• Industrial Engineering and Management Systems
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• 제12권2호
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• pp.85-94
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• 2013

This research investigates the supply chain contract between a distributor and a supplier in which the selling period is relatively short in comparison with long production lead time. At the first stage, supplier who is a Stackelberg leader offers the distributor a contract with a set of parameters, and subjected to those parameters, the distributor places the number of initial orders as well as options. In order to purchase the option, the distributor pays non-linear option premium price with respect to the number of purchased options. At the second stage, based on realized demand, the distributor has the right to exercise option as either put or call which is limited up to the number of purchased options. The wholesale price contract is used as a benchmarking contract. This research has confirmed that the supply chain contract with a non-linear option premium price can help to coordinate the supply chain.

• 산업경영시스템학회지
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• 제32권3호
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• pp.142-158
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• 2009

The supplier selection problem is perhaps the most important component of the purchasing function. Some of the common and influential criteria in the selection of a supplier include quality, price, delivery, and service. These evaluation criteria often conflict, however, and it is frequently impossible to find a supplier that excels in all areas. In addition, some of the criteria are quantitative and some are qualitative. Thus, a methodology is needed that can capture both subjective and objective evaluation measures. The Analytic Hierarchy Process(AHP) is a decision-making method for ranking alternative courses of action when multiple criteria must be considered. This paper proposes the AHP-based approach which can structure the supplier selection process and the achievements-based procedure which can allocate order quantities for the selected suppliers In automotive part manufacturers. Also, through the practical case of 'D' automotive part manufacturing company, we shows that the proposed AHP based supplier selection approach and the achievements-based allocation procedure of order quantity can be successfully applied for supplier selection and order quantity allocation problems.

• 산업공학
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• 제13권3호
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• pp.296-305
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• 2000

In supply chains, coordination between a manufacturer and suppliers is regarded as the most important issue when partnership of organizations is considered. Since the suppliers are external to the manufacturer and poor coordination between them results in excessive delays and ultimately leads to poor customer service, manufacturers need a new methodology to select suppliers and to manage and enhance the partnership between manufacturer and suppliers. We suggest a methodology that extends knowledge obtained from the supplier selection process to the supplier management process. We reserved a word, the supplier selection and management system (SSMS) for this methodology. In this paper, we explain how the SSMS is applied to a real supply chain. The methodology identifies the managerial criteria using information derived from supplier selection process and makes use of them in the supplier management process. These managerial criteria include key criteria that are major criteria required by the manufacturer for the best quality of parts from suppliers according to the character of each part, and weak criteria that show the shortcomings of selected suppliers as compared with alternative suppliers with regard to each criterion. The effectiveness of supplier management with managerial criteria was verified by a t-test and a correlation analysis with data collected and hypothesized from a Korean air-conditioner manufacturer.

• 산업공학
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• 제14권3호
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• pp.236-246
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• 2001

The purpose of the study is to identify specific tools and joint practices used in customer-supplier partnerships and to investigate performance outcomes resulting from using the identified tools and joint practices. To achieve the purpose, related literatures in the area of marketing, purchasing, and management systems engineering are reviewed. Successful and world-class supply and/or supplier management cases are examined in-depth as well. Before addressing the purpose of this study, quality experts' assertions on and historical perspective of Supply Chain Management(SCM) and general issues on customer-supplier partnerships are also mentioned.

• 한국경영과학회지
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• 제26권3호
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• pp.105-117
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• 2001

This paper models supply uncertainty in the dynamic Newsboy problem context. The system consists of one supplier and one retailer who places an order to the supplier every period to meet stochastic demand. Supply uncertainty is modeled as the uncertainty in quantities delivered by the supplier. That is, the supplier delivers exactly the amount ordered by the retailer with probability of $\beta$ and the amount minus K with probability of (1-$\beta$). We formulate the problem as a dynamic programming problem and prove that retailer’s optimal replenishment policy is a stationary base-stock policy. Through a numerical study, we found that the cost increase due to supply uncertainty is significant and that the costs increase more rapidly as supply uncertainty increases. We also identified the effects of various system parameters. One of the interesting results is that as retailer’s demand uncertainty, the other uncertainty in our model, increases, the cost increase due to supply uncertainty becomes less significant.

