• Proceedings of the Korean Operations and Management Science Society Conference
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• 1999.04a
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• pp.426-426
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• 1999

;There are many sources of uncertainty in a typical production and inventory system. There is uncertainty as to how many items customers will demand during the next day, week, month, or year. There is uncertainty about delivery times of the product. Uncertainty exacts a toll from management in a variety of ways. A spurt in a demand or a delay in production may lead to stockouts, with the potential for lost revenue and customer dissatisfaction. Firms typically hold inventory to provide protection against uncertainty. A cushion of inventory on hand allows management to face unexpected demands or delays in delivery with a reduced chance of incurring a stockout. The proposed strategies are used for the design of a probabilistic inventory system. In the traditional approach to the design of an inventory system, the goal is to find the best setting of various inventory control policy parameters such as the re-order level, review period, order quantity, etc. which would minimize the total inventory cost. The goals of the analysis need to be defined, so that robustness becomes an important design criterion. Moreover, one has to conceptualize and identify appropriate noise variables. There are two main goals for the inventory policy design. One is to minimize the average inventory cost and the stockouts. The other is to the variability for the average inventory cost and the stockouts The total average inventory cost is the sum of three components: the ordering cost, the holding cost, and the shortage costs. The shortage costs include the cost of the lost sales, cost of loss of goodwill, cost of customer dissatisfaction, etc. The noise factors for this design problem are identified to be: the mean demand rate and the mean lead time. Both the demand and the lead time are assumed to be normal random variables. Thus robustness for this inventory system is interpreted as insensitivity of the average inventory cost and the stockout to uncontrollable fluctuations in the mean demand rate and mean lead time. To make this inventory system for robustness, the concept of utility theory will be used. Utility theory is an analytical method for making a decision concerning an action to take, given a set of multiple criteria upon which the decision is to be based. Utility theory is appropriate for design having different scale such as demand rate and lead time since utility theory represents different scale across decision making attributes with zero to one ranks, higher preference modeled with a higher rank. Using utility theory, three design strategies, such as distance strategy, response strategy, and priority-based strategy. for the robust inventory system will be developed.loped.

• Industrial Engineering and Management Systems
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• v.13 no.2
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• pp.129-147
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• 2014

This study proposes an optimal operational policy for a green supply chain (GSC) where a retailer pays an incentive for collection of used products from customers and determines the optimal order quantity of a single product under uncertainty in product demand. A manufacturer produces the optimal order quantity of product using recyclable parts with acceptable quality levels and covers a part of the retailer's incentive from the recycled parts. Here, two scenarios for the product demand are assumed as: the distribution of product demand is known, and only both mean and variance are known. This paper develops mathematical models to find how order quantity, collection incentive of used products and lower limit of quality level for recycling affect the expected profits of each member and the whole supply chain under both a decentralized GSC (DGSC) and an integrated GSC (IGSC). The analysis numerically compares the results under DGSC with those under IGSC for each scenario of product demand. Also, the effect of the quality of the recyclable parts on the optimal decisions is shown. Moreover, supply chain coordination to shift the optimal decisions of IGSC is discussed based on: I) profit ratio, II) Nash bargaining solution, and III) Combination of (I) and (II).

• Environmental and Resource Economics Review
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• v.28 no.2
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• pp.177-200
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• 2019

Energy demand forecast which serves as an essential input in energy policy is exposed to multiple factors of uncertainty such as GDP and weather forecast uncertainty. The Master Plan of Electricity Market in Korea which is biennially prepared is critically based on fluctuating energy demand forecast whereas its resulting proposal on electricity generation mix is substantially irreversible. The paper provides a real options model to evaluate energy transition policy by considering Knightian uncertainty as a measure to study multiple uncertainties with multiple set of probability distributions. Our finding is that the current energy transition policy under the master plan is not robust in terms of securing stable management of electricity demand and supply system.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.11
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• pp.2136-2141
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• 2009

