• Industrial Engineering and Management Systems
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• v.15 no.2
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• pp.156-172
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• 2016

Complex and uncertain issues in supply chain result in integrated decision making processes in supply chains. So decentralized (distributed) decision making (DDM) approach is considered as a crucial stage in supply chain planning. In this paper, an uncertain DDM through coordination mechanism is addressed for a multi-product supply chain planning problem. The main concern of this study is comparison of DDM approach with centralized decision making (CDM) approach while some parameters of decision making are assumed to be uncertain. The uncertain DDM problem is modeled through fuzzy mathematical programming in which products' demands are assumed to be uncertain and modeled using fuzzy sets. Moreover, a CDM approach is customized and developed in presence of fuzzy parameters. Both approaches are solved using three fuzzy mathematical optimization methods. Hence, the contribution of this paper can be summarized as follows: 1) proposing a DDM approach for a multi-product supply chain planning problem; 2) Introducing a coordination mechanism in the proposed DDM approach in order to utilize the benefits of a CDM approach while using DDM approach; 3) Modeling the aforementioned problem through fuzzy mathematical programming; 4) Comparing the performance of proposed DDM and a customized uncertain CDM approach on multi-product supply chain planning; 5) Applying three fuzzy mathematical optimization methods in order to address and compare the performance of both DDM and CDM approaches. The results of these fuzzy optimization methods are compared. Computational results illustrate that the proposed DDM approach closely approximates the optimal solutions generated by the CDM approach while the manufacturer's and retailers' decisions are optimized through a coordination mechanism making lasting relationship.

• Journal of the Korea Society for Simulation
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• v.12 no.1
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• pp.35-48
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• 2003

This paper suggests the long-term strategy of the production distribution planning considering the capacity of factory production and the uncertain demand in a supply chain. This paper determines the near optimal capacity of factory production by using the advantages of mathematical and simulation models. Also, the relationship between the capacity from the suggested model and the strategy of production and distribution in a supply chain is studied. Arena is used for modeling and analysis.

• Journal of Information Technology Applications and Management
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• v.14 no.4
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• pp.139-158
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• 2007

Information sharing is key to effective supply chain management. In reality, however, it is impossible to get perfect information. Accordingly, only uncertain information can be accessed in business environment, and thus it is important to deal with the uncertainties of information in managing supply chains. This study adopts meteorological forecast as a typical uncertain information. The meteorological events may affect the demands for various weather-sensitive goods, such as beer, ices, clothes, electricity etc. In this study, a beer distribution game is modified by introducing meterological forecast information provided in a probabilistic format. The behavior patterns of the modified beer supply chains are investigated. for two conditions using the weather forecast with or without an information sharing. A value score is introduced to generalize the well-known performance measures employed in the study of supply chains, i.e.. inventory, backlog, and deviation of orders. The simulation result showed that meterological forecast information used in an information sharing environment was more effective than without information sharing, which emphasizes the synergy of uncertain information added to the information sharing environment.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.2
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• pp.43-63
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• 2013

Remanufacturing is a process of recovering end-of-life products into serviceable parts for producing new products. Due to the limited supply of recovery cores to remanufacture, a remanufacturing firm also needs to produce or procure new parts for fulfilling the demand. This paper is targeted for solving the problem of determining the optimal amount of newly produced and remanufacturing parts, which is called production and remanufacturing planning (PRP) problem, under uncertain supply of recovery cores. The new production mitigates the risk of insufficient core supply while it takes more costs than the remanufacturing. The PRP model in this paper also considers disassemble-to-order (DTO) environment, in which multiple kinds of parts are remanufactured from multiple products on order of the parts. Whereas existing studies presents only heuristic solutions for DTO remanufacturing, this paper provides an exact solution for this problem and analytical sensitivity of the involved cost parameters, adopting multi-dimensional newsvendor modeling and stochastic linear programming techniques. The result shows that production and remanufacturing plans for multiple products are mutually dependent, and a change of cost parameters involved in only one part is propagated to all other parts.

• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.51-58
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• 2019

Purpose - Manufacturers in uncertain environments need to depend on governance mechanisms to reduce the inherent risk in these environments. However, few studies have examined which governance mechanisms a given manufacturers will develop in uncertain environments for managing the relationships with its vertical partner. This study explores how different governance mechanisms function under uncertain environmental circumstances. We also try to investigate the contextual effect of interfirm benevolence as moderator. Research design, data, and methodology - This research provide the conceptual framework of interfirm benevolence on which this research's propositions are predicted. The theoretical background for environmental uncertainty, governance mechanisms and interfirm benevolence will be discussed. Results - The expected results are as follows. Manufacturers in an uncertain environments rely on different governance mechanisms under conditions of high and low interfirm benevolence. In terms of role of interfirm benevolence, interfirm benevolence provides a better understanding of how governance mechanisms can develop in an uncertain supply markets. Conclusions - This research suggests several theoretical and practical implications between channel partners, particularly, this research offers that interfirm benevolence is a crucial competitive factor under environmental uncertainty situation. In future studies, it is necessary to investigate the effect of each governance mechanism structure on performance in an uncertain environment and various level of interfirm benevolence.

