• Title/Summary/Keyword: Holding Cost

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A Sensitivity Analysis of the Optimal Inventory Control for a Vertically Integrated Supply Chain (수직적으로 통합된 공급사슬을 위한 최적 재고 정책의 민감도 분석)

  • Kim, Engab
    • Journal of Korean Institute of Industrial Engineers
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    • v.30 no.3
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    • pp.197-204
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    • 2004
  • This paper deals with a supply chain with a company and its contractor that produces products by the OEM contract with the company. The supply chain of interest has two distinct features. First, the company is the supplier of raw material required in the production at the contractor. Second, the company and its contractor make a delivery shipment arrangement that the replenishment lead time is determined depending on demand process. We show that the optimal inventory policy is monotonically changed as either the replenishment setup cost or inventory holding cost becomes increased or decreased. We also present asymptotic properties of the optimal inventory policy when either the number of outstanding customer orders or the inventory level becomes very large.

Multiple Replenishment Contract with Purchase Price Discount (구매비용할인을 고려한 다회보충계약)

  • Jung, Bong-Ryong;Kim, Jong-Soo
    • Journal of Korean Institute of Industrial Engineers
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    • v.27 no.4
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    • pp.345-351
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    • 2001
  • We are concerned with a multiple replenishment contract with a purchase price discount in a supply chain. The chain is composed of one supplier, one buyer and consumers for a product. The replenishment contract is based upon the well-known (s, Q) policy but allows contracting several firmed orders at a time with a price discount. Due to a larger forecast error of the future demand, the buyer should keep a higher level of safety stock to provide the same level of service of the usual (s, Q) policy but can reduce his purchase cost by placing larger quantity. Thus there exists a trade-off between the price discount and inventory holding cost. We present a model for the contract and an algorithm to find the optimum number of the firmed orders. Computer experiments show that the algorithm finds the global optimum solution very fast.

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Development of a Stochastic Inventory System Model

  • Sung, Chang-Sup
    • Journal of Korean Institute of Industrial Engineers
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    • v.5 no.1
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    • pp.59-66
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    • 1979
  • The objective of this paper is to develop a stochastic inventory system model under the so-called continuous-review policy with a Poisson one-at-a-time demand process, iid customer inter-arrival times {Xi}, backorders allowed, and constant procurement lead time $\gamma$. The distributions of the so-called inventory position process {$IP_{(t-r)}$} and lead time demand process {$D_{(t-r,t)}$} are formulated in terms of cumulative demand by time t, {$N_t$}. Then, for the long-run expected average annual inventory cost expression, the "ensemble" average is estimated, where the cost variations for stock ordering, holding and backorders are considered stationary.

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Optimal design of batch-storage serial trains considering setup and inventory holding cost (준비비와 재고비를 고려한 직렬 비연속 공정과 중간 저장조의 최적설계)

  • Lee, Gyeong-Beom
    • Journal of Institute of Control, Robotics and Systems
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    • v.3 no.4
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    • pp.398-405
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    • 1997
  • This article presents a new model which is called Periodic Square-Wave(PSW) to describe the material flow of the periodic processes involving intermediate buffer. The material flows incoming into and outgoing from the intermediate buffer are assumed to be periodic square shaped. PSW model gives the same result as that of Economic Production Quantity(EPQ) model for determining optimal lot size of single stage batch storage system. However, for batch storage serial train system, PSW model gives a different optimal solution of about 6 % reduced total cost. PSW model provides the more accurate information on inventory and production system than the classical approach by maintaining simplicity and increasing computational burden.

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Experiment of a 3D Motion Input Device (3차원 운동 입력장치 구현)

  • Lee, Woo-Won;Choi, Myoung-Hwan
    • Journal of Industrial Technology
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    • v.19
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    • pp.173-178
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    • 1999
  • In many areas of technology there are machines and systems controllable in up to six degrees of freedom. Helicopters and underwater vehicles, industrial robots are among the first representatives of this category. They need six degrees of freedom in order to move and orient within their workspace. An even broader and more explosively growing area is 3D computer graphics and virtual environment. In this work, functions of 3D input device are described and two types of commercial 3D input device are presented. Then, a preliminary experiment of a low cost 6 axis force/moment sensor is presented that can also be sued as a 3D input device. A low cost force/moment sensor and its application in robot teaching experiment is described. It computes the direction of 3 components of the force and 3 components of the moment applied by human holding the sensor by hand. The concept is shown by an experiment where the tool position and orientation of a robot in 3 dimensional space is controlled by the proposed sensor.

