• Journal of Korean Institute of Industrial Engineers
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• v.26 no.1
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• pp.66-72
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• 2000

Inventory management of a product not to be produced any more has a great impact on the financial status of a company. Clearance pricing can make bigger sales volume together with great savings of inventory holding cost specially for a durable goods with relatively large inventory carrying cost and accordingly cash inflow can be improved. This paper deals with the inventory management by non-linear clearance pricing with the sales rate which depends on the accumulated sales volume and selling price.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.19 no.38
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• pp.77-83
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• 1996

The design of multi -echelon distribution system is need for appropriate inventory control strategy considering for systematic tradeoff between trunk cost in central warehouse and inventory cost in regional warehouse. This study presents a method of the efficient inventory control of multi-echelon distribution system through partial leadtime management.

• Management Science and Financial Engineering
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• v.16 no.3
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• pp.1-20
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• 2010

In this paper, the impact of various system parameters such as the parameters of actual demand process, the review periods and the lead times, under each combination of inventory policies and information sharing, on the long run average inventory cost per period incurred at each participant in a supply chain, is considered. For this purpose, numerical studies are conducted, from which some valuable information as to how sensitive our long run average inventory cost per period are as the model parameters change is gleaned, from which, in turn, some managerial insights are gleaned in order for industry practitioners to perform better in supply chain management.

• Journal of the Korean Society of Systems Engineering
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• v.13 no.1
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• pp.79-88
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• 2017

For the PBL contract, it is necessary for the contracting parties to share information regarding the reasonable inventory-level and the cost of its repair parts for the estimated demand. There are various models which can be used for this purpose. Among them, V-METRIC model is considered to be the most efficient and is most frequently applied. However, this model is usually used for optimizing the inventory level of the repair parts of the system under operation. The model uses a time series forecast model to determine the demand rate, which is a mandatory input factor for the model, based on past field data. However, since the system at the deployment stage has no operational performance record, it is necessary to find another alternative to be used as the demand rate of the model application. This research applies the V-METRIC model to find the optimal inventory level and cost estimation for repairable items to meet the target operational availability, which is a key performance indicator, at the time of the PBL contract for the deployment system. This study uses the calculated value based on the allocated MTBF to the system as the demand rate, which is used as input data for the model. Also, we would like to examine changes in inventory level and cost according to the changes in target operational availability and MTBF allocation.

• Korean Management Science Review
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• v.29 no.3
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• pp.107-120
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• 2012

In this paper we propose an effective genetic algorithm for solving the integrated inventory and routing problem of supply chain composed of multi-warehouses and multi-retailers. Unlike extant studies dealing with integrated inventory and routing problem of supply chain, our model incorporates more realistic aspect such as positive inventory at the multi-warehouses under the assumption of inventory policy of power of two-replenishment-cycle. The objective is to determine replenishment intervals for the retailers and warehouses as well as the vehicles routes so that the total cost of delivery and inventory cost is minimized. A notable feature of our algorithm is that the procedure for evaluating the fitness of objective function has the computational complexity closing to linear function. Computational results show effectiveness of our algorithm.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.2
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• pp.102-113
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• 2004

This paper addresses the transportation planning that is based on genetic algorithm for determining transportation time and transportation amount of minimizing cost of distribution system. The vehicle routing of minimizing the transportation distance of vehicle is determined. A distribution system is consisted of a distribution center and many retailers. The model is assumed that the time horizon is discrete and finite, and the demand of retailers is dynamic and deterministic. Products are transported from distribution center to retailers according to transportation planning. Cost factors are the transportation cost and the inventory cost, which transportation cost is proportional to transportation distance of vehicle when products are transported from distribution center to retailers, and inventory cost is proportional to inventory amounts of retailers. Transportation time to retailers is represented as a genetic string. The encoding of the solutions into binary strings is presented, as well as the genetic operators used by the algorithm. A mathematical model is developed. Genetic algorithm procedure is suggested, and a illustrative example is shown to explain the procedure.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.27 no.4
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• pp.23-32
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• 2004

This paper addresses a model for the transportation planning that determines the transportation cycle time and the vehicle size to minimize the cost in a distribution system. The vehicle routing to minimize the transportation distance of the vehicles is also determined. A distribution system is consisted of a distribution center and many retailers. Products are transported from distribution center to retailers according to transportation planning. A model is assumed that the time horizon is continuous and infinite, and the demand of retailers is constant and deterministic. Cost factors are the transportation cost and the inventory cost, which the transportation cost is proportional to the transportation distance of vehicle when products are transported from distribution center to retailers, and the inventory cost is proportional to inventory amounts of retailers. A transportation cycle time and a vehicle size are selected among respective finite alternatives. The problem is analyzed, and a illustrative example is shown.

• 한국디지털정책학회:학술대회논문집
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• 2007.06a
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• pp.349-357
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• 2007

We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using houristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

• Journal of Digital Convergence
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• v.5 no.1
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• pp.47-53
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• 2007

We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using heuristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.1
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• pp.120-126
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• 2014

This paper deals with the economic value analysis of meteorological forecasts for a hypothetical inventory decision-making situation in the pharmaceutical industry. The value of Asian dust (AD) forecasts is assessed in terms of the expected value of profits by using a decision tree, which is transformed from the specific payoff structure. The forecast user is assumed to determine the inventory level by considering base profit, inventory cost, and lost sales cost. We estimate the information value of AD forecasts by comparing the two cases of decision-making with or without the AD forecast. The proposed method is verified for the real data of AD forecasts and events in Seoul during the period 2004~2008. The results indicate that AD forecasts can provide the forecast users with benefits, which have various ranges of values according to the relative rate of inventory and lost sales cost.