• Title/Summary/Keyword: EOQ

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Analysis of Operation Cost Savings Effects of Direct Delivery Logistics Strategy Considering Carbon Emission (탄소배출을 고려한 직배송 물류전략의 운영비용 절감효과 분석)

  • Kim, Mi-Rye;Cho, In-Ho
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.6
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    • pp.653-661
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    • 2017
  • This study compares and analyzes the operation costs of traditional and direct delivery strategies considering carbon emissions. For the determination of minimum operation costs and order quantity, we use the Economic Order Quantity (EOQ) model, which is the proper method for calculate the operation costs by logistics strategy. Using the classical EOQ model, we expand the EOQ model considering carbon emissions and domestic logistics environment. We conduct an empirical study on two agri-food logistics strategies under limitation of the carbon emissions using the expanded EOQ model. From the results of the empirical study, we find that the operation costs of direct delivery strategy are about 50% lower than those of the traditional strategy. Economic order quantity is also smaller than that of the traditional strategy. These results indicate that agri-food products can be transported quickly and freshly under direct delivery strategy. Consequently, considering carbon emissions, direct delivery logistics strategy are analyzed to have more positive effect on economic and environmental issues than existing logistics strategy. It is judged that direct strategy will also increase the freshness of agricultural products.

AN EOQ MODEL FOR DETERIORATING INVENTORY WITH ALTERNATING DEMAND RATES

  • A.K. Pal;B. Mabdal
    • Journal of applied mathematics & informatics
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    • v.4 no.2
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    • pp.457-468
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    • 1997
  • The present paper deals with an economic order quan-tity model for items deteriorating at some constant rate with demand changing at a known and at a random point of time in the fixed pro-duction cycle.

Buyer's Price and Inventory Policy with Price Dependent Demand for Decaying Items Day terms Supplier Credit in a Two-stage Supply Chain

  • Shinn, Seong-Whan
    • International Journal of Advanced Culture Technology
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    • v.6 no.3
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    • pp.151-162
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    • 2018
  • In deriving the economic order quantity (EOQ) formula, it is tacitly assumed that the buyer has to pay product price while receiving the product from the supplier. However, as a marketing policy, some suppliers permit a delay in payments to the buyers to increase demand for the product they made. Credit transactions would have a positive effect on both suppliers and buyers. For a supplier who offers trade credit, it is an effective means of price differentiation to increase the demand for the product. Availability of opportunity to delay the payment in buyer effectively reduces the cost of holding stocks and therefore, the buyer has a lot of price options to choose his sales price for a customer. Since the buyer's order is affected by the customer's demand, the problems of determining the sales price and EOQ are interdependent and must be solved simultaneously. From this perspective, this paper evaluates the problem of determining the optimal sales price and EOQ for the buyer at the same time when the supplier allows a delay in payments for the product whose demand is represented as a function that decreases linearly with the sales price. For the analysis, it is also assumed that inventory is exhausted not only by customer's but also by decay.

A Economic Order Quantity(EOQ) Determination Method considering Stock Yard Size (야적장 크기를 고려한 철근의 경제적 주문량(EOQ) 산정)

  • Lee, Jae-Myung;Yu, Jung-Ho;Kim, Chang-Duk
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.549-552
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    • 2007
  • Inventory management is an important factor for cost saving in a construction project. stock yard of general public residence site is secured. but site of the downtown area is not. inventory management of site was performed an intuition and an experience. According to inventory management of site is necessary systematic and efficient. This study examine general idea stock and inventory management. and suggests a EOQ determination method considering stock yard size. and particularity of site.

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Determination of a Robust Economic Order Quantity Using Taguchi Method (다구찌 방법(方法)을 이용한 경제적(經濟的) 발주량(發注量)의 안정성(安定性) 설계(設計))

  • Choe, Jong-Deok;Seo, Sun-Geun
    • Journal of Korean Society for Quality Management
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    • v.20 no.1
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    • pp.68-79
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    • 1992
  • The economic order quantity(EOQ) is a robust quantity, and it is largely insensitive to reasonable errors in the estimation of most of its parameters. Optimal EOQ and reorder point which are not sensitive to the estimates of the various cost model parameters for Kim and Park's model are determined. This of Taguchi's parameter design which finds a robust EOQ and reorder point using reasonable cost structure on the assumption of normally distributed quality characteristic. A numerical example is also presented to illustrate the proposed procedure and computer aided numerical experiments for selected values of backordered fractions and standard deviations are performed.

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Deterministic EOQ Model with Partial Backordering when Purchase Dependence Exists (구매종속성이 존재하는 상황에서 부분 부재고 EOQ 모형에 대한 고찰)

  • Park, Changkyu
    • Korean Management Science Review
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    • v.32 no.1
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    • pp.65-82
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    • 2015
  • Purchase dependence is a frequent phenomenon in retail shops and is characterized by the purchase of certain items together due to their unknown interior associations. Although this concept has been significantly examined in the marketing field (e.g. market basket analysis), it has largely remained unaddressed in operations management. Since purchase dependence is an important factor in designing inventory replenishment policies, this paper demonstrates the means of applying it to the partial backordering inventory model. Through computational analyses, this paper compares the performance of inventory models that either consider or ignore purchase dependence; the results demonstrate that inventory models that ignore purchase dependence incur more average cost per unit time than the model that considers purchase dependence, and the impact of purchase dependence can increase in significance as the item set becomes more closely correlated with regard to order demand.

