• Title/Summary/Keyword: Inventory Costs

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When VMI with Consignment Brings Benefit to Supply Chain Members?

  • RYU, Chungsuk
    • The Journal of Industrial Distribution & Business
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    • v.12 no.5
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    • pp.7-16
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    • 2021
  • Purpose: This study intends to examine how VMI with consignment performs over time and find out its on-going impacts on the individual supply chain member's achievement. Research design, data, and methodology: This study formulates the mathematical model that represents two-stage supply chain system. By analyzing the numerical examples, this study compares VMI with consignment with the traditional system. Results: VMI with consignment eventually makes higher supply chain profit than the traditional system, even though it's early performance is poor. The influence of VMI with consignment on the performance of the supply chain member is distinct depending on the individual member and time. The consignment may not be helpful to increase the system profit, but it reduces the manufacturer's burden of costs. Conclusions: VMI with consignment improves the supply chain performance after all, and it still takes times until its benefit becomes fully realized. To be a successful collaboration program, VMI with consignment requires a carefully designed incentive scheme that provides the timely compensation to the individual supply chain members. This study also finds out that the consignment contract of this collaboration program plays a role of financially supporting the manufacturer at the early stage of its implementation.

A Study on the Development Strategy of Logistics System in E-Commerce in China

  • OH, Moon-Kap;YOUN, Myoung-Kil
    • The Journal of Economics, Marketing and Management
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    • v.7 no.4
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    • pp.1-5
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    • 2019
  • Purpose - Along with the rapid growth of the economics and IT industry, E-commerce appears as the next potential area of world economics. For this no-entity shops commerce style, logistics is crucial for the success of E-commerce. Research design, data and methodology - In this paper, Dangdang.com, the largest online marketplace in China, is studied and a conceptual model is present, to develop a practical way to develop the logistics system in E-commerce situation. Results - This research finds that following 4 factors are critical success factors for E-commerce logistics: 1) logistics centres are very important to control the inventory management; 2) keep good cooperation with third-party logistics (3PL) can guarantee good quality shipping service and also can reduce delivery costs; 3) build strong information system; 4) quick response system also needed for an efficient logistics system. When E-commerce firms are developing their logistics systems, they should pay more attention to these 4 critical success factors. Conclusions - In summary, successful 3PL management is vital for competing regionally and globally throughout the logistics value chain. We see information system as an enabler in logistics management to get the right products to the right place in the right quantity at the right time and to provide quality services to satisfy the customer's needs.

Modeling Of Management Decisions Of Organization Of Production Systems

  • Arutiunian, Yevhen;Mikhailutsa, Olena;Pozhuyev, Andriy;Аzhazha, Maryna;Arutiunian, Iryna;Zrybnieva, Iryna;Slyva, Yuliia
    • International Journal of Computer Science & Network Security
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    • v.21 no.7
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    • pp.87-92
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    • 2021
  • Analysis of current state of construction industry functioning in Ukraine allows us to identify a number of problems having negative impact on sustainable development of construction industry, especially in terms of its organization. Therefore, it is absolutely essential to study existing methods of organization system supplying construction sites with necessary material resources. Companies can develop their own logistics departments, which independently solve logistics issues related to transportation organization and management, accounting and inventory management, acquisition and warehousing, intercommunication (ability to obtain both final and intermediate information during transporting materials). Using a complex of methods is substantiated: the hierarchy analysis method (Saati's method), the network method, the defect elimination algorithm DEA, the transportation problem that finds optimal problem solutions for construction sector with the purpose of rational supplying uninterrupted construction with building resources in the designed model "provider-transportation-costs".

A Study on Predicting the demand for Public Shared Bikes using linear Regression

  • HAN, Dong Hun;JUNG, Sang Woo
    • Korean Journal of Artificial Intelligence
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    • v.10 no.1
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    • pp.27-32
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    • 2022
  • As the need for eco-friendly transportation increases due to the deepening climate crisis, many local governments in Korea are introducing shared bicycles. Due to anxiety about public transportation after COVID-19, bicycles have firmly established themselves as the axis of daily transportation. The use of shared bicycles is spread, and the demand for bicycles is increasing by rental offices, but there are operational and management difficulties because the demand is managed under a limited budget. And unfortunately, user behavior results in a spatial imbalance of the bike inventory over time. So, in order to easily operate the maintenance of shared bicycles in Seoul, bicycles should be prepared in large quantities at a time of high demand and withdrawn at a low time. Therefore, in this study, by using machine learning, the linear regression algorithm and MS Azure ML are used to predict and analyze when demand is high. As a result of the analysis, the demand for bicycles in 2018 is on the rise compared to 2017, and the demand is lower in winter than in spring, summer, and fall. It can be judged that this linear regression-based prediction can reduce maintenance and management costs in a shared society and increase user convenience. In a further study, we will focus on shared bike routes by using GPS tracking systems. Through the data found, the route used by most people will be analyzed to derive the optimal route when installing a bicycle-only road.

