• IE interfaces
• /
• v.23 no.4
• /
• pp.327-336
• /
• 2010

We consider a supply chain consisting of a make-to-order manufacturer and N component suppliers and study the impacts of the number of suppliers on component inventory management. The manufacturer has full information and continuously observes the state of both component inventory level and customer backorders. Based on this information, the manufacturer determines whether or not to place a component purchasing order to a supplier among N suppliers even though some orders are in process by other suppliers. The goal of this paper is to numerically identify the manufacturer's purchasing policy which minimizes the total supply chain cost and the best choice of N. Our model contributes to the current literature in that the problem of simultaneously considering multiple outstanding orders and incorporating order setup cost into the model has not been covered yet. From numerical experiment, we investigate how much the policy with N suppliers can contribute to reducing the supply cost compared to the policy with a single supplier.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.3
• /
• pp.93-115
• /
• 2014

In collaborative product development with multiple suppliers, buyers must manage the suppliers' activities. This empirical research investigates the performance impacts of three strategies that buyers use to manage suppliers who design interdependent components. These strategies are: Instructionism (giving clear instructions to suppliers), Teaming (forming an interactive development team with suppliers), and Delegation (transferring component development responsibilities to suppliers). Data were collected through a cross-industry web-based survey of buying firms in manufacturing industries whose products require multiple, interdependent components. A path analysis utilizing 318 survey responses indicates that Instructionism has a positive effect on design quality, and Teaming has a positive effect on design quality and component innovation. The use of Delegation is not related to any of the performance indicators. The practical implication of this research for product development managers is that both Instructionism and Teaming can be effective strategies. For the purpose of assuring design quality, a buyer should give clear instructions in detailed specifications or work closely with suppliers in development teams. If competitive priority is product innovativeness, however, the buyer should work closely with its suppliers during component development processes using a Teaming strategy.

• Industrial Engineering and Management Systems
• /
• v.4 no.2
• /
• pp.198-206
• /
• 2005

The single sourcing policy, in which an automobile manufacturer purchases identical or similar parts from one supplier, has an advantage of scale economy. Meanwhile, multiple sourcing policy, which allows procuring similar parts from multiple suppliers, has benefits of dispersing risks and promoting competition among suppliers. This paper analyzes the procurement policies by presenting a model of the Japanese automobile parts trade. It concludes that maturity of technology involved should be taken into account besides above-mentioned factors which have traditionally been recognized. For parts produced using evolving technologies, the single sourcing enhances purchaser’s benefits because of the scale economy in learning process. In the meantime, multiple sourcing is more beneficial to the purchaser if the parts are based on mature technologies. In either policy, if the technology involved is evolving, motivating suppliers by returning a great part of cost reduction as a reward to them may eventually increase profit for the purchaser. The conclusion supports the situation where the number of suppliers is being cut down as the trend of modularization and system deliveries of parts progresses in the auto parts industry, and suggests that returning part of benefits to parts suppliers may be encouraged from the viewpoint of auto manufacturers’ own interest.

• Journal of Korean Institute of Industrial Engineers
• /
• v.33 no.3
• /
• pp.322-328
• /
• 2007

Highly standardized products are suitable for automated purchasing using electronic commerce technology, where the price becomes the most important factor. Suppliers can change the prices dynamically based on the inventory level and market situation in order to maximize the sales and profit. In the virtual marketplace where multiple customers purchase multiple standardized products from multiple suppliers repetitively, customers can purchase the required amount of each item as a dynamic bidding by allocating purchase orders to the suppliers based on the current price. Customers need a method to quickly determine the optimal allocation of orders to the suppliers using the dynamically changing data to minimize the total cost. We present a LP model which minimizes the sum of the total price plus transportation cost for this problem. Simulation results using random data show meaningful reduction of the total cost.

• The Journal of Information Systems
• /
• v.27 no.1
• /
• pp.111-131
• /
• 2018

Purpose This study empirically investigated the impact of information technology(IT) capability on the co-innovation with suppliers and the effects of the co-innovation with suppliers on the product and process innovations in manufacturing firms. We demonstrated that IT promotes innovations trough the sharing of knowledge with suppliers. Design/methodology/approach The empirical data were collected through post-survey. 97 valid survey data were finally collected. With a multiple-regression analysis, we confirmed the influence relationships among critical variables. Findings In the empirical results, it was found that IT integration positively and significantly influences the amount of inter-organizational information exchange with suppliers. The results showed that the inter-organizational information flow with suppliers has a positive and significant impact on the inter-organizational learning with suppliers. It was also observed that the inter-organizational learning with suppliers facilitates and promotes the co-innovation with suppliers. From these results, it is concluded that the co-innovation with suppliers is activated through the knowledge transfer or sharing caused by an inter-organizational information flow or learning. Finally, the positive effects of the co-innovation with suppliers on the product and process innovations were empirically confirmed. Thus, it is suggested that IT capability influences innovations through the co-innovation with suppliers caused by an inter-organizational information flow.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.25 no.1
• /
• pp.42-48
• /
• 2002

This paper addresses the necessity of integration between buyer and suppliers for effective implementation of Just-In-Time purchasing in a multi-item environment. An integrated inventory model of facilitating multiple shipments in small lots is developed. Also, an iterative solution procedure is developed to simultaneously find the order(contract) interval for each item and number of shipments between buyer and suppliers. We show by example that when the integrated policy is adopted by both buyer and suppliers in a cooperative manner, both parties can benefit.

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

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2022.11a
• /
• pp.59-60
• /
• 2022

According to the recent issue regarding the shortage of concrete supply, it is common to appoint various concrete suppliers and allow mixed pouring according to the specification requirements. Moreover, if the concrete is mixed inevitably a strength and property test is carried out for verification. Therefore, in this research, multiple concrete suppliers were selected and each required raw material was collected for the test of all variable mixed design. Through the test, the property of the unhardened and hardened concrete was quantitatively evaluated.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.10 no.10
• /
• pp.3011-3022
• /
• 2009

The analytic test results are as follows. This thesis categorized into independent variables, multiple factors, such as asset attributes, cost reduction expectation, corporate IT competence, service qualities, system adequacy, information security, easy system management, uncertain IT, supplier capacity, intra-industry competition. And, this research thesis categorized into moderators, the factor, such as the adequacy between suppliers and customers industries. And, this categorized into dependent variables, multiple factors, such as the effects of ASP introduction. But, it was analyzed that only cost reduction expectation out of independent variables had not positive effects on the effects of ASP introduction. And, it was confirmed that the higher communications between suppliers and customers' industries, and the higher fulfillment of contracts, suppliers' service qualities, and suppliers' cooperation with customers had the adjusting effects on factors of ASP-based introduction.

• Journal of the Korea Safety Management & Science
• /
• v.8 no.3
• /
• pp.103-114
• /
• 2006

A cross docking operation involves multiple trucks (known as inbound trucks) that deliver items from suppliers to a distribution center and multiple trucks (known as outbound trucks) that ship items from the distribution center to customers. Based on customer demands, an inbound truck may have its items transferred to multiple outbound trucks. Similarly, an outbound truck can receive its consignments from multiple inbound trucks. A unique characteristic of a cross docking system is the absence or prohibition of long term storage of items at the distribution center. Items delivered to the distribution center from suppliers are shipped to customers as soon as possible without being placed in storage in the distribution center. The objective of this paper is to develop the optimal operational strategy for finding the best truck docking sequence for both inbound and outbound trucks in order to minimize total operation time where a temporary storage area is not available in a cross docking system.