• Journal of the Korean Operations Research and Management Science Society
• /
• v.34 no.4
• /
• pp.139-151
• /
• 2009

Based on single-vendor single-buyer integrated production-inventory problem, a model considering freight costs discounts is suggested when the cargo capacity is constrained. With the cost function formulated, several properties of the model are derived and analyzed. An efficient algorithm to find solutions such as shipment lot size, number of shipments and number of full truckloads using properties derived is suggested. Numerical results are provided to illustrate the proposed solution procedures and to provide additional insights.

• Proceedings of the Safety Management and Science Conference
• /
• 2002.05a
• /
• pp.237-241
• /
• 2002

This paper deals with the problem of determining the buyer's economic lot sizing policy for exponentially deteriorating products under trade credit. It is also assumed that the ordering cost consists of a fixed set-up cost and a freight cost, where the freight cost has a quantity discount offered due to the economies of scale. We formulate the mathematical model and the solution algorithm is developed based on the properties of an optimal solution.

• International Journal of Advanced Culture Technology
• /
• v.9 no.3
• /
• pp.271-276
• /
• 2021

In this paper we analyze the effect of the credit period on inventory policy under trade credit with ordering cost including a fixed cost and freight cost, where the freight cost has a quantity discount. For marketing purposes, some supplier offers credit period to his buyer to stimulate the demand for the product he produces. The delay in payments during the credit period has the effect of reducing the buyer's capital opportunity cost. It is also assumed that the buyer pays the freight cost for the order and hence, the ordering cost consists of a fixed ordering cost and a variable freight cost which depends on the order quantity. As a result, the possibilities of trade credit and discounts on freight costs are expected to play an important role in the buyer's inventory policy. Based on the economic order quantity inventory model, we analyze how the buyer can determine the optimal inventory policy and we examine the effect of the length of credit period on the buyer's inventory policy.

• Journal of the Korea Safety Management & Science
• /
• v.8 no.1
• /
• pp.195-206
• /
• 2006

본 연구는 제조자(공급자)와 중간분배자로 구성된 공급사슬에서 시간에 따라 일정률로 퇴화하는 퇴화성 제품을 다루는 중간분배자의 신뢰성있는 재고보충정책을 분석하였다. 문제 분석을 위하여 제조자는 고객의 수요를 증대시키기 위한 수단으로 중간분배자로부터의 제품대금에 대하여 일정기간 동안 신용거래를 허용한다는 가정과 함께 수송량에 따라 할인되는 수송비를 고려하여 모형을 수립하였고, 중간분배자의 경제적 재고보충정책을 결정하기 위한 해법을 개발하였다.

• Journal of Navigation and Port Research
• /
• v.33 no.7
• /
• pp.469-476
• /
• 2009

Recent collapse of shipping market right after unprecedent surge clearly demonstrates that shipping industry is extremely risky. Due to the volatile movements of the freight rates, investors tend to ask higher rate of return; higher required return reduces the total net present value of the investment project. For several decades, the Discounted Cash Flow(DCF hereafter) analysis has been the most frequently used valuation technique. However, the main problem of the DCF analysis is its assumption that the discount rate would stay the same during the project life. In other words, it usually does not address the decisions that managers have after a project has been accepted. The purpose of this study is investigate a new valuation method of investment: the Real Option Analysis(ROA hereafter) on ship investment. By replacing the existing valuation methods with the new one, the research will present a new perspective on investment with uncertainty. While uncertainty increases risk of investment and consequently discounts the value of it in the traditional feasibility analysis, in the ROA, a new valuation method which will be addressed in the research, uncertainty means some additional value of flexibility so that the tool can help investors produce more accurate decisions. Contrary to the DCF analysis, the ROA takes managerial flexibilities into account. In reality, capital budgeting and project management is typically dynamic, rather than static in nature. The ROA finds and assesses the values of managerial flexibilities or real options in the investments. The main structures of the research will be as follows: (1) overview of the ship investment project, (2) evaluation of the project by the Net Present Value analysis, (3) evaluation of the same project by the Real Option Analysis, (4) comparision of the two techniques.