• 한국경영과학회지
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• 제32권2호
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• pp.99-107
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• 2007

We consider (worst-case) robust optimization versions of the Economic Order Quantity (EOQ) model with decreasing cost functions. Two variants of the EOQ model are discussed, in which the purchasing costs are decreasing power functions in either the order quantity or demand rate. We develop the corresponding worst-case robust optimization models of the two variants, where the parameters in the purchasing cost function of each model are uncertain but known to lie in an ellipsoid. For the robust EOQ model with the purchasing cost being a decreasing function of the demand rate, we derive the analytical optimal solution. For the robust EOQ model with the purchasing cost being a decreasing function of the order quantity, we prove that it is a convex optimization problem, and thus lends itself to efficient numerical algorithms.

• 제어로봇시스템학회논문지
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• 제3권5호
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• pp.532-541
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• 1997

This article derives an analytic solution to determine the optimal size of multiple noncontinuous process and storage units. The total cost to be minimized consists of the setup cost of noncontinuous processing units and the inventory holding cost of feedstock/product storages. A novel approach, which is called PSW(Periodic Square Wave) model, is applied to represent the material flow among non-continuous units and storages. PSW model presumes that the material flow between unit and storage is periodic square wave shaped. The resulting optimal unit size has similar characteristics with the classical economic lot sizing model such as EOQ(Economic Order Quantity) or EPQ(Economic Production Quantity) model in a sense that the unit size is determined as the balance between setup and inventory holding cost. However, the influence of inventory holding cost of PSW model is different from that of EOQ/EPQ model. EOQ/EPQ model includes only the product inventory holding cost but PSW model includes all inventory holding costs around the non-continuous unit with proportional contribution. PSW model is suitable for analyzing interlinked process-storage system. The optimal lot size of PSW model is smaller than that of EOQ/EPQ model. This is quitea remarkable result considering that the EOQ/EPQ model has been is widely used since last half century.

• Journal of information and communication convergence engineering
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• 제19권4호
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• pp.221-227
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• 2021

An early warning system was developed to help identify stock status as early as possible. For performance to improve, there needs to be a feature to predict the amount of stock that must be provided and a feature to estimate when to buy goods. This research was conducted to improve the inventory early warning system and optimize the Reminder Block's performance in minimum stock settings. The models used in this study are the single exponential smoothing (SES) method for prediction and the economic order quantity (EOQ) model for determining the quantity. The research was conducted by analyzing the Reminder Block in the early warning system, identifying data needs, and implementing the SES and EOQ mathematical models into the Reminder Block. This research proposes a new Reminder Block that has been added to the SES and EOQ models. It is hoped that this study will help in obtaining accurate information about the time and quantity of repurchases for efficient inventory management.

• 한국경영과학회지
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• 제17권3호
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• pp.13-26
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• 1992

Set-up reduction is an important aspect of the Japanese Just-In-Time (JIT) and Zero Inventory (ZI) concepts. In this paper, we first analyze the effects of set-up cost reduction on tatal inventory, average lot size and forecast horizon in the dynamic lot size model. We also examine the various effects of set-up cost reduction in the EOQ model and explain why many Japanese firms try to cut set-up cost and/or set-up time greatly.

• Management Science and Financial Engineering
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• 제13권1호
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• pp.35-53
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• 2007

We consider a(worst-case) robust optimization version of the Economic Order Quantity(EOQ) model. Order setup costs and inventory carrying costs are assumed to have uncertainty in their values, and the uncertainty description of the two parameters is supposed to be given by an ellipsoidal representation. A genetic algorithm combined with Monte Carlo simulation is proposed to approximate the ellipsoidal representation. The objective function of the model under ellipsoidal uncertainty description is derived, and the resulting problem is solved by another genetic algorithm. Computational test results are presented to show the performance of the proposed method.

• 산업경영시스템학회지
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• 제27권4호
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• pp.83-89
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• 2004

In this paper MIP(mean inventory period) Model and OMMIP decision flow have been developed. MIP model can calculate mean inventory period which is subject to the order quantity alternative plan. OMMIP decision flow leads how can decide the most minimized order quantity in mean inventory period among various order quantity alternatives. This paper also suggests how to select the order quantity with minimum inventory period as optimal order quantity by means of comparison each mean inventory period with other mean inventory period, after simulating EOQ and order quantity of OMMIP calculated in MIP model.

• Journal of applied mathematics & informatics
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• 제4권2호
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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.

• 한국산학기술학회논문지
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• 제18권6호
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• pp.653-661
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• 2017

본 논문은 탄소배출 규제와 같이 새롭게 변화하는 물류 환경에서 유통업체들이 올바른 물류전략을 선정하기 위하여 탄소배출을 고려한 두 물류전략의 총 운영비용의 비교 분석 연구를 수행하였다. 본 연구에서는 물류전략간 운영비용 비교를 위하여 기존 EOQ(Economic Order Quantity) 모형을 활용하여 국내의 물류환경 및 탄소배출을 고려한 모형으로 확장하였고, 이 모형을 바탕으로 실증연구 분석을 수행하였다. 실증 연구로는 대형 유통업체의 농산물 유통을 대상으로 하여 기존의 물류 전략과 직배송 물류 전략의 운영비용 및 경제적 주문량을 산정하고 분석하였다. 실증연구 결과 농산물을 운송함에 있어 직배송 물류전략이 기존 물류전략 대비 50% 이상의 운영비용 절감효과가 있는 것으로 분석되었고, 이는 직배송 물류전략이 기업의 운영비용 절감에 더 효과적인 것으로 판단할 수 있다. 결론적으로, 탄소배출을 고려하였을 때 직배송 물류전략이 기존 물류전략보다 경제적 환경적인 효과가 있다고 분석될 수 있으며, 농산물의 신선도도 함께 높이는 전략이라고 판단된다.

• 산업공학
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• 제17권1호
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• pp.78-83
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• 2004

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 of errors technique.

• Management Science and Financial Engineering
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• 제18권1호
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• pp.21-26
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• 2012

Two previous studies that attempted to generalize the deterministic joint pricing-inventory decision model are reevaluated. We prove analytically that even in a single-product environment, the EOQ model with constant priceelastic demand cannot find optimal solutions unless two optimality conditions associated with price elasticity and demand magnitude are satisfied. Due to the inexistence of the general optimality for the problem, demand function and price elasticity must be evaluated and bounded properly to use the methods proposed in the previous studies.