• Journal of Distribution Research
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• v.7 no.1
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• pp.41-59
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• 2002

Analysis about supply chain structure was achieved in product unit that is not 'business' dimension that is existent discussion target in surrounding and supply chain structure as that this study analyzes positively how supply chain structure according to business surroundings of product changes. This can do that analysis of product unit in synthetic supply chain management is essential when recognize the importance that supply chain management must consist by product special quality according to corporation's each product. Sort product environment and studied relation with supply chain structure to achieve study purpose hereupon. Structure variable of supply chain drew through existent literature study here. Executed question investigation for supply chain by product for study that is actual proof enemy, and figure method used analysis of variance (ANOVA) mainly. If summarize result of study, result that analyze relation between business environment of product and supply chain structure, according to business environment of product, showed that supply chain structure changes. Certified that relation of two group (environment group of uncertain product and environment group of stable product) of business environment of product and structure variable (that is number of participant of supply chain, lead time of supply chain, about administration's independence, response points of supply chain) of supply chain is significant relation all from all structure variables except number of participant of supply chain. Variable that express length of supply chain from structure Variable of supply chain is number of participant of supply chain and lead time of supply chain, and variable that display monitoring or trust aspect for supply chain is administration's independence degree and response points of supply chain. As analysis result, product that environment is uncertain is appearing more shortly than product that length of supply chain stabilizes, and also, monitoring or trust aspect for supply chain was proved that is consisting abuzzer than product that stabilize. Therefore, showed that put essential point in administration of 'hierarchy'putting first than 'market' when business environment designs supply chain structure in case of uncertain product, and proved that the other side business environment is focusing in administration way of 'market' putting first in case of stable product.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.3
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• pp.55-69
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• 2009

It is often to apply revenue sharing models in rental industries which consist of a retailer and a wholesaler. This research analyzed the influences to profit of the supply chain if we adopt the revenue sharing model when the demand is uncertain and price sensitive. We found the conditions of the revenue sharing model to maximize the profit of the supply chain, and identified incentive compatible conditions for revenue sharing. It is proved that vertical integration guarantees maximization of profit for the supply chain. Also we found that it is possible to derive Incentive compatible schemes by controlling ranges of revenue sharing ratios.

• The Research Journal of the Costume Culture
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• v.8 no.1
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• pp.30-39
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• 2000

The purpose of this study were to 1) identify types and levels of production environments, 2) classify apparel manufacturers based on production environments and 3) investigate relationship between characteristics of apparel manufacturers and production environment. Apparel manufacturer's characteristics included product line and the number of employees. For this study, the questionnaires were administered to 215 apparel manufacturers in seoul and Kyung-gi region from Feb. to Mar. 1998. Employing a sample of 201, data were analyzed by factor analysis, descriptive statistics, cluster analysis, cluster analysis, discriminant Analysis, and multivariate analysis of variance. The following are the results of this study : 1. The production environment was identified as three types such as complexity of product environment, uncertainty of demand/supply environment and uncertainty of worker environment. 2. Based on three types of the production environment, apparel manufacturers were classified into stable group, uncertain group and complicated group. 3. With respect to product line, men's wear manufacturers were lied the most high complexity of product environment, casual wear and knit wear were lied the most frequently uncertainty of worker environment. With respect to the number employees, apparel manufacturers comprising 50∼99 employees were lied the most high complexity of product environment, while those comprising 100∼299 employees the most high demand/supply environment.

• Proceedings of the Korea Water Resources Association Conference
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• 2009.05a
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• pp.2179-2183
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• 2009

As urbanization is progressed, the network for distributing water in a basin become complex due to the spatial expansion and parameter uncertainties of water supply systems. When a long range water supply plan is determined, the total construction and operation cost has to be evaluated with the system components and parameter uncertainties as many as possible. In this paper, the robust optimization approach of Bertsimas and Sim is applied in a hypothetical system to find a solution which remains feasible under the possible parameter uncertainties having the correlation effect between the uncertain coefficients. The system components to supply, treatment, and transport water are included in the developed water supply system and construction and expansion of the system is allowed for a long-range period. In this approach, the tradeoff between system robustness and total cost of the system is evaluated in terms of the degree of conservatism which can be converted to the probability of constraint violation. As a result, the degree of conservatism increases, the total cost is increased due to the installation of large capacity of treatment and transportation systems. The applied robust optimization technique can be used to determine a long-range water supply plan with the consideration of system failure.

• Management Science and Financial Engineering
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• v.6 no.2
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• pp.1-28
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• 2000

Supply chain management issues faced by a manufacturing company are considered in this paper. The supply chain consists of a manufacturing company and its suppliers. The manufacturer produces multiple products with inputs (e.g., raw materials) from the suppliers, but each product needs a different mix of these inputs. The market demand for the products is uncertain. We develop a mathematical model and algorithm, which can help the manufacturer to solve its procurement decision problem: how much of raw material to order from which supplier. The model incorporates such factors as market demand uncertainty, product's input requirement, supplier's as well as manufacturer's capacity, plus other costs comparable with those in a typical newsboy problem. Numerical examples are presented to see the interacting effects among critical parameters and variables.