A Development of SCM Model in Chemical Industry Including Batch Mode Operations (회분식 공정이 포함된 화학산업에서의 공급사슬 관리 모델 개발)

  • Park, Jeung Min;Ha, Jin-Kuk;Lee, Euy Soo
    • Korean Chemical Engineering Research
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    • v.46 no.2
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    • pp.316-329
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    • 2008
  • Recently the increased attention pays on the processing of multiple, relatively low quantity, high value-added products resulted in adoption of batch process in the chemical process industry such as pharmaceuticals, polymers, bio-chemicals and foods. As there are more possibilities of the improvement of operations in batch process than continuous processes, a lot of effort has been made to enhance the productivity and operability of batch processes. But the chemical process industry faces a range of uncertainties factors such as demands for products, prices of product, lead time for the supply of raw materials and in the production, and the distribution of product. And global competition has made it imperative for the process industries to manage their supply chains optimally. Supply chain management aims to integrate plants with their supplier and customers so that they can be managed as a single entity and coordinate all input/output flows (of materials, information) so that products are produced and distributed in the right quantities, to the right locations, and at the right time.The objective of this study is to solve the purchase, distribution, production planning and scheduling problem, which minimizes the total costs of production, inventory, and transportation under uncertainty. And development of SCM model in chemical industry including batch mode operations. Through that, the enterprise can respond to uncertainty. Also integrated process optimal planning and scheduling model for manufacturing supply chain. The result shows that, the advantage of supply chain integration are quality matters seen by customers and suppliers, order schedules, flexibility, cost reduction, and increase in sales and profits. Also, an integration of supply chain (production and distribution system) generates significant savings by trading off the costs associated with the whole, rather than minimizing supply chain costs separately.

A Study of the Combination Method for Earthwork Equipments Using the Environmental Loads and Costs (토공사 환경오염물질 부하량 및 공사비를 이용한 장비조합방법 연구)

  • Kang, Min-Ho;Park, Hyung-Keun
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.33 no.3
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    • pp.1215-1224
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    • 2013
  • Great efforts have been made worldwide to reduce the Green House Gas (GHG) emission following the "Kyoto Protocol" declared during the United Nations Framework Convention on Climate Change in 1997. Many industries have restructured to meet the standard set by the Protocol. However, no clear guidance has been established for the purpose of reducing the GHG emission in construction industry. In addition, no significant effort has been made to conserve the energy during construction activities. For more effective energy saving in construction industry, it is essential to collect data about energy consumption, quantity of environmental emissions and costs. However, most studies on sustainable construction have been concentrated on the use of equipment, maintenance and repair works during construction due to the difficulties of collecting such data. This study suggests a method to select the most environmentally friendly equipment combination for earthwork with comparing environmental loads and costs using the database of Life Cycle Inventory in the Ministry of Knowledge Economy and Ministry of Environment of Korea.

Analysis of Cost Saving Effect on Stakeholders according to Performance Improvement of Harbor Cranes - The Yeosu Bulk Terminal (항만 양하 크레인의 성능 개선에 따른 이해관계자들의 비용 절감 효과 분석 - 여수 벌크 터미널 중심으로 -)

  • Park, Sang-Kook
    • Journal of Korea Port Economic Association
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    • v.33 no.2
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    • pp.97-109
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    • 2017
  • The Terminal Operating Company (TOC) decides to replace the harbor cranes in order to increase revenue and profit through the improvement of unloading efficiency. To achieve this goal, substantial costs and efforts are necessary. However, the conative participation of harbor stakeholders is needed, because they will certainly be passionate enough when expected effects are obvious. The purpose of this study is to analyze the effect on stakeholders on direct and indirect cost saving when the cargo handling equipment is replaced. According to the analysis, a total cost saving of 6,561.8 million won will arise including a vessel chartering fee of 3,649.6 million won, a port facility fee of 1,528.8 million won, and fuel costs of 1,383.4 million won as direct effects. As indirect cost effects, a total cost saving of 3,107.0 million won will emerge including an environmental pollution cost of 2,134.8 million won and a freight inventory cost of 972.2 million won. Consequently, the replacement of harbor cranes in the TOC has positive effects on shipping companies, shippers, and the government in terms of costs and other aspects. The results of this study can be utilized as a basis to draw a conative cooperation of stakeholders on TOC's promotion of the harbor cranes replacement.

