• Title/Summary/Keyword: inventory Replenishment Policy

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Development of Integrated Inventory Management Model and Determination Inventory Replenishment Period in SCM (SCM 환경 하에서 재고보충주기 결정 및 통합 재고관리 모델 개발)

  • Kim, Myeong-Hun;An, Dong-Gyu
    • 한국디지털정책학회:학술대회논문집
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    • 2007.06a
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    • pp.349-357
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    • 2007
  • We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using houristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

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Development of Integrated Inventory Management Model and Determination Inventory Replenishment Period in SCM (SCM 환경 하에서 재고보충주기 결정 및 통합 재고관리 모델 개발)

  • Kim, Myoung-Hun;An, Dong-Kyu
    • Journal of Digital Convergence
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    • v.5 no.1
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    • pp.47-53
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    • 2007
  • We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using heuristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

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A multi-supplier ordering policy under the condition of discount price (가격할인하의 복수공급자 주문정책)

  • 이내형;조남호
    • Journal of the Korea Safety Management & Science
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    • v.2 no.4
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    • pp.209-217
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    • 2000
  • In this paper, we consider an Inventory system with multi-suppliers. A supply agreement is made with one of the suppliers, to deliver a fixed quantity Q evry review period ; That is, adapting to discounts of under the condition of free addition often implies that the timing and sizes of future replenishment orders are less predetermined. The replenishment decisions for the other supplier are governed by a replenishment policy. This paper, multiple suppliers strategy is a combination of a push system (the main supplier delivers every review period a predetermined quantity Q) and a pull system the replenishment orders placed at other suppliers are governed by replenishment policy. The costs are defined as the sum of the ordering, holding, purchasing and opportunity costs. Based on numerical results, conclusions follow about the division of the replenishment volume among the inventory policy.

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Joint Replenishment Policy for Items with Non-stationary Demands (비정상적 수요를 갖는 품목들의 통합발주정책)

  • Yang, Young-Hyeon;Kim, Jong-Soo;Kim, Tai-Young
    • Journal of Korean Institute of Industrial Engineers
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    • v.38 no.2
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    • pp.116-124
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    • 2012
  • This paper concerns a joint replenishment problem for a single buyer who sells multiple types of items to end-customers. The buyer periodically replenishes the inventory of each item to a preset order-up-to-level to satisfy the end customers' demands, which may be non-stationary. A joint replenishment policy characterized by variable order-up-to-levels is proposed for the buyer who wishes to minimize the expected cost of operating the retail system. The proposed policy starts each period by calculating the expected cost of ordering and not ordering action based on the information of the current inventory position and forecasted demand for the upcoming period. It then takes advantage of an integer programming model to get a cost effective joint replenishment plan. Computer experiment was performed to test efficiency of the proposed policy. When compared with the most efficient policy currently available, our policy showed a considerable cost savings especially for the problems having non-stationary demands.

Genetic Algorithm-Based Coordinated Replenishment in Multi-Item Inventory Control

  • Nagasawa, Keisuke;Irohara, Takashi;Matoba, Yosuke;Liu, Shuling
    • Industrial Engineering and Management Systems
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    • v.12 no.3
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    • pp.172-180
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    • 2013
  • We herein consider a stochastic multi-item inventory management problem in which a warehouse sells multiple items with stochastic demand and periodic replenishment from a supplier. Inventory management requires the timing and amounts of orders to be determined. For inventory replenishment, trucks of finite capacity are available. Most inventory management models consider either a single item or assume that multiple items are ordered independently, and whether there is sufficient space in trucks. The order cost is commonly calculated based on the number of carriers and the usage fees of carriers. In this situation, we can reduce future shipments by supplementing items to an order, even if the item is not scheduled to be ordered. On the other hand, we can reduce the average number of items in storage by reducing the order volume and at the risk of running out of stock. The primary variables of interest in the present research are the average number of items in storage, the stock-out volume, and the number of carriers used. We formulate this problem as a multi-objective optimization problem. In a numerical experiment based on actual shipment data, we consider the item shipping characteristics and simulate the warehouse replenishing items coordinately. The results of the simulation indicate that applying a conventional ordering policy individually will not provide effective inventory management.

