• Journal of Institute of Control, Robotics and Systems
• /
• v.16 no.5
• /
• pp.476-480
• /
• 2010

This study deals with stockout costs in the supply chain optimization model under the framework of batch-storage network. Stockout is very popular in chemical industries. Estimating stockout cost involves an understanding of customer reactions to a seller being out of stock at the time the customer wants to buy an item. This involves massively non-trivial work such as direct customer interviews and extensive mail survey. In this study, we will introduce a new interpretation of stockout costs combined with batchstorage network optimization model and thus suggest an easy way of estimating stockout costs. Optimization model suggest that optimal process and storage sizes considering stockout cost are smaller than those that do not consider stockout cost. An illustrative example support the analytical results.

• The Korean Fashion and Textile Research Journal
• /
• v.17 no.5
• /
• pp.770-780
• /
• 2015

This study intended to explore fundamental causes affecting consumers' response actions from psychological factors in the situation of sellout occurring during shopping in online fashion stores. In addition, this study devised a virtual online shop in order to measure consumers' cognitive and emotional psychological responses they experienced when goods were sold out. The subjects involved women in 20s~30s, major customers of online shopping, and the subjects were randomly allocated to one of eight questionnaire forms (2(stockout size: high vs low)${\times}2$(product assortment similarity: similar vs. dissimilar)${\times}2$(restocking cue: included vs excluded)). The number of final data used for the analysis was 336 and through SPSS 21.0 program, two-way ANOVA and bootstrap were utilized. The analysis result was that consumers' psychological responses (emotions, psychological reactance) of online shops differed by means of varying stockout situations. The stockout size had positive effect on psychological reactance and negative emotions. On the other hand, there was no difference in positive emotions (arousal) according to stockout size. In stockout situation of online fashion store, the moderating effect of product assortment similarity and restocking cues were verified. According to the analysis result, interaction effects between stockout size and restocking cues, product stockout size and product assortment for psychological reactance were significant. Lastly, the mediation effect of psychological reactance and emotion between stockout size and behavioral response was tested. As a result, the moderated mediation effects of psychological reactance for substitute were significant when product assortment was dissimilar and restocking cue was exclude.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.25 no.4
• /
• pp.16-21
• /
• 2002

This paper refer to the trade-off between delivery frequency and amount between supplier and discountstores. Discountstores prefer frequent delivery of small amount because of limited storage space, while suppliers prefer less frequent delivery of large amount in order to save transportation cost In this paper we propose a heuristic algorithm to determine the amount of order and the delivery frequency which decreases the expected length of stockout. We also evaluate various order policies for vendor managed inventory system using simulation with real data.

• IE interfaces
• /
• v.13 no.3
• /
• pp.438-443
• /
• 2000

In this paper, we suggest a new backorder policy for stockout which is occurred in each regional distribution centers of distribution chain for capital-goods product. In backorder process of backorder policy, minimize expected stockout through the balancing-division module, and has occured stockout is backordering through the emergency supply from central distribution center and regional distribution center. Simulation tests show that our backorder policy is on the decrease of backorder cost and improvement of customer service. Our backorder policy has two important benefit. First, customer service level is improved by realization of minimum stockout. Second, the backorder process by allowance of the same level supply is to decrease system operating cost.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.17 no.3
• /
• pp.137-158
• /
• 1992

We study the Multiple Product Single Facility Stockout Avoidance Problem (SAP). That is the problem of determining, given initial inventories, whether there is a multiple product single facility production schedule that avoids stockouts over a given time horizon. The optimization version of the SAP where stockouts are pnelized linearly is also studied. We call this problem the Weighted Stockout Problem (WSP). Both problems are NP-hard in the strong sense. We develop Mixed Integer Linear Programming (MIP) formulations for both the SAP and the WSP. In addition, several heuristic algorithms are presented and performances are tested using computational experiments. We show that there exist polynomial algorithms for some special cases of the SAP and the WSP. We also present a method to phase into a target cyclic schedule for infinite horizon problems. These can be used as a practical scheduling tool for temporarily overloaded facilities or to reschedule production after a disruption.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2007.11a
• /
• pp.90-96
• /
• 2007

