• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.73-82
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• 2006

Supply chain management (SCM) has been regarded as one of the most critical issues in the current business environment. Moreover, supply chain partnerships between suppliers and buyers in SCM have had a significant impact on supply chain performance. In this paper, we conduct a quantitative analysis for supplier-buyer's profit sharing and pricing policies based on supply chain partnerships. For this purpose, we assume that a two echelon supply chain with a single supplier and a single buyer is given and the buyer faces deterministic demand which is not only a function of buyer's selling price, but also strictly decreasing, concave, and twice differentiable function. Then we will prove the following. Firstly, without supply chain partnerships, there exist supplier and buyer's selling prices per unit such that their total profits are maximized, under the assumption that buyer's order quantity is exactly equal to the demand buyer faced. Secondly, buyer's selling price per unit which maximizes supply chain's total profit with supply chain partnerships is lower than buyer's selling price per unit which maximizes buyer's total profit without supply chain partnerships. Thirdly, given supplier's selling price per unit. buyer's total profit without supply chain part nerships is greater than that with supply chain partnerships, whereas the opposite case happens for supplier's total profit. Finally, there exists supplier's selling price per unit which makes the maximum total profits for both supplier and buyer with supply chain partnerships greater than those obtained for any given supplier's selling price per unit without supply chain partnerships.

• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.4
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• pp.13-30
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• 2008

We explore the determinants of long-term relationship between the buyer and the supplier to help suppliers develope a strategy to build long-term relationship with their buyers. Based upon an extensive literature review, we propose three droops of independent variables which may affect long-term relationship, including (a) environmental factors (product complexity, product importance, source dependence, price sensitivity), (b) relational factors(trust, commitment, satisfaction, intention of expansion), (c) operational performance(quality, delivery, cost capability, technical knowhow). The buyer's actual period of relationship with its main supplier is used as a dependent variable. Using hierarchical multiple regression analysis, we empirically test hypotheses, analysing a sample of 290 manufacturing firms in the U.S. The statistical results indicate that the buyer's source dependence, price sensitivity and the supplier's commitment play a significant role in establishing long-term relationship between the buyer and the supplier. However, the supplier's cost capability and technical knowhow in operational performance negatively affect long-term relationship in contrast with our hypotheses. Due to this controversial result, we divide the sample group Into dual sourcing and multiple sourcing environments and reconduct regression analysis in a post hoc manner. The findings show that the supplier's cost capability and technical knowhow are negatively associated with the length of relationship only in the multiple sourcing environment. The results may confirm that both parties' opportunistic behavior is more salient in the multiple sourcing environment than in the single sourcing environment.

• Journal of Korean Society for Quality Management
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• v.28 no.4
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• pp.204-222
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• 2000

Supply Chain Management is a process-oriented concept, integrated approach to procuring, producing, and delivering products and services to customers. Supply Chain Management covers the management of material, information, and funds flows. A strategic supply chain management produces for value maker and the ultimate customer. One aim of this paper is to determine the effect of contract parameters on the quality of the end product of the supplier-producer chain. The supply chain management is viewed as a single entity rather fragmented. This research constructed model the relationship of supply chain management to quality management. The questionnaire were tested with survey of supplier's employee and the result were analyzed using SEM(Structural Equation Model). As a result, Quality performance positively depends on the communication, coordination, and process management between the supplier and the producer.

• Journal of the military operations research society of Korea
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• v.28 no.2
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• pp.1-19
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• 2002

This study shows the effect of inventory policy change from supplier-based to customer-based. We focus on the service level, cost, and information distortion of the Military Supply Chain(MSC) with System Dynamics. We design MSC model according to field practician interviews by using Vensim. The simulation makes a comparison between supply-based inventory policy performances and order-based inventory policy performances. In order to evaluate the MSC performances, we measure the accumulation of backlog(service level), supply chain cost, and order percentage overshoot(information distortion). The results show that 1) changing inventory policy from supplier-based to end customer order-based gets a good customer service, reduces MSC cost, and prevents information distortion, 2) changing inventory policy from supplier-based to immediate customer order-based reduces a small amount of MSC cost and deteriorates customer service, and 3) supply level is main factor for MSC performances improvement. This study implicates the policy change makes a improvement of MSC performance without introducing information system.

