• 한국경영과학회:학술대회논문집
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• 대한산업공학회/한국경영과학회 2002년도 춘계공동학술대회
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• pp.742-749
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• 2002

This paper deals with a continuous-review two-echelon inventory model with one-for-one replenishment and Poisson demand where transshipments among retailers are allowed. Two classes of inventory systems are considered by the number of distribution centers(DCs) which provide each retailor with inventory items. 1:N class inventory system and M:N class inventory system respectively. Two-phase model is constructed to find out the optimal inventory positions which minimize supply chain costs. Approximations for customer service levels of the system are evaluated in the first phase, and the optimal inventory positions are found subject to the constraints for service level in the second phase. Simulation tests are performed to assure the effectiveness of the proposed model. The effect of transshipment is evaluated.

• 산업경영시스템학회지
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• 제38권4호
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• pp.109-116
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• 2015

This paper is concerned with the single vendor single buyer integrated production inventory problem. To make this problem more practical, space restriction and lead time proportional to lot size are considered. Since the space for the inventory is limited in most practical inventory system, the space restriction for the inventory of a vendor and a buyer is considered. As product's quantity to be manufactured by the vendor is increased, the lead time for the order is usually increased. Therefore, lead time for the product is proportional to the order quantity by the buyer. Demand is assumed to be stochastic and the continuous review inventory policy is used by the buyer. If the buyer places an order, then the vendor will start to manufacture products and the products will be transferred to the buyer with equal shipments many times. The mathematical formulation with space restriction for the inventory of a vendor and a buyer is suggested in this paper. This problem is constrained nonlinear integer programming problem. Order quantity, reorder points for the buyer, and the number of shipments are required to be determined. A Lagrangian relaxation approach, a popular solution method for constrained problem, is developed to find lower bound of this problem. Since a Lagrangian relaxation approach cannot guarantee the feasible solution, the solution method based on the Lagrangian relaxation approach is proposed to provide with a good feasible solution. Total costs by the proposed method are pretty close to those by the Lagrangian relaxation approach. Sensitivity analysis for space restriction for the vendor and the buyer is done to figure out the relationships between parameters.

• Journal of applied mathematics & informatics
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• 제8권2호
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• pp.519-530
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• 2001

A two commodity continuous review inventory system with independent Poisson processes for the demands is considered in this paper. The maximum inventory level for the i-th commodity fixed as $S_i$(i = 1,2). The net inventory level at time t for the i-th commodity is denoted by $I_i(t),\;i\;=\;1,2$. If the total net inventory level $I(t)\;=\;I_1(t)+I_2(t)$ drops to a prefixed level s $[{\leq}\;\frac{({S_1}-2}{2}\;or\;\frac{({S_2}-2}{2}]$, an order will be placed for $(S_{i}-s)$ units of i-th commodity(i=1,2). The probability distribution for inventory level and mean reorders and shortage rates in the steady state are computed. Numerical illustrations of the results are also provided.

• 한국경영과학회지
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• 제23권1호
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• pp.43-65
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• 1998

This paper develops a two-echelon inventory model with time-weighted partial backorders. The presented model assumed to follow continuous review (Q. r) policy for both the retailers and the central warehouse under stochastic demand. A heuristic method to find an optimum-tending solution for total variable system cost per year incurred at the central warehouse and retailers in a system is suggested. To show the usefulness of the above model, numericla examples are illustrated for verification and validation purpose.

• 산업경영시스템학회지
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• 제39권4호
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• pp.7-14
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• 2016

Unlike most researches that focus on single manufacturer or single buyer, this research studies the cooperation policy for two participants of supply chain such as single vendor and single buyer. Especially, this paper deals with single vendor-single buyer integrated-production inventory problem. If the buyer orders products, then the vendor will start to make products and then the products will be shipped from the vendor to the buyer many times. The buyer is supposed to order again when the buyer's inventory level hits reorder point during the last shipment and this cycle keeps repeated. The buyer uses continuous review inventory policy and customer's demand is assumed to be probabilistic. The contribution of this paper is to present a mixed approach and derive its cost function. The existing policy assumes that the size of shipping batch from single vendor to single buyer is increasing, called Type 1, or constant, called Type 2. In mixed approach, the size of shipping batch is increasing at the beginning part of the cycle, and then its size is constant at the ending part of the cycle. The number of shipping for Type 1 and Type 2 in a cycle in mixed approach is determined to minimize total cost. The relationship between parameters, for example, the holding cost per product, the set up cost per order, and the shortage cost per item and decision variables such as order quantity, safety factor, the number of shipments, and shipment increasing factor is figured out via sensitivity analysis. Finally, it is statistically proved that the mixed approach is superior to the existing approaches.

• 산업경영시스템학회지
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• 제36권4호
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• pp.31-37
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• 2013

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

• 산업경영시스템학회지
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• 제35권4호
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• pp.126-132
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• 2012

This paper deals with a centralized warehouse problem with multi-item and capacity constraint. The objective of this paper is to decide the number and location of centralized warehouses and determineorder quantity (Q), reorder point (r) of each centralized warehouse to minimize holding, setup, penalty, and transportation costs. Each centralized warehouse uses continuous review inventory policy and its budget is limited. A SA (Simulated Annealing) approach is developed and its performance is tested by using some computational experiments.

• 경영과학
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• 제31권2호
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• pp.1-13
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• 2014

In almost all of the organizations, the cost for acquiring and maintaining the inventory takes a considerable portion of the management budget, and thus a certain constraint is set upon the budget itself. The previous studies on inventory control for each item that aimed to improve the fill rate, backorder, and the expenditure on inventory are fitting for the commercially-operated SCM, but show some discrepancies when they are applied to the spare parts for repairing disabled systems. Therefore, many studies on systematic approach concept considering spare parts of various kinds simultaneously have been conducted to achieve effective performance for the inventory control at a lower cost, and primarily, METRIC series models can be named. However, the past studies were limited when dealing with the probability distributions for representing the situation on demand and transportation of the parts, with the (S-1, S) inventory control policy, and so on. To address these shortcomings, the Continuous Time Markov Chain (CTMC) model, which considers the phase-type distributions and the (s, Q) inventory control policies to best describe the real-world situations inclusively, is presented in this study. Additionally, by considering the cost versus the system availability, the optimization of the inventory level, based on this model, is also covered.

• 산업경영시스템학회지
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• 제15권26호
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• pp.99-109
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• 1992

This paper presents a cost model of the system which is managed under a continuous review (Q,r) policy at each retailer and peridic review (R,T) policy at the central warehouse. An iterative procedure is performed to find the optimal or near-optimal' solution for the policy parameters at each retailers and a central warehouse in this study.

• 대한산업공학회지
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• 제5권1호
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• pp.59-66
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• 1979

The objective of this paper is to develop a stochastic inventory system model under the so-called continuous-review policy with a Poisson one-at-a-time demand process, iid customer inter-arrival times {Xi}, backorders allowed, and constant procurement lead time $\gamma$. The distributions of the so-called inventory position process {$IP_{(t-r)}$} and lead time demand process {$D_{(t-r,t)}$} are formulated in terms of cumulative demand by time t, {$N_t$}. Then, for the long-run expected average annual inventory cost expression, the "ensemble" average is estimated, where the cost variations for stock ordering, holding and backorders are considered stationary.