• 한국경영과학회지
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• 제28권4호
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• pp.115-129
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• 2003

This paper suggests that the profit sharing contract can be Pareto optimal for both supplier and the purchaser. It is shown that Pareto optimal risk sharing contract can be obtained even though the decisions are made in a decentralized manner. The effect of risk attitude of the members of the supply chain is discussed. We examined various aspects of the risk sharing contract such as risk altitude, bargaining power, and cost of information system. The different risk attitude changes the optimal parameters and decision variables. Especially, we proved that, when both the supplier and the purchaser are risk averse, the purchaser orders less quantity than when the one is risk neutral and the other is risk averse. If the fixed cost for the information system is big enough to satisfy a certain condition, it is Pareto optimal not to share the profit and the purchaser takes all the risk even though he is risk averse.

• 한국경영과학회지
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• 제37권1호
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• pp.45-59
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• 2012

We analyze a transaction mechanism so-called the revenue sharing transaction model and its dynamics in a supply chain with two competing suppliers and a monopolistic retailer when the demand pattern is uncertain and the back-order is allowed in case. We assume that the products by the suppliers are substitutable each other with a certain degree even though their retail prices are different. It is proved that a supplier and the retailer in the supply chain have some room for enjoying the possibility of their increased profits comparing with the present ones by adopting the suggested revenue sharing scheme. Furthermore, such a transaction model is beneficial even to the customers by offering a lower retail price than before. On the contrary, we observe that another supplier which sticks to an existing transaction scheme is supposed to suffer some decrease in its profit as a result.

• Industrial Engineering and Management Systems
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• 제11권1호
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• pp.1-10
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• 2012

Supplier selection is an essential task within the purchasing function of supply chain management because it provides companies with opportunities to reduce various costs and realize stable and reliable production. However, many companies find it difficult to determine which suppliers should be targeted as each of them has varying strengths and weaknesses in performance which require careful screening by the purchaser. Moreover, information required to assess suppliers is not known precisely and typically fuzzy in nature. In this paper, therefore, fuzzy multi-objective linear programming (fuzzy MOLP) is presented under fuzzy goals: cost minimization, service level maximization and purchasing risk. To solve the problem, we introduce an enhanced two-phase approach of fuzzy linear programming for the supplier selection. In formulated problem, Analytical Hierarchy Process (AHP) is used to determine the weights of criteria, and Taguchi Loss Function is employed to quantify purchasing risk. Finally, we provide a set of alternative solution which enables decision maker (DM) to select the best compromise solution based on his/her preference. Numerical experiment is provided to demonstrate our approach.

• 산업경영시스템학회지
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• 제37권4호
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• pp.116-125
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• 2014

In this paper, we investigate an inventory and production system in a three-layer supply chain system involving a single supplier, single manufacturer and multiple retailers. Earlier study in this type of supply chain only consider a single raw material in order to produce single item, but we consider raw materials in order to produce multiple items. It is assumed that the cycle time at each stage is an integer multiple of the adjacent downstream stage. We develop an iterative solution procedure to find the order quantity for the multiple items and raw materials that minimizes the supply chain-wide total cost per unit time of the supplier and manufacturer's raw materials ordering and holding, setup and finished items holding, the retailer's ordering and inventory holding. Numerical examples are presented to show that the proposed heuristic gives good performance.

• 산업경영시스템학회지
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• 제40권4호
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• pp.112-119
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• 2017

Selecting suppliers in the global supply chain is the very difficult and complicated decision making problem particularly due to the various types of supply risk in addition to the uncertain performance of the potential suppliers. This paper proposes a multi-phase decision making model for supplier selection under supply risks in global supply chains. In the first phase, the model suggests supplier selection solutions suitable to a given condition of decision making using a rule-based expert system. The expert system consists of a knowledge base of supplier selection solutions and an "if-then" rule-based inference engine. The knowledge base contains information about options and their consistency for seven characteristics of 20 supplier selection solutions chosen from articles published in SCIE journals since 2010. In the second phase, the model computes the potential suppliers' general performance indices using a technique for order preference by similarity to ideal solution (TOPSIS) based on their scores obtained by applying the suggested solutions. In the third phase, the model computes their risk indices using a TOPSIS based on their historical and predicted scores obtained by applying a risk evaluation algorithm. The evaluation algorithm deals with seven types of supply risk that significantly affect supplier's performance and eventually influence buyer's production plan. In the fourth phase, the model selects Pareto optimal suppliers based on their general performance and risk indices. An example demonstrates the implementation of the proposed model. The proposed model provides supply chain managers with a practical tool to effectively select best suppliers while considering supply risks as well as the general performance.