• Title/Summary/Keyword: Two-Level Supply Chain

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An Empirical Study on the Impact of Quality Oriented Corporate Culture on Sustainability Management Performances (공급사슬 내에서 품질지향적 기업문화가 지속가능경영성과에 미치는 영향에 관한 실증연구)

  • Woo, Moo-Jin;Park, Jong-Woo;Jung, Byeong-Yeong
    • Journal of Distribution Science
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    • v.12 no.6
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    • pp.31-39
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    • 2014
  • Purpose - Environmental issues, climatic changes, and greenhouse gases are problems to be solved at a global level. With an increased emphasis on the environmental and social responsibility of the management of companies, the manner in which companies approach quality-oriented culture and their individual sustainability management are being discussed as truly important issues to help them secure their competitiveness and growth strategies. This study proposes strategic directions to help manufacturers not only in expanding their competitive quality-oriented company culture but also in strengthening their sustainability management abilities. This study conducts a literature review and empirical research to examine how significantly the variables of a quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. Research design, data, and methodology - To verify research models and hypotheses, the study examined 170 companies using a questionnaire survey conducted over six weeks, and involved the performance of data analysis on 146 samples. Questionnaire responses were calibrated based on a Likert scale. The study used the Smart PLS 2.0 program designed for PLS (partial least squares), an analysis instrument of SEM (structural equation modeling). The study then verified empirical research hypotheses working on reliability analysis, validity analysis, factorial analysis, and path analysis. Results - Among the nine hypotheses, four are accepted and the rest are rejected. A quality-oriented company culture focusing on customer-centered management significantly influenced the maintainability management performance of environmental integrity and social responsibility, while economic profitability was dismissed. A process-focused quality-oriented company culture was significantly concerned with economic profitability but not with environmental integrity or social responsibility. A supply-chain cooperative company culture had a significant effect on economic profitability but not on environmental integrity or social responsibility. Conclusion - This study proposes strategic directions to help manufacturers expand their competitive quality-oriented company culture as well as strengthen abilities with sustainability management. It conducts a literature review and empirical research to examine how significantly the variables of quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. There are two main conclusions. First, companies should consider the need for social responsibility management and environmental transparent management-focused maintainability management as avenues to create new markets and business, thereby helping the companies secure a reputation for having a customer and process-centered quality-oriented company culture by creating shared values between supply chains and enabling win-win situations through cooperation. Second, we are marching towards a creative win-win era from a society of conflicts and ruptures. Companies should understand that social responsibility management and supply chain management (SCM)-focused cooperation are the foundations of sustainable development, as they try to improve their culture while pursuing both win-win relationships with interested parties and equity in various conflictive relations.

An Empirical Study on the Determinants of Supply Chain Management Systems Success from Vendor's Perspective (참여자관점에서 공급사슬관리 시스템의 성공에 영향을 미치는 요인에 관한 실증연구)

