• Title/Summary/Keyword: Lot-sizing techniques

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A Lot Sizing Model for Multi-Stage MRP Systems (다단계 생산시스템에서의 로트크기 결정방법)

  • Lee, Ho-Il;Kim, Man-Sik
    • Journal of Korean Society for Quality Management
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    • v.18 no.1
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    • pp.65-76
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    • 1990
  • A lot-sizing model for multi-stage MRP systems is proposed, in which known demands must be satisfied. In this model, an approach with considerations of initial inventory and limited production capacity is involved. Most of the studies on the lot-sizing techniques for multi-stage material requirement planning systems have been focused upon two basic approaches. One approach is to develope an algorithm yielding an optimal solution. Due to the computational complexity and sensitivity of the optimal solution to the problem of lot sizing, heuristic approaches are often employed. In this paper, the heuristic approach is used by sequential application of a single-stage algorithm with a set of modified cost by the concept of multi-echelon costs. The proposed method is compared with an lot-sizing method(Florian-Klein Model) to prove its effectiveness by numerical examples.

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A Study on the Effective Inventory Management by Optimizing Lot Size in Building Construction (건설공사의 적정 Lot Size 결정에 의한 효율적인 재고관리 방안에 관한 연구)

  • Kim, Sang-Hoon;Kim, Gwang-Hee;Kang, Kyung-In
    • Journal of the Korea Institute of Building Construction
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    • v.4 no.2
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    • pp.73-80
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    • 2004
  • The purpose of this study was to look up the proper inventory management system in construction industry. it is important for construction company to improve competitiveness and to reduce construction cost. Lot-sizing techniques were applied to rebar procurement in apartment project. The results of this study were as follows; the method of Groff's marginal cost showed the best performance of other techniques and the method of Norman showed a similar result.

Comparative Analysis of Two EOQ based Inventory Models (EOQ 기반 재고 모델의 비교 분석)

  • Jung, Hoon
    • Journal of Korean Institute of Industrial Engineers
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    • v.31 no.3
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    • pp.248-256
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    • 2005
  • In this paper, we compare two EOQ based inventory models under total cost minimization and profit maximization to investigate the difference in the optimal solutions. First of all, optimal solutions for both models through geometric programming (GP) techniques are found considering production (lot sizing) as well as marketing (pricing) decisions. An investigation of the effects of the changes in the optimal solutions according to varied parameters is performed by studying optimality conditions as well as by performing numerical analysis. We then conduct comparative analysis between the models to show the relationships between the optimal solutions of the models where certain conditions in the cost per unit and the demand per unit time are given. Several interesting economic implications and managerial insights are observed from this analysis.

Policy Direction for The Farmland Sizing Suitable to Regional Trait (지역특성을 반영한 영농규모화사업의 발전방향-충남지역을 중심으로-)

  • Shim, Jae-Sung
    • The Journal of Natural Sciences
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    • v.14 no.1
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    • pp.83-121
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    • 2004
  • This study was carried out to examine how solid the production foundation of rice in Chung-Nam Province is, and, if not, to probe alternative measures through the size of farms specializing in rice, of which direction would be a pivot of rice industry-oriented policy. The results obtained can be summarized as follows : 1. The amount of rice production in Chung-Nam Province is highest in Korea and the size of paddy field area is the second largest : This implying that the probability that rice production in Chung-Nam Province would be severely influenced by a global trend of market conditions. The number of farms specializing in rice becoming the core group of rice farming account for 7.7 percent of the total number of farm household in Korea. Average field area financial support which had been input to farm household by Government had a noticeable effect on the improvement of the policy of farm-size program. 2. Farm-size program in Chung-Nam Province established from 1980 to 2002 in creased the cultivation size of paddy field to 19,484 hectares, and this program enhanced the buying and selling of farmland and the number of farmland bargain reached 6,431 household and 16,517 hectares, respectively, in 1995-2002. Meanwhile, long-term letting and hiring of farmland appeared so active that the bargain acreage reached 6,970 hectares, and farm involved was 7,059 households, however, the farm-exchange-and-unity program did not satisfy our expectation, because the retirement farm operators reluctantly participated to sell their farms. Another reason that had delayed the bargain of farms rested on the general category of social complication attendant upon the exchange and unity operation for scattered farm. Such difficulties would work negative effects out to carry on the target of farm-size work in general. 3. The following measures were presented to propel the farm-size promotion program : a. Occupation shift project, followed by the social security program for retirement and elderly farm operators, should be promptly established and also a number of types of incentives for promoting the letting and hiring work and farm-exchange-and-unity program would also be set up. b. To establish the effective key system of rice production, all the farm operators should increase the unit area yield of rice and lower the production cost. To do so, a great deal of production teams of rice equipped with managerial techniques and capabilities need to be organized. And, also, there should be appropriate arrays of facilities including information system. This plan is desirable to be in line with a diversity of the structural implement of regional integration based on farm system building. c. To extend the size of farm and to improve farm management, we have to devise the enlargement of individual size of farm for maximized management and the utilization of farm-size grouping method. In conclusion, it can be said that the farm-size project in Chung-Nam Province which has continued since the 1980s was satisfactorily achieved. However, we still have a lot of problems to be solved to break down the barrier for attainment of the desirable farm-size operation work.. Farm-size project has fairly close relation with farm specialization in rice and, thus, the positive support for farm household including the integrated program for both retirement farmers and off-farm operators should be considered to pursue the progressive development of the farm-size program, which is key means to successful achievement of rice farming enforcement in Chung-Nam Province.

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