• 산업경영시스템학회지
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• 제23권60호
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• pp.11-22
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• 2000

The main objective of this research is to analyze an order point and an order quantity of a distribution center and each branch to attain a target service level in multi-level inventory distribution system. In case of product item, we use the item with low volume of average monthly demand. Under the continuous review method, the distribution center places a particular order quantity to an outside supplier whenever the level of inventory reaches an order point, and receives the order quantity after elapsing a certain lead time. Also, each branch places an order quantity to the distribution center whenever the level of inventory reaches an order point, and receives the quantity after elapsing a particular lead time. When an out of stock condition occurs, we assume that the item is backordered. For considering more realistic situations, we use generic type of probability distribution of lead times. In the variable lead time model, the actually achieved service level is estimated as the expected service level. Therefore, this study focuses on the analysis of deciding the optimal order point and order quantity to achieve a target service level at each depot as a expected service level, while the system-wide inventory level is minimized. In addition, we analyze the order level as a maximum level of inventory to suggest more efficient way to develop the low demand item model.

• Industrial Engineering and Management Systems
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• 제15권4호
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• pp.354-363
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• 2016

Due to uncertain environment, various parameters such as price, queuing length, warranty, and so on influence on inventory models. In this paper, an inventory-queuing-pricing problem with continuous review inventory control policy and batch arrival queuing approach, is presented. To best of our knowledge, (I) demand function is stochastic and price dependent; (II) due to the uncertainty in real-world situations, a fuzzy programming approach is applied. Therefore, the presented model with goal of maximizing total profit of system analyzes the price and order quantity decision variables. Since the proposed model belongs to NP-hard problems, Pareto-based approaches based on non-dominated ranking and sorting genetic algorithm are proposed and justified to solve the model. Several numerical illustrations are generated to demonstrate the model validity and algorithms performance. The results showed the applicability and robustness of the proposed soft-computing-based approaches to analyze the problem.

• 품질경영학회지
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• 제14권2호
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• pp.21-27
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• 1986

This paper deals with a continuous review (s,S) spare part inventory system. The distributions of service life of each part and the replenishment lead time are assumed to be exponential. Assuming that there is never more than a single order outstanding, we obtain the average annual cost of operating the inventory system. If the length of stockout period is small enough to be neglected compared to the length of operating period, the optimal operating policy variables minimizing the cost rate can be calculated iteratively. For the case of one-for-one ordering (that is, s=S-1), an exact cost rate, and a closed form decision rule minimizing the cost rate are obtained for a more general situation in which more than one order is allowed to be outstanding and the distribution of the replenishment lead time is general.

• 한국경영과학회지
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• 제12권1호
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• pp.27-33
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• 1987

A stochastic model for an inventory system in which depletion of stock takes place due to random demand as well as random loss of items is studied under the assumption that the intervals between cussessive unit demands as well as those between cussessive unit losses, are independently and identically distributed random variables having negative exponential distributions with respective parameters .mu. and .lambda. It is further assumed that leadtime for each order is an outstanding-order-dependent random variable. The steady state probability distribution of the net inventory level is derived under the continuous review (S -1, S) inventory policy, from which the total expected coast expression is formulated.

• 산업경영시스템학회지
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• 제30권3호
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• pp.44-53
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• 2007

Forming central warehouses for a number of stores can save costs in the continuous review inventory model due to economy of scale and information sharing. In this paper, transportation costs are included in this inventory model. Hence, the tradeoff between inventory-related costs and transportation costs is required. The main concern of this paper is to determine the number and location of central warehouses. Transportation costs are dependent on the distance from several central warehouses to each store. Hence, we develop an efficient simulated annealing algorithm using distance-based local search heuristic and merging heuristic to determine the location and the number of central warehouses. The objective of this paper is to minimize total costs such as holding, setup, penalty, and transportation costs. The performance of the proposed approach is tested by using some computational experiments.