  • Kang, Sung-Bae;Moon, Tae-Soo;Chung, Yoon
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.139-166
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    • 2010
  • The supply chain management (SCM) systems have emerged as strong managerial tools for manufacturing firms in enhancing competitive strength. Despite of large investments in the SCM systems, many companies are not fully realizing the promised benefits from the systems. A review of literature on adoption, implementation and success factor of IOS (inter-organization systems), EDI (electronic data interchange) systems, shows that this issue has been examined from multiple theoretic perspectives. And many researchers have attempted to identify the factors which influence the success of system implementation. However, the existing studies have two drawbacks in revealing the determinants of systems implementation success. First, previous researches raise questions as to the appropriateness of research subjects selected. Most SCM systems are operating in the form of private industrial networks, where the participants of the systems consist of two distinct groups: focus companies and vendors. The focus companies are the primary actors in developing and operating the systems, while vendors are passive participants which are connected to the system in order to supply raw materials and parts to the focus companies. Under the circumstance, there are three ways in selecting the research subjects; focus companies only, vendors only, or two parties grouped together. It is hard to find researches that use the focus companies exclusively as the subjects probably due to the insufficient sample size for statistic analysis. Most researches have been conducted using the data collected from both groups. We argue that the SCM success factors cannot be correctly indentified in this case. The focus companies and the vendors are in different positions in many areas regarding the system implementation: firm size, managerial resources, bargaining power, organizational maturity, and etc. There are no obvious reasons to believe that the success factors of the two groups are identical. Grouping the two groups also raises questions on measuring the system success. The benefits from utilizing the systems may not be commonly distributed to the two groups. One group's benefits might be realized at the expenses of the other group considering the situation where vendors participating in SCM systems are under continuous pressures from the focus companies with respect to prices, quality, and delivery time. Therefore, by combining the system outcomes of both groups we cannot measure the system benefits obtained by each group correctly. Second, the measures of system success adopted in the previous researches have shortcoming in measuring the SCM success. User satisfaction, system utilization, and user attitudes toward the systems are most commonly used success measures in the existing studies. These measures have been developed as proxy variables in the studies of decision support systems (DSS) where the contribution of the systems to the organization performance is very difficult to measure. Unlike the DSS, the SCM systems have more specific goals, such as cost saving, inventory reduction, quality improvement, rapid time, and higher customer service. We maintain that more specific measures can be developed instead of proxy variables in order to measure the system benefits correctly. The purpose of this study is to find the determinants of SCM systems success in the perspective of vendor companies. In developing the research model, we have focused on selecting the success factors appropriate for the vendors through reviewing past researches and on developing more accurate success measures. The variables can be classified into following: technological, organizational, and environmental factors on the basis of TOE (Technology-Organization-Environment) framework. The model consists of three independent variables (competition intensity, top management support, and information system maturity), one mediating variable (collaboration), one moderating variable (government support), and a dependent variable (system success). The systems success measures have been developed to reflect the operational benefits of the SCM systems; improvement in planning and analysis capabilities, faster throughput, cost reduction, task integration, and improved product and customer service. The model has been validated using the survey data collected from 122 vendors participating in the SCM systems in Korea. To test for mediation, one should estimate the hierarchical regression analysis on the collaboration. And moderating effect analysis should estimate the moderated multiple regression, examines the effect of the government support. The result shows that information system maturity and top management support are the most important determinants of SCM system success. Supply chain technologies that standardize data formats and enhance information sharing may be adopted by supply chain leader organization because of the influence of focal company in the private industrial networks in order to streamline transactions and improve inter-organization communication. Specially, the need to develop and sustain an information system maturity will provide the focus and purpose to successfully overcome information system obstacles and resistance to innovation diffusion within the supply chain network organization. The support of top management will help focus efforts toward the realization of inter-organizational benefits and lend credibility to functional managers responsible for its implementation. The active involvement, vision, and direction of high level executives provide the impetus needed to sustain the implementation of SCM. The quality of collaboration relationships also is positively related to outcome variable. Collaboration variable is found to have a mediation effect between on influencing factors and implementation success. Higher levels of inter-organizational collaboration behaviors such as shared planning and flexibility in coordinating activities were found to be strongly linked to the vendors trust in the supply chain network. Government support moderates the effect of the IS maturity, competitive intensity, top management support on collaboration and implementation success of SCM. In general, the vendor companies face substantially greater risks in SCM implementation than the larger companies do because of severe constraints on financial and human resources and limited education on SCM systems. Besides resources, Vendors generally lack computer experience and do not have sufficient internal SCM expertise. For these reasons, government supports may establish requirements for firms doing business with the government or provide incentives to adopt, implementation SCM or practices. Government support provides significant improvements in implementation success of SCM when IS maturity, competitive intensity, top management support and collaboration are low. The environmental characteristic of competition intensity has no direct effect on vendor perspective of SCM system success. But, vendors facing above average competition intensity will have a greater need for changing technology. This suggests that companies trying to implement SCM systems should set up compatible supply chain networks and a high-quality collaboration relationship for implementation and performance.

