• Management Science and Financial Engineering
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• v.15 no.1
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• pp.1-31
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• 2009

This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

• Journal of Information Technology Services
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• v.11 no.3
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• pp.67-87
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• 2012

These days, firms are focusing on the improvement of relationships with business partners. The supply chain integrations are taking critical role in improving the relationships with business partners. In accordance with the development of the IT technology, it became possible for firms not only to integrate inner parts of the organization, but also to integrate the company with other organizations in the supply chain, which is open system. Therefore, in e-Biz environments, it is imperative for firms to strengthen the core capacity through the supply chain integration, and to precisely determine the components of the determinants of e-Business integration which impact the firm performance. This study analyzed determinants that have impacts on business integration in IT capacity perspectives in competetive environments. We analyzed 163 domestic companies to find out many significant suggestive points. First, IT management capacity, process innovation capacity are adopted as determinants of differentiation and competetive edges against competing firms. Second, it is analyzed that the more the companies are in intensified competetive environment, the more likley that the innovation capacity and partner management capacity become the determinants of the business integration of the companies and that they pursue new market development strategy. Third, it is analyzed that the more the companies are in high demand fluctuation, the more likley that the innovation capacity becomes the determinants of the business integration of the companies, and that they pursue new market development strategy and operation efficiency strategy. Last, it is analyzed that the more the companies are Technology dependent, the more likely that IT management capacity and process innovation capacity become the determinants of business integration, and that they pursue new market development strategy and operation efficiency strategy. These results provide us the foundation that the determinants that we have analyzed can impact the supply chain integration strategies which take into account the competetive environments.

• Journal of the Korea Fashion and Costume Design Association
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• v.22 no.2
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• pp.29-43
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• 2020

This study investigated the luxury supply chain management called 'See now, Buy now'. This has been a new way of controlling the supply and demand for luxury brands in the fashion industry since 2016. In this study, we explored the backgrounds and impacts of 'See now, Buy now' in the digital era. 'See now, Buy now' was launched by the fashion brand, Burberry in February 2016. It was the first luxury brand to showcase its entire collection using 'See now, Buy now' among the brands which showcase in Paris, Milan, New York, and London fashion weeks. That has not only caused many controversies in the fashion world but also generated followers. In this study, we analyzed 'See now, Buy now' in three aspects, economics, efficiency, and management strategy, and this was done through a literature survey on articles pertaining to 'See now, Buy now' and empirical surveys on Burberry's collections. Based on 'See now, Buy now', Burberry tried a new process of supply and sale. In the era of SNS, the spread of information is getting faster. The speed of SNS and changes in the fashion market combining IT and mobile technology are major changes faced by the fashion industry. 'See now, Buy now', a model of the new supply and demand in luxury fashion brands, should be noted as a new directional aspect for the future of the fashion industry. Since it was a relatively recent trend that started from the September show of Burberry in 2016, there was still a lack of academic discussion or prior research on this phenomenon. Therefore this study aimed to predict future directions by recognizing the importance of 'See now, Buy now' in the fashion industry. Also, based on this research, the significance of this study was to present a management strategy that applies 'See now, Buy now' to the future of the fashion industry in the digital era.

• Journal of Korea Trade
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• v.27 no.5
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• pp.23-40
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• 2023

Purpose - This study aims to present the changes and directions in the automotive supply chain in the face of changes in the global supply chain caused by external factors and the integration of industries resulting from internal factors. Assuming FDI in the Korean automotive industry in the US, this study analyzed the influential factors over the long term and derived the optimal location. Design/methodology - For this analysis, the characteristics and current status of the automotive industry are presented. Additionally, the study emphasizes the necessity and direction of change. The factors influencing Korea-US FDI in the automotive industry and the electric vehicle industry were analyzed through panel analysis. The optimal location from the perspective of distribution costs was selected using linear programming under the assumption that local demand will be replaced by local production in the future. Findings - This study found that the electric vehicle supply chain will change with the characteristics of the electric and electronic industries rather than with the traditional automotive industry. Additionally, in deriving the optimal location, the study emphasized the proximity to the consumption market. Originality/value - The analysis method and conclusions of this study not only present the influential factors and direction of FDI in the automotive industry but also can be applied to other industries. Moreover, the study provides practical and policy implications for industries and governments considering FDI in the US.

