• Journal of Korean Society of Industrial and Systems Engineering
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• v.28 no.2
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• pp.117-124
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• 2005

This study tries to develop the models of measuring the level of product availability accommodated for features of specific customers dividing customers into VIP customers and general customers. Functions of costs that the models are composed of are cost of holding safety stock and cost of lost opportunities. The existing model of measuring the level of product availability which focused on cost of holding safety stock for VIP customers should be reinforced by considering cost of lost opportunities caused by general customers' quitting trades with a company. This study tries to present realistic solutions for problems in making decisions related to the total inventory. This study concludes that the model of the level of product availability meeting general customers' needs is more efficient according to increasing of a latent demand of the general customers who quit trades with a company and the cost of lost opportunities.

• Proceedings of the KSR Conference
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• 2011.05a
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• pp.606-612
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• 2011

At the product design and development stage, the main criteria selecting a design alternative were performance aspect as well as cost aspect of a product. Ongoing new paradigm shifts such as low carbon green growth, climate change mitigation, sustainable society development urged considering environmental aspect of a product at the product design and development stage. Up to recently, only cost aspect except performance of a product was considered at the railway vehicle design process. Therefore, it is needed to develop a method that may consider environmental aspect of a product at the railway vehicle design process. Lee (2011) proposed that a method of an integration assessment of environmental aspect and cost aspect based on GHG emission instead of based on monetary value. This study conducted that apply the method of Lee (2011) to design alternative selection process of a railway vehicle. From the integrated view of environmental and cost aspect, the reference product and design alternatives are assessed and compared.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.4
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• pp.31-37
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• 2013

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.50
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• pp.231-241
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• 1999

Recent market competition forces the price to be determined in the design stage so that the design would meet the target price of the product. However, most commercial PDM(Product Data Management) systems currently in use lack such a cost estimation function. In this paper, we propose detailed structure and functions of a new approach to estimate the cost of new products using integrated BOM in PDM. Such system will reduce the total life cycle cost of the products to be designed.

• Korea Trade Review
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• v.42 no.2
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• pp.1-27
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• 2017

The purpose of this paper is to examine how industry-level R&D investments increase exports in Korean manufacturing industries through the strengthening of product competitiveness and cost competitiveness. We developed a research model indicating that R&D investments positively affect product competitiveness and cost competitiveness, in which investments in R&D will finally lead to increases in exports in manufacturing industries. Product competitiveness is divided into new product innovation capability and product quality competitiveness, while cost competitive advantage is divided into labor productivity and capital productivity. We have collected data from 20 manufacturing industries between 2004 and 2014, and analyzed them through path analysis. Empirical results of this study are as follows. First, R&D investment in the manufacturing industry positively affects new product innovation capability, product quality competitiveness, labor productivity and capital productivity of the industries. Second, increased product quality competitiveness, labor productivity and capital productivity positively affects exports of Korean manufacturing industries. Thus, we can conclude that R&D investments in Korean manufacturing industries positively influence exports through increases in product quality competitiveness, labor productivity and capital productivity.

• Korean Management Science Review
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• v.31 no.3
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• pp.13-26
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• 2014

This paper considers an integrated one-vendor multi-buyer production-inventory model where the vendor manufactures multiple products in lot at their associated finite production rates. In the model, it is allowed for each product to be shipped in lot to the buyers even before the whole product production is not completed yet. Each product lot is dispatched to the associated buyer in a number of shipments. The buyers consume their products at fixed rates. The objective is to the production and shipment schedules in the integrated system, which minimizes the total cost per unit time. The total cost consists of production setup cost, inventory holding cost and shipment cost. For the model, an iterative optimal solution procedure with shipment consolidation policy incorporated. It is then tested through numerical experiments to show how efficient and effective the shipment consolidation policy is.

• Journal of the Korea Organic Resources Recycling Association
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• v.10 no.3
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• pp.110-116
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• 2002

The aim of this study was to analyze food waste treatment cost and to estimate effect of by-product, such as wastewater and foreign materials, on amount cost. In cost analysis, man power and facility capacity are fixed, whereas operation cost, by-product treatment and et, al. are varied by treatment methods. The rate of by-product treatment cost in amount cost are between 5% and 39%. The methods which consume large electric power or generate much wastewater showed higher rate of by-product treatment cost in range of 14 to 39%. On the other hand, the methods which have simple process showed lower rate in range of 5 to 11%. Thus, this study recommend that by-products should be treated in sewage treatment facilities or landfill sites to prevent illegal disposal of by-products or to reduce burden of by-product from private sectors.

• Journal of the Korea Safety Management & Science
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• v.12 no.4
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• pp.207-213
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• 2010

Now days, the marketing environment is rapidly changed. Therefore, a lot of companies try to reduce production cost. Especially, Design is a important activities in new product development. While the concepts of design for manufacturable and concurrent engineering have made significant advances in integrating the design function with other areas in the firm. There are still major gaps in timely and accurate costing information available to designers. Inappropriate design could result in high redesign cost and delay in product relation. The generation of design and improvement is a time-consuming and mentally exhaustion process. It involves combining design features to generate as many potential design as possible. As not all features combinations are feasible, decision-makers have to narrow down the potential solutions and subsequently select appropriate design for further development. This new study is composed of 3 steps aiming at the Low Cost Design of the product. The three steps are consisted that setting up the target Cost, estimating the current functional cost, the design of a unit's reviewing according to the priority of the difference between the target cost and the functional cost.

• Journal of the Korean Society for Precision Engineering
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• v.21 no.9
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• pp.85-94
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• 2004

As over 70% of the total life cycle cost (LCC) of a product is committed at the early design stage, designers are in an important position to substantially reduce the LCC of the products they design by giving due to life cycle implications of their design decisions. During early design stages, there may be competing concepts with dramatic differences. In addition, the detailed information is scarce and decisions must be made quickly. Thus, both the overhead in developing parametric LCC models fur a wide range of concepts, and the lack of detailed information make the application of traditional LCC models impractical. A different approach is needed, because a traditional LCC method is to be incorporated in the very early design stages. This paper explores an approximate method for providing the preliminary LCC, Learning algorithms trained to use the known characteristics of existing products might allow the LCC of new products to be approximated quickly during the conceptual design phase without the overhead of defining new LCC models. Artificial neural networks are trained to generalize product attributes and LCC data from pre-existing LCC studies. Then the product designers query the trained artificial model with new high-level product attribute data to quickly obtain an LCC for a new product concept. Foundations fur the learning LCC approach are established, and then an application is provided.

• IE interfaces
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• v.13 no.2
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• pp.217-224
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• 2000

This paper analyzes the effects of setup cost reduction in a dynamic lot-sizing model for a single-facility multi-product problem. In the model, demands for each product are known, no backlogging is allowed, and a single resource is employed. Also, setup cost is defined as a function of capital expenditure to invest in setup cost reduction. Furthermore, in each production period the facility (or plant) produces many products, each representing a fixed part of the involved production activity (or input resource quantity). In this paper, the structure of the optimal solution is characterized and an efficient algorithm is proposed for simultaneously determining the optimal lot size with reduced setup cost and the optimal investment in setup cost reduction. Also, the proposed algorithm is illustrated by a numerical example with a linear and an exponential setup reduction functions.