• Title/Summary/Keyword: Decaying Items

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Distributor's Reliable Price and Inventory Policy for Decaying Items under Permissible Delay in Payments and freight Discount Cost in a Supply Chain (신용거래와 수송비의 할인을 허용하는 공급사슬에서 퇴화성제품에 대한 신뢰성있는 재고 및 가격정책)

  • Shinn Seong-Whan
    • Journal of the Korea Safety Management & Science
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    • v.8 no.2
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    • pp.155-167
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    • 2006
  • 본 논문은 제품공급자, 중간분배자 그리고 고객으로 구성된 2 단계 공급사슬에서 공급자가 수요 증대를 목적으로 중간분배자에게 일정기간 동안 제품대금에 대한 지불연기를 허용하는 상황을 고려하여 중간분배자의 신뢰성있는 판매가격 및 재고보충정책을 결정하는 문제를 다루었다. 문제 분석을 위하여 고려하는 제품은 시간에 따라 일정률로 퇴화한다는 가정과 함께 수송량에 따라 할인되는 수송비를 고려하여 모형을 수립하였고, 중간분배자의 수익 증대를 위한 경제적 판매가격 및 재고보충정책 결정을 위한 해법을 개발하였다.

Sensitivity Analysis for Joint Pricing and Lot-sizing Model with Price Dependent Demand under Day terms Supplier Credit in a Two-stage Supply Chain

  • Shinn, Seong-Whan
    • International Journal of Advanced Culture Technology
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    • v.8 no.2
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    • pp.270-276
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    • 2020
  • In this paper, we analyze the buyer's joint pricing and lot-sizing model in a two-stage supply chain consisting of the supplier, the buyer and the customer. It is assumed that the supplier will permit a certain fixed period for settling the amount the buyer owes to him for the items supplied in order to stimulate the demand for the product. Generally, credit transactions would have a positive effect to the buyer. The availability of credit transactions from the supplier effectively reduces the cost of holding stocks for the buyer and therefore, the buyer has a lot of price options to choose his sales price for a customer in anticipation of increased the customer's demand and, as a result, it will appear to increase the buyer's inventory levels. On the other hand, in the case of decaying products in which their utility decay over time, the decaying rate with time may be expected to reduce inventory levels. In this regard, we need to analyze how much the length of credit period and the decaying rate affect the buyer's pricing and lot-sizing policy. For the analysis, we consider the situation where the customer's demand is represented as a linearly decreasing function of the buyer's sales price. From this perspective, we formulate the buyer's annual net profit and analyze the effect of the length of credit period and decaying rate of the product on the buyer's inventory policy numerically.

A study on a single production inventory model with decaying items (진부화 제품의 단일 생산 재고 모델에 관한 연구)

  • 소재영;윤덕균
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 1995.04a
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    • pp.476-486
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    • 1995
  • In this paper, an attempt has been made to revise Raafat' s(1985) results on an inventory model for decaying raw materials and the finished product at a constant rate which was based on Goyal's integrated inventory model for a single product system. This paper is concerned with scheduling the frequencies of order quantity of several different raw materials on a production inventory model. The purpose of this paper is to present a simple method of deciding the frequencies of order quantity of raw materials, in the sense of minimizing the average total cost of the system. We describe on iterative procedure for directly determining near optimal frequencies of order quantity for the raw materials and the associated fundamental cycle time which can be used for constructing the production duration of the finished product. In cases where feasible schedules cannot be constructed using the values from the iterative procedure, the procedure provides a basis for changing the order quantity frequencies and the fundamental cycle time to obtain feasible schedules. An example is given to illustrate the derived results.

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Buyer's Price and Inventory Policy with Price Dependent Demand for Decaying Items Day terms Supplier Credit in a Two-stage Supply Chain

  • Shinn, Seong-Whan
    • International Journal of Advanced Culture Technology
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    • v.6 no.3
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    • pp.151-162
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    • 2018
  • In deriving the economic order quantity (EOQ) formula, it is tacitly assumed that the buyer has to pay product price while receiving the product from the supplier. However, as a marketing policy, some suppliers permit a delay in payments to the buyers to increase demand for the product they made. Credit transactions would have a positive effect on both suppliers and buyers. For a supplier who offers trade credit, it is an effective means of price differentiation to increase the demand for the product. Availability of opportunity to delay the payment in buyer effectively reduces the cost of holding stocks and therefore, the buyer has a lot of price options to choose his sales price for a customer. Since the buyer's order is affected by the customer's demand, the problems of determining the sales price and EOQ are interdependent and must be solved simultaneously. From this perspective, this paper evaluates the problem of determining the optimal sales price and EOQ for the buyer at the same time when the supplier allows a delay in payments for the product whose demand is represented as a function that decreases linearly with the sales price. For the analysis, it is also assumed that inventory is exhausted not only by customer's but also by decay.

Effectiveness of elimination inflowing algae in water treatment plant using natural algae remover (천연 조류 제거제를 이용한 정수장 유입 조류 제거 효율)

  • Jung, Hoyoung;Kim, Younghee
    • Journal of Korean Society of Water and Wastewater
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    • v.33 no.4
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    • pp.311-319
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    • 2019
  • The purpose of this study was to analyze water treatment characteristics, including the efficiency of removing algae from water purification plants, by installing a demonstration facility for decontamination of algae, including natural algae remover injection equipment, in the water purification plant. Jar-test showed that the optimum injection of natural decontaminant was 20 mg/L. Of the water contaminant treatment efficiency of the intake and water purification plants, Chl-a averaged 74.0% elimination efficiency from $5.0mg/m^3$ to $1.3mg/m^3$ and the maximum treatment efficiency was 91.5% removal efficiency when the inflow concentration of Chl-a was $11.8mg/m^3$. In addition, 51.2% and 47.1% of the taste and odor indicator items, geosmin and 2-MIB, resulted from the overgrowth and decaying of algae, respectively, to identify toxic substances and odor reduction effects. In addition, elimination efficiencies of SS and Turbidity materials were higher than 70.0%. In the injection of natural algae remover, no effects such as sudden changes in water quality due to secondary reactions were found, and appropriate levels were maintained under water treatment conditions.

Joint Price and Lot-size Determination for Decaying Items with Ordering Cost Inclusive of a Freight Cost under Trade Credit in a Two-stage Supply Chain (2 단계 신용거래 공급망에서 운송비용이 포함된 주문 비용을 고려한 퇴화성제품의 재고정책 및 판매가격 결정 모형)

  • Shinn, Seong-Whan
    • The Journal of the Convergence on Culture Technology
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    • v.6 no.2
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    • pp.191-197
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    • 2020
  • As an effective means of price discrimination, some suppliers offer trade credit to the distributors for the purpose of increasing the demand of the product they produce. The availability of the delay in payments from the supplier enables discount of the distributor's selling price from a wider range of the price option in anticipation of increased customer's demand. In this regard, we consider the problem of determining the distributor's optimal price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is represented by a constant price elasticity function. It is assumed that the distributor pays the shipping cost for the order and hence, the distributor's ordering cost consists of a fixed ordering cost and the shipping cost that depend on the order quantity. For the analysis, it is also assumed that inventory is depleted not only by customer's demand but also by decay. We are able to develop a solution algorithm from the properties of the mathematical model. A numerical example is presented to illustrate the algorithm developed.