The Relationship between Supply Chain Management Performance Metrics and Corporate Value for Firms in Korea by Using Multiple Linear Regression Analysis : Focused on Inventory and Cash-To-Cash Cycle Time (다중회귀분석을 활용한 국내 기업의 공급체인관리 성과지표와 기업 시장가치와의 상관관계 분석 : 재고와 현금화주기를 중심으로)

  • Jahng, Geum-Joo;Yang, Jae-Hwan
    • IE interfaces
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    • v.25 no.2
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    • pp.241-254
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    • 2012
  • This paper studies the relationship between SCM(Supply Chain Management) metrics and corporate value (Tobin's Q) for manufacturing and wholesale/retail firms in Korea. Specifically, the multiple regression analysis is used to investigate the relationships 1) between inventory level, inventory turns, and days of inventory and Tobin's Q and 2) between cash-to-cash (C2C) cycle time including its components such as days of inventory, days sales outstanding, and days payable outstanding and Tobin's Q. The results indicate that there exist statistically significant negative relationships between inventory levels and days of inventory (DOI) and Tobin's Q. Also, we found that there exist commonly known negative correlations between days of raw materials inventory and days of work in process (WIP) inventory and Tobin's Q. For the C2C cycle time, we found that there -exists a statistically significant negative relationship between the C2C cycle time and Tobin's Q. Also, we found that there exist commonly known correlations between the two components of C2C cycle time and Tobin's Q such as the negative for DOI and days sales outstanding. This study clearly shows the negative relationship in general between inventory levels and corporate value and between C2C time and corporate value, and this kind of result has not been found by previous studies in Korea.

Development of Agent-based Platform for Coordinated Scheduling in Global Supply Chain (글로벌 공급사슬에서 경쟁협력 스케줄링을 위한 에이전트 기반 플랫폼 구축)

  • Lee, Jung-Seung;Choi, Seong-Woo
    • Journal of Intelligence and Information Systems
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    • v.17 no.4
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    • pp.213-226
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    • 2011
  • In global supply chain, the scheduling problems of large products such as ships, airplanes, space shuttles, assembled constructions, and/or automobiles are complicated by nature. New scheduling systems are often developed in order to reduce inherent computational complexity. As a result, a problem can be decomposed into small sub-problems, problems that contain independently small scheduling systems integrating into the initial problem. As one of the authors experienced, DAS (Daewoo Shipbuilding Scheduling System) has adopted a two-layered hierarchical architecture. In the hierarchical architecture, individual scheduling systems composed of a high-level dock scheduler, DAS-ERECT and low-level assembly plant schedulers, DAS-PBS, DAS-3DS, DAS-NPS, and DAS-A7 try to search the best schedules under their own constraints. Moreover, the steep growth of communication technology and logistics enables it to introduce distributed multi-nation production plants by which different parts are produced by designated plants. Therefore vertical and lateral coordination among decomposed scheduling systems is necessary. No standard coordination mechanism of multiple scheduling systems exists, even though there are various scheduling systems existing in the area of scheduling research. Previous research regarding the coordination mechanism has mainly focused on external conversation without capacity model. Prior research has heavily focuses on agent-based coordination in the area of agent research. Yet, no scheduling domain has been developed. Previous research regarding the agent-based scheduling has paid its ample attention to internal coordination of scheduling process, a process that has not been efficient. In this study, we suggest a general framework for agent-based coordination of multiple scheduling systems in global supply chain. The purpose of this study was to design a standard coordination mechanism. To do so, we first define an individual scheduling agent responsible for their own plants and a meta-level coordination agent involved with each individual scheduling agent. We then suggest variables and values describing the individual scheduling agent and meta-level coordination agent. These variables and values are represented by Backus-Naur Form. Second, we suggest scheduling agent communication protocols for each scheduling agent topology classified into the system architectures, existence or nonexistence of coordinator, and directions of coordination. If there was a coordinating agent, an individual scheduling agent could communicate with another individual agent indirectly through the coordinator. On the other hand, if there was not any coordinating agent existing, an individual scheduling agent should communicate with another individual agent directly. To apply agent communication language specifically to the scheduling coordination domain, we had to additionally define an inner language, a language that suitably expresses scheduling coordination. A scheduling agent communication language is devised for the communication among agents independent of domain. We adopt three message layers which are ACL layer, scheduling coordination layer, and industry-specific layer. The ACL layer is a domain independent outer language layer. The scheduling coordination layer has terms necessary for scheduling coordination. The industry-specific layer expresses the industry specification. Third, in order to improve the efficiency of communication among scheduling agents and avoid possible infinite loops, we suggest a look-ahead load balancing model which supports to monitor participating agents and to analyze the status of the agents. To build the look-ahead load balancing model, the status of participating agents should be monitored. Most of all, the amount of sharing information should be considered. If complete information is collected, updating and maintenance cost of sharing information will be increasing although the frequency of communication will be decreasing. Therefore the level of detail and updating period of sharing information should be decided contingently. By means of this standard coordination mechanism, we can easily model coordination processes of multiple scheduling systems into supply chain. Finally, we apply this mechanism to shipbuilding domain and develop a prototype system which consists of a dock-scheduling agent, four assembly- plant-scheduling agents, and a meta-level coordination agent. A series of experiments using the real world data are used to empirically examine this mechanism. The results of this study show that the effect of agent-based platform on coordinated scheduling is evident in terms of the number of tardy jobs, tardiness, and makespan.

