• Title/Summary/Keyword: Efficiency of Supply Chain

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Development of the Military-3PL Integrated Operation Strategy for National Defense Transportation using Simulation (시뮬레이션을 활용한 국방수송물류의 민·군 통합 운영 방안 수립)

  • Suraraksa, Juthatip;Gong, In-Taek;Kim, Jaewon;Seo, HanSeok;Shin, KwangSup
    • The Journal of Society for e-Business Studies
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    • v.24 no.3
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    • pp.111-128
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    • 2019
  • In the current procurement system in Korean military, the army, navy and air force have their own distributors, military branches and warehouses. However, especially, it has been hard to have the economy of scale because most of suppliers have shipped their order from the suppliers to each of Korean military directly. Koran military considers the transportation cost as one of the management cost factors among various kinds of cost. Furthermore they have contracted with the suppliers in annual and collectively on the transportation. Hence they have been in trouble with getting efficiency of Defense budget execution because it is hard to make a decision of Defense budget with real transportation cost. Moreover Korean army, navy and air force have their own supply chain separately, so they can not cooperate flexible and quickly when they need. Therefore, in this research, we provide a benchmarking of DTCI (Defense Transportation Coordination Initiative) which has been proved that it has improved the procurement system in US implementing the integrated transportation system with 3PL and military. In addition we propose advanced integrated shipping model using Hub & Spoke system for Korean military. In order to prove its effect, we simulate our model based on the real data of the suppliers' delivery to compare with the current system when it comes to how much we can save the cost. Our research can provide evidence that the integrated procurement system in Korean military will improve Korean military procurement system.

Pallet Size Optimization for Special Cargo based on Neighborhood Search Algorithm (이웃해 탐색 알고리즘 기반의 특수화물 팔레트 크기 최적화)

  • Hyeon-Soo Shin;Chang-Hyeon Kim;Chang-Wan Ha;Hwan-Seong Kim
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2023.05a
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    • pp.250-251
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    • 2023
  • The pallet, typically a form of tertiary packaging, is a flat structure used as a base for the unitization of goods in the supply chain. In addition, standard pallets such as T-11 and T-12 are used throughout the logistics industry to reduce the cost and enhance the efficiency of transportation. However, in the case of special cargo, it is impossible to handle such cargo using a standard pallet due to its size and weight, so many have developed and are now using their customized pallet. Therefore, this study suggests a pallet size optimization method to calculate the optimal pallet size, which minimizes the loss of space on a pallet. The main input features are the specifications and the storage quantity of each cargo, and the optimization method that has modified the Neighborhood Search Algorithm calculates the optimal pallet size. In order to verify the optimality of the developed algorithm, a comparative analysis has been conducted through simulation.

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Operational Spillover Effects within Business Groups : Evidence of Korean Chaebols (대규모 기업집단 내에서 운영관리 성과의 전이효과 : 한국 재벌 구조를 중심으로)

  • Na, Jae-seog
    • Journal of Venture Innovation
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    • v.7 no.1
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    • pp.167-182
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    • 2024
  • The aim of this study is to empirically explore the operational spillover effect among companies within chaebol groups, prominent corporate conglomerates in South Korea. Chaebols are known for their horizontal and vertical integration, fostering close collaboration among their constituent companies from a supply chain standpoint. Existing literature highlights the sharing of tangible and intangible resources within chaebol structures, leading to increased efficiency by minimizing transaction costs through resource sharing. This research investigates whether operational management performance within chaebol structures can be transmitted through cooperative resource utilization. To achieve this objective, we categorize leading companies and affiliate companies within chaebols and examine whether the operational management performance of leading companies significantly influences that of affiliate companies. Data on conglomerates, as defined by the Korea Fair Trade Commission, were collected, along with information on companies within these groups. Subsequently, the company with the highest revenue within each group was identified as the leading company, while the remaining companies were designated as affiliate companies. Our analysis reveals a significant positive relationship between the performance of inventory and facility resource management of leading companies and that of affiliate companies. This study sheds light on the transfer of operational management performance within conglomerates from a managerial perspective, underscoring the importance of reinforcing cooperation systems within the chaebol group. Furthermore, this research contributes to the academic discourse by delineating conglomerates from an operational management perspective and empirically demonstrating the transfer effect of operational management performance.

