• Title/Summary/Keyword: Industrial Customer Costs

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Vehicle Routing Problem Using Parallel Genetic Algorithm (병렬 유전자 알고리즘을 이용한 차량경로문제에 관한 연구)

  • Yoo, Yoong-Seok;Ro, In-Kyu
    • Journal of Korean Institute of Industrial Engineers
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    • v.25 no.4
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    • pp.490-499
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    • 1999
  • Vehicle routing problem(VRP) is known to be NP-hard problem, and good heuristic algorithm needs to be developed. To develop a heuristic algorithm for the VRP, this study suggests a parallel genetic algorithm(PGA), which determines each vehicle route in order to minimize the transportation costs. The PGA developed in this study uses two dimensional array chromosomes, which rows represent each vehicle route. The PGA uses new genetic operators. New mutation operator is composed of internal and external operators. internal mutation swaps customer locations within a vehicle routing, and external mutation swaps customer locations between vehicles. Ten problems were solved using this algorithm and showed good results in a relatively short time.

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A case study of designing the COPQ dashboard (COPQ dashboard 개발 사례)

  • Do Gi-Yeong;Heo Won-Seok;Kim Dong-Jun;Jang Jung-Sun
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.35-38
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    • 2004
  • Global competitive pressures are asking industrial companies to find the best way to meet their customer's requirements, reduce the costs of products, and increase productivity. Quality improvement has been proposed and implemented as a primary means of achieving these purposes. The quality improvement usually includes a goal of reducing the costs due to poor quality. While these costs of poor quality (COPQ) are not known precisely, they are known to be very high. Also, they may be underestimated by the hidden costs due to non-value activities, such as potential lost sales, costs of redesign due to quality reasons, and extra manufacturing costs due to defects, etc. In any manufacturing or service operation, all actions and resource expenditures of a company should be focused on creating value for customers. Any activity or resource of not creating the value for customers could be regarded as waste, which consequently causes the COPQ. Some companies did use dashboards to understand and identify value added or non-value added activities in order to reduce or eliminate wastes. These dashboards must be properly designed to consider inherent differences in manufacturing or service operations among business organizations. In addition, a structured quality improvement program such as the Six Sigma must support these dashboards. In this paper, a case study of designing dashboards for evaluating and reporting the COPQ in business units is presented.

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A Branch-and-price Approach to the ATM Switching Node Location Problem

  • Kim, Deokseong;Park, Sunsoo;Lee, Kyungsik;Park, Kyungchul
    • Industrial Engineering and Management Systems
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    • v.3 no.2
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    • pp.92-99
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    • 2004
  • We consider the ATM switching node location problem (ANLP). In this problem, there are two kinds of facilities, hub facilities and remote facilities, with different capacities and installation costs. We are given a set of customers with each demand requirements, a set of candidate installation sites of facilities, and connection costs between facilities. We need to determine the locations to place facilities, the number of facilities for each selected location, the set of customers who are connected to each installed hub via installed remote facilities with minimum cost, while satisfying demand requirements of each customer. We formulate this problem as a general integer programming problem and solve it to optimality. In this paper, we present a preprocessing procedure to tighten the formulation and develop a branch-and-price algorithm. In the algorithm, we consider the integer knapsack problem as the column generation problem. Computational experiments show that the algorithm gives optimal solutions in a reasonable time.

Analysis of the Recall Demand Pattern of Imported Cars and Application of ARIMA Demand Forecasting Model (수입자동차 리콜 수요패턴 분석과 ARIMA 수요 예측모형의 적용)

