• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.10a
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• pp.375-388
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• 2004

As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for these backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, the 3PLs should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since this network design problem belongs to a class of NP-hard problems, we present an efficient heuristic based on Lagrangean relaxation and apply it to numerical examples to test the validity of proposed heuristic.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2006.10a
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• pp.240-257
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• 2006

In an effort to gain competitiveness, recently many companies are trying to outsource their logistics activities to the logistics specialists, while concentrating on their core and strategic business area. Because of this trend, the third party logistics comes to the fore, catching people's attention, and expanding its market rapidly. Under these circumstances, the third party logistics companies are making every effort to improve their logistics services and to develop an information system in order to enhance their competitiveness. In particular, among these efforts one of the critical parts is the decision support system for effective transportation network planning. To this end, this study has developed an efficient decision support system for an optimal transportation network planning by comprehensively considering the transportation mode, routing, assignment, and schedule. As a result of this study, the new system enables the expansion of the third party logistics companies' services including the multimodal transportation, not to mention one mode of transportation, and also gets them ready to plan an international transportation network.

• Journal of Distribution Science
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• v.22 no.6
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• pp.123-131
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• 2024

Purpose: This study aims to empirically analyze the effect of information sharing on the two dimensions of trust and logistics performance in the relationship between firms in the supply chain. Research design, data and methodology: In this study, information sharing is a variable for information competency of the entire supply chain. Moreover, we classified trust into quantitative and qualitative trust and analyzed the two paths through which information sharing reaches logistics performance. To examine these correlations, we conducted a survey among professionals in supply chain-related departments in South Korea. Based on 350 completed questionnaires, we tested the hypotheses with structural equation modeling using SPSS 18.0 and AMOS 18.0. Results: We found that information sharing has a significant positive effect on trust and logistics performance, which is a typical index of supply chain performance. These results show that information itself is considered a partner to a firm's competencies in operating the supply chain and plays a major role in forming the other's competencies and trust for the present and future. Conclusions: As these competencies and trust consequentially affect logistics performance, supply chain managers must pay attention to the importance of information competency and consider ways of promoting it to improve logistics performance across the entire supply chain.

• Journal of Distribution Science
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• v.3 no.1
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• pp.113-131
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• 2005

This study aims to look into how we Korean ports can improve NODE competitiveness among northern-east region of Asia, and to examine a conceptual as well as practical methodology approach to be applied in terms of cluster. Also many other researches have done to take out the conclusion, which is environmental aspects as economic and logistical one in terms of northern-east region of Asia, basic concept with NODE, and matters concerning seaport from the viewpoint of hub-spoke, etc. Then finally it is suggested that we Korea has to concentrate on seaport, which is equipped with logistics cluster provide into value added logistics, in order to keep and gain the NODE competitiveness in northern-east region of Asia.

• The Journal of Industrial Distribution & Business
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• v.2 no.2
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• pp.15-24
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• 2011

Modern enterprises should concentrate their efforts on continuous improvements in focusing their development in the core areas of business and to reduce their expenses and to enhance the quality of service for customers. The enterprises should focus on their core business while outsourcing the non-core areas of business to external specialists for the purpose of reducing cost. In South Korea, the enterprises are becoming increasingly interested in outsourcing their logistics function, especially in using IT technologies to the 3PL. The underlying reason for this trend is because the logistics costs of Korean businesses are much higher than that of other advanced countries. This higher logistic costs weakens the price competitiveness of Korean companies in the overseas export markets and even dampening the balance of international trade. Domestically, the higher logistics costs have the effect of raising prices in the local markets and thus affecting the local economy. Therefore a solution is urgently needed to save the logistics costs for the Korean companies in the interest of increasing national competitiveness. Outsourcing to the 3PL is becoming an attraction solution to this problem. Thanks to the increasing supply of professional logistics companies, many of the enterprises are switching to the Third Party Logistics. Nevertheless the enterprises do not yet utilize the integrated third-party logistics services on a full scale. This study analyzes present conditions and problems of the domestic third-party logistics market and suggests directions for future development. To solve the problems in the domestic third-party logistics market, four actions are recommended. First there should be new supporting policies in the laws and regulations and a system for small and medium sized companies to grow. Solutions to structural problems such as abnormal multilevel merchandising, illegal operation of private cars, and freight dumping should be implemented concurrently. Furthermore, standards for new companies entry into the market should be enhanced to allow only the competitive distribution companies to enter the market. Second, development of variety of educational programs is needed through establishing human-resource development system and specialized formal educational institution focused on this market. Third, the third party distribution companies, which seek long-term relationships with the owners of goods, should endeavor to strengthen their communications capability. Fourth, adoption of high-tech distribution system and the advent of U-Logistics, making use of RFID is urgent. This study has the limitation of objectivity because it does not include various comparative case studies about companies relating to the Third Party Logistics and domestic franchise companies. However, this study is significant to the extent that it analyzes the general present conditions and the problems of domestic Third Party Logistics and suggests recommendations for revitalization of Third Party Logistics. For future studies, analyzing the successful cases of international third party logistics companies' empirical data and studying the application into domestic franchise companies would improve the objectivity of the results. This would assist the domestic third party logistics companies not only to perform excellent domestic logistics function but also to enter into the global market for international logistics.

