• Title/Summary/Keyword: Safety Inventory

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Design of Information Application of Decreasing Safety Stock in the Logistics (물류업 안전재고 감축을 위한 정보시스템 설계)

  • Kim, Min-Jun;Park, In-Sul;Yun, Jun-Sub;Hong, Sang-Tae
    • Proceedings of the Safety Management and Science Conference
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    • 2005.11a
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    • pp.194-198
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    • 2005
  • Inventory information system is providing the benefits of smoother demand, lower inventories(work in process, safety stock) and reduced costs. This study focused on improvement of safety level inventory efficiency by inventory information system. The results indicated that inventory information system allowed the company to serve its customers more surely and efficiently.

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A Study on the Operation of Physical Distribution System with the Allocation of Safety Stock (안전재고입지를 고려한 물적 분배시스템 운영에 관한 연구)

  • 김병찬;김형준
    • Journal of the Korea Safety Management & Science
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    • v.3 no.3
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    • pp.77-86
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    • 2001
  • An operational strategy for inventory control on finished goods in the distribution system has been given attention to many enterprises and many studies regarding this field have been done and is also on-going currently. Many of these studies represented a large scale distribution network with a unified formulation by using defined symbols. These methods have provided the systematic approach of the distribution network but they are impossible to applying the reality system due to not considering the service rate of demand and treating the shortage of inventory. In order to overcome these unrealistic problems, the novel safety stock policy of responding to customers' inventory distribution network is suggested. this paper explores the transportation between Central Distribution Center(CDC) and Regional Distribution Center(RDC). Especially, the relation of transportation cost between CDC and RDC and cost of inventory control according to safety inventory with service level are emphasized. We could obtain the good results of this study by determining the optimal safety stock considering the various variables and constraints.

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Application Case of Safety Stock Policy based on Demand Forecast Data Analysis (수요예측 데이터 분석에 기반한 안전재고 방법론의 현장 적용 및 효과)

  • Park, Hung-Su;Choi, Woo-Yong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.43 no.3
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    • pp.61-67
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    • 2020
  • The fourth industrial revolution encourages manufacturing industry to pursue a new paradigm shift to meet customers' diverse demands by managing the production process efficiently. However, it is not easy to manage efficiently a variety of tasks of all the processes including materials management, production management, process control, sales management, and inventory management. Especially, to set up an efficient production schedule and maintain appropriate inventory is crucial for tailored response to customers' needs. This paper deals with the optimized inventory policy in a steel company that produces granule products under supply contracts of three targeted on-time delivery rates. For efficient inventory management, products are classified into three groups A, B and C, and three differentiated production cycles and safety factors are assumed for the targeted on-time delivery rates of the groups. To derive the optimized inventory policy, we experimented eight cases of combined safety stock and data analysis methods in terms of key performance metrics such as mean inventory level and sold-out rate. Through simulation experiments based on real data we find that the proposed optimized inventory policy reduces inventory level by about 9%, and increases surplus production capacity rate, which is usually used for the production of products in Group C, from 43.4% to 46.3%, compared with the existing inventory policy.

Analysis of Vendor Managed Inventory System for Safety Appropriate Stock - Based on case study of 'D' Business - (안전 적정 재고를 위한 VMI 시스템 분석 - D사를 중심으로 -)

  • Lee Myong-Bok;Yang Kwang-Mo;Kang Kyong-Sik
    • Journal of the Korea Safety Management & Science
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    • v.7 no.4
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    • pp.179-191
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    • 2005
  • Recently, Vendor Managed Inventory(VMI) has been commonly recognized as one of the supply chain application that delivers clear value to the sectors of electic & electronic components. VMI is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI is providing the benefits of smoother demand, lower inventories(work in process, safety stock) and reduced costs. This study focused on improvement of safety level inventory efficiency by VMI. The results indicated that VMI allowed the company to serve its customers more surely and efficiently.

Determination of Safety Stock in a Multi-Echelon Inventory System (다단계 재고 시스템의 안전재고의 결정)

  • ;;Kim, J. J.;Shim, J. H.
    • Journal of the Korean Operations Research and Management Science Society
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    • v.15 no.1
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    • pp.63-72
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    • 1990
  • This problem in this paper concerns the determination of safety stock for multi-echelon invenetory system. In this model the criterion is to minimize system safety stock subject to a service level constraint and expected annual total cost. Then, safety stock is determined by minimizing expected annual total cost and satisfying given service level. This expected annual total cost is obtained by expected total inventory holding cost plus the expected total stockout cost. Numerical example is given in a three-echelon inventory system. The results obtained by the use of the Hill Algorithm.

