• Title/Summary/Keyword: Supply chain coordination

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Design of Collaborative Production & Supply Planning System based on ebXML (신발산업의 협업적 생산 및 공급계획시스템 설계)

  • Choi, Hyung-Rim;Hyun, Seung-Yong;Lim, Ho-Seob;Yoo, Dong-Yeol
    • Information Systems Review
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    • v.8 no.1
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    • pp.1-24
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    • 2006
  • Now, the Korean footwear industry needs the concrete enhancement of its competitive edge for regaining of its previous well known reputation. For this purpose, this study emphasizes the cooperation between the members through the supply chain of Korean footwear industry, as a c-SCM(Collaborative Supply Chain Management) by aid of information system. The key issue will be how well to coordinate operations flow not only through internal process stages, but also through entire external supply chain stages. In other words, the target goal must be the system optimization through the entire supply chain beyond the local optimization of internal supply chain process. We, at first, analyze the traditional structure of supply chain in Korean footwear industry and find out critical problems, and then, we develop the collaborative information framework in conjunction with several collaborative process modules. The suggested collaborative production & supply planning system was designed for sharing information and it is based on ebXML(electronic business eXtensible Markup Language) framework. In this way, the enhancement of the efficiency and competitiveness can be expected through the synergy effect of coordination of information and material flow, the reduction of lead times, and production costs.

Evaluation of Quantity Discounts for Buyer's Stocking Risk

  • Shin, Ho-Jung;Benton, W.C.;Park, Soo-Hoon
    • 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.

A Multi-agent Architecture for Coordination of Supply Chains with Local Information Sharing (지역적 정보 공유를 활용하는 멀티 에이전트 시스템 기반의 공급사슬 관리 아키텍쳐)

  • Ahn, Hyung-Jun;Park, Sung-Joo
    • Asia pacific journal of information systems
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    • v.14 no.4
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    • pp.49-70
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    • 2004
  • Multi-agent technology is being regarded as one of the promising technologies for today's supply chain management because of its desirable features such as autonomy, intelligence, and collaboration. This paper suggests a multi-agent system architecture with which companies can improve the efficiency of their supply chains by collaborative operation. Reflecting the practical difficulties of collaboration in complex supply chains, the architecture allows agent systems to share information with only neighboring companies for the coordinated operation. The suggested architecture is elaborated with a collaboration model based on Petri-net, conversation models for communication, and internal behavior models of each agent. A simulation experiment was performed for the evaluation of the suggested architecture. The result implies that when the estimation of market demand is higher than a certain level, the suggested architecture can be beneficial.

An Exploratory Study on Conceptual Framework for Project-based Supply Chain Management : Focusing on Plant Engineering Firms (프로젝트형 SCM의 개념적 틀에 관한 탐색적 연구 : 플랜트 엔지니어링 기업을 중심으로)

  • Kim, Tae Ung
    • Journal of Digital Convergence
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    • v.16 no.12
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    • pp.123-135
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    • 2018
  • The objective of this paper is to investigate the issues related to the supply chain management in plant engineering industry, and propose the framework to improve the project efficiency. The preliminary case study shows that EPC's fragmented nature, lack of coordination and information sharing, and lack of proper risk and change management contribute to project delay and cost overrun. To examine the level of informatization and information sharing in supply chain, survey responses from the suppliers and subcontractors have been collected. The statistical results show that information sharing, early involvement in design process and awareness in SCM have influenced the level of collaboration, but supplier assessment and informatization have no impact on the collaboration. A conceptual model is proposed in order to facilitate the integration of design, procurement and construction functions. Implications from the study are also provided.

The function of Information Technology as a Driver of eManufacturing (eManufacturing의 Driver로서 정보기술의 기능)

  • 김태운;김병남
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2000.04a
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    • pp.268-271
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    • 2000
  • Based on the rapid development of information technology (IT) including networks, manufacturing environment faces more customer engagement, global collaboration, greater emphasis on agility, increasing reach and connectivity through world-wide web, and micro transaction tracking and intelligence to name a few. The new ideas of manufacturing concept, eManufacturing is discussed in view of IT. In specific, a framework to identify. IT application in the product realization process and collaboration and coordination to implement eManufacturing is proposed.

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Estimation of Economical Efficiency in Multi-Echelon Inventory System through Coordination of Inventory Replenishment Period (재고보충주기의 조정을 통한 다단계 재고시스템의 경제성 평가)

  • Kim, Myeong-Hun;Kim, Byeong-Gon
    • Proceedings of the Korea Society of Information Technology Applications Conference
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    • 2007.05a
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    • pp.198-208
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    • 2007
  • Recently business enterprises have forced to face in fierce competition in today's global markets due to the short life cycles of products and the higher expectation of customers. Together with continuing advances in communications and transportation technologies, these environments have motivated the continuous evolution of the supply chain and the management techniques. This paper consider three-echelon inventory system which consist of one manufacturer, one distributor and N retailers for a single product under assumption of constant demand. This paper propose the inventory replenishment period using heuristic method and order policy through coordination of inventory replenishment period. The simulation results show that decrease the total cost of the three-echelon inventory system.

