• Journal of Korean Society for Quality Management
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• v.17 no.1
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• pp.116-124
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• 1989

A multi-period production-inventory scheduling model, which extends the customary dynamic lot sizing model to the one for deteriorating items, is developed. The amount of deterioration during a period is assumed to be proportional to the on-hand inventory at the end of the period. It is futher assumed that the deterioration rates vary from period to period. In addtion, an expediting cost due to the delay of outstanding order is included and it is allowed to offset the order release date in advance, instead, in order to avoid incurring the cost. Finally, a quasi-WW algorithm corresponding to the Wagar-Whitin algorithm is proposed to obtain the optimal production-inventory schedules.

• Communications for Statistical Applications and Methods
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• v.11 no.3
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• pp.631-641
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• 2004

In this paper, a model for an inventory whose stock decreases with time is considered. When a deliveryman arrives, if the level of the inventory exceeds a threshold $\alpha$, no stock is delivered, otherwise a delivery is made. It is assumed that the size of a delivery is a random variable Y which is exponentially distributed. After assigning various costs to the model, we calculate the long-run average cost and show that there exist unique value of arrival rate of deliveryman $\alpha$, unique value of threshold $\alpha$ and unique value of average delivery m which minimize the long-run average cost.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.4
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• pp.31-37
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• 2013

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

• The Journal of Fisheries Business Administration
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• v.21 no.2
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• pp.55-84
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• 1990

The objective of this study is to develop an inventory model for the inventory management of a stocking point which sells processed fisheries products. The study, first of all, sets up fisheries processing companies, food companies, apparel companies, pharmaceutical companies and electronic and electrical companies as a population. Then, a comparative study is empirically applied to obtain the inventory characteristics of final products by industry through a survey of a sample selected by a random sampling procedure. The major inventory characteristics of processed fisheries products obtained from the above analysis can be summarized as follows : 1) The major demand characteristics of processed fisheries products is to have wide seasonal fluctuations because the supply of raw materials (i.e., fisheries products) heavily depends on the productive capacity of nature. 2) It has found that fisheries processing companies are the worst in inventory management among the various industries selected in the sample. However, the self-rating of inventory management system by inventory managers of companies shows that the fisheries processing companies are relatively higher than the other companies. 3) The portion of inventory holding cost out of inventory relevant cost is very high for processed fisheries products compared with final products of the other industries. 4) Processed fisheries products are distributed to final consumers through roughly two distribution echelons and take a parallel type inventory system for their distribution structure. In order to develop an inventory model which reflects the inventory characteristics of processed fisheries products mentioned in the above, an inventory model with partial backorders is developed under the situation of stochastic lead time under the consideration of the inventory characteristics of processed fisheries products and then an iterative solution method is provided for the model. Then this study analyzes sensitivity for the standard deviation of lead time in the model by numerical examples.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.702-707
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• 2006

There have been certain extent of material inventory in construction site because of difficulties in ordering by small quantity, strategy of securing future requirements and prevention of delay. However, carrying these inventory entails a financial cost called inventory holding cost and decrease construction productivity, so proper inventory management in construction industry is important for construction efficiency and cost reduction. This study tries to find analytical method of inventory management. It includes ordering decision which decide how much to order and when to order. Setting these strategies including deciding safety inventory, input and ouput variability are able to controled.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1996.04a
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• pp.285-288
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• 1996

This paper deals with an (s, S) spare-part inventory model with general leadtime. In the model, if the inventory level falls to a reorder point s, a replenishment order quantity Q is ordered. Assumming that the number of operating units is one and the lifetime of a unit follows an exponential distribution, we derive the expected cost rate and suggest a procedure to obtain the optimal pair of (s, S) minimizing the cost rate.

• Journal of the Korea Safety Management & Science
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• v.10 no.3
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• pp.217-225
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• 2008

The inventory routing problem (IRP) is an important area of Supply Chain Management. The objective function of IRP is the sum of transportation cost and inventory cost. We propose an Artificial Immune System(AIS) to solve the IRP. AIS is one of natural computing algorithm. An hyper mutation and an vaccine operator are introduced in our research. Computation results show that the hyper mutation is useful to improve the solution quality and the vaccine is useful to reduce the calculation time.

• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.2
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• pp.3-14
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• 1992

The efficiency of marketing channel of distribution between a manufacturer with several customers can be increase by influencing the order quantity of customer. Manufacturer reduces average inventory holding cost by penalizing the large order quantity from the customer. Such a penalty is significant only if the manufacturer's unit inventory holding cost is relatively large. Conditions under which such penalizing can be beneficial to both parties are derived.

• The Journal of Fisheries Business Administration
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• v.25 no.2
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• pp.103-114
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• 1994

We consider the continous, deterministic, infinite horiton, perishable item inventory, within the setting of a retail sector, in which the price for an item is dependent on the lifetime of inventory. Replenishment cost is kept constant but the carrying cost per units is allowed to vary according to product lifetime. Tro possibilities of variation are considered : (1) Product lifetime is longer than cycletime and (2) Product lifetime is shorter than cycletime. We find the optimal policies and decision rules for perishable product.

• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.3
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• pp.13-26
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• 1992

Set-up reduction is an important aspect of the Japanese Just-In-Time (JIT) and Zero Inventory (ZI) concepts. In this paper, we first analyze the effects of set-up cost reduction on tatal inventory, average lot size and forecast horizon in the dynamic lot size model. We also examine the various effects of set-up cost reduction in the EOQ model and explain why many Japanese firms try to cut set-up cost and/or set-up time greatly.