• Journal of Digital Convergence
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• v.5 no.1
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• pp.47-53
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• 2007

We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using heuristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

• Journal of Korean Institute of Industrial Engineers
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• v.42 no.1
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• pp.38-49
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• 2016

This paper proposes a mathematical model-based solution for sourcing decisions with an objective of minimizing the manufacturer's total cost in the two-echelon supply chain with supply capacity risk. The risk impact is represented by uniform, beta, and triangular distributions. For the mathematical model, the probability vector of normal, risk, and recovery statuses are developed by using the status transition probability matrix and the equations for estimating the supply capacity under risk and recovery statuses are derived for each of the three probability distributions. Those formulas derived are validated using the sampling method. The results of the simulation study on the test problem show that the sourcing decisions using the proposed solution reduce the total cost by 1.6~3.7%, compared with the ones without a consideration of supply capacity risk. The total cost reduction increases approximately in a linear fashion as the probability of risk occurrence or reduction rate of supply capacity due to risk events is increased.

• Industrial Engineering and Management Systems
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• v.13 no.3
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• pp.304-318
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• 2014

It is necessary for a retailer to improve responsiveness to uncertain customer demand in product sales. In order to solve this problem, this paper discusses an optimal operation for a 2-stage-ordering-production system consisting of a retailer and a manufacturer. First, based on the demand information estimated at first order time $t_1$, the retailer determines the optimal initial order quantity $Q^*_1$, the optimal advertising cost $a^*_1$ and the optimal retail price $p^*_1$ of a single product at $t_1$, and then the manufacturer produces $Q^*_1$. Next, the retailer updates the demand information at second order time $t_2$. If the retailer finds that $Q^*_1$ dissatisfies the demand indicated by the demand information updated at $t_2$, the retailer determines the optimal second order quantity $Q^*_2$ under $Q^*_1$ and adjusts optimally the advertising cost and the retail price to $a^*_2$ and $p^*_2$ at $t_2$. Here, decision-making approaches for two situations are made-a decentralized supply chain (DSC) whose objective is to maximize the retailer's profit and an integrated supply chain (ISC) whose objective is to maximize the whole system's profit. In the numerical analysis, the results of the optimal decisions under DSC are compared with those under ISC. In addition, supply chain coordination is discussed to adjust the unit wholesale price at each order time as Nash Bargaining solutions.

• Journal of the Korea Safety Management & Science
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• v.14 no.4
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• pp.147-152
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• 2012

Supply chain including transportation expend the 21% of domestic energy consumption. It is necessary to diminish the excess energy usage at entire supply chain. This paper deals with the application of MFCA(Material Flow Cost Accounting) for SCM to save energy consumption. We construct the material center corresponding to each logistics function in order to apply the MFCA for GCM(Green Chain Management). We also construct the MFCA framework which consists of MFCA Database Management, MFCA Visualization, GCM Data Integration, GCM Data Tracking, and MFCA Data Predict & Assignment. We expect to help determining the range of logistics function to apply the MFCA for GCM.

• Journal of Intelligence and Information Systems
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• v.12 no.2
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• pp.99-123
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• 2006

In an effect to composite an optimal supply chain, this study has introduced an agent-based negotiation as a method to assign a lot of orders to a large number of participants. As a resources allocation mechanism to form a strategic cooperation based on information sharing between supply chain members(buyers, manufacturers, suppliers), this agent negotiation provides coordination functions allowing all participants to make a profit and accomplishing Pareto optimum solution from the viewpoint of a whole supply chain. A SET model-based scheduling takes into consideration both earliness production cost and tardiness production cost, along with a competitive relationship between multiple participants. This study has tried to prove that the result of an agent-based negotiation is a Pareto optimal solution under the dynamic supply chain environment, establishing the mathematical formulation for a performance test, and making a comparison with the heuristic Branch & Bound method.

• Journal of the Korea Society for Simulation
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• v.10 no.1
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• pp.35-50
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• 2001

Managing multi-echelon inventory systems has gained importance over the last decade mainly because integrated control of supply chains consisting of several processing and distribution stages has become feasible through modern information technology. Determination of optimal inventory policy for multi-echelon supply chain is made difficult by the complex interaction between the different levels. In this paper, we investigate performance of five inventory policies (fixed quantity order policy, fixed interval order policy, compromised order policy, lead time-fixed quantity order policy, and mixed order policy) in a multi-echelon supply chain by using a simulation model constructed with AweSim simulation language. The results of the simulation study show that the mixed order policy is the best among five inventory policies in the most test problems except the case when the stockout cost per unit is much higher than the inventory holding and transportation costs per unit.

• Journal of Fashion Business
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• v.11 no.4
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• pp.221-231
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• 2007

SCM system is required inter-industrial cooperation as well as inter-organizational cooperation. It means not only standardization of inter-organization but also standardization of inter-industry. SCM makes possible one circulation from fiber to retail industry in the respects of information and product flows. QR is the SCM of textile apparel industry, which satisfy customer need with least cost and maximum profit. Customer-oriented supply chain system focused on information sharing, cost reduction, inventory control, lead time reduction, quick response on customer demand. How we can measure the performance of successful SCM is issued on the approach of Balanced Scorecard which evaluates 4 perspectives such as customer perspective, internal business perspective, financial perspective, and innovation and learning perspective. This can project the blueprint of textile fashion business to right direction with vision.

• The Journal of Information Systems
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• v.10 no.2
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• pp.129-150
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• 2001

In this study, we model a decentralized supply chain system which is managed by four types of centers, sequentially located: Retailer, Wholesaler, Distributor, and Factory Each center contributes to enhancing the performance of the supply chain system individually with its own local inventory information. Through experiments which are performed with a programmed simulation (like the MIT beer game), we investigate how the information lead time improvement in each center affects the whole system. And we show that the impact of the lead time improvement in the downstream, like retailers, affects more to the system than the one in the upstream, like factories, in a cost-effective way. Moreover, by using information lead time for each center, we analyze how much the extent of the improvement affects the whole system, especially for the total cost and the order level.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.31 no.2
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• pp.36-42
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• 2008

As competition shifts from being a company oriented one to a supply chain oriented, an effective SCM(supply chain management) becomes a necessary strategy for any successful businesses. But, it is not easy to form a successful SCM, because the individual desire of participants conflict with others. These desires affect the performance of SCM and cause waste of cost and time. Analyzing a supply chain of discount retailers, this paper eliminates idle time and improves the process with rearranging the reorder closing time(reorder point). For win-win strategy, this work reveals the reorder closing time is an important factor. It is possible to reduce cost and time on the entire SCM process by just changing the ordering time.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.10a
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• pp.539-553
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• 2004

This paper models and solves contracting schemes for both when quality is perfectly observable and when quality is not perfectly observable in supply chain. When quality is perfectly observable, the first-best optimal solution which is that the marginal utility of procurer obtained from the quantity and quality supplied by suppliers (the price) is equal to the marginal cost to produce the quantity and quality is obtained. However, when quality is not perfectly observable to procurers the optimal solution cannot be the first-best but the second-best where the price is greater than the marginal cost to produce the quantity and quality and social welfare is less than that of the first-best solution.