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A Simulation-based Heuristic Algorithm for Determining a Periodic Order Policy at the Supply Chain: A Service Measure Perspective (공급사슬 내의 재고관리를 위한 모의실험에 기초한 발견적 기법: 봉사척도 관점)

  • Park, Chang-Kyu
    • IE interfaces
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    • v.13 no.3
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    • pp.424-430
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    • 2000
  • Supply chain management (SCM) is an area that has recently received a great deal of attention in the business community. While SCM is relatively new, the idea of coordinated planning is not. During the last decades, many researchers have investigated multi-stage inventory problems. However, only a few papers address the problem of cost-optimal coordination of multi-stage inventory control with respect to service measures. Even published approaches have a shortcoming in dealing with a delivery lead time consisted of a shipping time and a waiting time. Assumed that there is no waiting time, or that the delivery lead time is implicitly compounded of a shipping time and a waiting time, the problem is often simplified into a multi-stage buffer allocation and a single-stage stochastic buffer sizing problem at all installations. This paper presents a simulation-based heuristic algorithm and a comparison with others for the problem that cannot be decomposed into a multi-stage buffer allocation and a single-stage stochastic buffer sizing problem because the waiting time ties together all stages. The comparison shows that the simulation-based heuristic algorithm performs better than other approaches in saving average inventory cost for both Poisson and Normal demands.

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Integrated Inventory Allocation and Customer Order Admission Control in a Two-stage Supply Chain with Make-to-stock and Make-to-order Facilities (계획생산과 주문생산 시설들로 이루어진 두 단계 공급망에서 재고 할당과 고객주문 수용 통제의 통합적 관리)

  • Kim, Eun-Gab
    • Journal of the Korean Operations Research and Management Science Society
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    • v.35 no.1
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    • pp.83-95
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    • 2010
  • This paper considers a firm that operates make-to-stock and make-to-order facilities in successive stages. The make-to-stock facility produces components which are consumed by the external market demand as well as the internal make-to-order operation. The make-to-order facility processes customer orders with the option of acceptance or rejection. In this paper, we address the problem of coordinating how to allocate the capacity of the make-to-stock facility to internal and external demands and how to control incoming customer orders at the make-to-order facility so as to maximize the firm's profit subject to the system costs. To deal with this issue, we formulate the problem as a Markov decision process and characterize the structure of the optimal inventory allocation and customer order control. In a numerical experiment, we compare the performance of the optimal policy to the heuristic with static inventory allocation and admission control under different operating conditions of the system.

A Causality Analysis between SCM Integration and Firm Performance (SCM통합과 기업성과의 인과관계 분석)

  • Hwang, Chea Young;Suh, Chang-Kyo
    • The Journal of Information Systems
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    • v.24 no.1
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    • pp.27-44
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    • 2015
  • Supply chain management (SCM) aims to provide the coordination and execution of planning and decision-making in multi organization-wide production and distribution. The advancement of information technology and the globalization of market promote SCM integration. Information sharing has become a major driver of competitive advantage in SCM. In this research, we aim to analyze the influence of SCM integration on firm performance and the role of information sharing between SCM integration and firm performance. Of the 750 questionnaires posted, a total of 218 questionnaires were collected after one follow-up. A total of 199 questionnaires were analyzed after 19 questionnaires were eliminated due to largely missing values. We used structural equation modeling technique to validate the causal relationship between SCM integration, information sharing, and firm performance. The results suggest that improved SCM integration both within the focal company (intra-organization) and across companies (inter-organization) enhances firm performance positively. Information sharing acts as a mediator between the SCM integration and the firm performance. Intra-organization SCM integration is positively related to inter-organization SCM integration, namely, SCM integration with suppliers and customers. The results suggest that internal integration of SCM significantly influences external integration with customers and suppliers. The result also shows that supply chain integration has a positive influence on firm performance and information sharing positively impacts firm performance as well.

VMI with Upper Limit of Inventory for Vendor and Retailer (판매자와 구매자의 재고상한이 존재하는 VMI)

  • Lee, Dongju
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.4
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    • pp.105-111
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    • 2017
  • Vendor Managed Inventory is a well-known vendor-retailer coordination approach in supply chain management where the vendor manages inventory of the retailer and determines the order interval and order quantity for the retailer. To consider practical situation, the upper limit of inventory for the retailer is set. If the inventory level for the retailer exceeds the upper limit, then the penalty cost is charged to the retailer. Furthermore, maximum allowable inventory level is set for the vendor to prevent the vendor from keeping much inventory. Single-vendor multi-retailer supply chain model with upper limit of inventory for vendor and retailers is studied. All the retailers' are assumed to have the common cycle time, and a vendor manages retailers' inventory and replenishes products. The mathematical formulation is introduced to minimize the total cost including the penalty cost violating the upper limit of inventory for retailers with the constraint of maximum allowable inventory level. The solution procedure based on Karush-Kuhn-Tucker (KKT) conditions is derived. KKT conditions are often applied to find an optimal solution of nonlinear programming problem with constraints. An illustrative example is used to show the application of the proposed solution procedure. Furthermore, sensitivity analysis is done to find out the relationship between maximum allowable inventory level and other values such as order quantity, the number of shipment, vendor's cost, retailer's cost, and total cost. As maximum allowable inventory level decreases, the number of shipment decreases but total cost increases. Order quantity has the trend of decline and is affected by the number of shipment.