• The Journal of Industrial Distribution & Business
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• v.14 no.6
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• pp.17-25
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• 2023

Purpose: This study observes how the consignment performs over time and proposes the proper way to operate the consignment to bring its best benefit to the supply chain system. Research design, data, and methodology: The supply chain system is represented as the mathematical model where a manufacturer and a retailer trade one type of products to maximize their own profits. In the numerical examples of the proposed models, the consignment is compared with the fully coordinated system as well as the traditional system, and both advantages and limitations of the consignment are detected. Results: The consignment makes greater profit than the traditional system after a certain time period. The consignment is still outperformed by the fully coordinated system. The numerical examples also show that the performance of the consignment is sensitive to the consignment ratio. Conclusions: This study finds out that a certain time period must be spent until the consignment brings the benefit to the supply chain system. The numerical outcomes also imply that the consignment requires additional features to be a completely effective supply chain collaboration program. To obtain the best result from the consignment, the supply chain members are recommended to decide the appropriate consignment ratio by consent.

• The Journal of Industrial Distribution & Business
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• v.12 no.5
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• pp.7-16
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• 2021

Purpose: This study intends to examine how VMI with consignment performs over time and find out its on-going impacts on the individual supply chain member's achievement. Research design, data, and methodology: This study formulates the mathematical model that represents two-stage supply chain system. By analyzing the numerical examples, this study compares VMI with consignment with the traditional system. Results: VMI with consignment eventually makes higher supply chain profit than the traditional system, even though it's early performance is poor. The influence of VMI with consignment on the performance of the supply chain member is distinct depending on the individual member and time. The consignment may not be helpful to increase the system profit, but it reduces the manufacturer's burden of costs. Conclusions: VMI with consignment improves the supply chain performance after all, and it still takes times until its benefit becomes fully realized. To be a successful collaboration program, VMI with consignment requires a carefully designed incentive scheme that provides the timely compensation to the individual supply chain members. This study also finds out that the consignment contract of this collaboration program plays a role of financially supporting the manufacturer at the early stage of its implementation.

• Journal of Distribution Science
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• v.13 no.3
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• pp.31-39
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• 2015

Purpose - Due to its potential to improve supply chain operations, supply chain collaboration has attracted significant attention from both academics and practitioners. This study focuses on VMI, in collaboration with consignment, and examines its impact on supply chain performance. Research design, data, and methodology - This study employs the analysis of mathematical models, formulated based on the proposed supply chain framework. Using numerical examples, it evaluates the performance of three supply chain systems: one including VMI and consignment, a consignment-only system, and a traditional system. Results - The combination of VMI and consignment produces greater supply chain benefits than the consignment-only and traditional systems. Whereas only the performance of the buyer improves with the consignment-only system, the system with VMI and consignment is beneficial to both the buyer and supplier. Conclusions - The results of this study reveal that the inclusion of the additional collaborative function of VMI makes consignment a better supply chain collaboration program. Future studies should examine issues regarding the testing of diverse collaboration programs and the building of a firm theoretical background.

• Korean Journal of Childcare and Education
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• v.18 no.2
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• pp.125-144
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• 2022

Objective: The purpose of this study was to suggest institutional improvements and support measures for the opening process of new entrusted public daycare centers by exploring the experiences of the directors of daycare centers. Methods: In-depth interviews were held with nine directors of daycare centers in Sejong City. The recordings of the interviews were databased, and then the data were analyzed by categorizing the content. Results: First, the participants of this study were interested in the national/public daycare service consignment program and were eager to be selected for the program. They also had high expectations for operating daycare centers. Second, while preparing for the opening of the daycare center, the participants encountered problems after being selected for the program in terms of finance, facilities, equipment, and personnel management. Third, after opening the center, the participants went through the "survival period" as they had to overcome many issues while operating the center on their own. Conclusion/Implications: This study suggested financial and administrative improvements and support measures required for the consignment program so that daycare center directors can successfully and sustainably open and operate daycare centers.

• Journal of Distribution Science
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• v.12 no.7
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• pp.89-101
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• 2014

Purpose - This study aims to show that consignments can enable supply chain collaboration, based on the review of selected studies, and aims to investigate its potential to be a better collaboration program, through an analytical comparison with other collaboration initiatives. Research design, data, and methodology - This study uses a literature review on selected studies that researched consignments. In addition, based on the proposed framework, the current consignment process and other well-known collaboration programs are analyzed in terms of three key collaboration aspects. Results - Most studies employ simple research in terms of their purpose and methodology. An analysis with the proposed framework indicates the potential of consignments to foster supply chain collaboration. Conclusions - Based on the literature review, this study suggests that future research needs to aim for diverse research goals and conduct sophisticated research on consignments. An analysis with the proposed framework shows that consignments would be more effective for supply chain collaboration if active information sharing and joint decision-making are implemented.

• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• Journal of Distribution Science
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• v.14 no.4
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• pp.21-31
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• 2016

Purpose - This study examines how consignment and Vendor-Managed Inventory perform as supply chain collaboration programs. By using three key collaborative features, this study defines the collaboration programs and develops theoretical models of different supply chain systems. Research design, data and methodology - This study conducts sophisticated analysis on the supply chain systems by applying simulation modeling based on time-phased operations. The simulation model represents a two-stage supply chain system where a supplier sells a single item to a buyer, and it incorporates various operations. Results - In general, the simulation outcomes support that more advanced collaboration programs outperform less advanced ones. The analysis on the simulation outcomes identifies the significant value of information sharing in both collaboration programs. The specific conditions where the particular collaboration system outperforms the others are recognized. Conclusions - The outcome of this study supports that the supply chain system can improve its performance by having more collaborative features. This study provides business practitioners with guidelines to identify the circumstances that the specific collaboration program can fully exploit its advantages.

• Journal of Fashion Business
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• v.10 no.5
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• pp.74-92
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• 2006

This study aims at revitalization of industrial consignment education and focuses on the development of preferred subjects and teaching methods. The survey was administered to six hundred workers for the local fashion distribution companies for two years between through interview and questionnaire with 13 questions: 3 of them about favorite subjects, 7 about teaching methods, and the rest about whether or not they want to enter a college as well as which certificates and which kinds of job they want to have. The results of the survey can be summarized as follows. 1 The respondents in 2005 who answered to the questions about fashion design and other major subjects show that they preferred the subjects on fashion design to the subject of make-up and that they were interested in the photo-shop subject while they were less interested in the fashion marketing subject. 2 In order to apply what they learn to their own work field, the respondents want practical-work oriented lectures rather than theory centered ones. It means the new teaching program needs the teaching staffs who have had some practical work experiences and majored in the same subjects as the respondents prefer to learn. So it is necessary to take it into consideration that the development of new curriculums should focus on the subjects of practical skill and the experiences of actual work fields. 3 The certificate of 'shop-master' qualification is considered as the most interesting and necessary thing for their job. The respondents show that they are most concerned in a shop-master, manager of a department at department stores related to fashion distribution companies. Therefore, it points out the intensive teaching program for getting the qualification of shop-master is a must in the industrial consignment education.

• The Journal of Korean Institute for Practical Engineering Education
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• v.2 no.1
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• pp.95-105
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• 2010

This means that development of industrial society has brought pains not only to workers themselves but also to their family due to various disasters, while it changed us to be affluent and improved the quality of life. The purpose of this study is to make the preliminary data for understanding the efficiency of the educations through examination of the existing state in performance about education programs for supervisors, which are in-house educations performed by the company itself and consignment educations performed by outside professional education institutions, in industrial safety and health education programs for prevention of industrial disasters and analysis on survey research of supervisors working at Anyang area to find out whether or not the in-house education and consignment education in education programs for supervisors have statistically significant differences in their ages, classification by industry, the completion number of educations, the number of regular employees regarding duties of supervisor determined by the Industrial Safety and Health Act. As the result of study, this study resulted in that consignment education performed by professional education institutions would be more helpful for improvement of job competence than in-house education performed by company itself. This can be interpreted that consignment education performed by professional education institutions has reacted more flexibly to continuous revisions of the Industrial Safety and Health Act and also more faithful to demand survey by consumers not being tied down by the conventionality for continuous development and study of the curriculum than that of in-house education.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.195-209
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• 2013

South Korea, despite the financial turbulences has marked the trade volume of USD 1 trillion and marked $7^{th}$ largest exporter in 2013. Approximately 40% of the entire import of Korea was for export. In the South Korean trade structure, import and export are closely related, requiring proactive import financial assistance policies. Recognizing this, K-sure has made import insurance policy available on the market since July 2010. The K-sure insurance policy targets both financial institutions and importers. This is the reason why this research seeks to review the import insurance terms for importers and compare with foreign import insurance products to find out ways to improve. K-sure's import insurance for importers is to cover a loss of a policyholder when the policyholder or importer domestically addressed made a prepayment but cannot receive goods. The import insurance is applied to import transactions of goods or resources. K-sure's import insurance coverage needs to be expanded to intermediary trade and consignment processing trade, etc. In this sense, a more systematic educational program should be introduced about K-sure's import insurance.