• Journal of the Korea Society for Simulation
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• v.12 no.4
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• pp.61-71
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• 2003

Recently, a matter of the highest priority that the company must do for the satisfaction of customer service is that the company ensure the competitive power throughout the strategic cooperation in the market environment changing rapidly In this situation, one of allied strategies is the supply chain management and the outsourcing is one of the supply chain management strategies. In this paper, the inventory sharing system is introduced as the method to solve two inconsistency problem such as inventory and customer service. This paper also suggests how to increase customer service and to decrease inventory throughout construction of the inventory sharing system among outsourcing companies. For this, we experimented the effect of the inventory sharing system on the supply chain dynamics by using the simulation modeling and analyzed the validity about construction of the inventory sharing system presented in this study. The simulation is designed by Vensim(Process simulation package) and has some feedback loops.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.3
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• pp.61-74
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• 2011

The objective of this study is to evaluate the effects of sharing uncertain yield information with a downstream supply chain player. We are interested in understanding how the amount of yield uncertainty affects the supply-side benefits and/or costs, which has not been considered in the literature, in addition to the customer-side benefits. With that purpose, this work evaluates a supplier who provides yield information in comparison with another supplier who shares no information. We simulate an order-up-to type heuristic policy that is adapted from the literature and reasonably modified to represent yield information sharing with error. From the simulation study, we argue that the customer would experience cost reduction, but the cost for supplier's inventory is increasing when sharing yield information. Furthermore, the amount of benefits and costs are situational and affected by level of yield uncertainty and demand variance. Based on the simulation study, we finally make several recommendations for the supply-side approaches to yield information sharing.

• The Journal of Industrial Distribution & Business
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• v.14 no.9
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• pp.21-30
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• 2023

Purpose: Focusing on the role of the special contract to collaborate the supply chain operations, this study investigates how the revenue sharing contract affects the performance of Vendor Managed Inventory (VMI). Research design, data, and methodology: The optimization model is formulated to represent two stage supply chain system where the supplier and retailer manage the operations to maximize their own profits. Three supply chain models including the traditional system, VMI, and VMI with revenue sharing contract are compared in the numerical examples. Results: According to the numerical analysis, the entire supply chain system has greater profit under VMI than the traditional system, while VMI alone sacrifices the supplier's profit. With the proper sets of revenue share ratio and wholesale price discount rate, VMI with revenue sharing contract results in the increased profit for both supplier and retailer compared with VMI alone as well as the traditional system. Conclusions: The numerical examples imply that VMI, when it is combined with the revenue sharing contract, can be the effective collaboration program that satisfies every supply chain member. To make VMI with revenue sharing contract to be fair to all supply chain members, they need to agree on the appropriate contract content.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.9 no.6
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• pp.1371-1378
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• 2005

Vertical e-Marketplaces have been expanded because of their enough funds and purchasing power, while horizontal e-Marketplaces have not been grown. On the e-Marketplace which is dealing electronic components with the characteristics of short life cycle and diversities, if an e-Marketplace participant holds a large quantity of the same kinds of components, it will result in lowering competitiveness of the company because of its unuseful inventory. Therefore, as a method for increasing competitiveness of e-Marketplace participants, we proposed the inventory sharing method among the participants, and then designed and implemented it in this paper. For providing inventory sharing function, the e-Marketplace system needs intermediary because each system of participants participating e-Marketplace uses its own DBMS respectively. In this paper, we implemented inventory sharing function using XML, which is a standard for exchanging data, as intermediary, and showed an example of the implemented system.

• The Journal of Society for e-Business Studies
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• v.3 no.2
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• pp.203-217
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• 1998

Supply chain management is defined as "an integrative philosophy to manage the total flow of a distribution channel from the supplier to the ultimate user". There are many differences between traditional systems and supply chain management systems, There are so many advantages applying SCM concept in inventory management field from the viewpoint of information sharing. While each firm try to optimize the inventory individually in traditional systems, SCM focus on optimizing the channel-wide-inventory making effort to reduce the inventory interrelatedly, The more complex your network of suppliers, manufacturers, and distributors, the more you are likely to gain operational efficiencies by attending on inventory management. The inventory stockpiles at the various sites, including both incoming materials and finished products, have complex interrelationships. Efficient and effective management of inventory throughout the supply chain significantly improves the ultimate service provided to the customer. The purpose of this thesis is to develop the integrated inventory management system for the control of channel-wide inventory on the intranet by applying SCM concept.

• Journal of Digital Convergence
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• v.13 no.9
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• pp.77-87
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• 2015

Vendor Managed Inventory(VMI) is a distribution channel system where the inventory at the retailer is monitored and managed by the manufacturer or vendor. By pushing the decision making responsibility further up the supply chain and centralizing the replenishment decision, the vendor can help the entire supply chain be more competitive. The purpose of this research is to explore the factors influencing the adoption of VMI by Korean manufacturers. This research proposes the IT readiness, operating cost, and information sharing as antecedents of burden for VMI, and collected the survey responses from the small-to-medium manufacturers. The statistical results indicate that only the operating cost has a significant impact on the adoption of VMI. However it has also been found that the IT readiness and information sharing have a significant effect on the operating cost. Thus indirectly influence the adoption of VMI. As a conclusion, the academic and practical implications of these findings are discussed.

