• International Journal of Advanced Culture Technology
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• v.8 no.1
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• pp.62-70
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• 2020

As an effective means of price discrimination, some suppliers offer trade credit to the distributors in order to stimulate the demand for the product they produce. The availability of the delay in payments from the supplier enables discount of the distributor's selling price from a wider range of the price option in anticipation of increased customer's demand. Since the distributor's lot-size is affected by the demand for the customer, the distributor's lot-size and the selling price determination problem is interdependent and must be solved at the same time. Also, in many common business transactions, the distributor pays the shipping cost for the order and hence, the distributor's ordering cost consists of a fixed ordering cost and the shipping cost that depend on the order quantity. In this regard, we deal with the joint lot-size and price determination problem when the supplier allows delay in payments for an order of a product. The positive effects of credit transactions can be integrated into the EOQ (economic order quantity) model through the consideration of retailing situations, where the customer's demand is a function of the distributor's selling price. It is also assumed that the distributor's order cost consists of a fixed ordering cost and the variable shipping cost. We formulate the distributor's mathematical model from which the solution algorithm is derived based on properties of an optimal solution. A numerical example is presented to illustrate the algorithm developed.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1993.10a
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• pp.174-174
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• 1993

자원제약하의 롯트 사이즈 결정문제(capacitated lot sizing problem: CLSP)는 주어진 생산자원의 제약요건을 만족하면서 모든 계획기간의 수요를 충족시킬수 있는 가동준비와 재고유지비의 총합에 대한 최소화 문제다. CLSP는 NP-hard이기 때문에 그 해를 효율적으로 구하기 위한 휴리스틱 해법이 그동안 꾸준히 개발되어져 왔으며 그 대부분의 알고리즘은 Wagner-Whitin의 해도출원리를 이용한 것이다. 본 연구는 지금까지 개발된 CLSP의 알고리즘을 분석하여 그 특성을 파악한 후 본 연구에서 개발한 알고리즘과 이들 기존 알고리즘을 비교 실험함으로써 개발된 알고리즘이 어느 정도의 효율성을 가지는가를 검토하고자 한다.

• Proceedings of the Safety Management and Science Conference
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• 2000.05a
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• pp.77-86
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• 2000

This paper deals with the problem of determining the retailer's optimal price and order size under the condition of order-size-dependent delay in payments. It is assumed that the length of delay is a function of the retailer's total amount of purchase. The constant price elasticity demand function is adopted which is a decreasing function of retail price. Investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated through an example problem.

• Proceedings of the Safety Management and Science Conference
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• 2002.05a
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• pp.237-241
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• 2002

This paper deals with the problem of determining the buyer's economic lot sizing policy for exponentially deteriorating products under trade credit. It is also assumed that the ordering cost consists of a fixed set-up cost and a freight cost, where the freight cost has a quantity discount offered due to the economies of scale. We formulate the mathematical model and the solution algorithm is developed based on the properties of an optimal solution.

• Proceedings of the Safety Management and Science Conference
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• 2002.05a
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• pp.243-247
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• 2002

This paper deals with the problem of determining the buyer's economic lot sizing policy for exponentially deteriorating products under trade credit. Assuming that the supplier's credit terms are already known and the length of delay is a function of the buyer's order size, we formulate the mathematical model and the solution algorithm is developed based on the properties of an optimal solution.

• Journal of the Korean Operations Research and Management Science Society
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• v.4 no.1
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• pp.53-58
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• 1979

Production lot sizing problem for a system with exponentially decaying inventory is considered. From the exact cost function developed under conditions of constant demand and no shortages permitted, an approximate optimal solution is derived. The formula is compared with those of the exact solution obtained from numerical procedure and other existing approximate solution. Finally some notable properties of the formula are investigated and shown to be consistent.

• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.2
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• pp.107-115
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• 1992

Many manufacturing processes involved in the fabrication and assembly of hightech components have highly variable yields that tend to complicate the production control. Under this random yield situation we develop a model to determine optimal input quantity, mean waiting time in the system and variance of waiting time in the system. An example which considers beta distribution as a yield distribution is given.

• Journal of the Korean Operations Research and Management Science Society
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• v.24 no.4
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• pp.13-26
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• 1999

When we try to design a production planning system for a manufacturing company, it is a time consuming task to analyze various planning activities and identify inter-relationship among a lot of decisions made for the production planning. Most of the research efforts have been concentrated to well-organized independent decision-making problems that may usually be identified only after analyzing the characteristics of the decision-making process as a whole. In this paper, a methodology is suggested to characterize the whole process of the production planning for a manufacturing company and reduce the complexity of decision-making problems. The methodology is based on an experience of developing a production planning software for an automobile component manufacturer in korea. First, it is explained how to identify and represent the dependency among various decision-making variables. And a methodology is proposed to analyze the identified dependency among decision variables and identify decision-making process. Lastly, a practical example is provided to illustrate the analysis procedure in this paper.

• IE interfaces
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• v.5 no.2
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• pp.29-37
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• 1992

An approach to Just-In-Time for small job-shop-type manufacturers is presented. This is aimed at those who understand the pull production system, however, cannot afford either swift changeover in workcenters or frequent delivery to customers. First, as a production planning technique, a lot-sizing model entitled Multilevel Least Total Cost Model(MLTCM) is developed; The production order quantities of each components be those requiremensts of the end item production lot. The contribution of MLTCM is shown via simulation. Then, a framework of the Kanban operations is designed; A Production Control Kanban is introduced as a communication tool with Production Kanban in a job-shop.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.04a
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• pp.61-64
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• 2000

This paper analyzes a dynamic lot-sizing problem, in which the order size of multiple products and a single container type are simultaneously considered. In the problem, each order (product) placed in a period is immediately shipped immediately by containers in the period and the total freight cost is proportional to the number of each container type employed. Also, it is assumed that backlogging is not allowed. The objective of this study is to determine the lot-sizes and the shipping policy that minimizes the total costs, which consist of ordering costs, inventory holding costs, and freight costs. Because this problem is NP-hard, we propose a heuristic algorithm with an adjustment mechanism, based on the optimal solution properties. The computational results from a set of simulation experiment are also presented.