• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.3
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• pp.48-54
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• 2010

S plastic injection molding factory located at Namdong Industrial Complex in Incheon produces plastic parts for semiconductor, vacuum cleaners, office furniture, etc. It produces the parts to customers' order and delivers them directly to customers at due dates using the trucks of freight company. In recent years, it has been suffered from the excessive production cost, high lost sales rate, rigid response to customers' order, and high delivery cost, which affect negatively on its profit. This paper introduces a case study on the profit increase through a newly proposed production and distribution method which applies a make-to-stock and multi-visit delivery strategy at S plastic injection molding factory. The proposed method is evaluated by comparing with the current method with respect to sales profit using the historical data of customer demand. It is confirmed through the computational experiments that the proposed production and distribution method yields almost double increase in profit resulted from the increased production, reduced lost sales, reduced production cost, and reduced delivery cost.

• Journal of Korea Port Economic Association
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• v.23 no.3
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• pp.29-51
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• 2007

The purpose of this study aims to explore shipowner's lost profit and its claim resulted from delay in redelivery under time charter with the Achilleas case. In this case, the charterers submitted that there was an established prima facie measure of damages in cases of late delivery, namely the difference between the market rate and the charter-party rate for the period from the time when the vessel should have been delivered until the time of her actual redelivery. An award for lost profit in respect of a subsequent charter could only be made under the second limb because the charterers had not been told, at or before the making of the addendum, that the owners were going to enter into a subsequent fixture and that it was critical that redelivery take place on time. However, the owners said their losses that was a not unlikely consequence of the charterers' breach. There was no special rule that the first limb could only lead to damages calculated by taking the difference between the market and the charter-party rate for the overrun. To award damages in the Achilleas case on the basis of the difference between the market and the charter rate for the overrun would compensate the owners for only a fraction of the true loss caused by the breach.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2007.11a
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• pp.90-96
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• 2007

In multi-location inventory systems, lost sales due to stockout decreases not only retailers' profit but also whole supply chain's profit. Transshipment between retailers has been considered to be a major solution to the stockout problem, and many supply chains implement transshipment coalition among retailers. However, in practical situations, retailers occasionally refuses to accept the transshipment requests, mainly because they concern the future stockout possibilities of their own. Thus, the objective of this research is to analyze the effect of retailers' interaction under the transshipment coalition environment based on the simulations, and to provide effective policies to promote retailers' transshipment cooperation. Policies using penalty and incentive scheme are proposed, and it is shown that using proposed policies both the retailers' and the headquarter's profit can be increased.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.4
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• pp.152-161
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• 2011

The operation of vending machine system presents a decision-making problem which consists of determining the product allocation to vending-machine storage compartments, replenishment intervals of vending machines, and vehicle routes, all of which have critical effects on system profit. Especially, it becomes more difficult to determine the operation variables optimally when demand for a product that is out-of-stock spills over to another product or is lost. In this paper, we propose a heuristic for solving the operation problem of the vending machine system and evaluate it by comparing with Yang's algorithm on various test problems with respect to system profit via a computer simulation. The results of computational experiments show a substantial profit increase of the proposed heuristic over Yang's algorithm. Sensitivity analysis indicates that some input variables impact the profit increase significantly.

• The Journal of Fisheries Business Administration
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• v.31 no.2
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• pp.133-153
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• 2000

During the last several decades, Korea has been regarded as one of the fastest growing economies in the world. However, the small size of national land has not met the vigorous demand for land necessary to develop economic infra-structures such as large-scale harbors airports and highways. In order to satisfy the growing demand for land, the Korean government and industry have implemented the national land development programs to reclaim land from the sea fur the several decades. It is certain that these land development programs have resulted in a lot of property disputes between fishermen and public project administrators. This paper is to develop a quantitative model to estimate compensation for damages or restriction of charted fisheries resulting from large-scale public projects. In this paper, the compensation model is derived by using cost-volume-profit analysis framework because the compensation for charted fisheries basically depends on the factors such as the costs, production volume, profit of charted fisheries damaged or restricted by public projects. The model shows that the compensation for damages or restriction of charted fisheries is determined by the average annual profit, damage duration period, and the degree of fishery damages. In addition, the degree of fishery damages measured by the ratio of lost profit to annual average profit turns out to be determined by the following factors: annul profit, unit variable cost, decrease in production volume, the rate of increase in variable cost, and a change in fixed cost. Furthermore, this parer discusses the nam issues related to practices and regulation of the compensation for fishery damages in the current Fishery Act of Korea and suggests some appraisal methods which will be able to lead to theoretically correct and fair compensation for fisheries damages resulting from large-scale public projects.

