• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.1
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• pp.70-78
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• 2020

Under the situation which customer orders are cancelled unless all products in the order are delivered all at once, this paper concentrates on the purchase dependent demands and explores the systematic approach to implant the purchase dependence into the multi-product inventory model. First, by acknowledging that it is a challenging task to formulate a suitable inventory model for the purchase dependence, we derive the optimal solution condition using an EOQ model and extend the optimal solution condition to periodic review models. Then, through the comparison simulation of four inventory policies regarding several degrees of purchase dependence, we demonstrate that the inventory models which consider the purchase dependence generate less total cost than the inventory models which ignore the purchase dependence. In general, the inventory models which consider the purchase dependence reduce the loss of sales by maintaining more inventories, which results in reducing the total cost. Consequently, the simulation result supports the effectiveness of this paper's approach. In addition, this paper uses the individual order period and joint order period obtained from the EOQ model for the multi-product inventory model. Through the in-depth analysis of comparing the two models, we observe that the model of using the joint order period produces less total cost when the degree of purchase dependence is high, but the model of using the individual order period produces less total cost when the degree of purchase dependence is low.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.137-146
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• 2017

For the competitive business environment under purchase dependence, this paper proposes a new approximate calculation of order fill rate which is a probability of satisfying a customer order immediately using the existing inventory. Purchase dependence is different to demand dependence. Purchase dependence treats the purchase behavior of customers, while demand dependence considers demand correlation between items, between regions, or over time. Purchase dependence can be observed in such areas as marketing, manufacturing systems, and distribution systems. Traditional computational methods have a difficulty of the curse of dimensionality for the large cases, when deriving the stationary joint distribution which is utilized to calculate the order fill rate. In order to escape the curse of dimensionality and protect the solution from diverging for the large cases, we develop a greedy iterative search algorithm based on the Gauss-Seidel method. We show that the greedy iterative search algorithm is a dependable algorithm to derive the stationary joint distribution of on-hand inventories in the retailer system by conducting a comparison analysis of a greedy iterative search algorithm with the simulation. In addition, we present some managerial insights such as : (1) The upper bound of order fill rate can be calculated by the one-item pure system, while the lower bound can be provided by the pure system that consists of all items; (2) As the degree of purchase dependence declines while other conditions remain same, it is observed that the difference between the lower and upper bounds reduces, the order fill rate increases, and the order fill rate gets closer to the upper bound.

• Journal of the Korean Operations Research and Management Science Society
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• v.41 no.2
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• pp.35-51
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• 2016

This paper proposes a new approximate approach to calculate the order fill rate and the probability of filling an entire customer order immediately from the shelf in a business environment under purchase dependence characterized by customer purchase patterns observed in such areas as marketing, manufacturing systems, and distribution systems. The new approximate approach divides customer orders into item orders and calculates fill rates of all order types to approximate the order fill rate. We develop a greed iterative search algorithm (GISA) based on the Gauss-Seidel method to avoid dimensionality and prevent the solution divergence for larger instances. Through the computational analysis that compares the GISA with the simulation, we demonstrate that the GISA is a dependable algorithm for deriving the stationary joint distribution of on-hand inventories in the type-K pure system. We also present some managerial insights.

• Journal of Distribution Science
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• v.18 no.10
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• pp.121-130
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• 2020

Purpose: In this study we investigate the determinants of private label (PL) purchase intention in South Korea. Private labels are becoming more and more popular in America and European countries. However, there are not enough studies focusing on PL within the South Korean market. Therefore, the present study has been written in order to understand more about consumers' purchase intention of store brand in the South Korean market. Many characteristics and aspects of consumers and brand's behavior have been reviewed in order to bring relevant results. Research design, data and methodology: Data was collected using a quantitative survey of Korea retail store's consumer. We analyzed using multiple regression method to test the hypothesis. We analyzed how and why do consumers have a strong intention to purchase the PL. Results: a) Trust towards retailer influences the PL purchase intention of customers; b) brand awareness has an impact on the PL purchase intention of customers; c) perceived quality has an impact on the PL purchase intention; d) Price-quality relationship influences on the PL purchase intention. However, there is no direct effect of some of the factors of determinant. Conclusion: For private label products in the Korean market, trust in sellers and brand awareness influences the purchase of PL products.