Efficient Mutual Authentication Protocol Suitable to Passive RFID System (수동형 RFID 시스템에 적합한 효율적인 상호 인증 프로토콜 설계)

  • Won, Tae-Youn;Chun, Ji-Young;Park, Choon-Sik;Lee, Dong-Hoon
    • Journal of the Korea Institute of Information Security & Cryptology
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    • v.18 no.6A
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    • pp.63-73
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    • 2008
  • RFID(Radio Frequency IDentification) system is an automated identification system that basically consists of tags and readers and Back-End-Databases. Tags and Readers communicate with each other by RF signal. As a reader can identify many tags in contactless manner using RF signal, RFID system is expected to do a new technology to replace a bar-code system in supply-chain management and payment system and access control and medical record and so on. However, RFID system creates new threats to the security of systems and privacy of individuals, Because tags and readers communicate with each other in insecure channel using RF signal. So many people are trying to study various manners to solve these problems against attacks, But they are difficult to apply to RFID system based on EPCglobal UHF Class-1 Generation-2 tags. Recently, Chien and Chen proposed a mutual Authentication protocol for RFID conforming to EPCglobal UHF Class-1 Generation-2 tags. we discover vulnerabilities of security and inefficiency about their protocol. Therefore, We analyze vulnerabilities of their protocol and propose an efficient mutual authentication protocol that improves security and efficiency.

An Importance-Performance Analysis of Location Selection Factors for International Distribution Center in Port Hinterland (IPA기법을 통한 항만배후단지 내 국제물류센터 입주결정요인 분석)

  • Kim, Si-Hyun
    • Korea Trade Review
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    • v.42 no.1
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    • pp.283-301
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    • 2017
  • As a consequence of the changed role and functions in port operations, the role of port hinterland has transformed to multi-functional logistic centre linking more efficiently elements of the supply chain. This paper analysed distribution centre selection factors in Busan new port hinterland, aiming to diagnose and evaluate the operational situations of port hinterland as multi-functional logistics centre. Based on a data collected from all 122 samples located in Busan new port hinterland, determinants for location competitiveness identified were: political support, market potentiality, infrastructure utilization, market niche, and connectivity. Comparing the difference between an importance and performance, it is revealed that the target port hinterland requires urgent improvement in political supports such as incentive programmes offered by host country, free trade system and related law, financial assistance in constructing distribution centers, and simplicity, ease and efficiency of administrative procedures. The results provide useful insights for establishing future improvement strategies and a strategic agenda to successfully respond to the demands of the companies located in port hinterlands and/or new customers those who want to move in.

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The Causes of Conflict and the Effect of Control Mechanisms on Conflict Resolution between Manufacturer and Supplier (제조-공급자간 갈등 원인과 거래조정 방식의 갈등관리 효과)

  • Rhee, Jin Hwa
    • Journal of Distribution Research
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    • v.17 no.4
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    • pp.55-80
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    • 2012
  • I. Introduction Developing the relationships between companies is very important issue to ensure a competitive advantage in today's business environment (Bleeke & Ernst 1991; Mohr & Spekman 1994; Powell 1990). Partnerships between companies are based on having same goals, pursuing mutual understanding, and having a professional level of interdependence. By having such a partnerships and cooperative efforts between companies, they will achieve efficiency and effectiveness of their business (Mohr and Spekman, 1994). However, it is difficult to expect these ideal results only in the B2B corporate transaction. According to agency theory which is the well-accepted theory in various fields of business strategy, organization, and marketing, the two independent companies have fundamentally different corporate purposes. Also there is a higher chance of developing opportunism and conflict due to natures of human(organization), such as self-interest, bounded rationality, risk aversion, and environment factor as imbalance of information (Eisenhardt 1989). That is, especially partnerships between principal(or buyer) and agent(or supplier) of companies within supply chain, the business contract itself will not provide competitive advantage. But managing partnership between companies is the key to success. Therefore, managing partnership between manufacturer and supplier, and finding causes of conflict are essential to improve B2B performance. In conclusion, based on prior researches and Agency theory, this study will clarify how business hazards cause conflicts on supply chain and then identify how developed conflicts have been managed by two control mechanisms. II. Research model III. Method In order to validate our research model, this study gathered questionnaires from small and medium sized enterprises(SMEs). In Korea, SMEs mean the firms whose employee is under 300 and capital is under 8 billion won(about 7.2 million dollar). We asked the manufacturer's perception about the relationship with the biggest supplier, and our key informants are denied to a person responsible for buying(ex)CEO, executives, managers of purchasing department, and so on). In detail, we contact by telephone to our initial sample(about 1,200 firms) and introduce our research motivation and send our questionnaires by e-mail, mail, and direct survey. Finally we received 361 data and eliminate 32 inappropriate questionnaires. We use 329 manufactures' data on analysis. The purpose of this study is to identify the anticipant role of business hazard (environmental dynamism, asset specificity) and investigate the moderating effect of control mechanism(formal control, social control) on conflict-performance relationship. To find out moderating effect of control methods, we need to compare the regression weight between low versus. high group(about level of exercised control methods). Therefore we choose the structural equation modeling method that is proper to do multi-group analysis. The data analysis is performed by AMOS 17.0 software, and model fits are good statically (CMIN/DF=1.982, p<.000, CFI=.936, IFI=.937, RMSEA=.056). IV. Result V. Discussion Results show that the higher environmental dynamism and asset specificity(on particular supplier) buyer(manufacturer) has, the more B2B conflict exists. And this conflict affect relationship quality and financial outcomes negatively. In addition, social control and formal control could weaken the negative effect of conflict on relationship quality significantly. However, unlikely to assure conflict resolution effect of control mechanisms on relationship quality, financial outcomes are changed by neither social control nor formal control. We could explain this results with the characteristics of our sample, SMEs(Small and Medium sized Enterprises). Financial outcomes of these SMEs(manufacturer or principal) are affected by their customer(usually major company) more easily than their supplier(or agent). And, in recent few years, most of companies have suffered from financial problems because of global economic recession. It means that it is hard to evaluate the contribution of supplier(agent). Therefore we also support the suggestion of Gladstein(1984), Poppo & Zenger(2002) that relational performance variable can capture the focal outcomes of relationship(exchange) better than financial performance variable. This study has some implications that it tests the sources of conflict and investigates the effect of resolution methods of B2B conflict empirically. And, especially, it finds out the significant moderating effect of formal control which past B2B management studies have ignored in Korea.

