• Journal of Korean Society of Industrial and Systems Engineering
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• v.46 no.4
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• pp.116-123
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• 2023

In supply chain, most partners except the top level suppliers have inbound and outbound logistics. For example, toll manufacturing companies get unprocessed materials from a requesting company and send the processed materials back to the company after toll processing. Accordingly, those companies have inbound and outbound transportation costs in their total logistics costs. For many cases, the company may make the schedule of distributions by considering only the due delivery dates. However, the inbound and outbound transportation costs could significantly affect the total logistics costs. Thus, this paper considers the inbound and outbound transportation costs to find the optimal distribution plans. In addition, we have considered the inventory holding costs as well with transportation costs. From the experimental results, we have provided the optimal strategies for the distributions of replenishment as well as deliveries.

• Journal of Korean Institute of Industrial Engineers
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• v.37 no.3
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• pp.248-257
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• 2011

Cross docking is a logistics management concept in which items delivered to a terminal by inbound trucks are immediately sorted out, routed and loaded into outbound trucks for delivery to customers. Two main advantages by introducing a cross docking terminal are to consolidate multiple smaller shipment into full truck load and remove storage and order picking processes to save up logistics costs related to warehousing and transportation costs. This research considers the scheduling problem of trucks in the cross docking terminals with multi-door in an inbound and outbound dock, respectively. The trucks sequentially deal with the storage process at the one of inbound doors and the shipping process at the one of the outbound doors. A mathematical model for an optimal solution is derived, and genetic algorithms with two different chromosome representations are proposed. To verify performance of the GA algorithms, we compare the solutions of GAs with the optimal solutions and the best solution using randomly generated several examples.

• Journal of Distribution Research
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• v.7 no.1
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• pp.1-20
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• 2002

Many of logistics-related research in automobile industry has focused on inbound logistics and procurement. Research into outbound logistics is relatively few. As a starting research into outbound logistics in automobile industry, this paper examined its logistics network problems with three aspects - location strategy, inventory strategy and transportation strategy. We proposed alternatives of logistics network design resolution, and presented three practical scenarios based on those alternatives. Based on interview, on-site visit and internal data collection processes, we identified major domestic outbound logistics problems such as redundant logistics bases, inefficient delivery policy, insufficient inventory capacity, inventory stock quality deterioration, inefficient transportation system, and etc. In order to cope with those problems, we proposed such strategic alternatives as introduction of hub-and-spoke system, integration of logistics bases, introduction of (automatic) parking building, diversification of transportation mode, and etc. At the same time, we constructed three practically executable scenarios based on those ideas. The first is "Center Hub" scenario, the second is "Metropolitan Hub" scenario. The third and last scenario is "Regional Consolidation of Warehouses (distribution centers)".

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.661-664
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• 2006

Under a VMI (Vendor Managed Inventory) system, the vendor holds a certain level of control over not only inbound replenishment decisions on stocking but also outbound re-supply decisions. In this situation, vendor faces a better opportunity to synchronize the inventory and transportation decisions. However, shipment consolidation can reduce transportation expenses, but delivery time about the customer comes to be long and a customer service is fallen. Thus, a stock and transportation decision must consider this correlation. This study look into the relevant literature and suggest about further research direction.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.1
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• pp.60-67
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• 2014

This paper considers an inbound ordering and outbound dispatching problem for multi-products and multi-vehicles in a third-party distribution center. The demands are dynamic over a discrete and finite time horizon, and replenishing orders are shipped in various transportation modes and the freight cost is proportional to the number of vehicles used. Any mixture of products is loaded onto any type of vehicles. The objective of the study is to simultaneously determine the inbound lot-sizes, the outbound dispatching sizes, and the types and numbers of vehicles used to minimize total costs, which consist of inventory holding cost and freight cost. Delivery time window is one of the general dispatching policies between a third-party distribution center and customers in practice. In the policy, each demand of product for a customer must be delivered within the time window without penalty cost. We derive mixed integer programming models for the dispatching policy with delivery time windows and on-time delivery dispatching policy, respectively and analyze the effect on a dispatching policy with delivery time windows by comparing with on-time delivery dispatching policy using various computational experiments.

