• Management Science and Financial Engineering
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• 제17권2호
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• pp.1-21
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• 2011

This paper considers an integrated inventory-distribution system with a fleet of heterogeneous vehicles employed where a single warehouse distributes a single type of products to many spatially distributed retailers to satisfy their dynamic demands. The problem is to determine order planning at the warehouse, and also vehicle schedules and delivery quantities for the retailers with the objective of minimizing the sum of ordering cost at the warehouse, inventory holding cost at both the warehouse and retailers, and transportation cost. For the problem, we give a Mixed Integer Programming formulation and develop a Lagrangean heuristic procedure for computing lower and upper bounds on the optimal solution value. The Lagrangean dual problem of finding the best Lagrangrean lower bound is solved by subgradient optimization. Computational experiments on randomly generated test problems showed that the suggested algorithm gives relatively good solutions in a reasonable amount of computation time.

• 산업경영시스템학회지
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• 제30권3호
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• pp.12-19
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• 2007

This paper is to determine the transportation size and the location of distribution centers to minimize logistics cost in a distribution system where products are transported from the distribution centers to the retailers. Logistics cost consists of the fixed cost of distribution centers, the transportation cost from the distribution centers to the retailers and the inventory holding cost in the retailers. The logistics cost is affected by the transportation size and the location of distribution centers. The transportation size affects transportation cost and inventory holding cost. The location of distribution centers affects the transportation cost. A mathematical model is formulated and the algorithm is developed. A numerical example is shown to explain the problem.

• 산업경영시스템학회지
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• 제21권48호
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• pp.37-52
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• 1998

In many distribution systems important cost reductions and/or service improvements may be achieved by adopting an efficient inventory policy and proper selection of facilities. These efficiency improvements and service enhancements clearly require an integrated approach towards various logistical planning functions. The areas of inventory control and transportation planning need to be closely coordinated. The purpose of this paper is to construct an integrated model that can minimize the total cost of the transportation and inventory systems between multiple origin and destination points, where in origin point i has the supply of commodities and in destination point j requires the commodities. In this case, demands of the destination points are assumed random variables which have a known probability distribution. Using the lot-size reorder-point policy and the safety stock level that minimize total cost we find optimal distribution centers which transport the commodities to the destination points and suggest an optimal inventory policy to the selected distribution center. We also show if a demand greater than one unit will occur at a particular time, we describe the approximate optional replenishment policy from computational results of this lot-size reorder-point policy. This model is formulated as a 0-1 nonlinear integer programming problem. To solve the problem, this paper proposes heuristic computational procedures and a computer program with UNIX C language. In the usefulness review, we show the meaning and validity of the proposed model and exhibit the results of a comparison between our approach and the traditional approach, respectively.

• 대한안전경영과학회지
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• 제4권1호
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• pp.105-114
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• 2002

Nowadays, most companies seek after the greatest profit by means of offering the goods which consumers want timely and efficiently and minimizing the cost of inventory and distribution channel which amounts to the great portion of total cost. And according as EC(Electronic Commerce) market has increased rapidly, SCM(Supply Chain Management) for EC become one of the most important facts for companies, therefore this paper suggest SCM scheme which EC, especially B to C, is added to the existing commerce system. This paper uses internet for information integration of distribution channel which is away from one another and applies TOC(Theory of Constraint)'s DBR(Drum-Buffer-Rope) Scheduling for synchronization through the whole supply chain. It is possible to synchronize the whole supply chain by means of making the speed of manufacturing and distribution to be controlled by consumer's order which is received in distribution center, and inventory and loss of sales opportunities are minimized by constant. Buffer Management. If inventories in distribution center is short, then it needs to search CCR(Capacity Constraint Resource) in supply chain and to control the speed of manufacturing and distribution according to the ability of CCR. This paper applies PT(Partial Transshipment) strategy for Delivery from distribution center to store or cyber consumer. the strategy this paper suggests chooses neighbour area from area which each distribution center takes charge, and then makes product ordered by cyber consumer which lives in the chosen area to be delivered according to inventory of distribution center.

