• The Journal of Society for e-Business Studies
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• v.24 no.3
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• pp.111-128
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• 2019

In the current procurement system in Korean military, the army, navy and air force have their own distributors, military branches and warehouses. However, especially, it has been hard to have the economy of scale because most of suppliers have shipped their order from the suppliers to each of Korean military directly. Koran military considers the transportation cost as one of the management cost factors among various kinds of cost. Furthermore they have contracted with the suppliers in annual and collectively on the transportation. Hence they have been in trouble with getting efficiency of Defense budget execution because it is hard to make a decision of Defense budget with real transportation cost. Moreover Korean army, navy and air force have their own supply chain separately, so they can not cooperate flexible and quickly when they need. Therefore, in this research, we provide a benchmarking of DTCI (Defense Transportation Coordination Initiative) which has been proved that it has improved the procurement system in US implementing the integrated transportation system with 3PL and military. In addition we propose advanced integrated shipping model using Hub & Spoke system for Korean military. In order to prove its effect, we simulate our model based on the real data of the suppliers' delivery to compare with the current system when it comes to how much we can save the cost. Our research can provide evidence that the integrated procurement system in Korean military will improve Korean military procurement system.

• Journal of the Korea Society for Simulation
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• v.29 no.4
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• pp.65-72
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• 2020

The purpose of this study is to analyze the adequacy of product qualification criteria through Monte-Carlo simulation and association rule analysis. We first surveyed the similar procurement systems, then we simulated the bid situation that randomly generated several vendors participated in a bid, and they obtained the score according to the product qualification criteria's judgement area. Then, the company with the highest score will win the bid, and further analysis was performed in terms of performance indicator and satisfaction ratio. The results of this study can be summarized as follows; Although the items related to the credibility accounted for the largest number items, it did not affect the actual bid results. It was analyzed that it is desirable to increase the allocation points in the area of business status and technical capability review than the current one.