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

• Korea Trade Review
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• v.43 no.4
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• pp.51-68
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• 2018

This study examined the scope of damages resulting from types of loss under the CISG and the PICC(2016). The CISG and PICC stipulate the rights of aggrieved parties to recover losses under the full compensation principle, but the PICC features more specific provisions regarding damages compared to the CISG. Therefore the PICC might provide practical insight resolving problems concerning damages under the CISG. There are direct and incidental losses, consequential losses, lost profit, and loss of chance that can be claimed by aggrieved parties under the CISG or the PICC but the scope of claimable losses differs by cases. For example, even though there are no specific clauses in the CISG or the PICC, some losses might include based on the requisite of damage under CISG or PICC. Therefore, it is important to know standards in which losses are covered by these agreements. In conclusion, related parties who engage in international trade should understand the requisite and limitation of damages, and need to clearly define specific losses that might not be governed under the CISG or the PICC.

• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.93-104
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• 2007

We consider a supply chain where products are shipped to warehouse from manufacturing system to customers. Products are supplied from either in-house regular manufacturing or the secondary source such as subcontractor. The inventory in warehouse is controlled by base-stock policy, that is, whenever a demand arrives from customer, an order is released to the manufacturing system. Unsatisfied demand is backlogged. The manufacturing system is modeled as M/M/s+1/c queueing system, and the orders exceeding the given limit care blocked and lost. The steady state distribution of the outstanding orders and the throughput of the manufacturing system are functions of the level of engagement In the secondary source. There is a profit obtained from throughput and cost not only due to the engagement of the secondary source in the manufacturing system but also inventory positions. We want to maximize the total production profit minus the total cost of the production system by simultaneously determining the optimal level of engagement of the secondary source and the optimal base-stock level of the inventory. We develop two algorithms : one without guarantee of the optimal solution but with the small number of computations, the other optimal but with more computations.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.267-284
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• 2008

Consider a supply chain where products are produced at a manufacturing system, shipped to a distribution center, and then supplied to customers. The distribution center controls inventory based on a base-stock policy, and whenever a unit of product is demanded by a customer, an order is released to the production system. Unsatisfied demand is backordered, and the inventory and backordered units are a function of the base-stock level. The manufacturing system is modeled as an M/M/s/c queueing system, and orders exceeding the limited buffer capacity are blocked and lost. The throughput of the manufacturing system and the steady state distribution of the outstanding orders are functions of number of servers and buffers of the manufacturing system. There is a profit obtained from throughput and costs due to servers and buffers of the manufacturing system, and also costs due to inventory positions of the distribution center, and we want to maximize the total production profit minus the total cost of the supply chain by simultaneously determining the optimal number of servers and buffers of the manufacturing system and the optimal base-stock level of the distribution center. We develope two algorithms, one analytical but without guarantee of the optimal solution and one optimal but without complete analytical proofs. The problem integrates strategic problem of the manufacturing system with tactical problem of the distribution center in a supply chain.

• Journal of Korean Institute of Industrial Engineers
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• v.34 no.3
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• pp.362-372
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• 2008

Manufacturers, or vendors, and their customers continue to adopt vendor-managed inventory(VMI) program to improve supply chain performance through collaboration achieved by consolidating replenishment responsibility upstream with vendors. In this paper, we construct a mixed integer linear programming model and propose a genetic algorithm for the integrated inventory and routing problems with lost sales maximizing the total profit in the VMI supply chains which comprise of a single manufacturer and multi-retailer. The proposed GA is compared with the mathematical model on the various sized test problems with respect to the solution quality and computation time. As a result, the GA demonstrates the capability of reaching solutions that are very close to those obtained by the mathematical model for small problems and stay within 3.2% from those obtained by the mathematical model for larger problems, with a much shorter computation time. Finally, we investigate the effects of the cost and operation variables on the total profit of the problem as well as the GA performance through the sensitivity analyses.