• Management Science and Financial Engineering
• /
• 제3권1호
• /
• pp.57-74
• /
• 1997

An EOQ-like inventory model for a manufacturing process is studied. The system is assumed to deteriorate during the production process. The results are either the production of a number of defective items, or the breakdown of the production machine. The optimal production lot size is derived. The model is extended to the case in which the probabilities of making defective items and machine breakdowns are a function of both the quantity (amount) and quality (performance) of the consumed setup cost (including the preventive maintenance cost). We further assume that the setup performance can be improved by investing in the performance improvement program. Hence, the same or a better setup outcome can be achieved with a lower setup cost. We then investigate the optimal setup cost and investment policy simultaneously, thereby achieving a better process quality and setup cost reduction concurrently.

• Management Science and Financial Engineering
• /
• 제13권2호
• /
• pp.117-139
• /
• 2007

This paper contributes by incorporating works addressing supply chain coordination and investing in setup reduction program. Consider a two-echelon, EOQ-like inventory system consisting of a supplier and a buyer. We assume that both the supplier and the buyer can invest in setup cost reduction programs in order to benefit from small order sizes. However, the costs of investing in setup cost reduction programs are different for the two parties, leading to mismatches in individually optimal setup costs and order cycle times. We propose a supply chain coordination contract that makes use of quantity discount as an incentive transfer scheme for supply chain coordination.

• 한국경영과학회지
• /
• 제22권4호
• /
• pp.93-113
• /
• 1997

In studying an EOQ-like inventory model for a manufacturing process, a number of findings were made. The system can "go out of control" resulting in a relatively minor problem state or "break-down". When the production system is in the minor problem statei produces a number of defective items. It is assumed that each defective piece requires rework cost and related operations. Once the machine breakdown takes place, the production system produces severely defective items that are completely unusable. Each completely unusuable item is immediately discarded and incurs handling cost, scrapped raw material cost and related operations. Two investment options in improving the production process are introduced : (1) reducing the probability of machine breakdown, breakdowns, and (2) simultaneously reducing the probability of machine breakdowns and setup costs. By assuming specific forms of investment cost function, the optimal investment policies are obtained explicitly. Finally, to better understand the model in this paper, the sensitivity of these solutions to changes in parameter values and numerical examples are provided.amples are provided.

• 한국경영과학회:학술대회논문집
• /
• 한국경영과학회 2006년도 추계학술대회
• /
• pp.323-326
• /
• 2006

We investigate pricing and ordering policies in a supply chain consisting of a single manufacturer and a single retailer. Demand at the retailer depends on the retail price and is assumed to be constant over time for the fixed price. The retailer places orders according to an EOQ policy and the manufacturer produces the order quantity according to a lot-for-lot policy. The retailer and the manufacturer cooperates each other to maximize the average profit for the supply chain. A mathematical model is presented and a solution procedure is developed to determine the optimal retail price and order quantity.

• 한국경영과학회지
• /
• 제39권1호
• /
• pp.83-100
• /
• 2014

Retail shops often experience purchase dependence in which some items are purchased together by customers due to their unknown interior associations. This paper develops an inventory model considering partial backordering under purchase dependence and compares the performance of the inventory model that ignores purchase dependence. Computational analyses show that purchase dependence should be incorporated as an important factor of inventory replenishment policy because the impact of purchase dependence can be more significant as the lost portion of the unmet demand orders increases and the item set is more correlated in terms of order demand.

• 제어로봇시스템학회논문지
• /
• 제20권7호
• /
• pp.750-755
• /
• 2014

Product shortage which causes backordering and/or lost sales cost is very popular in chemical industries, especially in commodity polymer business. This study deals with backordering cost in the supply chain optimization model under the framework of process-inventory network. Classical economic order quantity model with backordering cost suggested optimal time delay and lot size of the final product delivery. Backordering can be compensated by advancing production/transportation of it or purchasing substitute product from third party as well as product delivery delay in supply chain network. Optimal solutions considering all means to recover shortage are more complicated than the classical one. We found three different solutions depending on parametric range and variable bounds. Optimal capacity of production/transportation processes associated with the product in backordering can be different from that when the product is not in backordering. The product shipping cycle time computed in this study was smaller than that optimized by the classical EOQ model.

• 산업경영시스템학회지
• /
• 제29권3호
• /
• pp.70-78
• /
• 2006

제조업에서는 보다 합리적으로 생산량을 결정함으로써 고객에 대한 납기 준수는 물론, 기업 내부의 비용을 감소시키기 위한 노력을 끊임없이 하고 있다. 합리적인 생산량의 결정은 기업 내적으로는 낭비를 제거하고, 생산 흐름의 안정성을 유지하여 주며, 기업 외적으로는 공급사슬 전체의 자재흐름을 원활히 해주고 고객의 기호 변화에 빠르게 대처할 수 있도록 한다. 이에 본 논문은 보다 높은 고객 만족도와 비용의 절감을 위해서 재고 유지비용과 생산준비비용만을 고려하는 기존의 생산량 결정 모형에 고객의 대기 비용을 추가한 다품목 경제적 생산량 모델을 제시하였다.

• 산업경영시스템학회지
• /
• 제17권32호
• /
• pp.121-126
• /
• 1994

Setup Time Reduction is an important aspect of the Just-in-Time(JIT) and Zero Inventory(Zl) Concepts since it supports reductions in manufacturing lead times and inventories. It also enables small lot sizes and kanban systems implementation for material flow - achieving major improvements in production floor management. One concept fundamental to the pursuit of JIT production in Japan and other countries is adoption of a setup time reduction. This paper looks at the necessities of setup time reduction and the relations to machine utilization. By using an EOQ model for evaluate the effect of setup time reduction, we get the results that over 75 % reduction in setup time is obtain the desired results in the lot size reduction.

• Industrial Engineering and Management Systems
• /
• 제14권3호
• /
• pp.275-288
• /
• 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.

• 품질경영학회지
• /
• 제18권1호
• /
• pp.1-8
• /
• 1990

In this paper we present a procedure to determine the quantity of incoming materials when the nonconforming materials appear in the production process. We determined the total loss of materials $D_2$ due to fraction defectives in process and added this $D_2$ to the quantity of incoming materials $Q_0$ considered ingoing-outgoing quality level. The quantity of materials $Q_1$ as a result of this procedure should be an economic purchasing quantity and is a rectifying quantity of the EOQ determined in classical inventory model.