• Title/Summary/Keyword: Demand chain management

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A Decision Support System for the Operations of Vending Machine Supply Chains in a Green Logistics Environment (녹색물류 환경에서 자판기 공급사슬 운영을 위한 의사결정지원시스템의 개발)

  • Park, Yang-Byung;Yoon, Sung-Joon
    • IE interfaces
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    • v.25 no.3
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    • pp.338-346
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    • 2012
  • Regarding the green environment, it is important to boost the spread of environmentally friendly vending machines and to operate the vehicles for their inventory replenishments while minimizing emissions of greenhouse gases. In general, the vending machine management company lacks capability to operate the supply chain effectively in an integrated way under the dynamic, complex, and stochastic environment. This paper presents a decision support system, termed DSSVM, for the operations of the general and smart vending machine supply chains with stock-out-based, one stage item substitution in a green logistics environment. The DSSVM supports the estimation of item demand and substitution probabilities, determination of operation parameters, supply chain analysis, what-if analysis, and $CO_2$ analysis for which various analytical models are employed.

Humanitarian Relief Logistics with Time Restriction: Thai Flooding Case Study

  • Manopiniwes, Wapee;Nagasawa, Keisuke;Irohara, Takashi
    • Industrial Engineering and Management Systems
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    • v.13 no.4
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    • pp.398-407
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    • 2014
  • Shortages and delays in a humanitarian logistics system can contribute to the pain and suffering of survivors or other affected people. Humanitarian logistics budgets should be sufficient to prevent such shortages or delays. Unlike commercial supply chain systems, the budgets for relief supply chain systems should be able to satisfy demand. This study describes a comprehensive model in an effort to satisfy the total relief demand by minimizing logistics operations costs. We herein propose a strategic model which determines the locations of distribution centers and the total inventory to be stocked for each distribution center where a flood or other catastrophe may occur. The proposed model is formulated and solved as a mixed-integer programming problem that integrates facility location and inventory decisions by considering capacity constraints and time restrictions in order to minimize the total cost of relief operations. The proposed model is then applied to a real flood case involving 47 disaster areas and 13 distribution centers in Thailand. Finally, we discuss the sensitivity analysis of the model and the managerial implications of this research.

An Integrated Control Problem of Secondary Sourcing and Inventory in A Supply Chain (공급체인에 있어서 이차원천과 재고의 통합적 통제에 관한 연구)

  • Kim, Sung-Chul
    • Journal of the Korean Operations Research and Management Science Society
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    • v.32 no.1
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    • pp.93-104
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    • 2007
  • We consider a supply chain where products are shipped to warehouse from manufacturing system to customers. Products are supplied from either in-house regular manufacturing or the secondary source such as subcontractor. The inventory in warehouse is controlled by base-stock policy, that is, whenever a demand arrives from customer, an order is released to the manufacturing system. Unsatisfied demand is backlogged. The manufacturing system is modeled as M/M/s+1/c queueing system, and the orders exceeding the given limit care blocked and lost. The steady state distribution of the outstanding orders and the throughput of the manufacturing system are functions of the level of engagement In the secondary source. There is a profit obtained from throughput and cost not only due to the engagement of the secondary source in the manufacturing system but also inventory positions. We want to maximize the total production profit minus the total cost of the production system by simultaneously determining the optimal level of engagement of the secondary source and the optimal base-stock level of the inventory. We develop two algorithms : one without guarantee of the optimal solution but with the small number of computations, the other optimal but with more computations.

The Development of Simulator for Supply Chain Design and Planning (공급사슬 설계 및 계획을 위한 시뮬레이터 개발)

  • Suk Jae Jeong;Kyung Sup Kim
    • Journal of the Korea Society for Simulation
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    • v.12 no.4
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    • pp.1-15
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    • 2003
  • To satisfy and respond quickly to customers' demand, many companies are now aggressively focusing on supply chain management in order to strengthen their competitiveness. The modeling and analysis of supply chain environment have been widely studied. This study is concerned with the development of supply chain simulator which deals with stochastic natures existing in the supply chain environment. We proposed the mathematical model for the efficient cost analysis and developed the supply chain simulator based on the proposed mathematical model with object-oriented language C++. The simple experiment which find the best combination of policies considering the whole cost shows the possibility and reasonability of the developed simulator.

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Safety Stock Management Framework for Semiconductor Enterprises Under Demand and Lead Time Uncertainties (반도체부품 수요 및 납기 불확실성을 고려한 안전재고 설정 프레임워크)

  • Ho-Sin Hwang;Su-Yeong Kim;Jin-Woo Oh;Se-Jin Jung;In-Beom Park
    • Journal of the Semiconductor & Display Technology
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    • v.22 no.2
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    • pp.104-111
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    • 2023
  • The semiconductor industry, which relies on global supply chains, has recently been facing longer lead time for material procurement due to supply chain uncertainties. Moreover, since increasing customer satisfaction and reducing inventory costs are in a trade-off relationship, it is challenging to determine the appropriate safety stock level under demand and lead time uncertainties. In this paper, we propose a framework for determining safety stock levels by utilizing the optimization method to determine the optimal safety stock level. Additionally, we employ a linear regression method to analyze customer satisfaction scores and inventory costs based on variations in lead time and demand. To verify the effectiveness of the proposed framework, we compared safety stock levels obtained by the regression equations with those of the conventional method. The numerical experiments demonstrated that the proposed method successfully reduces inventory costs while maintaining the same level of customer satisfaction when lead time increases.