• Journal of the Korean Society of Costume
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• v.51 no.7
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• pp.49-62
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• 2001

The purposes of this study were to find out the catalogue and online-order apparel shoppers' impulsive purchase orientation and impulsive purchase stimuli. Self-administered questionnaires were distributed to women over than 20 years, and collected from middle to the end of November in 2000. Frequencies, percentages, and mean were calculated. One-way ANOVA, chi-square test, factor analysis, and cluster analysis were used, and Duncan's Multiple Range test was followed. 1. Factors of impulsive purchase orientation were relax from negative moods, design property, inducement from neighbors, taste congruence, price property of apparel, positive moods, and loose-control, and were segmented into the low impulsive purchaser, the reasonable purchaser, the fulfilled with positive moods, and the high impulsive purchaser. The factors of impulsive purchase stimuli were apparel property, consumer service, sales promotion on the point of sales, and low price. 2. The low impulsive Purchaser was affected little by impulsive purchase stimuli, spent a little money on apparel, and the married with high education level were the most. The reasonable purchaser was affected by sales promotion on the point of sales or low price, spent a little money on apparel, and students or house-wives were the most The fulfilled with positive moods was affected by low price, and students or career women with high education level were the most, but spent less money on apparel. The high impulsive purchaser was affected by various impulsive purchase stimuli, the young unmarried with high education level were the most, and spent more money on apparel. 3. The younger, the unmarried, students or career women, and shoppers with higher income or apparel expenditure showed a higher impulsive purchase tendency for relax from negative mood, design property, for inducement from neighbor, taste congruence, and positive moods. 4. The older, the married, house wives, and shoppers with higher apparel expenditure were stimulated by apparel property or consumer services.

• The Journal of Industrial Distribution & Business
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• v.12 no.2
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• pp.29-40
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• 2021

Purpose: In this study, with the transaction amount of foreign direct Purchase and foreign direct sales increasing, South Korea is in a situation where foreign direct sales are focused on China. We looked at the impact of consumer innovation and site characteristics on repurchase ability among the characteristics of overseas direct purchase consumers as a way to make direct overseas sales to various overseas countries. Research design, data and methodology: Consumer innovativeness consists of four variables: functional, hedonistic, social, and cognitive, and the site characteristics consisted of four variables: product price, product assortment, convenience, and service. The study was conducted on consumers with foreign direct purchase experience, and was finally used in 252 additional analyses. Results: The main findings of this study were first, that the impact on the degree of re-purchase among consumer innovativeness of foreign direct purchase consumers had a significant impact in the order of cognitive innovativeness, hedonistic innovativeness, and functional innovativeness. Social innovativeness did not affect the degree of re-purchase. Second, site characteristics have been found to have a significant impact on the degree of re-purchase in order of product assortment, commodity price, and service. Convenience did not affect the degree of re-purchase. Conclusions Taken together these results can be called the biggest characteristic of the cognitive innovativeness of the consumer's inclination to use the overseas direct purchase, the price or quick response of the goods sold on the site is a factor that affects the re-purchase, above all it is important to have a variety of products. We will present this element as a way to make direct sales abroad to various countries. In addition, foreign direct purchase is a lot of transactions in China, the United States, EU, but the share of China is high in foreign direct sales, and the U.S. and EU have a very low performance, it is important to consider the reasons why they prefer Korean products in China to study the social and cultural characteristics of U.S. and European consumers in the future, and to support and active marketing that companies and sellers can increase sales.

• Journal of the Korean Society of Costume
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• v.33
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• pp.175-188
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• 1997

the main purpose of this study was to inves-tigate the consumer dissatisfaction and com-plaining behavior in purchase and use by con-sumer value. The subjects participated this study were 204 female students. They were classified into 3 groups by important degree of instrumental value which is one of the 2 value categories that divided by the Rokeach. In order to assess consumer dissatishaction in purchase and use of clothing by those groups. The Clothing Purchase Dissatisfaction Inventory was used and The Consumer Complaining Behavior Inventory was adapted to asses consumer complaining behavior. The Clothing Purchase Dissatisfaction Inventory has 4 subscales(Price related factor Produt and Quality related factor Information and Service related factor Purchase decision-mak-ing related factor)and The Consumer Complaining behavior Inventory consisted in 3 subscales(Do nothing Private complaining Public complaining) Using SAS package in order to examine Clothing Purchase Dissatisfaction Inventory scores anaslysis of variance (MANOVA) was excuted And turkety test a kind of post-hoc multiple comparisons methods was adapted to compare Clothing Purchase Dissatisfaction In-ventory scores of each groups. in order to in-vestigate consumer complaining behavior by each groups and grade major pocket money a month the mean purchse price of clothing a month x2-test Frequency Percent were executed. Conclusion eached in this study are as fol-low: 1. Each group had differences in price re-lated factor Product nad Quality related fac-tor Information and Service related factor ex-cept Purchase decision -making related factor Groups which made much of value tend to dis-satisfy in price related facor Product and Quality related factor Information and Service related factor. 2. Group that made much of value had more high scores in private complaining complainto third party and the middle group had more high scores in private complaining . Group made little of value tended to do nothing. 3. Grade major pocket money a monty the mean purchase price of clothing a month didn't have difference signficantly in consumer behavior. but major had difference on private complaining.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.98-108
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• 2015

