• Title/Summary/Keyword: Supply Chain Network Design

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Relationship between Supply Chain Orientation, Smart Logistics Platform Utilization, Logistics Service Network and Foreign Market Performance (공급사슬지향성과 스마트물류플랫폼을 활용한 물류서비스 네트워크와 해외시장 성과 관계에 관한 연구)

  • Park, Young-Tae;Kim, Dong-Yoon;Cho, Yeon-Sung
    • Journal of Korea Port Economic Association
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    • v.38 no.1
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    • pp.87-100
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    • 2022
  • This study analyzed overseas market performance factors, focusing on the use of smart logistics platforms by companies entering overseas markets. Research design, data, methodology : Nine hypotheses were established among four potential variables, including the use of a smart logistics platform. An empirical analysis was carried out targeting 175 companies entering the overseas market, and hypothesis testing was performed using a structural equation model. As a result of the analysis, it was possible to confirm the mediating effect of the use of the smart logistics platform, and the effect of the supply chain orientation and the logistics service network was confirmed. In this study, it was confirmed that the use of a smart logistics platform mediates the effect of supply chain orientation on the logistics service network. In this regard, it was pointed out that it is necessary to increase the ability to utilize the smart logistics platform.

A Study on Interaction Modes among Populations in Cooperative Coevolutionary Algorithm for Supply Chain Network Design (공급사슬 네트워크 설계를 위한 협력적 공진화 알고리즘에서 집단들간 상호작용방식에 관한 연구)

  • Han, Yongho
    • Korean Management Science Review
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    • v.31 no.3
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    • pp.113-130
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    • 2014
  • Cooperative coevolutionary algorithm (CCEA) has proven to be a very powerful means of solving optimization problems through problem decomposition. CCEA implies the use of several populations, each population having the aim of finding a partial solution for a component of the considered problem. Populations evolve separately and they interact only when individuals are evaluated. Interactions are made to obtain complete solutions by combining partial solutions, or collaborators, from each of the populations. In this respect, we can think of various interaction modes. The goal of this research is to develop a CCEA for a supply chain network design (SCND) problem and identify which interaction mode gives the best performance for this problem. We present general design principle of CCEA for the SCND problem, which require several co-evolving populations. We classify these populations into two groups and classify the collaborator selection scheme into two types, the random-based one and the best fitness-based one. By combining both two groups of population and two types of collaborator selection schemes, we consider four possible interaction modes. We also consider two modes of updating populations, the sequential mode and the parallel mode. Therefore, by combining both four possible interaction modes and two modes of updating populations, we investigate seven possible solution algorithms. Experiments for each of these solution algorithms are conducted on a few test problems. The results show that the mode of the best fitness-based collaborator applied to both groups of populations combined with the sequential update mode outperforms the other modes for all the test problems.

A Genetic Algorithm Approach for Logistics Network Integrating Forward and Reverse Flows (역물류를 고려한 통합 물류망 구축을 위한 유전 알고리듬 해법)

  • Ko, Hyun-Jeung;Ko, Chang-Seong;Chung, Ki-Ho
    • IE interfaces
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    • v.17 no.spc
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    • pp.141-151
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    • 2004
  • As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for the backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, they should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since the network design problem belongs to a class of NP-hard problems, we present an efficient heuristic algorithm based on genetic algorithm (GA), of which the performance is compared to the lower bound by Lagrangian relaxation. Finally, the validity of proposed algorithm is tested using numerical examples.

Model and Algorithm for Logistics Network Integrating Forward and Reverse Flows (역물류를 고려한 통합 물류망 구축에 대한 모델 및 해법에 관한 연구)

  • Ko Hyun Jeung;Ko Chang Seong;Chung Ki Ho
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.375-388
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    • 2004
  • As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for these backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, the 3PLs should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since this network design problem belongs to a class of NP-hard problems, we present an efficient heuristic based on Lagrangean relaxation and apply it to numerical examples to test the validity of proposed heuristic.

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Supplier Selection and Assignment of Order Quantities to suppliers for the Efficient Purchasing Management in Supply Chain Management (공급사슬경영에서의 효율적인 구매 관리를 위한 공급자 선택 및 주문량 할당에 관한 연구)

  • 정주기;이영해
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2000.10a
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    • pp.99-102
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    • 2000
  • In the supply chain network design, how to select the best location, capacity configuration of the suppliers and to assign manufacturers orders are a challenging issue. Especially when multi-tiers'suppliers are existed, the performance of supply chain is influenced by 2$\^$nd/ and 3$\^$rd/ suppliers. Supplier selection is multi-criteria problem which includes both qualitative and quantitative factors in supply chains. In order to select the best supplier it is necessary to make a trade off between these two factors such as cost, product quality, capacity, production lead time, deliver lead time and transportation lead tine of supplier constraints existed in multi-tiers supplier purchasing chain. In these circumstances, purchasing agents should decide two problems: which is the best supplier in each tier and how much should be purchased from each selected supplier. This research is intended to develop an integration of an analytical hierarchy process (AHP) and mathematical modeling proposed to consider two factors which may be conflicted in choosing the best supplier in each tier and placing the optimum order quantities to the supplier among multi-tiers suppliers.