A Study on the Research Trend and Future Development Direction of Mt. Baekdu in Korea (국내 백두산 분화 관련 연구 동향 분석 및 향후 발전방향 제시)

  • Park, Sung-Hwan;Lee, MoungJin;Lee, Jun-Hee;Lee, Jong-Ho;Jung, Hyung-Sub
    • Journal of Environmental Policy
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    • v.14 no.2
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    • pp.149-170
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    • 2015
  • The purpose of this paper is to figure out the research direction and information regarding Mt. Baekdu in Korea through analyses of the research field and trends. Firstly, we made inventory of journal papers, conference proceedings, and research reports published related to Mt. Baekdu. A total of 255 data, spanning the 34 years from the 1980s to the middle of 2014, were acquired and classified into categories according to the year, field, contents and study area. Results show that research on Mt. Baekdu has been performed more than twice since 2010 and study regarding prediction has been carried out in 54.7% cases. In addition, the importance of geo-spatial information is expected to increase in order to study Mt. Baekdu. Secondly, we made and analyzed a geospatial information using inventory of 234 detailed research contents in research reports by Korea Meteorological Administration (KMA) and National Institute of Meteorological Research (NIMR). Statistics on categories show that research regarding prediction accounted for 81.6% of cases and the study of geo-spatial information utilization accounted for 54.7% of cases. However, the focus on studying the Mt. Baekdu region accounted for only 20.1% of cases. Thus, this indicates that it is necessary to do research at Mt. Bakdu itself. If the directly available geo-spatial information system is developed related to Mt. Baekdu, it will save research costs and analysis time. This study can be used to manage information about the research field of Mt. Baekdu by analysing inventory of research references and geospatial information using inventories when the Mt. Baekdu area is the focus of future research.

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Classification of Forest Vertical Structure Using Machine Learning Analysis (머신러닝 기법을 이용한 산림의 층위구조 분류)

  • Kwon, Soo-Kyung;Lee, Yong-Suk;Kim, Dae-Seong;Jung, Hyung-Sup
    • Korean Journal of Remote Sensing
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    • v.35 no.2
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    • pp.229-239
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    • 2019
  • All vegetation colonies have layered structure. This layer is called 'forest vertical structure.' Nowadays it is considered as an important indicator to estimate forest's vital condition, diversity and environmental effect of forest. So forest vertical structure should be surveyed. However, vertical structure is a kind of inner structure, so forest surveys are generally conducted through field surveys, a traditional forest inventory method which costs plenty of time and budget. Therefore, in this study, we propose a useful method to classify the vertical structure of forests using remote sensing aerial photographs and machine learning capable of mass data mining in order to reduce time and budget for forest vertical structure investigation. We classified it as SVM (Support Vector Machine) using RGB airborne photos and LiDAR (Light Detection and Ranging) DSM (Digital Surface Model) DTM (Digital Terrain Model). Accuracy based on pixel count is 66.22% when compared to field survey results. It is concluded that classification accuracy of layer classification is relatively high for single-layer and multi-layer classification, but it was concluded that it is difficult in multi-layer classification. The results of this study are expected to further develop the field of machine learning research on vegetation structure by collecting various vegetation data and image data in the future.

The Effect of COVID-19 Pandemic and Operanting Cycle on Asymmetric Cost Behavior in Food Service Industry (코로나19 팬데믹과 영업순환주기가 외식업체의 원가 비대칭적 행태에 미치는 영향)

  • Park, Won
    • Journal of Digital Convergence
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    • v.20 no.4
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    • pp.215-224
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    • 2022
  • This study tried to examine the effect of cost asymmetry on food service companies and what characteristics affect such cost behavior. This study analyses cost behavior for cost of good sold, selling, general and administrative cost over the 2019-2020 period. Also, the rate of change in activity level was measured using change in sales. This study measures the behavior of cost using the research model of [1]. As a result of the analysis, it was found that food service companies exhibited cost asymmetric behavior as their sales level decreased. In addition, the cost asymmetric behavior has been strengthened since the corona virus, and the shorter the operating cycle. Lastly, the shorter the inventory holding period and the collection period of accounts receivable, which are components of the operating cycle, more strengthen asymmetric behavior of costs. These results seem to be meaningful in examining the cost structure and factors that may affect the structure for food service industry. This has approached the cost aspect of the situation faced by service food companies due to COVID-19, and it can be suggested that this pandemic can lead to cost reduction due to a decrease in corporate sales.