• Title/Summary/Keyword: Demand management policy

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Analysis of Safety Stock and Service Level For an Distribution Center with Variable Demand Variable Lead Time Model (수요 및 조달기간의 변동을 고려한 물류 센터의 안전재고와 서비스수준 분석)

  • 박명규;조용욱
    • Journal of the Korea Safety Management & Science
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    • v.3 no.3
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    • pp.65-75
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    • 2001
  • 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.

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A Study on the Operation of Physical Distribution System with the Allocation of Safety Stock (안전재고입지를 고려한 물적 분배시스템 운영에 관한 연구)

  • 김병찬;김형준
    • Journal of the Korea Safety Management & Science
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    • v.3 no.3
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    • pp.77-86
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    • 2001
  • An operational strategy for inventory control on finished goods in the distribution system has been given attention to many enterprises and many studies regarding this field have been done and is also on-going currently. Many of these studies represented a large scale distribution network with a unified formulation by using defined symbols. These methods have provided the systematic approach of the distribution network but they are impossible to applying the reality system due to not considering the service rate of demand and treating the shortage of inventory. In order to overcome these unrealistic problems, the novel safety stock policy of responding to customers' inventory distribution network is suggested. this paper explores the transportation between Central Distribution Center(CDC) and Regional Distribution Center(RDC). Especially, the relation of transportation cost between CDC and RDC and cost of inventory control according to safety inventory with service level are emphasized. We could obtain the good results of this study by determining the optimal safety stock considering the various variables and constraints.

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Optimal replacement of biomass for maximizing gas production

  • Lee, Hwa-Ki
    • Journal of the Korean Operations Research and Management Science Society
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    • v.10 no.2
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    • pp.54-64
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    • 1985
  • Biomass conversion processes have the potential for satisfying approximately 25% of the national demand for methane gas. At the current time very littel analytical work has been done to optimally design and operate the production facilities associated with these processes. This study was motivated by the high cost of these proposed systems. The biomass in storage decays (exponentially) with time while the batch methane production rate decreases (exponentially) over time. The basic problem is to determine the optimal residence times for batches in the anaerobic degester to maximize total production over a fixed planning horizon. The analysis characteries the form of the optimal policy and presents efficient algorithm for obtaining this solution.

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Analysis of Customer Arrival Process in an Appointment-Based Service System (예약기반 서비스 시스템에서의 고객 도착 프로세스 분석)

  • Min, Dai-Ki
    • Journal of the Korean Operations Research and Management Science Society
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    • v.37 no.2
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    • pp.31-43
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    • 2012
  • Delivery of a good quality of service in an efficient manner requires matching the supply of capacity with customer demand. Much research has employed queueing models that analyzed the service system on the basis of independent and stationary customer arrivals. However, the appointment system, which is widely used to facilitate customer access to service in many industries including healthcare, has significant influence on the customer arrival process so that the independent and stationary assumption does not hold in an appointment-based service system. In this regard, this paper aims to propose a model for accurate illustration of the appointment-based customer arrival process. The use of the proposed model allows us to evaluate the overall system performance such as mean waiting time and service level under various appointment policies instead of conducting simulation studies.

A study on the Entry Strategy of Chinese Distribution Market in Korean Company (한국 기업의 중국 유통시장의 진출 전략에 관한 연구)

  • Oh, Soo-Kyun
    • International Commerce and Information Review
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    • v.10 no.4
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    • pp.321-350
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    • 2008
  • The China has opened the distribution market completely since it joined the World Trade Organization on Dec 11 2001. The notable features of Chinese distribution market are the transition from the consumers' monolithic demand to diversification for the luxury goods, well-being products. The regional characteristics of consumers are smart, conservative, optimistic and advanced. and the open door policy has prompted the capitalistic economy gradually. We analyzed the Chinese distribution markets and came up with the following strategies. First, we recommend the setting of the key regional market not covering the whole chinese markets. then we can extend the main market step by step. Second, we need to cooperate and advance with the Korean distribution companies which entered into markets already. Third, we need to acquire the competitive and stable distribution channel in China. Fourth, we need to implement the localization strategy in terms of human resources and procurement. Fifth, the consignment management can be another strategy. I hope this research can be a little help to those who wish to expand to the Chinese markets.