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Design of military supply chain network using MIP & Simulation model (혼합정수계획법과 시뮬레이션 기법을 이용한 군 공급사슬망 설계)

  • Lee, Byeong-Ho;Jeong, Dong-Hwa;Seo, Yoon-Ho
    • Journal of the military operations research society of Korea
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    • v.34 no.3
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    • pp.1-12
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    • 2008
  • Design of supply chain network (SCN) is required to optimize every factor in SCN and to provide a long-term and strategic decision-making. A mathematical model can not reflect the real world because design of SCN contains variables and stochastic factors according to status of its system. This paper presents the designing methodology of military SCN using the mathematical model and the simulation model. It constructs SCN to minimize its total costs using the Mixed Integer Programming (MIP) model. And we solve problems of a vehicle assignment and routing through adaptation of experiment parameters repeatedly in the simulation model based on the results from the MIP model. We implement each model with CPLEX and AutoMod, and experiment to reconstruct SCN when the Logistic Support Unit is restricted to support military units. The results from these experiments show that the proposed method can be used for a design of military SCN.

A Fundamental Research for Adaptation Method of SCM in Korean Nuclear Power Plant Construction (원전 건설공사를 위한 공급망관리체계 적용방안에 대한 기초연구)

  • Park, Hang-Soon;Won, Seo-Kyung
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2012.11a
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    • pp.229-231
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    • 2012
  • The supply chain in plant construction project can be defined as a network combined between elements which is engineering, procurement, construction, start-up. For successfully leading construction project, close relation and mutual cooperation should be preceded and Supply Chain Management(SCM) system is needed to improve the relation. In particular, because safety is a top priority for the companies work in the construction of Nuclear Power Plant(NPP), it is necessary to control all parties realated with NPP construction systematically. In this situation, it is important to purchase high-quality equipment in timely manner by developing Integrated cooperative systems. Therefore, this study aimed to propose developing solutions of SCM such as JIT and Envelop Design system, which can reduces difficulties of decision making between the parties involved in the project and will increase the efficiency of the engineering process in NPP.

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Design and Implementation of RFID-based U-SCM System for Automobile Part Industry (자동차부품산업의 RFID기반 U-SCM시스템 설계 및 구현)

  • Moon, Tae-Soo;Choi, Sang-Min;Kang, Sung-Bae
    • The Journal of Society for e-Business Studies
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    • v.14 no.4
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    • pp.267-286
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    • 2009
  • Most companies in automobile part industry need a SCM (Supply Chain Management) system under the cooperation with suppliers for assembling a automobile. Automobile part industry has a industry feature of hierarchical structure like 1st, 2nd, 3rd vendors. Recently, new cases to implement RFID (Radio Frequency Identification) technology appear in various areas required for integrated information system. Especially, supply chain environment in automobile part industry turns toward ubiquitous computing environment. Most companies in automobile part industry are interested in implementing RFID-based supply chain management system, which makes them shorten the business process, share the transaction information, and enhance the collaborative relationship between trading partners. This paper intends to implement RFID technology in the physical distribution area of automobile part industry such as warehousing, delivering, inventory management. The purpose of this paper is to improve the collaborative relationship of supply chain network using RFID applied to u-SCM system in ubiquitous computing environment. The contribution of this paper is to suggest a new system approach to transform existing business process into new business process through designing and implementing a RFID based SCM system using UML techniques.

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Optimal Design of Process-Inventory Network Considering Exchange Rates and Taxes in Multinational Corporations (다국적 기업에서 환율과 세금을 고려한 공정-저장조 망구조의 최적설계)

  • Yi, Gyeong-Beom;Suh, Kuen-Hack
    • Journal of Institute of Control, Robotics and Systems
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    • v.17 no.9
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    • pp.932-940
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    • 2011
  • This paper presents an integrated analysis of supply chain and financing decisions of multi-national corporation. We construct a model in which multiple currency storage units are installed to manage the currency flows associated with multi-national supply chain activities such as raw material procurement, process operation, inventory control, transportation and finished product sales. Core contribution of this study is to quantitatively investigate the influence of macroscopic economic factors such as exchange rates and taxes on operational decisions. The supply chain is modeled by the Process-Storage Network with recycle streams. The objective function of the optimization is minimizing the opportunity costs of annualized capital investments and currency/material inventories minus the benefit to stockholders interpreted by home currency. The major constraints of the optimization are that the material and currency storage units must not be depleted. A production and inventory analysis formulation, the periodic square wave (PSW) model, provides useful expressions for the upper/lower bounds and average levels of the currency and material inventory holdups. The expressions for the Kuhn-Tucker conditions of the optimization problem are reduced to a subproblem and analytical lot sizing equations. The procurement, production, transportation and financial transaction lot sizes can be determined by analytical expressions after the average flow rates are already known. We show that, when corporate income tax is taken into consideration, the optimal production lot and storage sizes are smaller than is the case when such factors are not considered typically by 20 %.

Location Efficiencies of Host Countries for Strategic Offshoring Decisions Amid Wealth Creation Opportunities and Supply Chain Risks

  • Ma, Jin-Hee;Ahn, Young-Hyo
    • Journal of Korea Trade
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    • v.25 no.3
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    • pp.21-47
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    • 2021
  • Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.