• Journal of Distribution Science
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• v.14 no.9
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• pp.47-64
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• 2016

Purpose - This study reviews the past studies that have researched Vendor Managed Inventory (VMI) as a well-known supply chain collaboration program. The main goals of this study are to figure out how VMI brings significant benefits to the supply chain system and suggest additional areas that future studies would address to discover the true nature of VMI. Research design, data, methodology - This study conducts literature reviews on numerous studies that have researched VMI. The past studies are classified in terms of several main issues that have been commonly addressed by many researchers. This study also identifies three key collaborative features of VMI, which possibly explain why VMI improves the supply chain performance. Results - This study finds out that most past studies focused on a limited research issues about VMI. Many researchers have considered integrated decision making and information sharing to be key features that enables VMI to improve the supply chain performance. Conclusions - Based on the findings from the literature review, this study suggests that future studies on VMI take account of new research issues and pay attention to cost payment that researchers have rarely addressed.

• Proceedings of the Korea Society for Simulation Conference
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• 2003.11a
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• pp.193-200
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• 2003

급변하는 시장환경에서 고객수요가 불확실한 상황에서 고객서비스를 최우선으로 하는 기업에서는 전략적인 제휴를 통해 기업의 경쟁력을 확보하는 것이 최우선이라고 하겠다. 이러한 환경에서 대두된 경영혁신 기법들이 공급체인관리와 아웃소싱 개념이라고 할 수 있는데, 이에 본 연구에서는 제조기업의 입장에서 제품가격 경쟁력을 확보하기 위한 일환으로 재고량을 줄이고, 판매량을 늘리는 방안을 제고하고자 한다. 비용과 서비스 관점에서 볼 때 이들은 서로 상충관계에 있지만, 본 연구에서 제안하는 재고 공유 시스템을 통한 공동 재고정책은 기업의 입장에서 볼 때, 보다 적은 재고를 보유함으로써, 재고유지비용을 절감하고, 이는 최종 제품가격의 하락으로 이어져 가격효과를 통한 매출량의 증대시킬 수 있게 된다. 이를 검증하기 위해 본 연구에서는 시스템 다이나믹스 방법을 이용하고, 이를 통하여 본 연구에서 제시된 재고 공유 시스템구축의 타당성을 검증하고, 분석하였다

• Journal of Information Technology Applications and Management
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• v.15 no.3
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• pp.79-90
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• 2008

With the corporate environment nowadays being surrounded by plenty of information, the sharing of information among businesses through mutual cooperation tops the list of hot issues. Predictions of demands from the customer, business, or consumer by sharing information can affect the inventory and order production system. However, notwithstanding the importance of sharing information, empirical studies on quantitative use of information still remain insufficient in spite of many a discussion now being made on the sharing of information. This paper proposes to examine the ways meteorological information may affect the rises in the achievements of supply chains in distributive businesses, the kind of information that noticeably affects the consumer behavioral patterns in the distributive businesses but rarely perceived as a form of information shared by businesses. This study is based on a model in which meteorological information has been added as the one used to predict demands, after the beer distribution game has been modified to fit the current status, and simulations under an assumptive situation, where decisions are made on a daily basis, were conducted 50 times for a period of 1000 days for the generalization of the results, while at the same time a Duncan Test was conducted to determine the threshold to use the meteorological information that will be most profitable to the retailer, wholesaler, supplier and the supply chain as a whole. Our findings indicate that corporations have thresholds that vary from business to business depending upon the ratio of backlog costs to inventory costs. At the same time, our findings also show that there existed effective thresholds depending upon the ratio of backlog costs to inventory costs for the performance of the overall supply chain.

• Industrial Engineering and Management Systems
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• v.8 no.2
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• pp.80-92
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• 2009

This paper addresses the inventory rationing issue embedded in the regional supply chain inventory replenishment problem (RSIRP). The concerned supply chain, which was fed by the national supply chain, consisted of a single warehouse distributing a single product to multiple stores (M-stores) with independent and normally distributed customer demand. It was assumed that the supply chain operated under the order-up-to level inventory replenishment system and had only one truck at the regional warehouse. The truck could make one replenishment trip to one store per period (a round trip per period). Based on current inventories and the vehicle constraint, the warehouse must make two decisions in each period: which store in the region to replenish and what was the replenishment quantity? The objective was to position inventories so as to minimize lost sales in the region. The warehouse inventory was replenished in every fixed-interval from a source outside the region, but the store inventory could be replenished daily. The truck destination (store) in each period was selected based on its maximum expected shortage. The replenishment quantity was then determined based on the predetermined order-up-to level system. In case of insufficient warehouse inventories to fulfill all projected store demands, an inventory rationing rule must be applied. In this paper, a new inventory rationing rule named Expected Cost Minimization (ECM) was proposed based on the practical purpose. The numerical results based on real data from a selective industry show that its performance was better and more robust than the current practice and other sharing rules in the existing literature.