• Industrial Engineering and Management Systems
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• v.3 no.1
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• pp.12-21
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• 2004

This paper investigates the design of a priority rule in a multi-product disassembly environment. Specifically, it is concerned with product scheduling by which the inventory control of disassembled parts can be incorporated into a priority rule to reduce part lead times. The part lead time consists of two components: flow time and supply delay. The primary focus of the paper is on the development of a disassembly priority rule that aims to reduce the supply delay. We propose a priority rule, called Minimum Distance (MD) rule, to improve the supply delay performance. Finally, we provide a comparative analysis on the performance of traditional rules and the new rule proposed in this paper via a simulation model.

• 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.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1997.10a
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• pp.201-204
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• 1997

This study is focussed on optimization problems which require allocating the restricted inventory to demand points and assignment of vehicles to routes in order to deliver goods for demand sites with optimal decision. This study investigated an integrated model using three step-by-step approach based on relationship that exists between the inventory allocation and vehicle routing with restricted amount of inventory and transportations. we developed several sub-models such as; first, an inventory-allocation model, second a vehicle-routing model based on clustering and a heuristic algorithms, and last a vehicle routing scheduling model, a TSP-solver, based on genetic algorithm. Also, for each sub-models we have developed computer programs and by a sample run it was known that the proposed model to be a very acceptable model for the inventory-allocation and vehicle routing problems.

• Journal of Institute of Control, Robotics and Systems
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• v.17 no.9
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• pp.932-940
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• 2011

This paper presents an integrated analysis of supply chain and financing decisions of multi-national corporation. We construct a model in which multiple currency storage units are installed to manage the currency flows associated with multi-national supply chain activities such as raw material procurement, process operation, inventory control, transportation and finished product sales. Core contribution of this study is to quantitatively investigate the influence of macroscopic economic factors such as exchange rates and taxes on operational decisions. The supply chain is modeled by the Process-Storage Network with recycle streams. The objective function of the optimization is minimizing the opportunity costs of annualized capital investments and currency/material inventories minus the benefit to stockholders interpreted by home currency. The major constraints of the optimization are that the material and currency storage units must not be depleted. A production and inventory analysis formulation, the periodic square wave (PSW) model, provides useful expressions for the upper/lower bounds and average levels of the currency and material inventory holdups. The expressions for the Kuhn-Tucker conditions of the optimization problem are reduced to a subproblem and analytical lot sizing equations. The procurement, production, transportation and financial transaction lot sizes can be determined by analytical expressions after the average flow rates are already known. We show that, when corporate income tax is taken into consideration, the optimal production lot and storage sizes are smaller than is the case when such factors are not considered typically by 20 %.

• Journal of Korean Institute of Industrial Engineers
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• v.34 no.1
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• pp.1-12
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• 2008

The Kanban system in Just-In-Time (JIT) production is very effective in reducing the inventories when consumption rate of the final product is relatively stable. When large fluctuations exist in the consumption rate, a new production ordering policy in which the production order quantity is determined by smoothing the demands exponentially is more suitable. This new ordering policy has not been investigated sufficiently. In this research, a multi-stage production and inventory system with stock points for materials and finished items located at each stage is considered. Approximations of average inventories at each stage in the system are derived theoretically. Numerical simulations are carried out to assess the accuracy of approximations and to evaluate the effectiveness of the new ordering policy as compared with the Kanban system. As a result, it is shown that the new ordering policy can achieve significantly lower inventory costs than the original Kanban system. The new ordering policy thus emerges as a key concept for an effective supply chain management.

• Journal of Institute of Control, Robotics and Systems
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• v.20 no.7
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• pp.750-755
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• 2014

Product shortage which causes backordering and/or lost sales cost is very popular in chemical industries, especially in commodity polymer business. This study deals with backordering cost in the supply chain optimization model under the framework of process-inventory network. Classical economic order quantity model with backordering cost suggested optimal time delay and lot size of the final product delivery. Backordering can be compensated by advancing production/transportation of it or purchasing substitute product from third party as well as product delivery delay in supply chain network. Optimal solutions considering all means to recover shortage are more complicated than the classical one. We found three different solutions depending on parametric range and variable bounds. Optimal capacity of production/transportation processes associated with the product in backordering can be different from that when the product is not in backordering. The product shipping cycle time computed in this study was smaller than that optimized by the classical EOQ model.

• Journal of The Korean Society of Agricultural Engineers
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• v.53 no.3
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• pp.59-64
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• 2011

The objective of the study is to develop life cycle inventory (LCI) database of dam, a major facility for irrigation water supply. The types of database developed are three out of nine dams according to the size of the wate r storage capacity: two kinds larger than 500,000 $m^3$ depending on gate for discharging (Type 1) and the other dam smaller than 500,000 $m^3$ (Type 2). According to the LCI analysis, type 1 larger than 500,000 $m^3$ storage capacity with gate has the lowest environment impact in the 6 impact categories. The impact of the type 1 accounts for 7~35 % of the type 2 for supplying irrigation water. Comparing with the environment impacts of water for other uses such as drinking and industrial water, the impacts of 1 $m^3$ irrigation water supply is 4~45 % of the one for industrial water supply and 1~16 % of the drinking water's. The three types of LCI DB on the irrigation water by dams will be useful in the application of Life Cycle Assessment in agricultural products and environmental labelling including carbon footprint since it is complied to the guidelines of LCI DB constr uction issued by Ministry of Environment and Ministry of Knowledge Economy.

• Journal of the military operations research society of Korea
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• v.11 no.1
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• pp.1-7
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• 1985

A computer-aided simulation model for inventory control was developed using Apple II Plus micro-computer. The model forecasts quarterly demands with Single Exponential Smoothing method and simulates Supply Demand Review and Inventory Level Settings for each items. The simulation is based on the assumption that the demand occurrences have their own probability distributions.

• Proceedings of the Korea Society of Information Technology Applications Conference
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• 2007.05a
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• pp.198-208
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• 2007

Recently business enterprises have forced to face in fierce competition in today's global markets due to the short life cycles of products and the higher expectation of customers. Together with continuing advances in communications and transportation technologies, these environments have motivated the continuous evolution of the supply chain and the management techniques. This paper consider three-echelon inventory system which consist of one manufacturer, one distributor and N retailers for a single product under assumption of constant demand. This paper propose the inventory replenishment period using heuristic method and order policy through coordination of inventory replenishment period. The simulation results show that decrease the total cost of the three-echelon inventory system.

• Korean Management Science Review
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• v.20 no.1
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• pp.77-88
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• 2003

Supply-Chain Management (SCM) was the integration of the activities that procure materials, transform them into intermediate goods and final products, and deliver them to customers. These activities include the traditional purchasing function, plus other activities that were important to the relationship with suppliers and distributors. P company was the first vendor in motor industry of Korea and had a flexible relationship with motor industry through SCM. However, p company had independent information with motor Industry and it caused many troubles In the operation of the P company. Considering these facts, authors had developed the inventory control system which was the part of order-fulfillment process and could make a progress in the operation of the inventory. The core factor of the developed inventory control system was the combination of the theoretical factors and the empirical factors. That is, the factors which were excluded in existing inventory theory revealed to be important.