Dynamic Operation Policy for Vendor-Managed Inventory using Fixed Production Schedule (확정생산스케줄을 활용하는 동적 VMI 운영정책)

  • Hyun, Hye-Mi;Rim, Suk-Chul
    • Journal of Korean Institute of Industrial Engineers
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    • v.34 no.4
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    • pp.425-432
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    • 2008
  • While the Vendor-Managed Inventory(VMI) is a convenient inventory replenishment policy for the customer company, the supplier usually bears the burden of higher inventory and urgent shipments to avoid shortage. Recently some manufacturers begin to fix the production schedule for the next few days (such as three days). Utilizing that information can improve the efficiency of the VMI. In this study, we present a myopic optimization model using a mixed inter programming; and a heuristics algorithm. We compare the performance of the two proposed methods with the existing (s, S) reorder policy. We consider the total cost as the sum of transportation cost and inventory cost at the customer's site. Numerical tests indicate that the two proposed methods significantly reduce the total cost over the (s, S) policy.

Coordinated Inventory Model for the Joint Replenishment Supply Chain (공동 납품 사슬에서의 재고관리 모형)

  • Lee Kyung-Keun;Moon Il-Kyeong;Song Jae-Bok;Ryu Si-Wook
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.2
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    • pp.113-127
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    • 2006
  • We consider an integrated supply chain model in which multiple suppliers replenish items for a single buyer's demand. Also the buyer specifies a basic replenishment cycle and the suppliers replenish the items only at those time intervals. Namely, we propose a model to study and analyze the benefit by coordinating supply chain inventories through the basic replenishment cycle time. The objective of this model is to minimize the total relevant annual cost of the integrated inventory model. After developing proposed coordinated models, we suggest heuristics for searching the solutions of our models. Finally, numerical and computational experiments for each policy are carried out to evaluate the benefits of those models and the compensation policy is addressed to share the benefits.

Minimization Models of Defective Product Inventory Cost (불량품(不良品)을 고려(考慮)한 재고비용(在庫費用) 최소화(最小化) 모형(模型))

  • Kim, Jae-Ryeon;Yu, Seung-Ho
    • Journal of Korean Society for Quality Management
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    • v.16 no.2
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    • pp.92-98
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    • 1988
  • In this paper a model is developed for an inventory system in which the number of units of acceptable quality in a replenishment lot is uncertain and the demand. during the stockout period is back ordered and. also under the same condition an inventory model with experdited stockout is developed. It is assumed that the fraction of the acceptable quality in a replenishment lot is a random variable whose probability distribution is known. The optimal replenishment policy is synthesized for such a system. A numerical example is used to illustrate the theory.

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A Simulation Study on a Variant Policy of Inventory Replenishment for the Order Consolidation - A Case of Steel Industry (주문 집약을 위한 재고 변용 모델 연구: 제철산업의 소로트 주문 집약 활용을 중심으로)

  • Jung, Jae-Heon
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2005.10a
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    • pp.10-26
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    • 2005
  • In our model, we keep inventory to satisfy uncertain demands which arrives irregularly. In this situation, we have additional two constraints. First, we need to have certain amount of order consolidation (consolidation constraint) for the orders to replenish the inventory because of production or purchase constraint. And also, if we order at a certain date which was set by administrative convenience, we have amount constraint to order the consolidated order demands (capacity constraint). We showed this variant inventory policy is needed in steel industry and note that there will be possible similar case in industry. To deal with this case, we invented a variant replenishment policy and show this policy is superior to other possible polices in the consolidation constraint case by extensive simulation. And we derive a combined solution method for dealing with the capacity constraints in addition to the consolidation constraints. For this, we suggest a combined solution method of integer programming and simulation.

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A Simulation Study on a Variant Policy of Inventory Replenishment for the Order Consolidation : A Case of Steel Industry (주문 집약을 위한 재고 변용 모델 연구 : 제철산업의 소로트 주문 집약 활용을 중심으로)

  • Jung Jae-Heon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.2
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    • pp.99-112
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    • 2006
  • In our model, we keep inventory to satisfy uncertain demands which arrives irregularly. In this situation, we have additional two constraints. First, we need to have certain amount of order consolidation (consolidation constraint) for the orders to replenish the inventory because of production or purchase amount constraint. And also, if we order at a certain date which was set by administrative convenience, we have capacity constraint to order the consolidated order demands (capacity constraint). We show this variant inventory policy is needed in steel industry and note that there will be possible similar case in industry. To deal with this case, we invent a variant replenishment policy and show this policy is superior to other possible polices in the consolidation constraint case by extensive simulation. And we derive a combined solution method for dealing with the capacity constraints in addition to the consolidation constraints. For this, we suggest a combined solution method of integer programming and simulation.