• Title/Summary/Keyword: Expected Total Cost

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Determination of Safety Stock in a Multi-Echelon Inventory System (다단계 재고 시스템의 안전재고의 결정)

  • ;;Kim, J. J.;Shim, J. H.
    • Journal of the Korean Operations Research and Management Science Society
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    • v.15 no.1
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    • pp.63-72
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    • 1990
  • This problem in this paper concerns the determination of safety stock for multi-echelon invenetory system. In this model the criterion is to minimize system safety stock subject to a service level constraint and expected annual total cost. Then, safety stock is determined by minimizing expected annual total cost and satisfying given service level. This expected annual total cost is obtained by expected total inventory holding cost plus the expected total stockout cost. Numerical example is given in a three-echelon inventory system. The results obtained by the use of the Hill Algorithm.

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Minimum Expected Cost based Design of Vertical Drain Systems (최소기대비용에 의한 연직배수시설의 설계)

  • Kim, Seong-Pil;Son, Young-Hwan;Chang, Pyung-Wook
    • Journal of The Korean Society of Agricultural Engineers
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    • v.49 no.6
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    • pp.93-101
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    • 2007
  • In general, geotechnical properties have many uncertain aspects, thus probabilistic analysis have been used to consider these aspects. It is, however, quite difficult to select an appropriate target probability for a certain structure or construction process. In this study, minimum expected cost design method based on probabilistic analysis is suggested for design of vertical drains generally used to accelerate consolidation in soft clayey soils. A sensitivity analysis is performed to select the most important uncertain parameters for the design of vertical drains. Monte Carlo simulation is used in sensitivity analysis and probabilistic analysis. Total expected cost, defined as the sum of initial cost and expected additive cost, varies widely with variation of input parameters used in design of vertical drain systems. And probability of failure to get the minimum total expected cost varies under the different design conditions. A minimum value of total expected cost is suggested as a design value in this study. The proposed design concept is applicable to unit construction process because this approach is to consider the uncertainties using probabilistic analysis and uncertainties of geotechnical properties.

Economic Design of Tool Resetting Period in NC Machining (NC 선반가공에서 공구 조정주기의 경제적 설계)

  • 배문택;윤원영;목학수
    • Journal of the Korean Society for Precision Engineering
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    • v.15 no.6
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    • pp.33-39
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    • 1998
  • This paper is related to economic design of tool-resetting period in NC machining. In NC lathe machining, the mean and variance of components dimension fluctuate in slow time and we should reset tool program to compensate the variation from the fluctuation. In this paper. we propose the procedure determining the optimal resetting period based on the total expected operating cost which consists of resetting cost and the quality cost related to dimension variation. As a case study, using experimental data about dimension changes of a lathe machining, we obtain the regression equations of mean and variance of the dimension fluctuation, total expected operating cost, and optimal resetting period.

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Designing an Inventory Model of Parallel-Type Distribution System

  • Kwon, Hee Chul;Kim, Man Shik
    • Journal of Korean Society for Quality Management
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    • v.17 no.1
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    • pp.11-18
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    • 1989
  • A one-upper level warehouse n-Iower level retailer inventory distribution model is discussed. This paper presents the parallel-type inventory structure using an order-up-to-level invertory control system for analyzing the approximation of the expected units back ordered and the measure of service. We find that the total expected backorder units in system can substitute the expected back orders in the last two periods for the expected back orders in total periods. The rate of total expected back orders which is the measure of disservice, is given by dividing the improved units of total expected backorder into the total demand during an order cycle. The average annual total cost in system is obtained by considering the results, but from the viewpoint of this study the cost analysis is not described.

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Cost Analysis Model with Minimal Repair of New Unit Repair Policy under Periodic Maintenance Policy (정기보전 제도에서 응급수리를 고려한 신제품 수리정책에서의 비용분석 모델)

  • Kim, Jae-Joong
    • Journal of Applied Reliability
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    • v.6 no.3
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    • pp.195-203
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    • 2006
  • This paper deals with cost analysis model in periodic maintenance policy. The repair policy with minimal repair is considered as follow : as the occurrence of failure between minimal repair and periodic interval time, unit is replaced by a new unit before the periodic maintenance time comes. Then total expected cost per unit time is calculated according to time delta t in a view of customer's. The total expected costs are included repair and usage cost : operating, fixed, minimal repair, periodic maintenance and new unit expected cost. Numerical example is shown in which failure time of item has Normal distribution.

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Preventive maintenance policy following the expiration of replacement-repair warranty (교체-수리보증이 종료된 이후의 예방보전정책)

  • Jung, Ki-Mun
    • Journal of Applied Reliability
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    • v.12 no.2
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    • pp.57-66
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    • 2012
  • In this paper, we consider the periodic preventive maintenance model for a repairable system following the expiration of replacement-repair warranty. Under this preventive maintenance model, we derive the expressions for the expected cycle length, the expected total cost and the expected cost rate per unit time. Also, we determine the optimal preventive maintenance period and the optimal preventive maintenance number by minimizing the expected cost rate per unit time. Finally, the optimal periodic preventive maintenance policy is given for Weibull distribution case.

Optimal replacement strategy under repair warranty with age-dependent minimal repair cost

  • Jung, K.M.
    • International Journal of Reliability and Applications
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    • v.12 no.2
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    • pp.117-122
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    • 2011
  • In this paper, we suggest the optimal replacement policy following the expiration of repair warranty when the cost of minimal repair depends on the age of system. To do so, we first explain the replacement model under repair warranty. And then the optimal replacement policy following the expiration of repair warranty is discussed from the user's point of view. The criterion used to determine the optimality of the replacement model is the expected cost rate per unit time, which is obtained from the expected cycle length and the expected total cost for our replacement model. The numerical examples are given for illustrative purpose.

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Optimum Safety Indices Based On Expected Total Cost Minimization (총기대비용 최소화원칙에 의한 최적신뢰성지수)

  • 이증빈;신형우;장석모
    • Proceedings of the Computational Structural Engineering Institute Conference
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    • 1993.10a
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    • pp.216-223
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    • 1993
  • The safety factors of current standard code are considered to be not appropriate compared to design and construction practices, even this safety factors are not determined from probabilistic study but merely from experiences and practices. This study pripose the optimum safety indices based on expected total cost minimization using only three parameters, which are the level of the failure cost to the initial cost by improvement in safety, and the order of the initial cost function.

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Optimal Burn-In under Warranty

  • Kim, Kuinam-J;Park, Chi-Yeon
    • Journal of the Korea Safety Management & Science
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    • v.1 no.1
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    • pp.135-143
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    • 1999
  • This paper discusses an optimal burn-in procedure to minimize total costs based on the assumption that the failure rate pattern follows a bimodal mixed Weibull distribution. The procedure will consider warranty period as a factor of the total expected bum-in cost. A cost model is formulated to find the optimal burn-in time that minimizes the expected burn-in cost. Conditional reliability for warranty period will be discussed. An illustrative example is included to show how to use the cost model in practice.

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Optimal Burn-In under Waranty

  • Kim, Kui-Nam;Lee, Kwang-Ho
    • Communications for Statistical Applications and Methods
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    • v.6 no.3
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    • pp.719-728
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    • 1999
  • This paper discusses an optimal burn-in procedure to minimize total costs based on the assumption that the failure rate pattern follows a bimodal mixed Weibull distribution. The procedure will consider warranty period as a factor of the total expected burn-in cost. A cost model is formulated to find the optimal burn-in time that minimizes the expected burn-in cost. Conditional reliability for warranty period will be discussed. An illustrative example is included to show how to use the cost model in prctice.

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