• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.38 no.3
• /
• pp.117-126
• /
• 2015

This paper is to analyze an integrated production and inventory model in a single-vendor multi-buyer supply chain. The vendor is defined as the manufacturer and the buyers as the retailers. The product that the manufacturer produces is supplied to the retailers with constant periodic time interval. The production rate of the manufacturer is constant for the time. The demand of the retailers is constant for the time. The cycle time of the vendor is defined as the elapsed time from the start of the production to the start of the next production, while the cycle times of the buyer as the elapsed time between the adjacent supply times from the vendor to the buyer. The cycle times of the vendor and the buyers that minimizes the total cost in a supply chain are analyzed. The cost factors are the production setup cost and the inventory holding cost of the manufacturer, the ordering cost and the inventory holding cost of the retailers. The cycle time of the vendor is investigated through the cycle time that satisfies economic production quantity with the production setup cost and the inventory holding cost of the manufacturer. An integrated production and inventory model is formulated, and an algorithm is developed. An numerical example is presented to explain the algorithm. The solution of the algorithm for the numerical examples is compared with that of genetic algorithm. Numerical example shows that the vendor and the buyers can save cost by integrated decision making.

• Journal of the military operations research society of Korea
• /
• v.34 no.2
• /
• pp.27-42
• /
• 2008

This study simulated the effect of the quantity flexibility contract(QFC) on the Korean military inventory system. The results shows that the QFC make the inventory system more efficient. For validity of this study, we assume the basic four demand patterns (increase, decrease, high variation and long seasonality) which are the exogenous variables of these simulation systems. We measured the difference of the traditional military inventory system's and new QFC system's performances. Under the all demand patterns, QFC models have little inventory than the traditional systems. We suggest, therefore, the military change the supply contract into QFC for decrease inventory and expect the results of this study applied to the company level.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.9 no.2
• /
• pp.556-563
• /
• 2008

One of the most important issues of managing a supply chain is to determine the inventory level whenever shortage is permitted and vendor is responsible fur management of the both buyer and supplier's inventory. We present two vendor managed inventory models in the form of two-echelon supply chain models for: 1) one buyer-one supplier problem, and 2) two buyers- one supplier problem. We assume that shortage is permitted. The proposed methods of this paper provides a simple condition, which makes it easy to decide when and how vendor managed inventory model costs less than traditional one. The paper is supported with some numerical examples to show the implementation of the proposed methods.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2003.05a
• /
• pp.8-13
• /
• 2003

This paper considers a continuous-review two-echelon inventory control problem with one-to-one replenishment policy incorporated and with lost sales allowed where demand arrives In a stationary Poisson process The problem Is formulated using METRIC-approximation in a combined approach of pricing and (S-1.S) Inventory policy, for which an iterative solution algorithm is derived with respect to the corresponding one-warehouse multi-retailor supply chain. Specifically, decisions on retail pricing and warehouse inventory policies are made in integration to maximize total profit in the supply chain. The objective function of the model consists of sub-functions of revenue and cost (holding cost and penalty cost). To test the effectiveness and efficiency of the proposed algorithm, numerical experiments are performed The computational results show that the proposed algorithm is efficient and derives quite good decisions

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2006.05a
• /
• pp.179-186
• /
• 2006

There was a lot of research to integration of the transshipment and inventory problem in supply chain. Such a integration of inventory and transshipment problem called IRP (Inventory Routing Problem). We consider a distribution problem in which a set of products has to be shipped from a supplier to several retailers in a given planning horizon. Transshipment from the supplier to the retailer is performed by vehicles of limited capacity. Each retailer determines replenishment leadtime and order quantity with buffer management. A supplier determines optimal vehicle routing in supply chain. We suggest a heuristic algorithm which be used TOC buffer management in a replenishment problem and a tabu search algorithm in VRP (Vehicle Routing Problem).

• IE interfaces
• /
• v.11 no.1
• /
• pp.85-95
• /
• 1998

This study is focussed on an optimal vehicle routing model for multi-supply centers in two-echelon logistic system. The aim of this study is to deliver goods for demand sites with optimal decision. This study investigated an integrated model using step-by-step approach based on relationship that exists between the inventory allocation and vehicle routing with restricted amount of inventory and transportations such as the capability of supply centers, vehicle capacity and transportation parameters. Three sub-models are developed: 1) sector-clustering model, 2) a vehicle-routing model based on clustering and a heuristic algorithm, and 3) a vehicle route scheduling model using TSP-solver based on genetic and branch-and-bound algorithm. Also, we have developed computer programs for each sub-models and user interface with visualization for major inputs and outputs. The application and superior performance of the proposed model are demonstrated by several sample runs for the inventory-allocation and vehicle routing problems.