Analysis of EOQ Model Involving Estimate Errors (수요, 주문 및 재고비용이 불확실한 상황에서의 EOQ 모형분석)

  • Kim Gyutae;Hwang Hark-Chin;Kim Jong Rae
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2003.05a
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    • pp.1028-1034
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    • 2003
  • We consider the sensitivity of average inventory cost rate when true values of the parameters In the EOQ model are unknown over known ranges. In particular, In the case that the valid range on the true economic lot size are known. we provide a formula for estimating the lot size under minimax criterion. Moreover, to estimate the valid range, we apply the propagation of errors technique. Then, we present a scheme to find a (valid) lot size. based on the estimated range of the true lot size from the propagation or errors technique.

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Analysis on the Two-level Facility Location Considering the Expanded EOQ (확장 EOQ를 고려한 2단계 설비입지문제 분석)

  • 염인순;이창호
    • Proceedings of the Safety Management and Science Conference
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    • 2004.05a
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    • pp.41-47
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    • 2004
  • 본 연구에서는 독립적인 수요를 가지는 제품에 대한 효율적인 물류망을 구축하기 위한 방법으로 공장-중앙창고-지역창고를 포함하는 2단계 설비입지문제의 수학적 모형을 구축하고 해를 구하였다. 구축된 모형은 공장에서 서비스 지역내의 중앙창고로 제품을 수송하는 단계와 중앙 창고에서 하부 서비스 지역의 지역창고(대리점)로 경로를 통하여 제품을 배송하는 2단계 수송시스템을 고려하였다. 구축된 토형의 총비용은 수송비(수송비+배송비(정상배송+추가배송)), 중앙창고 재고비(정상재고+안전재고), 창고비(중앙창고+지역창고) 및 확장 EOQ를 고려한 지역창고 총비용의 합을 최소로 하는 중앙창고 수와 지역창고(대리점 등) 수를 결정하고 각각의 중앙창고가 서비스하는 지역창고 수 및 지역창고의 경제적인 1회 발주량과 최대 재고부족량을 결정하고 분석하였다.

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An Experimental Study on the Effect of Laser to Bond Strength between Composite Resin and Bovine Teeth (우치치질에 레이저조사시 레진과의 결합강도에 관한 연구)

  • Cho, Ju-On;Song, Kwang-Yeob;Park, Charn-Woon
    • The Journal of Korean Academy of Prosthodontics
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    • v.27 no.2
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    • pp.155-172
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    • 1989
  • The purpose of this study is to measure the bonding strength at the enamel and dentin of extracted bovine incisors when they are irradiated by W Nd: YAG, EoQ Nd: YAG, and CW $CO_2$ laser, etched and then attached by composite resin. The laser-irradiated surface, the etched surface after the laser-irradiation and the interface of the treated surface and resin are observed by using scanning electron microscope. The NP Nd:YAG laser is used at the peam power of 207 KW. The EOQ Nd: YAG laser is used at the peak power of 1.15Mk. The CW $CO_2$ laser is used at the energy output of 5W and 10W in enamel; in dentin, at the energy output of 2W. The obtained results were as follows: 1. The shear bond strength of enamel decreased in the following order: EOQ Nd:YAG laser group, NP Nd:YAG laser group, CW $CO_2$ laser groups, unlased group. The unlased group showed a significant difference from EOQ Nd:YAG laser group (P<0.01), NP Nd:YAG laser group (P<0.05), but no significant difference from CW $CO_2$ laser group (P>0.05). 2. The shear bond strength of dentin decreased in the following order: CW $CO_2$ laser group, NP Nd:YAG laser group, unlased group, EOQ Nd:YAG laser group. The unlased group showed a significant difference from CW $CO_2$ laser group (P<0.01), but no significant difference from Nd:YAG laser groups (P>0.05). 3. The scanning electron microscope of enamel revealed irregular microcrack and pore at the surface in the NP Nd:YAG laser group and CW $CO_2$ laser group, but the crackless flat surface in the EOQ Nd:YAG laser group. 4. The scanning electron microscope of dentin revealed obstruction of in most of dentinal tubule and decrease of diameter. 5. The scanning electron microscope of the interface of resin and enamel revealed prominent penetration of resin tag in the EOQ Nd:YAG laser group.

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Buyer's EOQ problem with inventory-level-dependent demand rate when the supplier allows day-terms credit

  • Song Chang-Yong;Shinn Seong-Whan
    • Proceedings of the Safety Management and Science Conference
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    • 2001.05a
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    • pp.199-203
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    • 2001
  • In today's business transactions, it is more and more common to see that the buyers are allowed some grace period before they settle the account with the supplier. In this regard, we analyze the problem of determining the buyer's EOQ when the supplier allows day-terms credit. For the analysis, it is assumed that the buyer's demand rate is a function of the on -hand inventory level and the relevant mathematical model is developed.

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