• 산업경영시스템학회지
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• 제20권43호
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• pp.25-36
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• 1997

The purpose of this paper is to structure a new integrated model that can minimize the total cost for the transportation and inventory systems between m origin points, where origin i has a supply of a commodity, such as distribution centers or warehouses, and n destination points, where destination j requires the commodity. In this case, demands of the destination points are assumed random variables which have a known probability distribution. We will find optimal distribution centers which transport the commodity to the destination points and suggest optimal inventory policy to the selected distribution center which find the optimal pair $$ and safety stock level that minimize total cost with back-ordered case. This new model is formulated as a 0-1 nonlinear integer programming problem. To solve the problem, this paper proposes heuristic computational procedures and program and provides numerical examples.

• 한국경영과학회:학술대회논문집
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• 대한산업공학회/한국경영과학회 2002년도 춘계공동학술대회
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• pp.742-749
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• 2002

This paper deals with a continuous-review two-echelon inventory model with one-for-one replenishment and Poisson demand where transshipments among retailers are allowed. Two classes of inventory systems are considered by the number of distribution centers(DCs) which provide each retailor with inventory items. 1:N class inventory system and M:N class inventory system respectively. Two-phase model is constructed to find out the optimal inventory positions which minimize supply chain costs. Approximations for customer service levels of the system are evaluated in the first phase, and the optimal inventory positions are found subject to the constraints for service level in the second phase. Simulation tests are performed to assure the effectiveness of the proposed model. The effect of transshipment is evaluated.

• 산업공학
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• 제22권3호
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• pp.234-242
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• 2009

It is most important for distribution center in retail business to delivery commodities in a timely manner. Accordingly, many companies try to make distribution center effective using the Warehouse Management System(WMS) integrated legacy system. Also, the Customer Relationship Management(CRM) is the most typical paradigm in management lately. Even though the WMS and CRM are independent system of each other, WMS, coupled with CRM makes customer satisfied more effectively. In this paper, we proposed the methodology for inventory location after analyzing and applying customer buying pattern data in the CRM through the MBA(Market Basket Analysis), which is part of data mining. We used an example modeling a real distribution center in retail through a 3D simulation tool and examined correlation between commodities using customer buying pattern. After that, we applied it to the inventory location system through the MBA in an example. Finally, we identified decrease in the time for picking, which is the majority of distribution center. Besides, we proposed a simulation methodology before applying new methodology. Consequently, it removes potential errors in advance and makes a optimized inventory location system.

• 한국전자거래학회지
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• 제3권2호
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• pp.203-217
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• 1998

Supply chain management is defined as "an integrative philosophy to manage the total flow of a distribution channel from the supplier to the ultimate user". There are many differences between traditional systems and supply chain management systems, There are so many advantages applying SCM concept in inventory management field from the viewpoint of information sharing. While each firm try to optimize the inventory individually in traditional systems, SCM focus on optimizing the channel-wide-inventory making effort to reduce the inventory interrelatedly, The more complex your network of suppliers, manufacturers, and distributors, the more you are likely to gain operational efficiencies by attending on inventory management. The inventory stockpiles at the various sites, including both incoming materials and finished products, have complex interrelationships. Efficient and effective management of inventory throughout the supply chain significantly improves the ultimate service provided to the customer. The purpose of this thesis is to develop the integrated inventory management system for the control of channel-wide inventory on the intranet by applying SCM concept.

• 한국경영과학회지
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• 제31권4호
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• pp.125-138
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• 2006

This paper considers a periodic review, two-echelon inventory system with one central warehouse and several re-tailers facing normally distributed demand. The goal is to attain target fill rates, while the systemwide total holding costs are minimized. An important aspect of this problem is material rationing in the case of shortages. If a central warehouse has insufficient inventory to deliver all replenishment orders to retailers, all order quantities are should be adjusted according to some rationing rule. A simple but efficient rationing rule is proposed and compared with the Balanced Stock (BS) rationing as introduced by Heijden which is known to be the best rationing policy in the literature. Numerical results show that the proposed rationing rule is more cost effective than BS rationing, especially for the differences in holding costs between retailers are large.

• 대한산업공학회지
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• 제8권1호
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• pp.22-28
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• 1982

Under a continuous-review inventory system, the inventory position process was proved to be asymptotically independent of the general renewal demand processes, when the two processes form an asymptotic unimodel joint distribution. The analytical technique implemented through this work seems to be more like general, and so the periodic-review system can be similarly investigated. In conclusion, the results may be evaluated to direct to the analytical analyses of some inventory systems which have been treated under some restrictions on demand processes.