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The Optimal Ordering Policy for the Generalized Two-Stage Inventory System (일반화된 2단계 재고체계에서의 최적주문정책)

  • 정남기;차동원
    • Journal of the Korean Operations Research and Management Science Society
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    • v.4 no.1
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    • pp.25-31
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    • 1979
  • We consider the optimal ordering policy for a single-product two-stage inventory system where the main assumptions are as follows: (i) constant continuous demand only at stage 2, (ii) constant input (production) rate at stage 1, (iii) instantaneous delivery (transportation) from stage 1 to stage 2, (iv) backlogging is allowed only at stage 2, (v) an infinite planning horizon. Costs considered are ordering and linear holding costs at both stages, and linear shortage cost only at stages 2. By solving 9 different case problems, we have observed the general from of the optimal ordering policies for our model which minimizes the total cost per unit time. It is noticeable from this observation that the questionable but more often than not adopted assumption by many authors in determining the optimal potimal policy for multistage inventory systems, that the ordering (lot) sizes at each stage remain constant thruout the planning horizon, is not valid.

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Disassembly Scheduling for Products with Assembly Structure

  • Lee Dong-Ho
    • Management Science and Financial Engineering
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    • v.11 no.1
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    • pp.63-78
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    • 2005
  • Disassembly scheduling is the problem of determining the ordering and disassembly schedules of used or end-of-life products while satisfying the demand of their parts or components over a certain planning horizon. This paper considers the case of the assembly product structure for the cost-based objective of minimizing the sum of purchase, setup, inventory holding, and disassembly operation costs. To represent and solve the problem optimally, this paper presents an integer programming model, which is a reversed form of the multi-level lot sizing formulation. Computational experiments on an example derived from the literature and a number of randomly generated test problems are done and the results are reported.

Look-ahead technique based distribution planning for multi-echelon supply chain with production capacity limit (생산능력 제한이 있는 다계층 공급사슬에서 Look-Ahead 기법을 이용한 분배계획 수립)

  • 박상훈;권익현;김성식
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.566-569
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    • 2004
  • 본 연구에서는 생산능력의 제한이 있는 다계층(multi-echelon) 공급사슬에서의 효과적인 분배계획수립을 목적으로 한다. 수요 정보는 계획 기간(planning horizon) 동안 확정적인 형태로 주어지고 이러한 상황 하에서 전체 공급사슬에서 발생하는 재고유지 비용(holding cost)과 재고이월 비용(backorder cost)의 합을 최소화하는 분배 문제의 해법을 제시하고자 한다. 본 연구에서는 총비용을 최소화하는 각 노드별 분배량을 결정하기 위해서 look-ahead 기법을 사용한다. Look-ahead 기법을 통해 분배 계획 수립 시 해당 기간의 수요 정보뿐만 아니라 미래 수요를 함께 반영함으로써 생산능력 제한에 효과적으로 대처할 수 있도록 하였다. Look-ahead 기법을 적용하기 위해 본 문제를 단일 기계 일정계획(single machine scheduling) 문제로 전환하고 이에 대한 효율적인 발견적 기법을 제시한다. 또한 제안된 발견적 기법의 성능을 평가하기 위해 다양한 실험 조건하에서 제안된 알고리듬과 기존의 미래 수요를 고려하지 않는 계층 재고 정책(echelon stock policy)의 결과를 비교하여 본 연구의 우수성을 입증하였다.

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Base-stock Policies for N-stage Serial Inventory Systems with a Normal Distribution (정규분포를 갖는 N차 시리얼 시스템에서의 기초 재고 정책)

  • 김준석;권익현;김성식
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.578-581
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    • 2004
  • 본 연구에서는 수요가 정규분포의 형태를 따르는 N차 시리얼(serial) 시스템을 대상으로 한다. 최상위 노드는 상위의 공급자로부터 받고자 하는 물량을 제한 없이 받을 수 있으며 하위 노드로 이러한 물량을 공급하게 된다. 최하위 노드에서는 고객의 직접적인 수요가 발생하고 만족시키지 못한 수요는 다음 기간으로 이월된다. 이러한 환경 하에서 전체시스템에서 발생하는 재고유지 비용(holding cost)과 재고이월 비용(backorder cost)의 합을 최소화하는 각 노드별 최적의 기초 재고 수준(base stock level)을 결정하는 문제를 다룬다. 본 논문에서는 모의실험과 계층 재고(echelon stock)의 개념을 통해 수요 분포 내의 적절한 분위수(quantile)를 결정하는 접근방법으로 각 노드의 기초 재고 수준을 구하는 방안을 제시하고자 한다.

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Look-ahead Based Distribution Planning for Capacitated Multi-stage Supply Chains (생산 능력 제한이 존재하는 다단계 공급망을 위한 Look-ahead 기반의 분배계획)

  • Roh, Joo-Suk;Kwon, Ick-Hyun;Kim, Sung-Shick
    • Journal of the Korea Safety Management & Science
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    • v.8 no.5
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    • pp.139-150
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    • 2006
  • The aim of this study is to establish an efficient distribution planning for a capacitated multi-stage supply chain. We assume that the demand information during planning horizon is given a deterministic form using a certain forecasting method. Under such a condition, we present a cost effective heuristic method for minimizing chain-wide supply chain inventory cost that is the sum of holding and backorder costs by using look-ahead technique. We cope with the capacity restriction constraints through look-ahead technique that considers not only the current demand information but also future demand information. To evaluate performance of the proposed heuristic method, we compared it with the extant research that utilizes echelon stock concept, under various supply chain settings.