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Effects of firm strategies on customer acquisition of Software as a Service (SaaS) providers: A mediating and moderating role of SaaS technology maturity (SaaS 기업의 차별화 및 가격전략이 고객획득성과에 미치는 영향: SaaS 기술성숙도 수준의 매개효과 및 조절효과를 중심으로)

  • Chae, SeongWook;Park, Sungbum
    • Journal of Intelligence and Information Systems
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    • v.20 no.3
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    • pp.151-171
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    • 2014
  • Firms today have sought management effectiveness and efficiency utilizing information technologies (IT). Numerous firms are outsourcing specific information systems functions to cope with their short of information resources or IT experts, or to reduce their capital cost. Recently, Software-as-a-Service (SaaS) as a new type of information system has become one of the powerful outsourcing alternatives. SaaS is software deployed as a hosted and accessed over the internet. It is regarded as the idea of on-demand, pay-per-use, and utility computing and is now being applied to support the core competencies of clients in areas ranging from the individual productivity area to the vertical industry and e-commerce area. In this study, therefore, we seek to quantify the value that SaaS has on business performance by examining the relationships among firm strategies, SaaS technology maturity, and business performance of SaaS providers. We begin by drawing from prior literature on SaaS, technology maturity and firm strategy. SaaS technology maturity is classified into three different phases such as application service providing (ASP), Web-native application, and Web-service application. Firm strategies are manipulated by the low-cost strategy and differentiation strategy. Finally, we considered customer acquisition as a business performance. In this sense, specific objectives of this study are as follows. First, we examine the relationships between customer acquisition performance and both low-cost strategy and differentiation strategy of SaaS providers. Secondly, we investigate the mediating and moderating effects of SaaS technology maturity on those relationships. For this purpose, study collects data from the SaaS providers, and their line of applications registered in the database in CNK (Commerce net Korea) in Korea using a questionnaire method by the professional research institution. The unit of analysis in this study is the SBUs (strategic business unit) in the software provider. A total of 199 SBUs is used for analyzing and testing our hypotheses. With regards to the measurement of firm strategy, we take three measurement items for differentiation strategy such as the application uniqueness (referring an application aims to differentiate within just one or a small number of target industry), supply channel diversification (regarding whether SaaS vendor had diversified supply chain) as well as the number of specialized expertise and take two items for low cost strategy like subscription fee and initial set-up fee. We employ a hierarchical regression analysis technique for testing moderation effects of SaaS technology maturity and follow the Baron and Kenny's procedure for determining if firm strategies affect customer acquisition through technology maturity. Empirical results revealed that, firstly, when differentiation strategy is applied to attain business performance like customer acquisition, the effects of the strategy is moderated by the technology maturity level of SaaS providers. In other words, securing higher level of SaaS technology maturity is essential for higher business performance. For instance, given that firms implement application uniqueness or a distribution channel diversification as a differentiation strategy, they can acquire more customers when their level of SaaS technology maturity is higher rather than lower. Secondly, results indicate that pursuing differentiation strategy or low cost strategy effectively works for SaaS providers' obtaining customer, which means that continuously differentiating their service from others or making their service fee (subscription fee or initial set-up fee) lower are helpful for their business success in terms of acquiring their customers. Lastly, results show that the level of SaaS technology maturity mediates the relationships between low cost strategy and customer acquisition. That is, based on our research design, customers usually perceive the real value of the low subscription fee or initial set-up fee only through the SaaS service provide by vender and, in turn, this will affect their decision making whether subscribe or not.