• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.1
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• pp.93-104
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• 2007

We consider a supply chain where products are shipped to warehouse from manufacturing system to customers. Products are supplied from either in-house regular manufacturing or the secondary source such as subcontractor. The inventory in warehouse is controlled by base-stock policy, that is, whenever a demand arrives from customer, an order is released to the manufacturing system. Unsatisfied demand is backlogged. The manufacturing system is modeled as M/M/s+1/c queueing system, and the orders exceeding the given limit care blocked and lost. The steady state distribution of the outstanding orders and the throughput of the manufacturing system are functions of the level of engagement In the secondary source. There is a profit obtained from throughput and cost not only due to the engagement of the secondary source in the manufacturing system but also inventory positions. We want to maximize the total production profit minus the total cost of the production system by simultaneously determining the optimal level of engagement of the secondary source and the optimal base-stock level of the inventory. We develop two algorithms : one without guarantee of the optimal solution but with the small number of computations, the other optimal but with more computations.

• 한국방재학회:학술대회논문집
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• 2008.02a
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• pp.585-588
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• 2008

KICT has been carried out inventory research on the cut slopes of national roads. Inventory research results are basic data using cut slope management system. Inventory data are classified by general status, cut slope characteristics and inspector opinion. Inventory data are utilized to figure out dangerous slopes and decide survey ranking of detailed safety diagnostication. This paper drew the distribution area of dangerous cut slopes using inventory data in Chungcheongdo, and verified efficiency on distribution area of dangerous cut slopes by comparing occurrence frequency of real collapsed cut slopes.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.312-321
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• 2007

We address a disposal issue of returned products in a product recovery system where a single product is stocked in order to meet a demand from customers who may return products after usage. Product returns occur randomly and can be accepted for remanufacturing or disposed of depending on the state of the system. We examine the structure of the optimal disposal policy for returned product that utilizes the information of the inventory of both serviceable and remanufacturable products. Numerical study indicates that it can be characterized by a monotonic threshold type of the curve. A disposal is allowed only when the remanufacturable inventory level exceeds a threshold which is the function of the inventory level of serviceable product and it is decreasing as the serviceable inventory level increases. Sensitivity analysis also indicates that the optimal disposal policy and the optimal profit have monotonic properties with respect to system parameters.

• Journal of Korean Society for Quality Management
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• v.17 no.2
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• pp.149-157
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• 1989

A one-upper warehouse n-lower retailer inventory model is discussed. The probability distribution of demand for a given perod is independent. The inventory holding cost is proportional to the number of unsold units and the cost of shortages is proportional to the number of shortages. In the event of a shortage, units are redistributed with a cost proportional to the number of units from the retailers which are a surplus at the end of the period. The optimum stock levels are obtained and the effects of redistribution are analized.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.661-664
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• 2006

Under a VMI (Vendor Managed Inventory) system, the vendor holds a certain level of control over not only inbound replenishment decisions on stocking but also outbound re-supply decisions. In this situation, vendor faces a better opportunity to synchronize the inventory and transportation decisions. However, shipment consolidation can reduce transportation expenses, but delivery time about the customer comes to be long and a customer service is fallen. Thus, a stock and transportation decision must consider this correlation. This study look into the relevant literature and suggest about further research direction.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1995.04a
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• pp.476-486
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• 1995

In this paper, an attempt has been made to revise Raafat' s(1985) results on an inventory model for decaying raw materials and the finished product at a constant rate which was based on Goyal's integrated inventory model for a single product system. This paper is concerned with scheduling the frequencies of order quantity of several different raw materials on a production inventory model. The purpose of this paper is to present a simple method of deciding the frequencies of order quantity of raw materials, in the sense of minimizing the average total cost of the system. We describe on iterative procedure for directly determining near optimal frequencies of order quantity for the raw materials and the associated fundamental cycle time which can be used for constructing the production duration of the finished product. In cases where feasible schedules cannot be constructed using the values from the iterative procedure, the procedure provides a basis for changing the order quantity frequencies and the fundamental cycle time to obtain feasible schedules. An example is given to illustrate the derived results.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.327-331
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• 2006

This paper considers an integrated inventory-distribution system with a fleet of heterogeneous vehicles employed where a single warehouse distributes a single type of products to many spatially distributed retailers to satisfy their dynamic demands and the product is provided to the warehouse via procurement ordering from any manufacturing plant or market The Problem is formulated as an Mixed Integer Programming with the objective function of minimizing the sum of inventory holding cost (at the warehouse and retailers), and transportation cost and procurement ordering cost at the warehouse, subject to inventory-balancing constraints, ordering constraints, vehicle capacity constraints and transportation time constraints. The problem is Proven to be NP-hard. Accordingly, a Lagrangean heuristic procedure is derived and tested for its effectiveness through computational experiments with some numerical instances.

• Management Science and Financial Engineering
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• v.17 no.2
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• pp.1-21
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• 2011

This paper considers an integrated inventory-distribution system with a fleet of heterogeneous vehicles employed where a single warehouse distributes a single type of products to many spatially distributed retailers to satisfy their dynamic demands. The problem is to determine order planning at the warehouse, and also vehicle schedules and delivery quantities for the retailers with the objective of minimizing the sum of ordering cost at the warehouse, inventory holding cost at both the warehouse and retailers, and transportation cost. For the problem, we give a Mixed Integer Programming formulation and develop a Lagrangean heuristic procedure for computing lower and upper bounds on the optimal solution value. The Lagrangean dual problem of finding the best Lagrangrean lower bound is solved by subgradient optimization. Computational experiments on randomly generated test problems showed that the suggested algorithm gives relatively good solutions in a reasonable amount of computation time.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.105-115
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• 2006

In this paper, we investigate the problem of minimizing average inventory costs subject to a fill rate constraint in a two-stage serial inventory model with a normally distributed demand. Fill rate is the fraction of demand that is satisfied immediately from on-hand inventory. We first find the lower bounds of base-stock levels in each node by using the exact base-stock level that satisfies a fill rate in a single node model proposed by Sobel. And then, we extensively analyze the system and show that the cost function is convex. Using such convexity and some other useful properties, we can easily find optimal base-stock levels numerically.

• Journal of Korean Society for Quality Management
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• v.14 no.1
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• pp.33-38
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• 1986

This paper deals with probabilistic order level inventory system which the quantity ordered at the end of the scheduling period is dependent on lead times. To find an optimal solution, pearson system of distributions is used to approximate the probability density function of the on-order quantity. An example is solved and sensitivity analysis is performed to examine the relation between lead times and the ordering quantity.