Optimal Inventory and Price Markdown Policy for a Two-Layer Market with Demand being Price and Time Dependent

  • Jeon, Seong-Hye;Sung, Chang-Sup
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.11a
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    • pp.142-146
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    • 2006
  • This paper considers a SCM issue concerned with an integrated problem of inventory control and dynamic pricing strategies when demands are price and time dependent. The associated price markdowns are conducted for inventory control in a two-layer market consisting of retailer and outlet as in fashion apparel market. The objective function consists of revenue terms (sales revenue and salvage value) and purchasing cost term. Specifically, decisions on price markdowns and order quantity are made to maximize total profit in the supply chain so as to have zero inventory level at the end of the sales horizon. To solve the proposed problem, a gradient method is applied, which shows an optimal decision on both the initial inventory level and the discount pricing policy. Sensitivity analysis is conducted on the demand parameters and the final comments on the practical use of the proposed model are presented.

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Analysis of the effect of emergency lateral transshipment on a multi-echelon inventory model in SCM Environment (SCM 환경의 다단계 재고모형에서 긴급상호대차의 효과에 관한 연구)

  • Sung Chang Sup;Kim Julie;Jung Su Jin
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2002.05a
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    • pp.742-749
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    • 2002
  • This paper deals with a continuous-review two-echelon inventory model with one-for-one replenishment and Poisson demand where transshipments among retailers are allowed. Two classes of inventory systems are considered by the number of distribution centers(DCs) which provide each retailor with inventory items. 1:N class inventory system and M:N class inventory system respectively. Two-phase model is constructed to find out the optimal inventory positions which minimize supply chain costs. Approximations for customer service levels of the system are evaluated in the first phase, and the optimal inventory positions are found subject to the constraints for service level in the second phase. Simulation tests are performed to assure the effectiveness of the proposed model. The effect of transshipment is evaluated.

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Two Phase Clocked Adiabatic Static CMOS Logic and its Logic Family