This paper introduces the existence of purchase dependence that was identified during the analysis of inventory operations practice at a sales agency of dealing with spare parts for ship engines and generators. Purchase dependence is an important factor in designing an inventory replenishment policy. However, it has remained mostly unaddressed. Purchase dependence is different from demand dependence. Purchase dependence deals with the purchase behavior of customers, whereas demand dependence deals with the relationship between item-demands. In order to deal with purchase dependence in inventory operations practice, this paper proposes (Q, r) models with the consideration of purchase dependence. Through a computer simulation experiment, this paper compares performance of the proposed (Q, r) models to that of a (Q, r) model ignoring purchase dependence. The simulation experiment is conducted for two cases : a case of using a lost sale cost and a case of using a service level. For a case of using a lost sale cost, this paper calculates an order quantity, Q and a reorder point, r using the iterative procedure. However, for a case of using a service level, it is not an easy task to find Q and r. The complexity stems from the interactions among inventory replenishment policies for items. Thus, this paper considers the genetic algorithm (GA) as an optimization method. The simulation results demonstrates that the proposed (Q, r) models incur less inventory operations cost (satisfies better service levels) than a (Q, r) model ignoring purchase dependence. As a result, the simulation results supports that it is important to consider purchase dependence in the inventory operations practice.

• Journal of the Korean Society of Clothing and Textiles
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• v.35 no.5
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• pp.561-574
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• 2011

This study investigates the ultimate factor structure of consumer dissatisfaction with the off-line purchase and usage of clothing. It identifies the determinant dimensions of consumer dissatisfaction on clothing purchase and usage and investigates the hierarchical structure of consumer dissatisfaction by assessing and comparing the effectiveness of five alternative factor structure models. A total of 300 women were online-surveyed to assess the level of dissatisfaction based on their dissatisfying experience with clothing purchases and usage in terms of product quality, price, salesperson's attitude, and store environment. The exploratory factor analysis identified the underlying dimensions of dissatisfaction: Handling, Aesthetics, Salesperson, Size, Price, Product Quality, Service, and Environment. By employing a first-order confirmatory factor analysis and higher-order confirmatory factor analysis, consumer dissatisfaction was confirmed to have a hierarchical structure with three second-order constructs Intrinsic instrument is manifested by handling, quality, and size, Intrinsic expression consists of service, salesperson, and environment, and Extrinsic circumstance contains aesthetics and price. On empirically demonstrating the multi-dimensional constructs of consumer dissatisfaction by identifying its hierarchical structure, the study provides the theoretical and practical insights to comprehend consumer purchase and post-purchase behavior. Specifically, it affords an empirical platform to extend the scope of research with condensed concepts of dissatisfaction to researchers. In addition, it also enables marketers to take a broader view of consumer dissatisfaction by providing cues about potential problems and identifying the source of those problems.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.322-328
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• 2007

Highly standardized products are suitable for automated purchasing using electronic commerce technology, where the price becomes the most important factor. Suppliers can change the prices dynamically based on the inventory level and market situation in order to maximize the sales and profit. In the virtual marketplace where multiple customers purchase multiple standardized products from multiple suppliers repetitively, customers can purchase the required amount of each item as a dynamic bidding by allocating purchase orders to the suppliers based on the current price. Customers need a method to quickly determine the optimal allocation of orders to the suppliers using the dynamically changing data to minimize the total cost. We present a LP model which minimizes the sum of the total price plus transportation cost for this problem. Simulation results using random data show meaningful reduction of the total cost.