• Title/Summary/Keyword: supply chain planning

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Optimization Methodology for Sales and Operations Planning by Stochastic Programming under Uncertainty : A Case Study in Service Industry (불확실성하에서의 확률적 기법에 의한 판매 및 실행 계획 최적화 방법론 : 서비스 산업)

  • Hwang, Seon Min;Song, Sang Hwa
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.4
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    • pp.137-146
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    • 2016
  • In recent years, business environment is faced with multi uncertainty that have not been suffered in the past. As supply chain is getting expanded and longer, the flow of information, material and production is also being complicated. It is well known that development service industry using application software has various uncertainty in random events such as supply and demand fluctuation of developer's capcity, project effective date after winning a contract, manpower cost (or revenue), subcontract cost (or purchase), and overrun due to developer's skill-level. This study intends to social contribution through attempts to optimize enterprise's goal by supply chain management platform to balance demand and supply and stochastic programming which is basically applied in order to solve uncertainty considering economical and operational risk at solution supplier. In Particular, this study emphasizes to determine allocation of internal and external manpower of developers using S&OP (Sales & Operations Planning) as monthly resource input has constraint on resource's capability that shared in industry or task. This study is to verify how Stochastic Programming such as Markowitz's MV (Mean Variance) model or 2-Stage Recourse Model is flexible and efficient than Deterministic Programming in software enterprise field by experiment with process and data from service industry which is manufacturing software and performing projects. In addition, this study is also to analysis how profit and labor input plan according to scope of uncertainty is changed based on Pareto Optimal, then lastly it is to enumerate limitation of the study extracted drawback which can be happened in real business environment and to contribute direction in future research considering another applicable methodology.

Integrated Production-Distribution Planning for Single-Period Inventory Products Using a Hybrid Genetic Algorithm (혼성 유전알고리듬을 이용한 단일기간 재고품목의 통합 생산-분배계획 해법)

  • Park, Yang-Byung
    • IE interfaces
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    • v.16 no.3
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    • pp.280-290
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    • 2003
  • Many firms are trying to optimize their production and distribution functions separately, but possible savings by this approach may be limited. Nowadays, it is more important to analyze these two functions simultaneously by trading off the costs associated with the whole. In this paper, I treat a production and distribution planning problem for single-period inventory products comprised of a single production facility and multiple customers, with the aim of optimally coordinating important and interrelated decisions of production sequencing and vehicle routing. Then, I propose a hybrid genetic algorithm incorporating several local optimization techniques, HGAP, for integrated production-distribution planning. Computational results on test problems show that HGAP is effective and generates substantial cost savings over Hurter and Buer's decoupled planning approach in which vehicle routing is first developed and a production sequence is consequently derived. Especially, HGAP performs better on the problems where customers are dispersed with multi-item demand than on the problems where customers are divided into several zones based on single-item demand.

Heuristic for Distribution Planning in Capacitated Multi-echelon Supply Chains (생산 능력 제한이 있는 다계층 공급사슬의 분배계획을 위한 발견적 기법)

  • Kwon, Ick-Hyun;Shin, Hyun-Joon;Kim, Sung-Shick
    • IE interfaces
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    • v.19 no.2
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    • pp.124-132
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    • 2006
  • The system under study is a single item, multi-echelon distribution system with a capacitated production facility. All the nodes at the downstream ends are demand-sites, i.e., ordered items are delivered to the customers from the node. Also any transshipment depots in the midstream can be demand-sites as well. For a given planning period, at each of demand-site, demand is forecasted and known. Our objective is to minimize the average system cost per period which is the sum of holding and backorder costs in the entire network. Due to the capacity restrictions, it is difficult to establish efficient distribution planning. To overcome such a difficulty and obtain a reasonable and better solution, we convert this problem into a single machine earliness and weighted tardiness scheduling. We propose a simple but cost-effective heuristic for this problem. The experimental results showed that the proposed heuristic obtained much better solutions compared with another approach.

An Empirical Assessment of Competency Requirements for Logistics Managers in China (중국진출 한국기업 물류관리자의 자격요건에 관한 연구)

  • Hong, Eui;Kim, Jin-Su
    • International Commerce and Information Review
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    • v.13 no.4
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    • pp.251-274
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    • 2011
  • The aim of this research is to identify the competencies required by logistics managers or supply chain managers in China. And this research also attempts to show their relative importance and key knowledge areas that require improvement. Using a survey questionnaire, data was collected against forty three logistics and supply chain management skills or competencies, which were then grouped into four categories and analysed. The Analysis revealed that supply chain awareness, ability to make decisions, analytical skill, communication skill, supply chain cost, people skill, and integration of internal or external information flow which belong to logistics planning group are considered the most important Competencies for effective and efficient logistics functioning. On the other hand, reverse logistics and IATA regulations from environmental awareness group show little influence on logistics managers for improving their logistics performances. The results have implications for a variety of parties including prospective logisticians, students, teachers and companies considering expanding their business to Chinese market. For example, the results permit companies to employ appropriate logistics managers who are qualified with sufficient skills and competencies suggested in this research. In the case of practitioners, the results provide a benchmark for comparison with their current level of abilities and suggested competencies.