• Journal of Digital Convergence
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• v.16 no.2
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• pp.169-178
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• 2018

The purpose of this study is to analyze the effect of innovation factors and relationship factors ASP service on customer performance for small firms using ASP service and Supplier trust analyzed the regulatory impact of the innovation factors and relationships factors on customer performance. Sample data was collected using questionnaire techniques, and statistical analysis used regression analysis. As a result of analysis, it is analyzed that the relative advantage of innovation factors and the influence of other companies have a positive effect on customer performance. In the relationship factors, the degree of information sharing was analyzed as a variable that positively influenced customer performance. However, the Flexibility of participants was analyzed as a variable that did not positively affect customer performance. As a result of analyzing the regulatory role of supplier trust, supplier trust is analyzed as a variable that plays a moderating role in customer performance along with innovation factors and relationship factors. Therefore, in the case of small enterprises using ASP service, it was found that innovation factors and information sharing factors are important factor to maximize customer performance. And that the trust of ASP vendors is a very important variable for customers.

• Management Science and Financial Engineering
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• v.16 no.3
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• pp.21-47
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• 2010

Quantity discounts provide a practical foundation for supply chain inventory policies, improving the supplier's profit and reducing the buyer's inventory cost simultaneously. Traditional quantity-discount research, which deals with inventory coordination between a buyer and a supplier, is extended to a stationary stochastic environment. This research shows that the magnitude of the optimal discounts scheduled by the deterministic quantity discount models may not be large enough to cover the buyer's additional inventory stocking risks under uncertain conditions. As a result, the buyer's total inventory cost may often increase rather than decrease. In contrast, the proposed model allows the supplier to identify the discount level, which shares the buyer's amplified risk associated with temporary overstocking and ensures that both buyer and supplier benefit economically. The performance of the proposed model was tested in the continuous review environments via numerical experiments. The experimental results support the proposed method as a feasible alternative in coordinating inventory decisions under stochastic demand.

• Journal of Information Technology Applications and Management
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• v.15 no.3
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• pp.275-286
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• 2008

Employing a sample of 126 suppliers in Korean electronic industry, this research examined the effects of institutional environment, social capital and strategic importance in manufacturer-supplier relationships on knowledge sharing. Building on the relational view and knowledge-based theories, this study proposed that these factors facilitate knowledge sharing in manufacturer-supplier relationships and that knowledge mediates satisfaction between manufacturer-supplier relationships for competitive advantage. Results indicate that institutional environment, social capital and strategic importance in manufacturer-supplier relationships are indeed associated with greater knowledge sharing. Inter-firm satisfaction is, in turn, positively associated with knowledge sharing for competitive advantage through technical support, financial support, competence increasing. Further, results provide evidence that knowledge sharing plays a mediating role between institutional environment, social capital, strategic importance and inter-firm satisfaction.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.1
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• pp.83-89
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• 2015

Selection of efficient supplier is a very important process as risk or uncertainty of a supply chain and its environment are increasing. Previous deterministic DEA and probabilistic DEAs are very limited to handle various types of risk and uncertainty. In this paper, I propose an improved probabilistic DEA which consists of two steps; Monte Carlo simulation and statistical decision making. The simulation results show that the proposed method is proper to distinguish supplier's performance and provide statistical decision background.

• Journal of Digital Convergence
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• v.13 no.1
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• pp.93-110
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• 2015

The purpose of this study is to identify the role of T-shaped skill between customer/supplier network and innovation performance of firms. To manage effectively the relationship between collaborative firms, firms need to have a prior related knowledge. The premise of absorptive capacity is that the organization needs prior related knowledge to recognize, assimilate, and apply new knowledge. In this context, T-shaped skill facilitates the learning of new related knowledge. The skill is thus a critical component of innovative capabilities. We found that T-shaped skill plays a mediating role in the relationship between networks and innovation performance. The conclusions and implications are discussed.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.3
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• pp.143-155
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• 2020

The relationship between companies in the supply chain is a core competency of the company and key indicator which determines the survival of a company. Therefore, companies are investing in efforts for inter-company relations, and related studies have been conducted for a long time. However, in the supply chain, the positions and characteristics of suppliers and buyers are not the same. Therefore, research is needed to better understand and respond to other characteristics of the relationship between suppliers and buyers. The purpose of this study was to identify the characteristics of the resources held between the buyer and the supplier through social capital, which is a value asset that can be used as a resource created through social relations, and whether it affects the commitment of the relationship. In addition, The core of this study was to statistically analyze the differences between suppliers and buyers through this analysis. This study was conducted by surveying companies that are suppliers and buyers along the supply chain. The difference between the supplier and the buyer was revealed through empirical analysis, and statistically, the difference between the two groups was also revealed. As a result of the analysis, the higher the involvement of the buyer, the more significant the result of structural capital was, and the result was statistically opposite to the supplier. As for the relationship capital, quantitative and qualitative relationship capital had different effects on the commitment. Both the supplier and the buyer had a positive effect on relationship performance. However, the effect of emotional commitment on non-financial relationship performance has a greater degree of influence on suppliers, and it appears in statistical differences. This study revealed differences in the relationship between suppliers and buyers, and found that different investments and efforts were required for each group.