• Industrial Engineering and Management Systems
• /
• v.11 no.1
• /
• pp.30-38
• /
• 2012

This paper discusses a clearance pricing on daily perishable products considering a reference price of consumers. The daily perishable products are sometimes sold at a discount price before closing time to stimulate demand when the number of unsold products is more than initially envisioned. The discount pricing results both in an increase of the revenue of the day and in a decrease of the disposal cost. The discounting, however, also declines a reference price of consumers which is a mental price and serves as an anchor price to judge if a current sales price is loss or gain for the consumers. An excess discounting decreases the demand for the products sold at a regular price in the future and diminishes long-term profit. This study conducts a mathematical analysis on the clearance pricing problem for a single period with stochastic variations both on demand and on the inventory level at clearance time. The expected profit function especially depends on the response of consumers to the clearing price against their reference prices. A procedure is proposed to derive an optimal clearance price when consumers are loss-neutral. A sufficient condition is shown to obtain an optimal price for loss-averse and loss-seeking consumers by an analogous procedure.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.9 no.3
• /
• pp.831-839
• /
• 2008

The steel industry is becoming more important around the world and the demand of steel is increasing. Korea is the 5th country of steel producing in the world and the attention in the steel industry is growing. The steel industry is one of the key industry in leading the economic growth in Korea. This study attempts to analyze by time-series the economic impacts of the steel industry using an inter-industry analysis Specifically, the study investigates production-inducing effect, value added inducing effect and employ-inducing effect of the steel industry based on demand-driven model and the study deals with supply shortage effect and sectoral price effect of the steel industry by using supply-driven model and Leontief price model.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.23 no.60
• /
• pp.11-22
• /
• 2000

The main objective of this research is to analyze an order point and an order quantity of a distribution center and each branch to attain a target service level in multi-level inventory distribution system. In case of product item, we use the item with low volume of average monthly demand. Under the continuous review method, the distribution center places a particular order quantity to an outside supplier whenever the level of inventory reaches an order point, and receives the order quantity after elapsing a certain lead time. Also, each branch places an order quantity to the distribution center whenever the level of inventory reaches an order point, and receives the quantity after elapsing a particular lead time. When an out of stock condition occurs, we assume that the item is backordered. For considering more realistic situations, we use generic type of probability distribution of lead times. In the variable lead time model, the actually achieved service level is estimated as the expected service level. Therefore, this study focuses on the analysis of deciding the optimal order point and order quantity to achieve a target service level at each depot as a expected service level, while the system-wide inventory level is minimized. In addition, we analyze the order level as a maximum level of inventory to suggest more efficient way to develop the low demand item model.

• Journal of the Korea Society of Computer and Information
• /
• v.24 no.3
• /
• pp.29-39
• /
• 2019

In this study, we introduce a model that satisfies energy efficiency and economical efficiency by introducing and demonstrating cogeneration generators in industrial complexes using various actual data collected at the site. The proposed model is composed of three scenarios, ie, full - time operation, scenario operated according to demand, and a fusion type. In this study, the power generation profit and surplus thermal energy are measured according to the operation of the generator, and the thermal energy is traded according to the demand of the customer to calculate the profit and loss including the heat and evaluate the economic efficiency. As a result of the study, it is relatively profitable to reduce the generation of the generator under the condition that the electricity rate is low and the gas rate is high, while the basic charge is not increased. On the contrary, if the electricity rate is high and the gas rate is low, The more you start up, the more profit you can see. These results show that even a cogeneration power plant with a low economic efficiency due to a low "spark spread" has sufficient economic value if it can sell more than a certain amount of heat energy from a nearby customer and adjust the applied power through peak management.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.1
• /
• pp.41-54
• /
• 2019

Although retailers deals with a large number of single-term inventory items, but few cases have been considered in the areas of practical decision making. However, recent moves to strengthen fair trade have created a real need for single-period inventory decision-making problems. This study addresses the problem of ordering quantity decisions that are expected to maximize profits using classical newsvendor models. The research target is data on seasonal and perishable products from retail. We also use data from retailers to actually apply the newsvendor model and calculate the results to compare performance. It also suggests solutions for estimating demand for products sold in order to apply newsvendor models that utilize actual demand ratio versus forecast demand. This study would like to examine the effectiveness of this research through data analysis and make some suggestions for applying it to reality.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.46 no.2
• /
• pp.109-115
• /
• 2023

This paper studied the problem of determining the optimal inventory level to meet the customer service target level in a situation where the customer demand for each branch of a nationwide retailer is uncertain. To this end, ISR (In-Stock Ratio) was defined as a key management indicator (KPI) that can be used from the perspective of a nationwide retailer such as Samsung, LG, or Apple that sells goods at branches nationwide. An optimization model was established to allow the retailer to minimize the total amount of inventory held at each branch while meeting the customer service target level defined as the average ISR. This paper proves that there is always an optimal solution in the model and expresses the optimal solution in a generalized form using the Karush-Kuhn-Tucker condition regardless of the shape of the probability distribution of customer demand. In addition, this paper studied the case where customer demand follows a specific probability distribution such as a normal distribution, and an expression representing the optimal inventory level for this case was derived.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.29 no.3
• /
• pp.128-134
• /
• 2006

The most of national industrial complex were developed and supplied not according to the requirements of enterprise but the needs of the government. And it leads to current serious out of balance in demand and supply of industrial complex. Buckpyoung industrial complex started sale from when the industrial complex developed in 1995 however the unsold percentage of it was 67% until in October,2005. And this result was ranked the top in the unsold percentage among the 42 national industrial complex in korea. In this paper we research how to accelerate the sale of Buckpyoung industrial complex and to reinvigorate local economy and present the constitution of building material cluster and physical distribution system as the results of our research.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2000.04a
• /
• pp.134-134
• /
• 2000

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.17 no.32
• /
• pp.199-207
• /
• 1994

A market has evolved from saturated state to over- saturated state because of variation of industrial circumstances. To improve the competitive power of a business under over- saturated state that the supply exceeds the demand, a business will seek after value management than quality management(QM). This paper define newly the concepts of value and quality and presents the value-management system based on it.

• Proceedings of the ESK Conference
• /
• 1997.10a
• /
• pp.320-325
• /
• 1997

It is very diffcult to applied ergonomics data & experiments in industrial design. At the industrial design process attempted toadoption a egonomics. But sometimes easyto use ergonomics data and at other times very hard to adopted a element into a design process. Industrial design of the essence is a sensual act. As ergonomics data is to the hardware, sois the design sense to the software. The harmony are important to hardware & software of design process. New products demand to new form. Therefore, designer neglect to ergonomics experiments for user. Anyway, ergonomics experiments & data endlessly applied to more things year after year. This paper show improved computer front design with graphic, knobs size & control panel tilt angle.