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Business Issues in Enterprise Resource Planning (ERP) Implementation

  • Raj, John Rudolph;Seetharaman, A.
    • East Asian Journal of Business Economics (EAJBE)
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    • v.2 no.4
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    • pp.9-25
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    • 2014
  • The successful implementation of various Enterprise Resource Planning (ERP) systems has provoked considerable interest in this subject over the last few years. The senior management, especially in large corporations have been attracted to look at new information technology and how to leverage it for corporate survival and to gain competitive advantage in volatile business environment. Although there is no shortage of positive reports on the success of ERP installations, many companies have invested millions of dollars in this direction with little to show for its success. Since many of the ERP failures today can be attributed to inadequate planning and poor execution in the implementation and closure of projects. The aim of this article is to offer some solutions to avert potential pitfalls in ERP implementation.

Research on Transportation Planning System (Transportation Planning System에 대한 연구)

  • Jeong, Jae-Hun;Lee, Sang-Min;Min, Dae-Gi;Lee, Jae-Ho;Jim, Chen
    • 한국IT서비스학회:학술대회논문집
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    • 2003.05a
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    • pp.215-221
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    • 2003
  • In today's rapidly changing business environment, quality of responsiveness to customer requirements for short order cycles and on time delivery is becoming more important and considered as one of critical success factors in supply chain management. Yet despite its importance on reducing transportation cost and improving customer service, little attention has been given to the transportation planning system in Korea SI industry. In this paper, we present development of transportation planning system especially to deal with vehicle routing problem which has the goal to minimize the costs of daily transportation operation and to maximize customer delivery service. The system architecture with other enterprise application is presented and real-world constraints are well incorporated into the system by combining constraints programming and meta heuristics.

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An Optimization Model for an Production-Distribution Planning with Consideration of a Transportation Time (운송시간을 고려한 생산-분배계획을 위한 최적화모델)

  • Lim, Seok-Jin;Jeong, Suk-Jae
    • Journal of the Korea Safety Management & Science
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    • v.10 no.1
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    • pp.139-144
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    • 2008
  • Recently, a multi-facility, multi-product and multi-period industrial production-distribution planning problem has been widely investigated in Supply Chain Management (SCM). One of the key issues in the current SCM research area involves reducing both production and distribution costs. We have developed an optimization model to tackle the above problems under the restricted conditions such as transportation time and a zero inventory. Computational experiments using commercial tool Ms-Excel Solver show that the real size problems we encountered can be solved in reasonable time. The model can be used to decide an appropriate production-distribution planning problem in SCM research area.

Optimization of green closed loop supply chain network considering recycling express box (재활용 익스프레스 박스를 고려한 친환경 폐쇄 루프 공급망 네트워크 최적화)

  • Zhang, Jun-Hao;Che, Jin-Yao
    • Journal of Digital Convergence
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    • v.20 no.5
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    • pp.211-220
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    • 2022
  • This paper proposes a green closed-loop supply chain network (GCSN) for optimizing closed-loop supply chains. The GCSN focuses on the application of the recycling express box in logistics circulation, accelerates the standardization of logistics operations and the use of express packaging in e-commerce companies, and promotes the reduction and greening of recycling express box in the e-commerce industry. The GCSN is represented as a mathematical formulation and implemented using LINGO. Greening, environmental protection, and wisdom are the general trends for promoting the growth of the e-commerce industry. Meanwhile, the price of raw materials has increased owing to a shortage of resources, which emphasizes the need for e-commerce enterprises to develop green packaging. Therefore, this study considers the shared circular packaging launched by e-commerce enterprises as the research object, and integrates the problem of facility positioning and path planning in the logistics system. The conclusion summarizes the significance of this study.

CPFR : A Case Study in Mobile Industry (전략적 협업방법론 고찰 : 모바일 산업 사례연구)

  • Kim, Hyoungtae
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.1
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    • pp.8-14
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    • 2015
  • In this paper, even though there exist various problems to be solved in SCM field, we focus on problems arising from demand-supply discrepancy and introduce the concept of CPFR (Collaboration Planning Forecasting and Replenishment) as one solution for outstanding problems. Furthermore, by presenting a real CPFR project case between the S Company and V Company, we try to help potential benefactors of CPFR in two aspects : 1) how to implement CPFR, and 2) what they can expect from CPFR.

Management for Company Objectives with Considerations of Optimal Production/Sales Planning (최적 생산/판매 계획을 통한 기업 목표 관리 사례)

  • Jung, Jae-Heon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.34 no.2
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    • pp.77-90
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    • 2009
  • Total profit level Increases if a company increase the cost for achieving R&D related goals of equipment productivity enhancement, production cost saving, or for achieving equipment scale target, sales volume goal. But how much money should be invested to achieve a certain level of profit? We formulated the model to set the optimal goal levels to minimize the investment cost under the constraint that certain level of total profit should be guaranteed. This model derived from a case of P steel company. We found that this should be considered in relation with the production sales planning (known as optimal product mix problem) to guarantee the profit. We suggested a nonlinear programming model, 3 valiant form of the p+roduct mix problem. We can find the optimal Investment level for the R&D related goals or sales volume goal, equipment scale target for the P steel company using the model.