• IE interfaces
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• v.14 no.3
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• pp.255-262
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• 2001

Containerization of cargo transportation has been norm in the word wide maritime services, but containerized trades are typically unbalanced in terms of the number of inbound and outbound containers. Therefore it is critical for shipping companies to find operating policy such as the repositioning of empty containers or replenishing of short-term leasing containers from leasing companies to satisfy the freighter's demands of containers. This paper develops a simulation model using ARENA to establish shipping company's operational policy to relocate and replenish empty containers. Furthermore, this study proposes simple and heuristic empty container repositioning rules to minimize the relevant cost in terms of leasing, repositioning, and inventory holding costs.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.5
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• pp.511-520
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• 2015

Inventory, cost, and the level of service are three interrelated key metrics that most supply chain organizations are striving to optimize. One way to achieve this goal is to create a simulation model to conduct sensitivity analysis and optimization on several different supply chain policies that can be implemented in actual operation. In this paper, a case of Xerox global supply chain modeling and analysis to assess several "what if" scenarios for the consumable policy safety stock is presented. The simulation model, combined with analytical cost model and optimization module, is used to optimize the policy safety stock level to achieve the lowest total value chain cost. It was shown quantitatively that the policy safety stock can be reduced, but it is offset by the inbound premium transportation cost to expedite supplies in shortage, and the outbound premium transportation cost to send supplies to customers via express shipment, requiring fine balance.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.233-242
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• 2015

This paper analyzes a multi-product inbound lot-sizing and outbound dispatching problem with multi-vehicle types in a third-party logistics distribution center. The product must be delivered to the customers within the delivery time window and backlogging is not allowed. Replenishing orders are shipped by several types of vehicles with two types of the freight costs, i.e., uniform and decreasing, are considered. The objective of this study is to determine the lot-size and dispatching schedules to minimize the total cost with the sum of inbound and outbound transportation and inventory costs over the entire time horizon. In this study, we mathematically derive a mixed-integer programming model and propose a genetic algorithm (GA1) based on a local search heuristic algorithm to solve large-scale problems. In addition, we suggest a new genetic algorithm (GA2) with an adjusting algorithm to improve the performance of GA1. The basic mechanism of the GA2 is to provide an unidirectional partial move of products to available containers in the previous period. Finally, we analyze the results of GA1 and GA2 by evaluate the relative performance using the gap between the objective values of CPLEX and the each algorithm.

• Journal of Korean Society of Transportation
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• v.23 no.7 s.85
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• pp.181-190
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• 2005

The time required for airport process is considered more important as the airports are becoming bigger. International Civil Aviation Organization mattes this international standards and recommends not to exceed it. The passenger forecasting model is developed to predict the number of passengers at the check-in counter, and the area of formalities for departure and entry. In case of forecasting the number of outbound-passengers. the patterns of show-up lead time(SLT) at the check-in counter and lag time from check-in counter to the area of departure formalities are modeled in terms of time. On the other hand, the matter of the choice of check-in counters and areas of departure formalities are modeled in terms of space. In case of forecasting the number of inbound-passengers and transfer passengers, the time of airplane movement from arrival to block on at the gate and the time of passengers required from gate to the area of formalities for entry are modeled in terms of time. While the matter of the choice of gates and the areas of formalities for entry are modeled in terms of space. The average error of forecasting outbound-passengers and inbound-passengers is respectively 15% and 10%, which are considered excellent with the 5% error of passenger reservation information as input data. Through the development of passenger forecasting models, we assure we could provide passengers with valuable service because we allocate resource such as employees and equipments according to the degree of concentration of passengers.

• Management & Information Systems Review
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• v.32 no.3
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• pp.107-125
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• 2013

This study deals with a strategic decision making in two level supply chain network design. This study presents more realistic mathematical model than the previous studies by considering simultaneous location of plants and distribution centers, determination of capacity level for both plants and distribution centers, and upper limit condition for numbers of locating plants and distribution centers. This paper tries to help the strategic decision making for two level supply chain network design. For this purpose, three different sized numerical examples are generated and optimal solutions are obtained by applying Excel Solver program. And sensitivity analysis is performed for the biggest sized example problem, which has 10 potential plants, 20 potential distribution centers, and 200 customer zones. After the plants being located are fixed, optimal minimum costs are obtained and compared for each of 7 different numbers of distribution centers to be located. As the number of distribution centers increases, changes in inbound transportation cost and outbound transportation cost can be derived. In case of considering cost as well as customer satisfaction level for two level supply chain network design, the analysis of this changes may help more sophisticated decision making.