• Journal of Korean Institute of Industrial Engineers
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• v.32 no.2
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• pp.91-97
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• 2006

The vehicle routing problem with time windows (VRPTW) is an important problem in third party logistics and supply chain management. We extend the VRPTW to the VRPTW with overtime and outsourcing vehicles (VRPTWOV) which allows the overtime of drivers and the possibility of using outsourcing vehicles. This problem can be applied to third party logistics companies for managing central distributor-local distributors, local distributor-retailers (or customers), and a manufacturer. We develop a mixed integer programming model and a genetic algorithm. Computational results demonstrate the efficiency of the developed genetic algorithm. We also develop a decision support system based on this genetic algorithm.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.10a
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• pp.389-392
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• 2004

The column generation process for the set-partitioning model of the vehicle routing problem requires repeated solutions of column generation subproblems which has a combinatorial structure similar to that of the traveling salesman problem. This limits the size of the problem that can be addressed. We introduce a new modeling approach, termed route-splitting, which splits each vehicle route into segments, and results in more tractable subproblems. A lower bounding scheme that yields an updated bound at each iteration of the column generation process is developed. Implementation issues, including a technique of controlling columns in the master problem, are explored. Lower bounds are computed on standard benchmark problems with up to 199 customers.

• Journal of the Korean Operations Research and Management Science Society
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• v.9 no.2
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• pp.3-8
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• 1984

This paper considers the intermediate warehouse location problem in a two stage distribution system where commodities are delivered from the given set of capacitated factories to customers via uncapacitated intermediate warehouses. In order to determine the subset of warehouses to open which minimizes the total distribution costs including the fixed costs associated with opening warehouses, the cross decomposition method for mixed integer programming recently developed by T.J. Van Roy is used. The cross decomposition unifies Benders decomposition and Lagrangean relaxation into a single framework that involves successive solutions to a primal subproblem and a dual subproblem. In our problem model, primal subproblem turns out to be a transshipment problem and dual subproblem turns out to be an intermediate warehouse location problem with uncapacitated factories.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.303-311
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• 2007

This study deals with a type of vehicle routing problem faced by manager of some department stores during peak sales periods. The problem is to find a set of traveling paths of vehicles that leave a department store and arrive at a destination specified for each vehicle after visiting customers without violating time and capacity constraints. The mathematical model is formulated with the objective of maximizing the sum of the rewards collected by each vehicle. Since the problem is known to be NP-hard, a heuristic algorithm is developed to find the solution. The performance of the algorithm is compared with the optimum solutions obtained from CPLEX for small size problems and a priority-based Genetic Algorithm for large size problems.

• Proceedings of the KSR Conference
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• 2008.11b
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• pp.1138-1144
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• 2008

To study the feasibility of applying wireless communication technology to the control of train for the effective control of train and for the reduction of cost and time to construct the necessary infra structure, we investigate into the application of the existing commercial WCDMA network to CBTC (communication-based train control) to grasp the obstacles and propose the solutions to circumvent them. The obstacles can be categorized into the hand-off problem, the interference problem near the stations, and the problem of radio shadow areas. We propose, as solutions, the cell overlap method and multi-terminal approach for the hand-off problem, the cell sectoring method for the interference problem, and establishment of new base stations along the railroad both to provide the wireless train control and communication service to the customers on the train which was otherwise impossible because of the shadowing effect.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.10a
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• pp.57-78
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• 2005

The vehicle routing problem (VRP) is to determine a set of feasible vehicle routes, one for each vehicle, such that each customer is visited exactly once and the total distance travelled by the vehicles is minimized. A feasible route is defined as a simple circuit including the depot such that the total demand of the customers in the route does not exceed the vehicle capacity. While there have been significant advances recently in exact solution methodology, the VRP is not a well solved problem. We find most approaches still relying on the branch and bound method. These approaches employ various methodologies to compute a lower bound on the optimal value. We introduce a new modelling approach, termed route-splitting, for the VRP that allows us to address problems whose size is beyond the current computational range of set-partitioning models. The route-splitting model splits each vehicle route into segments, and results in more tractable subproblems. Lifting much of the burden of solving combinatorially hard subproblems, the route-splitting approach puts more weight on the LP master problem, Recent breakthroughs in solving LP problems (Nemhauser, 1994) bode well for our approach. Lower bounds are computed on five symmetric VRPs with up to 199 customers, and eight asymmetric VRPs with up to 70 customers. while it is said that the exact methods developed for asymmetric instances have in general a poor performance when applied to symmetric ones (Toth and Vigo, 2002), the route splitting approach shows a competent performance of 93.5% on average in the symmetric VRPs. For the asymmetric ones, the approach comes up with lower bounds of 97.6% on average. The route-splitting model can deal with asymmetric cost matrices and non-identical vehicles. Given the ability of the route-splitting model to address a wider range of applications and its good performance on asymmetric instances, we find the model promising and valuable for further research.

