• Title/Summary/Keyword: Multi-Echelon

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Estimation of Economical Efficiency in Multi-Echelon Inventory System through Coordination of Inventory Replenishment Period (재고보충주기의 조정을 통한 다단계 재고시스템의 경제성 평가)

  • Kim, Myeong-Hun;Kim, Byeong-Gon
    • Proceedings of the Korea Society of Information Technology Applications Conference
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    • 2007.05a
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    • pp.198-208
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    • 2007
  • Recently business enterprises have forced to face in fierce competition in today's global markets due to the short life cycles of products and the higher expectation of customers. Together with continuing advances in communications and transportation technologies, these environments have motivated the continuous evolution of the supply chain and the management techniques. This paper consider three-echelon inventory system which consist of one manufacturer, one distributor and N retailers for a single product under assumption of constant demand. This paper propose the inventory replenishment period using heuristic method and order policy through coordination of inventory replenishment period. The simulation results show that decrease the total cost of the three-echelon inventory system.

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A STUDY ON A PROBABILISTIC MULTI-LOCATION PROBLEM IN A TWO-ECHELON LOGISTIC SYSTEM FOR DETERIORATING ITEMS

  • Hwang, Heung-Seok;Hwang, Hak
    • Journal of Korean Institute of Industrial Engineers
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    • v.7 no.2
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    • pp.19-26
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    • 1981
  • A special case of the probabilistic multi-location problem is studied in a two-echelon logistic system for deteriorating items. The objective is to determine the location of the minimum number of supply centers among a discrete set of location sites of supply centers, such that the probability each retailer being covered by some supply center is not less than a specified value. A logistic cost is introduced as performance measure of the system, and leads us to analyze the impact of deterioration rate on the location problem. The results obtained from numerical examples are discussed, which provides effective guidelines that can be used for the logistic managerial decisions.

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An Adaptive Multi-Echelon Inventory Control Model for Nonstationary Demand Process

  • Na, Sung-Soo;Jun, Jin;Kim, Chang-Ouk
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.05a
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    • pp.441-445
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    • 2004
  • In this paper, we deal with an inventory model of a multi-stage, serial supply chain system where a single product type and nonstationary customer demand pattern are considered. The retailer and suppliers place their orders according to an echelon-stock based replenishment control policy. We assume that the suppliers can access online information on the demand history and use this information when making their replenishment decisions. Using a reinforcement learning technique, the inventory control parameters are designed to adaptively change as the customer demand pattern is altered, in order to maintain a given target service level. Through a simulation based experiment, we verified that our approach is good for maintaining the target service level.

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Distribution Planning in a Multi-Echelon Inventory Model under Rolling Horizon Environment (Rolling Horizon 환경하에서 다단계 재고 모형의 분배계획 수립에 관한 연구)

  • Ahn, Jae-Sung;Kwon, Ick-Hyun;Kim, Sung-Shick
    • IE interfaces
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    • v.16 no.4
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    • pp.441-449
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    • 2003
  • In this paper we propose a distribution planning method aiming the use in the real-life situations. The assumed form of the distribution network is arborescence. At every node in the distribution network, orders are placed periodically. At each renewal of planning horizon, demand informations of periods in the horizon are updated. The objective of the problem is to minimize the total cost, which is the sum of holding and backorder costs of all sites during planning horizon. For such a situation, this study addressed an effective distribution plan when demands for demand-sites are provided for a given planning horizon.

The (S -1 , S) Inventory Model with Drder Size Dependent Dilivery Times

  • Kang, SukHo;Park, Jeonghun
    • Journal of the Korean Operations Research and Management Science Society
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    • v.12 no.1
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    • pp.1-9
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    • 1987
  • This paper considers (S -1, S) inventory models which have wide applications in reparable spare parts inventory systems and multi-echelon systems. We assume a discrete compounds Poisson demand and order size dependent delivery times ; when the replenishment order size is n, we assume the delivery time distribution is arbitrary with finite mean $b_{n}$ . On the basis of the fact the outstanding orders follow a certain queueing process, we introduce the results of Fakinos (1982). We develop the efficient recursive formulae to find the optimal $S^{*}$ under several performance measures as a function of the decision variable S. The results of this paper can be applied to the multi-echelon systems such as MEETRIC.C.