• Industrial Engineering and Management Systems
• /
• v.9 no.4
• /
• pp.303-311
• /
• 2010

In the last few years growing interest has been dedicated to supply chain management. Modeling complexity is added to supply chain coordination problem by accounting for reverse logistics activities. The objective of this paper is to extend inventory model of manufacturing factory with respect to the production of raw material of forward logistics and recycling material of reverse logistics. The proposed model is applied to a plastic recycling process plant located in Taiwan. The case study improvement scheme shows when the recycling rate of recycling material increases from 15% to 50%, the total inventory cost of manufacturing factory decreases by 12.82%, safety stock volume decreases by 41.19% and the reorder quantity is down by 50.96%. This paper finds whether the results of the model can reach the economic profit through quantitative analysis and encourages companies integrate reverse logistics into the supply chain system.

• IE interfaces
• /
• v.10 no.1
• /
• pp.119-134
• /
• 1997

The management of blood inventory is very important within the medical care system. The efficient management of blood supplies and demands for transfusions is of great economic and social importance to both hospitals and patients. For any blood type, there is a complex interaction among the optimal inventory level, daily demand level, daily supply level, transfusion to crossmatch ratio, crossmatch release period, issuing policy and the age of arriving units that determine the shortage and outdate rate. In this paper, we develop an efficient decision rule for blood inventory management in a hospital blood bank which can support efficient hospital blood inventory management using simulation. The primary use of the efficient decision rule will be to establish minimum cost function which consists of inventory levels, period in inventory, outdate and shortage rate for whole blood and various component inventories for a hospital blood bank or a transfusion service. If the administrator compute the mean daily demand for each blood type, the mean daily supply for each blood type, the length of the crossmatch release period and the average transfusion to crossmatch ratio, then it is possible to apply the efficient decision rule to compute the optimal inventory level, inventory period, outdate and shortage rate. This rule can also be used as a decision support system that allows the blood bank administrator to do sensitivity analysis related to controllable blood inventory parameters.

• Journal of the Korea Society for Simulation
• /
• v.5 no.1
• /
• pp.13-27
• /
• 1996

The management of blood inventory is very important within the medical care system. The efficient management of blood supplies and demands for transfusion is of great economic and social importance to both hospitals and patients. Fro any blood type, there is a complex interaction among the optimal inventory level, daily demand level , daily supply level, transfusion to crossmatch ratio, crossmatch release period, issuing policy and the age of arriving units that determine the shortage and outdate rate. In this paper, we develop an efficient decision rule for blood inventory management in a hospital blood bank which can support efficient hospital blood inventory management using simulation, The primary use of the efficient decision rule will be to establish minimum cost function which consists of inventory levels , period in inventory, outdate and shortage rate for whole blood and various component inventories for a hospital blood bank or a transfusion service, If the adminstrator compute the mean daily demand for each blood type, the mean daily supply for each blood type, the length of the crossmatch release period and the average transfusion to crossmatch ratio , then it is possible to apply the efficient decision rule to compute the optimal inventory level, inventory period , outdate and shortage rate. This rule can also be used as a decision support system that allows the blood bank adminstrator to do sensitivity analysis related to controlled blood inventory parameters.

• Management Science and Financial Engineering
• /
• v.16 no.3
• /
• pp.21-47
• /
• 2010

Quantity discounts provide a practical foundation for supply chain inventory policies, improving the supplier's profit and reducing the buyer's inventory cost simultaneously. Traditional quantity-discount research, which deals with inventory coordination between a buyer and a supplier, is extended to a stationary stochastic environment. This research shows that the magnitude of the optimal discounts scheduled by the deterministic quantity discount models may not be large enough to cover the buyer's additional inventory stocking risks under uncertain conditions. As a result, the buyer's total inventory cost may often increase rather than decrease. In contrast, the proposed model allows the supplier to identify the discount level, which shares the buyer's amplified risk associated with temporary overstocking and ensures that both buyer and supplier benefit economically. The performance of the proposed model was tested in the continuous review environments via numerical experiments. The experimental results support the proposed method as a feasible alternative in coordinating inventory decisions under stochastic demand.