• Journal of the Korea Society of Computer and Information
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• v.11 no.2 s.40
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• pp.303-317
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• 2006

The process of segmenting customers in CRM should take into equal consideration both the companies' and customers' expected value. However, most of the current studies on customer segmentation have focused only on the companies view in terms of profitability. This study focuses on clarifying a problem and proposing a modified view in the customer segmentation step. The authors offer a proposition which is beneficial to both customers and companies, and thus makes the segmentation step more balanced. There is a two-pronged focus on customer segmentation in this study: first, this paper proposes a balanced view considering not only companies' expected value, but also that of the customers'. Secondly, such balanced segmentation will give a more accurate definition of loyal customers for a given company. This new approach can be expected to improve the level of satisfaction and the length of customer retention, and to increase effectiveness in corporate resource allocation for customer target marketing, as well as improve company insight into customer needs and preferences.

• Industrial Engineering and Management Systems
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• v.11 no.2
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• pp.155-164
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• 2012

As the global market becomes more competitive, manufacturing industries face relentless pressure caused by a growing tendency of greater varieties of products, shorter manufacturing cycles and more sophisticated customer requirements. Efficient and effective supplier selection and order allocation decisions are, therefore, important decisions for a manufacturer to ensure stable material flows in a highly competitive supply chain, in particular, when customers are willing to accept products with less desirable product attributes (e.g., color, delivery date) for economic reasons. This paper attempts to solve optimally the challenging problem of supplier selection and order allocation, taking into consideration the customer flexibility for a manufacturer producing multi-products to satisfy the customers' demands in a multi period planning horizon. A new mixed integer programming model is developed to describe the behavior of the supply chain. The objective is to maximize the manufacturer's total profit subject to various operating constraints of the supply chain. Due to the complexity and non-deterministic polynomial-time (NP)-hard nature of the problem, an improved genetic approach is proposed to solve the problem optimally. This approach differs from a canonical genetic algorithm in three aspects: a new selection method to reduce the chance of premature convergence and two problem-specific repair heuristics to guarantee feasibility of the solutions. The results of applying the proposed approach to solve a set of randomly generated test problems clearly demonstrate its excellent performance. When compared with applying the canonical genetic algorithm to locate optimal solutions, the average improvement in the solution quality amounts to as high as ten percent.

• Spatial Information Research
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• v.18 no.3
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• pp.63-72
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• 2010

The vehicle routing problem with simultaneous pick-up and delivery (VRPSPD) is a variant of the vehicle routing problem (VRP) that customers require simultaneously a pick-up and delivery service. The main objective of VRPSPD is to minimize a cost of routes satisfying many constraints. Traditional VRPSPD have been dealt with a static environment. The static environment means that a routing data and plan cannot be changed. For example, it is difficult to change a vehicle's routing plan so that a vehicle serves the pick-up demands of new customers during the delivery service. Therefore, traditional approach is not suitable for dynamic environments. To solve this problem, we propose a novel approach for finding efficient routes using a real-time re-routing heuristics based on the Location Based Service (LBS). Our re-routing heuristics can generate a new route for vehicle that satisfies a new customer's demand considering the current geographic location of a vehicle. Experimental results show that our methodology can reduce the traveling cost of vehicles comparing with other previous methods.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.159-167
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• 2015

We consider a wafer lot transfer/release planning problem from semiconductor wafer fabrication facilities to probing facilities with the objective of minimizing the deviation of workload and total tardiness of customers' orders. Due to the complexity of the considered problem, we propose a two-level hierarchical production planning method for the lot transfer problem between two parallel facilities to obtain an executable production plan and schedule. In the higher level, the solution for the reduced mathematical model with Lagrangian relaxation method can be regarded as a coarse good lot transfer/release plan with daily time bucket, and discrete-event simulation is performed to obtain detailed lot processing schedules at the machines with a priority-rule-based scheduling method and the lot transfer/release plan is evaluated in the lower level. To evaluate the performance of the suggested planning method, we provide computational tests on the problems obtained from a set of real data and additional test scenarios in which the several levels of variations are added in the customers' demands. Results of computational tests showed that the proposed lot transfer/planning architecture generates executable plans within acceptable computational time in the real factories and the total tardiness of orders can be reduced more effectively by using more sophisticated lot transfer methods, such as considering the due date and ready times of lots associated the same order with the mathematical formulation. The proposed method may be implemented for the problem of job assignment in back-end process such as the assignment of chips to be tested from assembly facilities to final test facilities. Also, the proposed method can be improved by considering the sequence dependent setup in the probing facilities.