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A Study on Iventory Model with Partial Backorders considering both Continuous Inflation Rate and Continuous Discount Rate (인플레이션율과 손해할인율을 고려한 부분재재고모형에 관한 연구)

  • ;;Choi, Gyu-Tag;Lee, Kang Woo
    • Journal of the Korean Operations Research and Management Science Society
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    • v.17 no.2
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    • pp.15-23
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    • 1992
  • This paper dvelops an inventory model with partial backorders considering both inflation rate and discount rate under the situation of deterministic demand and lead time and then make an economic analysis. Especially, the inventory model with partial backorders provided here is the inventory model minimizing annual total cash outflows, which is extended by the addition of inflation rate and discount rate into "Inventory Model with Partial Bakorders" of Park [6]. An iterative solution procedure is developed to find an optimal inventory policy. To provide guidelines for economic analysis of inventory model with partial backorders, sensitivity analysis for selected values of parameters is performed.performed.

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Price Competition in Horizontal and Vertical Differentiation : Focusing on the WiBro and HSDPA (수직적.수평적 차별화 시장에서의 서비스 요금전략 : 와이브로와 HSDPA 서비스를 중심으로)

  • Kim, Dow-Han
    • Korean Management Science Review
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    • v.26 no.3
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    • pp.67-78
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    • 2009
  • In this paper, I analyze the mobile broadband services market characterized by vertical and horizontal differentiation. Vertical differentiation as service quality differentiation is based on the transmission speed of mobile internet service and horizontal differentiation as spatial differentiation is based on the service coverage. Theoretical explanations for the competitive price policy have been developed in the game context of WiBro which represent the high quality within the limited service coverage and HSDPA which represent relatively low quality with nation-wide service. When the WiBro has a mobile broadband service quality advantage and the difference in quality is sufficiently low, the price of WiBro with limited service coverage is relatively lower than that of HSDPA. This occurs because the advantage of WiBro's vertical service differentiation is offset by the disadvantage of horizontal differentiation. The difference in the quality of mobile internet service, however, is not too high, the price of WiBro is relatively higher than that of HSDPA. Moreover, when the service quality of WiBro is sufficiently high, the low quality HSDPA service faces no demand.

A Study on the Optimization of Quality Cost for Product Liability (제품책임(製品責任)을 위한 품질비용(品質費用) 최적화(最適化)에 관한 연구(硏究))

  • Go, Bok-Su;Jo, Nam-Ho
    • Journal of Korean Society for Quality Management
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    • v.18 no.1
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    • pp.116-128
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    • 1990
  • Consumer's demand level for products and goods selection power is considerably improved. The pressure of loss compensation is also being accelerated by products which bring damage on property. The producer prevents the loss from causing poor products and considering the quality cost allotment in these circumstances. That is to say, producer should be concerned with the strategy of product liability prevention instead of passive defence policy. This paper intends to estabilish the optimum quality cost in considering product liability, and present the correlation of quality cost elements and multiple regression analysis. It can utilized in qualitycost and budget planning.

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Analysis of the Value of Yield Information under Periodic Review Inventory System (정기발주 재고모형에서 공급자 수율 정보 공유의 기대효과 분석)

  • Min, Dai-Ki
    • Journal of the Korean Operations Research and Management Science Society
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    • v.36 no.3
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    • pp.61-74
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    • 2011
  • The objective of this study is to evaluate the effects of sharing uncertain yield information with a downstream supply chain player. We are interested in understanding how the amount of yield uncertainty affects the supply-side benefits and/or costs, which has not been considered in the literature, in addition to the customer-side benefits. With that purpose, this work evaluates a supplier who provides yield information in comparison with another supplier who shares no information. We simulate an order-up-to type heuristic policy that is adapted from the literature and reasonably modified to represent yield information sharing with error. From the simulation study, we argue that the customer would experience cost reduction, but the cost for supplier's inventory is increasing when sharing yield information. Furthermore, the amount of benefits and costs are situational and affected by level of yield uncertainty and demand variance. Based on the simulation study, we finally make several recommendations for the supply-side approaches to yield information sharing.

Evaluation of Spatial Information Industry Using System Dynamics (시스템다이나믹스를 이용한 공간정보산업의 평가예측)

  • Choi, Ki-Youl;Cho, Won-Woo;Kim, Kam-Rae
    • Journal of the Korean Society of Surveying, Geodesy, Photogrammetry and Cartography
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    • v.28 no.5
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    • pp.515-522
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    • 2010
  • With the development of information technology, the demand on digitalized space information is being largely expanded in our society. Especially, the recency securing of material as well as various policy alternatives like expansion on an application scope are being required in the spatial information utilization field, such as efficient use and management of the land, various spatial plans, environment and disaster management, etc. The present research aims to suggest an evaluation model by applying the system dynamics theory for dynamic analysis on utilization of this spatial information.