• Industrial Engineering and Management Systems
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• v.8 no.2
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• pp.80-92
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• 2009

This paper addresses the inventory rationing issue embedded in the regional supply chain inventory replenishment problem (RSIRP). The concerned supply chain, which was fed by the national supply chain, consisted of a single warehouse distributing a single product to multiple stores (M-stores) with independent and normally distributed customer demand. It was assumed that the supply chain operated under the order-up-to level inventory replenishment system and had only one truck at the regional warehouse. The truck could make one replenishment trip to one store per period (a round trip per period). Based on current inventories and the vehicle constraint, the warehouse must make two decisions in each period: which store in the region to replenish and what was the replenishment quantity? The objective was to position inventories so as to minimize lost sales in the region. The warehouse inventory was replenished in every fixed-interval from a source outside the region, but the store inventory could be replenished daily. The truck destination (store) in each period was selected based on its maximum expected shortage. The replenishment quantity was then determined based on the predetermined order-up-to level system. In case of insufficient warehouse inventories to fulfill all projected store demands, an inventory rationing rule must be applied. In this paper, a new inventory rationing rule named Expected Cost Minimization (ECM) was proposed based on the practical purpose. The numerical results based on real data from a selective industry show that its performance was better and more robust than the current practice and other sharing rules in the existing literature.

• Journal of the Korea Safety Management & Science
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• v.5 no.2
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• pp.129-143
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• 2003

Bsusiness-to- Business transactions requires interactions between diverse application s and business. This gives rise to the need to for a common standard and protocol for exchanging busienss messages. and RosettaNet is the leading industry organization focused on developing B2B process standard for a global supply chain. This paper is intended as an investigation of Build-up Method of SCM Connection applying EC Standard(Rossetta-net) to reduce the integration effort, and improve extensibility and interoperability of an eBusiness infrastructure.-Intiative way for E-commerce applications to quickly incorporate new standards. Supply Chain Management (SCM) helps companies plan and execute supply to meet customer demand. The researches of modem scientists have thrown new light on the subject. but, The study of SCM for EC Standard has been strangely neglected by critics. Consequently, existing SCM system, which require to introduce the functions of EC, needs to be changed. Let me summarize the main points that have been made in this paper. The sharing information for connection and the Rosetta-net standard of the existing SCM system, and PIP 3A4, order management module, of the Rosetta-net specifications for connection by the Rosetta-net. Lastly, That shows the process of the gateway for connecting among the existing SCM systems. This provides felxibility in incorporating any new emerging open standard.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.363-370
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• 2002

This paper presents a production planning algorithm for minimizing the costs of production and subcontracting in SCM (supply chain management) environment. In our SCM environment, the several local plants that aye dispersed geographically produce parts and products. In this environment, we have to decide the production volumes of both parts and products considering the BOM (bill-of-material) structure to meet the fixed order quantity or forecasted demand quantity. Each plant produces the specified parts of product with finite production capacity. There exist subcontracting decisions relevant to the production capacity of each plant except the core process plant, and when we use the subcontractor's capacities we should be charged for the fixed subcontracting fees. The objective of this study is to solve the production planning problem, which minimizes the total costs of production, inventory, setup, and subcontracting under constraints of production and subcontracting capacity. For this problem, an integrated production planning model based on the multi-level capacitated lot sizing problem was formulated, and efficient decomposition algorithm was proposed. The experimental investigation shows that the proposed heuristic generates quite good solutions at very low computational costs.

• Journal of the Korean Operations Research and Management Science Society
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• v.39 no.2
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• pp.49-66
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• 2014

This paper studies optimal consumption and investment behaviors of an individual when risky asset returns and her income are affected by the business cycle. The investor considers the incomplete information risk of unobservable macroeconomic conditions and updates her belief of expected risky asset returns through Bayesian learning. We find that the optimal investment strategy, certainty equivalent wealth, and portfolio hedging demand significantly depend on the belief about the macroeconomic conditions.

• 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.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.4
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• pp.15-25
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• 2016

SCM activities in a company are considered as total innovation through synchronizing supply and demand while maintaining appropriate inventory level and reducing the business operating costs. Until now, even several researches are carried out on the SCM performance of the companies which have introduced and been operating SCM, the research on the cost analysis for the inventory which occurs frequently on supply chain is still insufficient. Especially, for the electronics industry in which the product depreciation is sharp caused by the short product life cycle and the complexity of distribution channels, even the inventory related costs are a major factor in business management, since the current estimated criteria of inventory costs are limited to the interest and maintenance management costs, the criteria do not reflect the total influence of the product depreciation and lost opportunity cost which are related to the business management. Furthermore, even though the rapid price drops of the distributor inventory caused by the frequent new model launch can be covered by the product manufacturers, the scale of total costs related to the inventory has not been conceived because the price compensation is traditionally considered as a market costs. In this research, we analyzed the inventory characteristics of electronics industry in which the price depreciation happens frequently, newly defining the estimated criteria of the product total inventory cost which includes price depreciation from the product manufacturers' view. Finally we focus on the case study of a representative electronics company and verify the scale of the influence on management performance.