribution centers, and 200 customer zones. After the plants being located are fixed, optimal minimum costs are obtained and compared for each of 7 different numbers of distribution centers to be located. As the number of distribution centers increases, changes in inbound transportation cost and outbound transportation cost can be derived. In case of considering cost as well as customer satisfaction level for two level supply chain network design, the analysis of this changes may help more sophisticated decision making.

• Journal of Distribution Science
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• v.14 no.9
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• pp.47-64
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• 2016

Purpose - This study reviews the past studies that have researched Vendor Managed Inventory (VMI) as a well-known supply chain collaboration program. The main goals of this study are to figure out how VMI brings significant benefits to the supply chain system and suggest additional areas that future studies would address to discover the true nature of VMI. Research design, data, methodology - This study conducts literature reviews on numerous studies that have researched VMI. The past studies are classified in terms of several main issues that have been commonly addressed by many researchers. This study also identifies three key collaborative features of VMI, which possibly explain why VMI improves the supply chain performance. Results - This study finds out that most past studies focused on a limited research issues about VMI. Many researchers have considered integrated decision making and information sharing to be key features that enables VMI to improve the supply chain performance. Conclusions - Based on the findings from the literature review, this study suggests that future studies on VMI take account of new research issues and pay attention to cost payment that researchers have rarely addressed.

• Korean Management Science Review
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• v.29 no.1
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• pp.153-168
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• 2012

Order allocation is one of the most important decision-making problems of firms having significant influences on performances of themselves and the whole supply chain. Existing researches about order allocation have mainly focused on evaluating capabilities of directly connected suppliers so that it is hard to consider effects and interactions from undirected connections over multiple lower-layers. To alleviate the limitation, this paper proposed a novel approach to order allocation using structural hole. By applying the concept of structural hole to the supply network, we could evaluate the structural supplying powers of firms with respect to both of direct and indirect connections. In the proposed approach, we derived a methodology to measure the potential supplying power of each firm by modifying the effective size as one of the measurements of structural hole and then, proposed its application, the structural hole based order allocation strategy. Furthermore, we conducted the agent based modeling of supply chain to perform the decision-making process of order allocation and simulated the proposed strategy. As a results, by coping with the variance of demand more stably, it could improve the performance of supply chain from the aspects of fill rate, inventory level and demand-supply balance.