  • Anuar, Nazrul;Takahashi, Yasuhiro;Sekine, Toshikazu
    • JSTS:Journal of Semiconductor Technology and Science
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    • v.10 no.1
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    • pp.1-10
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    • 2010
  • This paper proposes a two-phase clocked adiabatic static CMOS logic (2PASCL) circuit that utilizes the principles of adiabatic switching and energy recovery. The low-power 2PASCL circuit uses two complementary split-level sinusoidal power supply clocks whose height is equal to $V_{dd}$. It can be directly derived from static CMOS circuits. By removing the diode from the charging path, higher output amplitude is achieved and the power consumption of the diode is eliminated. 2PASCL has switching activity that is lower than dynamic logic. We also design and simulate NOT, NAND, NOR, and XOR logic gates on the basis of the 2PASCL topology. From the simulation results, we find that 2PASCL 4-inverter chain logic can save up to 79% of dissipated energy as compared to that with a static CMOS logic at transition frequencies of 1 to 100 MHz. The results indicate that 2PASCL technology can be advantageously applied to low power digital devices operated at low frequencies, such as radio-frequency identifications (RFIDs), smart cards, and sensors.

A Study on Developing an Integrated Model of Facility Location Problems and Safety Stock Optimization Problems in Supply Chain Management (공급사슬관리에서 생산입지선정 문제와 안전재고 최적화 문제의 통합모형 개발에 관한 연구)

  • Cho Geon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.1
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    • pp.91-103
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    • 2006
  • Given a bill of materials (BOM) tree T labeled by the breadth first search (BFS) order from node 0 to node n and a general network ${\Im}=(V,A)$, where V={1,2,...,m} is the set of production facilities and A is the set of arcs representing transportation links between any of two facilities, we assume that each node of T stands for not only a component. but also a production stage which is a possible stocking point and operates under a periodic review base-stock policy, We also assume that the random demand which can be achieved by a suitable service level only occurs at the root node 0 of T and has a normal distribution $N({\mu},{\sigma}^2)$. Then our integrated model of facility location problems and safety stock optimization problem (FLP&SSOP) is to identify both the facility locations at which partitioned subtrees of T are produced and the optimal assignment of safety stocks so that the sum of production cost, inventory holding cost, and transportation cost is minimized while meeting the pre-specified service level for the final product. In this paper, we first formulate (FLP&SSOP) as a nonlinear integer programming model and show that it can be reformulated as a 0-1 linear integer programming model with an exponential number of decision variables. We then show that the linear programming relaxation of the reformulated model has an integrality property which guarantees that it can be optimally solved by a column generation method.

A lateral transshipment policy based on the service level in the distribution network (분배네트워크에서 서비스 수준에 기반한 lateral transshipment 정책)

  • Jeon, Yeong-Sang;Lee, Yeong-Hae;Jeong, Jeong-U
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.05a
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    • pp.31-34
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    • 2004
  • This research proposes the lateral transshipment policy that can deal efficiently with stockout in the two-echelon distribution network in supply chain. The lateral transshipment policy can be expected for retailers to response the change of customers' demands efficiently. Because of various factors, such as demand fluctuation, replenishment quantity, lead time, and so on, it is very difficult to decide optimal lateral transshipment time and quantity. We suggest the new lateral transshipment policy based on the service level in this research. The efficiency of this policy is proved by simulation experiments.

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An Optimal Inventory Policy in a Two-Stage Supply Chain under Stock Dependent Demand Rate and Multi-Level Trade Credit (다단계로 신용거래가 허용되는 공급체인에서 재고종속형 제품수요를 고려한 최적 재고정책)

  • Shinn, Seong-Whan
    • Journal of the Korea Safety Management & Science
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    • v.14 no.2
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    • pp.137-145
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    • 2012
  • 본 연구는 공급자(supplier), 소매상(retailer) 그리고 고객(customer)으로 구성된 2 단계 공급사슬에서 소매상의 관점에서 소매상의 최적 재고정책 결정에 관한 문제를 다루었다. 공급자는 수요 증대를 목적으로 소매상의 주문량에 따라 다단계로 일정기간동안 제품 판매대금에 대한 지불 연기(외상)를 허용하고, 고객의 수요는 소매상의 제품 재고량에 영향을 받는다는 가정 하에 재고 모형을 설계하였다. 모형 분석을 통하여 소매상의 이익을 최대화하는 최적 주문량 결정 방법을 제시하였고, 예제를 통하여 그 제시된 해법의 타당성을 보였다.