• Journal of the Korea Safety Management & Science
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• v.8 no.3
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• pp.115-123
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• 2006

The main focus of this study is to investigate the performance of a clark-scarf type multi-echelon serial supply chain operating with a base-stock policy and to optimize the inventory levels in the supply chains so as to minimize the systemwide total inventory cost, comprising holding and backorder costs as all the nodes in the supply chain. The source of supply of raw materials to the most upstream node, namely supplier, is assumed to have an infinite raw material availability. Retailer faces random customer demand, which is assumed to be stationary and normally distributed. If the demand exceeds on-hand inventory, the excess demand is backlogged. Using the echelon stock and demand quantile concepts and an efficient simulation technique, we derive near optimal inventory policy. Additionally we discuss the derived results through the extensive experiments for different supply chain settings.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.105-115
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• 2006

In this paper, we investigate the problem of minimizing average inventory costs subject to a fill rate constraint in a two-stage serial inventory model with a normally distributed demand. Fill rate is the fraction of demand that is satisfied immediately from on-hand inventory. We first find the lower bounds of base-stock levels in each node by using the exact base-stock level that satisfies a fill rate in a single node model proposed by Sobel. And then, we extensively analyze the system and show that the cost function is convex. Using such convexity and some other useful properties, we can easily find optimal base-stock levels numerically.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.4
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• pp.125-138
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• 2006

This paper considers a periodic review, two-echelon inventory system with one central warehouse and several re-tailers facing normally distributed demand. The goal is to attain target fill rates, while the systemwide total holding costs are minimized. An important aspect of this problem is material rationing in the case of shortages. If a central warehouse has insufficient inventory to deliver all replenishment orders to retailers, all order quantities are should be adjusted according to some rationing rule. A simple but efficient rationing rule is proposed and compared with the Balanced Stock (BS) rationing as introduced by Heijden which is known to be the best rationing policy in the literature. Numerical results show that the proposed rationing rule is more cost effective than BS rationing, especially for the differences in holding costs between retailers are large.

• Industrial Engineering and Management Systems
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• v.8 no.1
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• pp.1-13
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• 2009

This paper presents a coordinated planning model of price-dependent demand for a single-manufacturer and a single-retailer. The demand is assumed to be normally distributed, with its mean being price dependent. The manufacturer and retailer coordinate with each other to jointly and simultaneously determine the retail selling price and the retailer order quantity to maximize the joint expected total profit. This model is then compared to a 'returns' policy model where manufacturer buys back unsold items from the retailers. It is shown that the optimal total profit is higher for coordinated planning model than that for the returns policy model, in which the retail price is set by the retailer. A compensation or profit sharing scheme is then suggested and it is shown that the coordinated model with profit sharing yields a 'win-win' situation. Numerical results are presented to illustrate the profit patterns for both linear and nonlinear demand functions. The coordinated planning model, in addition, has a lower optimal price than for a returns policy model, which would result in higher sales, thus expanding the markets for the whole supply chain.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.143-147
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• 2006

Several regulations on converting reusable products are established in many countries, due to the emphasis on environmental issues on manufacturing. Many companies consider reusable and returned items in addition to purchasing new items. In this paper we suggest several algorithms to determine the near optimal quantities of items for converting and new items for purchasing. The reusable items are converted into end items, each facing normally distributed demand in a single period of interest. We develop a mathematical model and a genetic algorithm(GA) to compare the number of convertible units and new items to be purchased. Computational results demonstrate the efficiency of the developed algorithms.

• Journal of the Korean Society for Railway
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• v.10 no.6
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• pp.742-750
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• 2007

This paper presents a mathematical model for a double-fleet operation in Korean high speed rail (HSR). KORAIL has a plan to launch new HSR units in 2010, which are composed of 10 railcars. The double-fleet operation assigns a single-unit or two-unit fleet to a segment, accommodating demand fluctuation. The proposed model assumes stochastic demand and uses chance-constrained constraints to assure a preset service level. It can be used in the tactical planning stage of the rail management as it includes several real-world conditions, such as the capacities of the infra-structures and operational procedures. In the solution approach, the expected revenue in the objective function is linearized by using expected marginal revenue, and the chance-constrained constraints are linearized by assuming that demands are normally distributed. Subsequently, the model can be solved by a mixed-integer linear programming solver fur small size problems. The test results of the model applied to Friday morning train schedules for one month sample data from KTX operation in 2004 shows that the proposed model could be utilized to determine the effectiveness of double-fleet operation, which could significantly increase the expected profit and seat utilization rates when properly maneuvered.