Transmission planning is an important part of power system planning to meet an increasing demand for electricity. The objective of transmission expansion is to minimize operational and construction costs subject to system constraints. There is inherent uncertainty in transmission planning due to errors in forecasted demand and fuel costs. Therefore, transmission planning process is not reliable if the uncertainty is not taken into account. The paper presents a systematic method to find the optimal location and amount of transmission expansion using Cross-Entropy (CE) incorporating uncertainties about future power system conditions. Numerical results are presented to demonstrate the performance of the proposed method.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.44 no.4
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• pp.220-226
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• 2021

In supply chain, there are a variety of different uncertainties including demand, service time, lead time, and so forth. The uncertainty of demand has been commonly studied by researchers or practitioners in the field of supply chain. However, the uncertainty of upstream supply chain has also increased. A problem of uncertainty in the upstream supply chain is the fluctuation of the lead time. The stochastic lead time sometimes causes to happen so called the order crossover which is not the same sequences of the order placed and the order arrived. When the order crossover happens, ordinary inventory policies have difficult to find the optimal inventory solutions. In this research, we investigate the lead time distribution in case of the order crossover and explore the resolutions of the inventory solution with the order crossover.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.5
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• pp.117-126
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• 2017

This study analyzed both the effect small and medium-sized suppliers' SCM capacity on the performance and how the moderating effect of demand uncertainty as an environmental factor affects this relation. The study is based on the data collected from the survey of small and medium-sized suppliers operating in electronics, metal, machinery, automobile, and textile. It analyzed the results of survey targeting suppliers of these areas by using structure equation modeling. According to the analyzed result, the relation capital of small and medium-sized supplier affects the performance, but there is no relation between coordination capability and the performance. In case of the moderating effect of demand uncertainty, while there is a positive moderating effect of demand uncertainty between relation capital and performance, there is no any moderating effect between coordination capability and performance. It turns out that the relation capital keep having a positive effect on the performance even if there is a demand uncertainty.

• Proceedings of the Korea Information Processing Society Conference
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• 2021.05a
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• pp.373-376
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• 2021

Deep neural networks have achieved almost human-level results in various tasks and have become popular in the broad artificial intelligence domains. Uncertainty estimation is an on-demand task caused by the black-box point estimation behavior of deep learning. The deep ensemble provides increased accuracy and estimated uncertainty; however, linearly increasing the size makes the deep ensemble unfeasible for memory-intensive tasks. To address this problem, we used model pruning and quantization with a deep ensemble and analyzed the effect in the context of uncertainty metrics. We empirically showed that the ensemble members' disagreement increases with pruning, making models sparser by zeroing irrelevant parameters. Increased disagreement implies increased uncertainty, which helps in making more robust predictions. Accordingly, an energy-efficient compressed deep ensemble is appropriate for memory-intensive and uncertainty-aware tasks.

• Earthquakes and Structures
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• v.22 no.2
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• pp.157-168
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• 2022

A moment-independent importance measure analysis approach was introduced to quantify the effects of structural uncertainty parameters on probabilistic seismic demands of simply supported girder bridges. Based on the probability distributions of main uncertainty parameters in bridges, conditional and unconditional bridge samples were constructed with Monte-Carlo sampling and analyzed in the OpenSees platform with a series of real seismic ground motion records. Conditional and unconditional probability density functions were developed using kernel density estimation with the results of nonlinear time history analysis of the bridge samples. Moment-independent importance measures of these uncertainty parameters were derived by numerical integrations with the conditional and unconditional probability density functions, and the uncertainty parameters were ranked in descending order of their importance. Different from Tornado diagram approach, the impacts of uncertainty parameters on the whole probability distributions of bridge seismic demands and the interactions of uncertainty parameters were considered simultaneously in the importance measure analysis approach. Results show that the interaction of uncertainty parameters had significant impacts on the seismic demand of components, and in some cases, it changed the most significant parameters for piers, bearings and abutments.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.431-434
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• 2006

Due to rapid technology shifts and demand uncertainty, there is a high risk that inventoried products will become obsolete. Consequently companies have to decide capacities considering product life cycle and demand variation. In this paper, 1 will analyze previous research, and then provide taxonomy of them and propose further research directions.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.4
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• pp.137-146
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• 2016

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.