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전자산업의 서비스부품에 대한 국제로지스틱스 연구

  • 김태현
    • Journal of Distribution Research
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    • v.1 no.2
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    • pp.141-172
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    • 1996
  • This study is to investigate global logistics strategies of Korean electronics companies. in terms of service parts. According to the survey, Korean electronics companies were pursuing multi-level global logistics network such as global, continental, national, regional and service center echelon for improving the efficiency of service parts global logistics. Especially there was a tendency of developing new continental distribution centers. And the companies were exploiting efficiency through inventory control by multi-level echelon, demand forecasting by the product life cycle and supply and service lead time management. But there were some insufficient factors for the efficiency of global logistics operation at the construction of worldwide real time logistics information system and pursuit of the efficiency on the whole network including subcontractors. For the future competitive advantage of the Korean electronics companies, the following are suggested: 1) the establishment of arranged logistics channel adjusting each company's global strategy, 2) the construction of worldwide real time logistics information system, 3) the reengineering of all logistics procedures such as order processing, shipping, inventory control, etc., 4) the enhancement of the ratio of the supply from the external companies and the internal manufacturing subsidiaries at each continent, 5) and the pursuit of operational internalization of external subcontractors.

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An Operational Strategy for Inventory Control of Networked Regional Distribution Centers (지역통합 네트워크관리하의 재고통제 운용전략에 관한 연구)

  • Kim, Byeong-Chan;Choi, Jin-Yeong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.31 no.3
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    • pp.110-116
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    • 2008
  • Operational strategy for inventory control in the distribution system has been given attention. If an individual enterprise implements the strategy, it is not easy to gain scale merits because of limited quantity or burden of inventory. In this study, we propose an operational strategy for inventory control that considers managerial integration of regional distribution centers (RDCs) and present a model of it. In a network of several RDCs, they could share inventory information and supply parts for others in case of an inventory shortage. And a numerical example of the network is illustrated, which compares two operational strategies, integration management of RDCs and individual management of them. The result shows total cost reduction in the strategy of integration management through the efficient inventory control of multi-echelon distribution.

Optimal Spare Part Level in Multi Indenture and Multi Echelon Inventory Applying Marginal Analysis and Genetic Algorithm (한계분석법과 유전알고리즘을 결합한 다단계 다계층 재고모형의 적정재고수준 결정)

  • Jung, Sungtae;Lee, Sangjin
    • Korean Management Science Review
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    • v.31 no.3
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    • pp.61-76
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    • 2014
  • There are three methods for calculating the optimal level for spare part inventories in a MIME (Multi Indenture and Multi Echelon) system : marginal analysis, Lagrangian relaxation method, and genetic algorithm. However, their solutions are sub-optimal solutions because the MIME system is neither convex nor separable by items. To be more specific, SRUs (Shop Replaceable Units) are required to fix a defected LRU (Line Replaceable Unit) because one LRU consists of several SRUs. Therefore, the level of both SRU and LRU cannot be calculated independently. Based on the limitations of three existing methods, we proposes a improved algorithm applying marginal analysis on determining LRU stock level and genetic algorithm on determining SRU stock level. It can draw optimal combinations on LRUs through separating SRUs. More, genetic algorithm enables to extend the solution search space of a SRU which is restricted in marginal analysis applying greedy algorithm. In the numerical analysis, we compare the performance of three existing methods and the proposed algorithm. The research model guarantees better results than the existing analytical methods. More, the performance variation of the proposed method is relatively low, which means one execution is enough to get the better result.

A Combined Approach of Pricing and (S-1, S) Inventory Policy in a Two-Echelon Supply Chain with Lost Sales Allowed (다단계 SCM 환경에서 품절을 고려한 최적의 제품가격 및 재고정책 결정)

  • Sung, Chang Sup;Park, Sun Hoo
    • Journal of Korean Institute of Industrial Engineers
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    • v.30 no.2
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    • pp.146-158
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    • 2004
  • 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-l, S) inventory policy, for which a heuristic solution algorithm is derived with respect to the corresponding one-warehouse multi-retailer 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 with two cases. The first case deals with identical retailers and the second case deals with different retailers with different market sizes. The computational results show that the proposed algorithm is efficient and derives quite good decisions.

Supervisory Control of Multi-Echelon Production-Distribution Systems with Limited Decision Policy (I)-Control Algorithm-

  • Jeong, Sang-Hwa;Kim, Jong-Kwan;Oh, Yong-Hun;Ryu, Sin-Ho
    • Journal of Mechanical Science and Technology
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    • v.14 no.4
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    • pp.369-379
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    • 2000
  • In industrial production-distribution systems, production and purchasing rates, associated inventories, and sales are very critical for the profits of each component in the system. The objective of this study is to investigate an effective information control scheme for a production -distribution system by automatic feedback control techniques. In this work, a dynamic control scheme that has an integrated -error with state-feedback and filtering (ISFF) is proposed as a new algorithm for a dynamic controller. Generalized formulations of the dynamic control are proposed in the continuous-time and discrete-time cases. A methodology for an evaluation of ISFF controller gains using the eigen structure property is presented. When an upper-limit is imposed on the production capability by available factory space and capital equipment, supervisory control is provided to avoid integrator-windup and deterioration of system performance.

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