• Asia pacific journal of information systems
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• v.8 no.3
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• pp.51-73
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• 1998

This paper is to evaluate the application potentials of data mining in the areas of Supply Chain Management (SCM) and to suggest the architectures of Decision Support Systems (DSS) that support data mining activities. We first briefly introduce data mining and review the recent literatures on SCM and then evaluate data mining applications to SCM in three aspects: marketing, operations management and information systems. By analyzing the cases about pricing models in distribution channels, demand forecasting and quality control, it is shown that artificial intelligence techniques such as artificial neural networks, case-based reasoning and expert systems, combined with traditional analysis models, effectively mine the useful knowledge from the large volume of SCM data. Agent-based information system is addressed as an important architecture that enables the pursuit of global optimization of SCM through communication and information sharing among supply chain constituents without loss of their characteristics and independence. We expect that the suggested architectures of intelligent DSS provide the basis in developing information systems for SCM to improve the quality of organizational decisions.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.65
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• pp.11-22
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• 2001

Recently, many studies on the supply chain management have been published due to increasing attention placed on the design and performance analysis of the supply chain as a whole. Using the Beer distribution game introduced in Sterman[1995], we develop a simple order-up-to-R inventory model to minimize sum of the inventory holding cost and shortage cost under probabilistic demand. We show that performance of the model is robust through extensive simulation experiment. Applying the model to serially connected supply chain, we observe that, if the unit shortage cost is relatively high, R value computed independently is an optimal solution.

• Journal of Forest and Environmental Science
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• v.32 no.2
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• pp.173-181
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• 2016

This study designed a model of the efficient production schemes and raw materials transportation optimization of current South Korean's simple and monolithic distribution system of wood to build a SCM (supply chain management) as a basic level to establish a distribution of future by pellet production of raw materials costs and reduce transport costs, and specifically to forest of pallet to contribute to revitalizing the market. The result of each transportation costs after building the best transportation network from raw material supply area to demand area applying transport law was 964,600 thousands Won from 6 supply areas to 7 demand areas. And the result of each model's analysis to get the pellet's efficient production through production cost reduction showed that it reduced from 325,701 Won/t to 240,106 Won/t, results of existing efficient pellet for the production model 8,233 tons over 20,000 tons annual production capacity from the size of the expanded production capacity when the expansion. However, when the production size expanded to 50,000 Tons of the production, the effect was very small even though production cost decreased.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.3
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• pp.27-40
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• 2006

Today's customer demands in supply chains tend to change quickly, variously even in a short time Interval. The uncertainties of customer demands make it difficult for supply chains to achieve efficient inventory replenishment, resulting in loosing sales opportunity or keeping excessive chain wide inventories. Un this paper, we propose an adaptive vendor managed inventory (VMI) model for a two-echelon supply chain with non-stationary customer demands using the action-reward learning method. The Purpose of this model is to decrease the inventory cost adaptively. The control Parameter, a compensation factor, is designed to adaptively change as customer demand pattern changes. A simulation-based experiment was performed to compare the performance of the adaptive VMI model.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.2
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• pp.45-56
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• 2012

This paper considers a supply chain consisting of a component manufacturer and a product manufacturer. The component manufacturer provides components for the product manufacturer based on a vendor-managed inventory type of supply contract, and also faces demands from the market with the option of to accept or reject each incoming demand. Using the Markov decision process model, we examine the structure of the optimal production control and inventory rationing policy. Two types of heuristics are presented. One is the fixed-buffer policy and the other uses two linear functions. We implement a computational study and present managerial insights based on the observations.

• Journal of the Korea Safety Management & Science
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• v.11 no.3
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• pp.113-119
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• 2009

본 연구는 공급자(supplier), 중간분배자(retailer/distributor) 그리고 고객(customer)으로 구성된 2 단계 공급사슬을 대상으로 공급자가 수요 증대를 목적으로 중간분배자에게 일정기간 동안 제품대금에 대한 지불 연기를 허용한다는 가정 하에 중간분배자의 최적 재고정책 결정을 위한 재고 모형을 다루었다. 소비성 상품의 경우, 고객의 수요는 일반적으로 상품 진열대에 진열되어있는 상품의 재고량에 많은 영향을 받는 것으로 알려져 있다. 따라서 본 연구에서는 이와 같은 상황을 고려하여 고객의 수요가 중간분배자의 재고량에 영향을 받는다는 가정 하에 재고 모형을 설계하였고, 모형 분석을 통하여 이익을 최대화하는 경제적 주문량 결정 방법을 제시하였다. 또한 예제를 통하여 제시된 해법을 적용하고, 그 타당성을 보였다.

• Korean Management Science Review
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• v.25 no.1
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• pp.107-121
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• 2008

As to more efficiently manage the inventory in the retail supply chain and to meet the customer demand in a timely manner, vendor-managed inventory (VMI) has been widely accepted, which manages inventory in the retail supply chain via sharing information and collaborating with the retailers. Applying VMI generates vendor-managed inventory/distribution problem (VMIDP), which involves inventory management for both the vendor and the retailers, and the design of vehicle routes for delivery, to minimize the total operating cost in the supply chain. In this paper, we suggest a mixed integer programming (MIP) model to obtain the optimal solution for VMIDP in a two-echelon retail supply chain, and develop an efficient heuristic based on the operating principles of the MIP model. To evaluate the performance of the heuristic, its solution was compared with the one of the MIP model on a total of twenty seven test problems. As a result, the heuristic found optimal solutions on seven problems in a significantly reduced time, and generated a 4.3% error rate of total cost in average for all problems. The heuristic is applied to the case problem of the local famous franchise company together with GIS, showing that it is capable of providing a solution efficiently in a relatively short time even in the real world situation.

• Journal of the Korean Operations Research and Management Science Society
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• v.35 no.4
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• pp.17-31
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• 2010

This study investigates two-stage return policy and recycling issues in an e-marketplace supply chain consisting of consumers, a retailer and a manufacturer. The manufacturer, a focal company in the e-marketplace supply chain, considers the recycling of commercial returns so offers the retailer a buy-back contract of which transfer payment consists of a wholesale price and a buy-back price. Then, under the given contract offer, the retailer determines a selling price and a return policy to control consumers' demand and return requests. We consider the retailer's opportunistic behavior and supply chain coordination issues based on the principal-agent paradigm. We compare the first-best and second-best optima and conduct comparative static analyses to evaluate the performance results of the buy-back contract and provide important managerial implications.

• Journal of Korean Institute of Industrial Engineers
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• v.30 no.3
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• pp.197-204
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• 2004

This paper deals with a supply chain with a company and its contractor that produces products by the OEM contract with the company. The supply chain of interest has two distinct features. First, the company is the supplier of raw material required in the production at the contractor. Second, the company and its contractor make a delivery shipment arrangement that the replenishment lead time is determined depending on demand process. We show that the optimal inventory policy is monotonically changed as either the replenishment setup cost or inventory holding cost becomes increased or decreased. We also present asymptotic properties of the optimal inventory policy when either the number of outstanding customer orders or the inventory level becomes very large.

• IE interfaces
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• v.17 no.2
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• pp.169-179
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• 2004

In supply chain management, supplier capacity is very important to meet the customer demand quickly. This paper studies a supplier evaluation structure and then suggests a methodology using fuzzy theory for selecting an effective supplier. Several quantitative and qualitative evaluation factors should be analyzed in the evaluation structure. The qualitative factors includes not only product and service qualities but financial condition. The methodology deals with both the quantitative and qualitative factors together through fuzzy inference. A case study is also presented to show how to choose the best one among potential suppliers.