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A Framework of Web-based Inventory System using a RFID in Plastic Injection Molding Industry (플라스틱 사출산업의 RFID를 이용한 웹기반 재고관리시스템 프레임웤)

  • Lim, Seok-Jin;Song, Jae-Ho;Ko, Young-Uk;Park, Byong-Tae
    • Proceedings of the Safety Management and Science Conference
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    • 2010.04a
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    • pp.189-197
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    • 2010
  • Recently, industrial business environments have rapidly changed and face severe competitive challenges. The effective inventory system enables to product and deliver the products quickly for meeting due date of customer's order in this environment. This study have developed a web-based inventory system framework using RFID for a plastic injection molding industry. The system analysis inventory problem issues such as inventory planning, warehouse assignment. In this study, web-based inventory system using Java language is proposed and implemented. As the result of implementation of the system, we expected that it manages to inventory planning continually and systematically.

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A Development of Web-based Inventory System using a RFID in Injection Molding Industry (RFID를 이용한 사출산업에서의 웹기반 재고관리시스템 개발)

  • Lim, Seok-Jin
    • Journal of the Korea Safety Management & Science
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    • v.12 no.3
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    • pp.177-182
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    • 2010
  • Industrial business environments have rapidly changed and face severe competitive challenges. The effective inventory system enables to product and deliver the products quickly for meeting due date of customer's order in this environment. This study have developed a web-based inventory system using RFID for an injection molding industry. The system analysis inventory problem issues such as inventory planning, warehouse assignment and assist to develop production scheduling. In this study, web-based inventory system using Java language and RFID technology is proposed and implemented. As the result of implementation of the system, we expected that it manages to inventory planning continually and systematically.

A Study on Inventory Control Method for an Item with Stockkeeping Units (재고보유단위로 관리되는 제품의 재고관리 방법에 관한 연구)

  • Yoon, Seung-Chul
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.1
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    • pp.124-130
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    • 2015
  • In many inventory situations, items for sales are generally stocked in a multiple of variations called stockkeeping units, such as size, color, style, and so on. For better management performance on sales items, proper and effective management is necessary for the stockkeeping units. In dealing with many items and those stockkeeping units, individual inventory analysis for each stockkeeping unit needs large amount of time or cost. Also the individual approach in inventory planning increases the demand variation of an item as the result by combining of demand variations of all stockkeeping units, accordingly the inventory turnover ratio and profitability are dropped down. This research suggests an effective method of systematic control of total stockkeeping units by generating from the total item basis, and shows how to reduce the safety stock and the average inventory with attaining a planned customer fill rate of the item and each stockkeeping units.

A Study on Periodic Review Inventory System under Stochastic Budget Constraint (확률적 예산 제약을 고려한 주기적 재고관리 정책에 대한 연구)

  • Lee, Chang-Yong;Lee, Dongju
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.37 no.1
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    • pp.165-171
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    • 2014
  • We develop an optimization algorithm for a periodic review inventory system under a stochastic budget constraint. While most conventional studies on the periodic review inventory system consider a simple budget limit in terms of the inventory investment being less than a fixed budget, this study adopts more realistic assumption in that purchasing costs are paid at the time an order is arrived. Therefore, probability is employed to express the budget constraint. That is, the probability of total inventory investment to be less than budget must be greater than a certain value assuming that purchasing costs are paid at the time an order is arrived. We express the budget constraint in terms of the Lagrange multiplier and suggest a numerical method to obtain optional values of the cycle time and the safety factor to the system. We also perform the sensitivity analysis in order to investigate the dependence of important quantities on the budget constraint. We find that, as the amount of budget increases, the cycle time and the average inventory level increase, whereas the Lagrange multiplier decreases. In addition, as budget increases, the safety factor increases and reaches to a certain level. In particular, we derive the condition for the maximum safety factor.

Effect of Distribution Center Consolidation and Inventory Reduction on Logistics Cost (물류 센터 통합 및 재고 감축이 물류비용에 미치는 영향)

  • Park, In-Kyu;Kang, Sung-Woo;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.17 no.1
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    • pp.265-270
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    • 2015
  • In industrial society, the core competency of company was depend on the productivity. However the knowledge information era of the 21st century, the market power moved to downstream, the core competency of company is moved from productivity to how to make the products meet the market. Inventory was the burden of the company management. Most of company trying to reduce the inventory. In this study, analyze the impact of inventory to company's operating profit and the impact of distribution center consolidation to total inventory of company.