• Industrial Engineering and Management Systems
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• v.8 no.2
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• pp.80-92
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• 2009

This paper addresses the inventory rationing issue embedded in the regional supply chain inventory replenishment problem (RSIRP). The concerned supply chain, which was fed by the national supply chain, consisted of a single warehouse distributing a single product to multiple stores (M-stores) with independent and normally distributed customer demand. It was assumed that the supply chain operated under the order-up-to level inventory replenishment system and had only one truck at the regional warehouse. The truck could make one replenishment trip to one store per period (a round trip per period). Based on current inventories and the vehicle constraint, the warehouse must make two decisions in each period: which store in the region to replenish and what was the replenishment quantity? The objective was to position inventories so as to minimize lost sales in the region. The warehouse inventory was replenished in every fixed-interval from a source outside the region, but the store inventory could be replenished daily. The truck destination (store) in each period was selected based on its maximum expected shortage. The replenishment quantity was then determined based on the predetermined order-up-to level system. In case of insufficient warehouse inventories to fulfill all projected store demands, an inventory rationing rule must be applied. In this paper, a new inventory rationing rule named Expected Cost Minimization (ECM) was proposed based on the practical purpose. The numerical results based on real data from a selective industry show that its performance was better and more robust than the current practice and other sharing rules in the existing literature.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.6
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• pp.212-217
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• 2020

The purpose of this study was to analyze the volatility and properties of a time series for tangerine prices in Jeju using the GARCH model of Bollerslev(1986). First, it was found that the time series for the rate of change in tangerine prices had a thicker tail rather than a normal distribution. At a significance level of 1%, the Jarque-Bera statistic led to a rejection of the null hypothesis that the distribution of the time series for the rate of change in tangerine prices is normally distributed. Second, the correlation between the time series was high based on the Ljung-Box Q statistic, which was statistically verified through the ARCH-LM test. Third, the results of the GARCH(1,1) model estimation showed statistically significant results at a significance level of 1%, except for the constant of the mean equation. The persistence parameter value of the variance equation was estimated to be close to 1, which means that there is a high possibility that a similar level of volatility will be present in the future. Finally, it is expected that the results of this study can be used as basic data to optimize the government's tangerine supply and demand control policy.

• Journal of Korean Society of Forest Science
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• v.109 no.2
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• pp.211-222
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• 2020

This study tried to find out whether there is a change over time in the functional classification of forests in relation to human demand for forests. The level in which the concept of ecosystem services has been considered in national forest management plans was also examined. A total of 98 current and previous national forest management plans were available for this study. The composition ratios of the six functions of forests in both the current and previous national forest management plans were surveyed. We used a parametric t-test when the mean values of two (current and previous) groups were normally distributed and used nonparametric Wilcoxon code rank test when the assumption of normality was not met. Timber production forests were shown to follow a normal distribution, while five others, including water regeneration forests, disaster prevention forests, natural environment conservation forests, recreation forests, and living environment conservation forests were not shown to follow a normal distribution. Timber production forests and natural environment forests showed significant changes in the proportion of forest area between previous and current forest management plans. The concept of 'ecosystem services' began to actively appear in the 6th Basic Forest Plan, which started in 2018. However, the level of frequency of the ecosystem services mentioned varied by Regional Forest Services.

• Journal of the Korean Society of Food Science and Nutrition
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• v.35 no.6
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• pp.791-800
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• 2006

This study examined the effects of gromwell (Lithospermum erythrorhizon) extracts on the storage characteristics of Kangjung. At an increase of $0{\sim}0.25%$, there was no significant difference in the moisture content of wild and cultivated gromwell extract added to Kangjung, whereas there was a significant difference when increased to 0.5%. When compared, the occurrence of lipid oxidation among the controlled gromwell extract group stored at $60^{\circ}C$, resulted in peroxide values exceeding 40 meq/kg which is a maximum value for Hankwa within 12 hours of storage. However, at an increase of 0.25%, the cultivated gromwell extract added group reached limits within 16 hours. Furthermore, at a 0.5% increase in cultivated gromwell and 0.25% in wild gromwell, extract added groups exceeded this limit within 20 hours of storage. Gromwell added Kangjung, a fried food, showed efficiency in suppressing oxidation of fat, more so in the wild gromwell than the cultivated gromwell. In addition, efficiency in suppressing oxidation of fat increased at the 0.5% level than the 0.25% level. In conclusion, it is believed that an unused pigment resource called Lithospermum erythrorhizon, normally reserved for medicinal use, can be distributed as a safe food additive. In addition, as Lithospermum erythrorhizon is a natural antioxidant in fried foods, we believe this satisfies the demand for natural food.