• The Journal of Economics, Marketing and Management
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• v.6 no.1
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• pp.25-30
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• 2018

Purpose - This paper mainly studied the role of the logistics legal system in promoting international transport logistics, building marine economy international cooperation demonstration zone and deepening the economic and financial cooperation etc between China and Korea. Research design, data, and methodology - The study conducted a survey on China and Korea's 2012-2017 years data. After empirically analyzing the data, we believe that cultural industry in Korea and China will maintain its growth momentum. Results - This study explored the way to establish an integrated logistics system between China and Korea to match the e-commerce certification system, online payment system and logistic distribution, thereby gradually promoting economic development and logistics integration in Asia. Conclusions- China-Korea FTA can encourage private flow to take on enterprises. In terms of improving logistics efficiency, reducing logistics costs and establishing a unified logistics industry standardization system. This will accelerate logistics industry integration in Northeast Asia, build a unified logistics management center in Northeast Asia, and promote a new model of integrated logistics cooperation in Northeast Asia. Therefore, it has a practical and reference significance.

• Journal of Distribution Science
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• v.14 no.6
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• pp.107-118
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• 2016

Purpose - Over 90% of Domestic logistics industry is small enterprise and they are experiencing growth stagnation due to price-based competition structure rather than constructing logistics service of high added value. In order to get over this situation and pursue the development of logistics industry, strengthening its competitiveness, through inter-enterprise cooperative network build-up, would be a key alternative. Therefore, in this study, an index for measuring inter-enterprise cooperation level of Joint logistics business will be developed as a typical collaborative business model in logistics industry. Moreover, a strengthening competitiveness method suggests a developmental step and a key management index to mature in logistics industry. Research Design, Data, Methodology - This study is an index development research for measuring inter-enterprise cooperation level of logistics industry. Such a level was measured by performing a survey by targeting enterprises that participated in Joint logistics business. The targeting enterprises are typical cooperative models in logistics industry. Measurement items were developed which were based on the presented items in existing research. Question items were composed of selection type questions as answering Yes/No. They measures implementation status of corporate activity and detailed activity items measuring qualitative level. Total samples were based on 116 enterprise samples including 90 logistics enterprises and 26 shippers. In addition, by evaluating the importance for Joint logistics business recognition with personnel working level, the weight of measuring variable was extracted. This study has built an assessment tools (LPCI) on Joint logistics business cooperation level in a situation where there are no previous studies on joint logistics business, this study is meaningful for other studies. Results - As a result of analyzing LPCI presented in this study, the score of logistics enterprise was represented as 59.9 points based on full score of 100 points and that of shippers as 47.2 points and cooperation level among enterprises participated in Joint logistics business was revealed to be very low. In particular, as a result of measuring the importance between logistics enterprise and shippers, the difference by each measurement standard was represented among those enterprises. This difference is considered to be a key factor that cooperative operational conformity between logistics enterprises and shippers is represented to be low. Conclusions - As most joint logistics business, being promoted at present, is sharing facility and information with joint logistics business, it is hard to find such a joint logistics business in reality based on cooperative business model in main cooperation agents. Therefore, competitiveness of logistics industry could be strengthened by promoting joint logistics business based on their mutual cooperation among enterprises. In other words, it is to secure sustainable competitiveness of joint logistics business together with creation of new market by inter-enterprise cooperation based on integration of basic logistics business.

• Industrial Engineering and Management Systems
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• v.13 no.4
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• pp.398-407
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• 2014

Shortages and delays in a humanitarian logistics system can contribute to the pain and suffering of survivors or other affected people. Humanitarian logistics budgets should be sufficient to prevent such shortages or delays. Unlike commercial supply chain systems, the budgets for relief supply chain systems should be able to satisfy demand. This study describes a comprehensive model in an effort to satisfy the total relief demand by minimizing logistics operations costs. We herein propose a strategic model which determines the locations of distribution centers and the total inventory to be stocked for each distribution center where a flood or other catastrophe may occur. The proposed model is formulated and solved as a mixed-integer programming problem that integrates facility location and inventory decisions by considering capacity constraints and time restrictions in order to minimize the total cost of relief operations. The proposed model is then applied to a real flood case involving 47 disaster areas and 13 distribution centers in Thailand. Finally, we discuss the sensitivity analysis of the model and the managerial implications of this research.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.1754-1757
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• 2006

Recently many firms operate a cross-docking center in addition to run a distribution center to reduce logistics costs and maintain or enhance logistics service. However, it is true that many firms just operate their cross-docking centers as they are without any change, in spite of that the location of the cross-docking center should be changed and operated when the location of distribution center is changed and moved. This study presents the method that re-selects the location of the cross-docking center when the existing distribution center is changed. Describing the operation environment to apply the cross-docking system and the selection criteria of the cross-docking center under the environment of changeable logistics network, we define the simulation model which can analyze and select the location of the cross-docking center applied to a logistics field. The simulation model presents experiential algorithm selecting the location with the data of the demand point such as volume, transportation costs, and delivery distance.

• Korean Management Science Review
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• v.18 no.2
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• pp.125-134
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• 2001

This paper is concerned with the development of a GIS-based distribution system with service consideration. The proposed model could be used for a wide range of logistics applications in planning, engineering and operational purpose for logistics system. This research addresses the formulation of those complex prob1ems of two-echelon logistics system to plan the incorporating supply center locations and distribution problems based on GIS. We propose an integrated logistics model for determining the optimal patterns of supply centers and inventory allocations (customers) with a three-step sequential approach. 1) First step, Developing GIS-distance model and stochastic set-covering program to determine Optimel pattern of supply center location. 2) Second step, Optimal sector-clustering to support customers. 3) Third step, Optimal vehicle rouse scheduling based on GIS, GIS-VRP In this research we developed GUI-tree program, the GIS-VRP provide the vehicle to users and freight information in real time. We applied a set of sample examples to this model and demonstrated samp1e results. It has been found that the proposed model is potentially efficient and useful in solving multi-depot problem through examples. However the proposed model can provide logistics decision makers to get the best supply schedule.