• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.3
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• pp.93-98
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• 2009

This paper studies that $\sigma$ values(10, 20, 50) and $\rho$ values(-0.6, -0.3, 0.0, 0.3, 0.6) affect the total inventory cost of a supply chain and order fill rate when the market demand process follows a general auto-correlated AR(1) process without seasonality. $\sigma$ indicates the degree of demand fluctuation and $\rho$ means the trend of demand. ANOVA tests using a 5% significance level are performed in SPSS to examine significant performance changes among various cases.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.05a
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• pp.8-13
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• 2003

This paper considers a continuous-review two-echelon inventory control problem with one-to-one replenishment policy incorporated and with lost sales allowed where demand arrives In a stationary Poisson process The problem Is formulated using METRIC-approximation in a combined approach of pricing and (S-1.S) Inventory policy, for which an iterative solution algorithm is derived with respect to the corresponding one-warehouse multi-retailor supply chain. Specifically, decisions on retail pricing and warehouse inventory policies are made in integration to maximize total profit in the supply chain. The objective function of the model consists of sub-functions of revenue and cost (holding cost and penalty cost). To test the effectiveness and efficiency of the proposed algorithm, numerical experiments are performed The computational results show that the proposed algorithm is efficient and derives quite good decisions

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.4
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• pp.25-34
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• 2011

In this paper, we investigate an inventory system where a single manufacturer purchases and processes raw materials in order to deliver finished goods to multiple retailers. Earlier study in this type of supply chain only consider a single raw material in order to produce finished goods, but we consider multi-raw materials in order to produce finished goods. Also, we develop an iterative solution procedure to find the order quantity for the finished goods and raw materials, and the number of shipments between manufacturer and retailers that minimizes the total cost per unit time of the raw materials ordering and holding, manufacture's setup and finished goods holding, the retailer's ordering and inventory holding. Numerical examples are presented to illustrate that jointly considering the total cost results in less total cost than that of considering them separately.

• Journal of Korean Institute of Industrial Engineers
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• v.30 no.2
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• pp.146-158
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• 2004

This paper considers a continuous-review two-echelon inventory control problem with one-to-one replenishment policy incorporated and with lost sales allowed where demand arrives in a stationary Poisson process. The problem is formulated using METRIC-approximation in a combined approach of pricing and (S-l, S) inventory policy, for which a heuristic solution algorithm is derived with respect to the corresponding one-warehouse multi-retailer supply chain. Specifically, decisions on retail pricing and warehouse inventory policies are made in integration to maximize total profit in the supply chain. The objective function of the model consists of sub-functions of revenue and cost (holding cost and penalty cost). To test the effectiveness and efficiency of the proposed algorithm, numerical experiments are performed with two cases. The first case deals with identical retailers and the second case deals with different retailers with different market sizes. The computational results show that the proposed algorithm is efficient and derives quite good decisions.

• Industrial Engineering and Management Systems
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• v.7 no.1
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• pp.78-89
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• 2008

The need for holistic modeling efforts for returns that capture the extended closed loop supply chain (CLSC) system at strategic as well as operational level has been clearly recognized by the industry and academia. Strategic decision-makers need comprehensive models that can guide them in efficient decision-making to increase the profitability of the entire forward and return chain. Therefore, determination of a near optimal design configuration, which includes the environmental, economical and technological capability factors, is important in strategic decision-making effort that affect the profitability of the closed loop supply chain. In this paper, we adopted an improved system dynamics methodology to tackle strategic issues that affect various performance measures, like market, time/cost, environment etc., for closed loop supply chains. After studying real life implementation issues in CLSC design, we presented guidelines for the PBM (Participative Business Modeling) methodology and presented its extension for the strategic dynamic system modeling of return chains. Finally, we demonstrated the measurement of operational performance by extending SD (system dynamic) application to closed loop supply chain management.

• Journal of Forest and Environmental Science
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• v.34 no.4
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• pp.304-312
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• 2018

This study investigates to identify the impact factors of timber production cost on the relationship between production cost components and revenues generated by evaluating the entire timber supply chain. In this research, selected 13 logging zones as target areas and classified 14 forest production cost factors, six groups. Additionally, established 13 externalenvironmental factors with related stakeholders and forestry experts. And the BCR (Benefit Cost Ratio) method was then used to analyze the economics of each zone. Filled up a checklist and rated using 5 point scale for each target region, and extracted major cost factors for the production economy of the item. The analysis of major cost factors in the timber production revealed that wood grab equipment usage fee was the first ranked and forest trees purchase cost was ranked in the $2^{nd}$Also, the $3^{rd}$ranking was logging expenses, and transport cost, which accounted for 84% of the total cost, was ranked in the $4^{th}$. In addition, the rock land ratio, slope, timber payment (forest trees purchase cost), special timber, ratio of timber, DBH (Diameter at Breast Height), and mixed forest ratio were the factors that most affected the timber supply chain cost.

• Journal of the Korean Operations Research and Management Science Society
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• v.28 no.4
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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.

• Journal of the Korea Safety Management & Science
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• v.8 no.3
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• pp.115-123
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• 2006

The main focus of this study is to investigate the performance of a clark-scarf type multi-echelon serial supply chain operating with a base-stock policy and to optimize the inventory levels in the supply chains so as to minimize the systemwide total inventory cost, comprising holding and backorder costs as all the nodes in the supply chain. The source of supply of raw materials to the most upstream node, namely supplier, is assumed to have an infinite raw material availability. Retailer faces random customer demand, which is assumed to be stationary and normally distributed. If the demand exceeds on-hand inventory, the excess demand is backlogged. Using the echelon stock and demand quantile concepts and an efficient simulation technique, we derive near optimal inventory policy. Additionally we discuss the derived results through the extensive experiments for different supply chain settings.

• Journal of the Korean Operations Research and Management Science Society
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• v.30 no.3
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• pp.81-93
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• 2005

This paper models supply chain uncertainties in the dynamic Newsboy Problem context. The system consists of one supplier and one retailer who place an order to the supplier every period. Demand uncertainty is modeled as stochastic period demand, and supply uncertainty as the uncertainty in quantities delivered by the supplier. 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 derive the first-order optimality condition. Through a numerical study, we measure the extent to which the cost decrease due to the reduction in supply uncertainty depends on the level of demand uncertainty. One of the most important findings In this paper is that this cost decrease is relatively small if demand uncertainty is kept high, and vice versa. We also backup this numerical result by analyzing the distribution of ending Inventory under the supply and demand uncertainties.

• Journal of the Korea Safety Management & Science
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• v.15 no.4
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• pp.233-243
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• 2013

As companies were concerned with developing green logistics and environment, most logistics concerned functions like packaging, loading, storage, transportation and IT studies are active in study. Even if active in research studies, companies still recognized that logistics cost increases as green concepts are applied. For the efficient execution of green logistics management, it is absolutely necessary but difficult to build an optimal logistics system where each function is smoothly interacted through the proper integration and the link of various logistics functions and partners. This study aims to development of green logistics through integration of supply chain functions and partners. With this aim of study, case studies with analysis of embodiment, planning and operations for supply chain of companies are carried out.