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Purchasing and Inventory Policy in a Supply Chain under the Periodic Review: A Single Manufacturer and Multiple Retailers’ Case

  • Prasertwattana, K.;Chiadamrong, N.
    • Industrial Engineering and Management Systems
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    • v.3 no.1
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    • pp.38-51
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    • 2004
  • Over the years, most or many companies have focused their attention to the effectiveness and efficiency of their business units. As a new way of doing business, these companies have begun to realize the strategic importance of planning, controlling, and designing their own supply chain system. This paper analyzes the coordination issues in supply chains that consist of one manufacturer and multiple retailers operating under uncertain end customer demand and delivery lead-time. We use the Genetic Algorithm (GA) to determine the appropriate ordering and inventory level at which the manufacturer and multiple retailers can maximize the profit of the chain. This is performed under three controlling policies: the traditionally centralized controlling policy under the manufacturer's perspective, the entire chain’s perspective, and lastly the coordinating controlling policy with an incentive scheme. The outcome from the study reveals that the coordinating controlling policy with an incentive scheme can outperform the traditional centralized controlling policies by creating a win-win situation in which all members of the chain benefit from higher profit, thus resulting in more willingness from all members to join the chain.

On the Selection of Demand Used in Planning for the Distribution Networks

  • Jun Geol, Baek
    • Journal of the Korea Safety Management & Science
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    • v.6 no.1
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    • pp.135-146
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    • 2004
  • This paper first addresses a distribution planning method on centrally controlled supply chain. The distribution channels are assumed to be network of arborescence form. For such distribution networks, this study proposes a distribution planning scheme when the demands for retail sites are provided for a given planning horizon. As the planning horizon rolls forward, for a new horizon, forecasted demand distributions of periods in the horizon are updated. An idea of controlling customer service level by the selection of demand to be used in the planning (Demand Used in Planning, DUP) from the forecasted values is also discussed.

An Adaptive Multi-Echelon Inventory Control Model for Nonstationary Demand Process

  • Na, Sung-Soo;Jun, Jin;Kim, Chang-Ouk
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.05a
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    • pp.441-445
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    • 2004
  • In this paper, we deal with an inventory model of a multi-stage, serial supply chain system where a single product type and nonstationary customer demand pattern are considered. The retailer and suppliers place their orders according to an echelon-stock based replenishment control policy. We assume that the suppliers can access online information on the demand history and use this information when making their replenishment decisions. Using a reinforcement learning technique, the inventory control parameters are designed to adaptively change as the customer demand pattern is altered, in order to maintain a given target service level. Through a simulation based experiment, we verified that our approach is good for maintaining the target service level.

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Assessing the Effects of Supply Uncertainty on Inventory-Related Costs (공급업자의 공급불확실성이 재고관리 비용에 미치는 효과에 관한 연구)

  • 박상욱
    • Journal of the Korean Operations Research and Management Science Society
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    • v.26 no.3
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    • pp.105-117
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    • 2001
  • This paper models supply uncertainty in the dynamic Newsboy problem context. The system consists of one supplier and one retailer who places an order to the supplier every period to meet stochastic demand. Supply uncertainty is modeled as the uncertainty in quantities delivered by the supplier. That is, the supplier delivers exactly the amount ordered by the retailer with probability of $\beta$ and the amount minus K with probability of (1-$\beta$). We formulate the problem as a dynamic programming problem and prove that retailer’s optimal replenishment policy is a stationary base-stock policy. Through a numerical study, we found that the cost increase due to supply uncertainty is significant and that the costs increase more rapidly as supply uncertainty increases. We also identified the effects of various system parameters. One of the interesting results is that as retailer’s demand uncertainty, the other uncertainty in our model, increases, the cost increase due to supply uncertainty becomes less significant.

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Design of Capable to Promise Using Lifetime Value (고객생애가치를 이용한 납기확약 모델 구현에 관한 연구)

  • 박재현;양광모;강경식
    • Journal of the Korea Safety Management & Science
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    • v.4 no.2
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    • pp.71-81
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    • 2002
  • Today's environment of enterprise is changing. They have to face customer' demands with the right product, the right service and supply them at the right time. And also cut down logistics and inventory cost and bring up the profit as much as they can. This means the change of putting enterprise first in importance to putting customer first importance. therefore to correspond to customer's demand, shorting lead time is becoming a essential condition. The answer to this changes of environment is supply chain management. In the Supply chain, The ATP function doesn't only give customers to conformation of delivery. It can be used by the core function with ATP rule that can reconcile supplies and demands on the supply chain. Therefore We can be acquire the conformation about on the due date of supplier by using the ATP function of management about real and concurrent access on the supply chain, also decide the affect about product availability due to forecasting or customer's orders through the ATP. In this paper, It consolidates the necessity on a CTP and analyzes data which is concerned of ATP. Under the these environments, defines the ATP rule that can improve the customer value and data flow related the LTV(Life Time Value) and builds on a algorithm.