• 대한산업공학회지
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• 제11권1호
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• pp.33-39
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• 1985

A stochastic model for an inventory system in which depletion of stock takes place due to random demand as well as random loss of items is studied under the assumption that the intervals between successive unit demands, as well as those between successive unit losses are independently and identically distributed random variables having negative exponential distribution with respective parameters. We have derived the steady state probability distribution of the stock level assuming instantaneous delivery of order under (s, S) inventory policy. Also we have derived total expected cost expression and the necessary conditions to be satisfied for an optimal solution.

• 산업경영시스템학회지
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• 제20권42호
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• pp.21-30
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• 1997

This research fundamentally deals with an analysis of service level for a multi-level inventory distribution system which is consisted of a central distribution center and several branches being supplied stocks from the distribution center, Under continuous review policy, the distribution center places an order for planned order quantity to an outside supplier, and the order quantity is received after a certain lead time. Also, each branch places an order for particular quantity to its distribution center, and receives the order quantity after a lead time. In most practical distribution environment, demands and lead times are generally not fixed or constant, but variable. And these variabilities make the analysis more complicated. Thus, the main objective of this research is to suggest a method to compute the service level at each depot, that is, the distribution center and each branch with variable demands and variable lead times. Further, the model will give an idea to keep the proper level of safety stocks that can attain effective or expected service level for each depot.

• 대한안전경영과학회지
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• 제8권2호
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• pp.115-128
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• 2006

The study analyzes those relations of customer service level of each sales branch, level of cooperations among branches, and overall system-wide service level for an item. Under the continuous review method, each sales branch places an order to the outside supplier, and the each branch receives the order quantity after elapsing a certain lead time. Under these circumstances, those branches with stockout condition may be supplied by other branches with keeping stocks to cover the shortages. This policy generally increases the system-wide customer service level for an item throughout cooperations for the safety plan among branches. Therefore, in the context of inventory policy, the decision rules to determine the proper branch levels of service and cooperation levels of service are important goals in terms of attaining desired system-wide service level. This research has suggested the method and procedure to reach above goals.

• 대한안전경영과학회지
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• 제9권4호
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• pp.121-127
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• 2007

CSP(Concurrent Spare Parts) is supplied with the procurement of new equipment or weapon system and is used to sustain the equipment without resupply during the initial coverage period. This study is concerned with a problem of determining the near optimal inventory level of the spare parts, especially Concurrent Spare Parts. For this, we utilize the mixed periodic and continuous review polices considering the CSP and (r,Q) Policies concurrently in a two-echelon distribution system. We propose the mathematical model to minimize the total cost which is composed with ordering cost, purchasing cost, holding cost, and stickout cost. If the mixed policy is compared to other policies(CSP, (r,Q)), the proposed methodology performs well and is best policy in the equipment maintenance expenses.

• 산업경영시스템학회지
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• 제38권4호
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• pp.98-108
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• 2015

This paper introduces the existence of purchase dependence that was identified during the analysis of inventory operations practice at a sales agency of dealing with spare parts for ship engines and generators. Purchase dependence is an important factor in designing an inventory replenishment policy. However, it has remained mostly unaddressed. Purchase dependence is different from demand dependence. Purchase dependence deals with the purchase behavior of customers, whereas demand dependence deals with the relationship between item-demands. In order to deal with purchase dependence in inventory operations practice, this paper proposes (Q, r) models with the consideration of purchase dependence. Through a computer simulation experiment, this paper compares performance of the proposed (Q, r) models to that of a (Q, r) model ignoring purchase dependence. The simulation experiment is conducted for two cases : a case of using a lost sale cost and a case of using a service level. For a case of using a lost sale cost, this paper calculates an order quantity, Q and a reorder point, r using the iterative procedure. However, for a case of using a service level, it is not an easy task to find Q and r. The complexity stems from the interactions among inventory replenishment policies for items. Thus, this paper considers the genetic algorithm (GA) as an optimization method. The simulation results demonstrates that the proposed (Q, r) models incur less inventory operations cost (satisfies better service levels) than a (Q, r) model ignoring purchase dependence. As a result, the simulation results supports that it is important to consider purchase dependence in the inventory operations practice.