In multi-location inventory systems, lost sales due to stockout decreases not only retailers' profit but also whole supply chain's profit. Transshipment between retailers has been considered to be a major solution to the stockout problem, and many supply chains implement transshipment coalition among retailers. However, in practical situations, retailers occasionally refuses to accept the transshipment requests, mainly because they concern the future stockout possibilities of their own. Thus, the objective of this research is to analyze the effect of retailers' interaction under the transshipment coalition environment based on the simulations, and to provide effective policies to promote retailers' transshipment cooperation. Policies using penalty and incentive scheme are proposed, and it is shown that using proposed policies both the retailers' and the headquarter's profit can be increased.

• Journal of Korean Society for Quality Management
• /
• v.16 no.2
• /
• pp.92-98
• /
• 1988

In this paper a model is developed for an inventory system in which the number of units of acceptable quality in a replenishment lot is uncertain and the demand. during the stockout period is back ordered and. also under the same condition an inventory model with experdited stockout is developed. It is assumed that the fraction of the acceptable quality in a replenishment lot is a random variable whose probability distribution is known. The optimal replenishment policy is synthesized for such a system. A numerical example is used to illustrate the theory.

• Journal of the Korea Society of Computer and Information
• /
• v.25 no.1
• /
• pp.131-140
• /
• 2020

In this study, we analyzed the effect of consumer's cognitive response, emotional response and behavioral response on online shopping stockouts (ISRI: Individual Stockout Response Index). And we try to show the heterogeneity of the degree of consumer response by subdivision market based on the regularity of distribution. The ISRI was developed by Kim and Lee in 2016 and 2018, which were based on the items and factors of cognitive, emotional and behavioral responses. The exponential stockouts response of consumers in this study will give an accurate picture of what consumers want when stockouts. further research should be done on how consumers' reactions are influenced by situational characteristics, consumer characteristics, store characteristics and brand / product characteristics. Especially, the price level of the product will affect the consumer 's response in the case of online fashion goods shopping.

• Journal of Industrial Technology
• /
• v.21 no.B
• /
• pp.37-44
• /
• 2001

Distribution System is considered as the most important part of SCM when the satisfaction of customer demand is considered. This paper focus on the backorder policies for stockout which is occurred in each regional distribution center of two-echelon distribution system facing stochastic demand process. Four concepts for the efficient system operation are suggested. First, at least 30% reduction of stockout is achieved by introduction of 50/25 allocation policy to distribution system. Second, transportation cost and lead-time of backorder are decreased by allowance of internal supply between regional distribution centers. Third, the frequency of emergency supply is minimized by application of Ship-up-to- expected-demand backorder policies. Finally we suggest several effective rules to select multi-internal suppliers. Simulation tests show the efficiency of our backorder policies and enhancement of customer service level.

• Journal of Korean Society for Quality Management
• /
• v.18 no.2
• /
• pp.9-17
• /
• 1990

This paper deals with a FOQ( ; fixed-order quantity) model for spare-part inventory control. In a spare-part inventory problem, stock depletion arises not from external market demand but from internal demand resulting from failures of parts in use. The problem differs from the classical inventory problem in that the demand for a failed part never arises more during stockout period, since the unit remains inoperative when stockout occurs until the failed part is replaced by new one. In the problem under consideration, n identical units are operating simultaneously and failed one is replaced immediately by new one if on-hand spares remain. In order to replenish spares, an order with quantity Q is placed whenever the number of on-hand spares falls to levels. The average annual cost of operating the spare-part inventory system is derived under the assumption that both lifetime of a part and replenishment lead-time distributions are exponential.