  • Jeong, Sangcheon;Park, Sohyun;Kim, Seungchul
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.43 no.4
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    • pp.93-106
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    • 2020
  • This research explores how imported automobile companies can develop their strategies to improve the outcome of their recalls. For this, the researchers analyzed patterns of recall demand, classified recall types based on the demand patterns and examined response strategies, considering plans on how to procure parts and induce customers to visit workshops, recall execution capacity and costs. As a result, recalls are classified into four types: U-type, reverse U-type, L- type and reverse L-type. Also, as determinants of the types, the following factors are further categorized into four types and 12 sub-types of recalls: the height of maximum demand, which indicates the volatility of recall demand; the number of peaks, which are the patterns of demand variations; and the tail length of the demand curve, which indicates the speed of recalls. The classification resulted in the following: L-type, or customer-driven recall, is the most common type of recalls, taking up 25 out of the total 36 cases, followed by five U-type, four reverse L-type, and two reverse U-type cases. Prior studies show that the types of recalls are determined by factors influencing recall execution rates: severity, the number of cars to be recalled, recall execution rate, government policies, time since model launch, and recall costs, etc. As a component demand forecast model for automobile recalls, this study estimated the ARIMA model. ARIMA models were shown in three models: ARIMA (1,0,0), ARIMA (0,0,1) and ARIMA (0,0,0). These all three ARIMA models appear to be significant for all recall patterns, indicating that the ARIMA model is very valid as a predictive model for car recall patterns. Based on the classification of recall types, we drew some strategic implications for recall response according to types of recalls. The conclusion section of this research suggests the implications for several aspects: how to improve the recall outcome (execution rate), customer satisfaction, brand image, recall costs, and response to the regulatory authority.

Automation Development in Water and Wastewater Systems

  • Olsson, Gustaf
    • Environmental Engineering Research
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    • v.12 no.5
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    • pp.197-200
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    • 2007
  • Advanced control is getting increasingly demanded in water and wastewater treatment systems. Various case studies have shown significant savings in operating costs, including energy costs, and remarkably short payback times. It has been demonstrated that instrumentation, control and automation (ICA) may increase the capacity of biological nutrient removing wastewater treatment plants by 10-30% today. With further understanding and exploitation of the mechanisms involved in biological nutrient removal the improvements due to ICA may reach another 20-50% of the total system investments within the next 10-20 years. Disturbances are the reason for control of any system. In a wastewater treatment system they are mostly related to the load variations, but many disturbances are created also within the plant. In water supply systems some of the major disturbances are related the customer demand as well as to leakages or bursts in the pipelines or the distribution networks. Hardly any system operates in steady state but is more or less in a transient state all the time. Water and energy are closely related. The role of energy in water and wastewater operations is discussed. With increasing energy costs and the threatening climate changes this issue will grow in importance.

A Computation Model of the Quantity Supplied to Optimize Inventory Costs for Fast Fashion Industry (패스트 패션의 재고비용 최적화를 위한 상품공급 물량 산정 모델)

  • Park, Hyun-Sung;Park, Kwang-Ho;Kim, Tai-Young
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.35 no.1
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    • pp.66-78
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    • 2012
  • This paper proposes a computation model of the quantity supplied to optimize inventory costs for the fast fashion. The model is based on a forecasting, a store and production capacity, an assortment planning and quick response model for fast fashion retailers, respectively. It is critical to develop a standardized business process and mathematical model to respond market trends and customer requirements in the fast fashion industry. Thus, we define a product supply model that consists of forecasting, assortment plan, store capacity plan based on the visual merchandising, and production capacity plan considering quick response of the fast fashion retailers. For the forecasting, the decomposition method and multiple regression model are applied. In order to optimize inventory costs. A heuristic algorithm for the quantity supplied is designed based on the assortment plan, store capacity plan and production capacity plan. It is shown that the heuristic algorithm produces a feasible solution which outperforms the average inventory cost of a global fast fashion company.

Evaluation of Reliability and Interruption Cost of Distribution Power System in Industrial Complex (산업단지내 배전계통의 공급신뢰도 및 정전비용 평가)

  • Choi, Sang-Bong;Nam, Ki-Young;Kim, Dae-Kyeong;Jeong, Seong-Hwan;Rhoo, Hee-Seok;Lee, Jae-Duk
    • Proceedings of the KIEE Conference
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    • 2006.07a
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    • pp.95-96
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    • 2006
  • As the power industry moves towards open competition, there has been a call for methodology to evaluate distribution power system reliability by using customer interruption costs. Accordingly, it is increased for methodology to evaluate distribution power system reliability in power supply zones under competitive electricity market. This paper presents algorithm to evaluate system average interruption duration index. expected energy not supplied and system outage cost taking Into consideration failure rate of distribution facility and industrial customer interruption cost. Also, to apply this algorithm to evaluate system outage cost presented in this paper, distribution system of a dual supply system consisting of mostly high voltage customers in industrial complex in Korea is used as a sample case study. Finally, evaluation results of system interruption cost, system average interruption duration index and expected energy not supplied in sample industrial complex area are shown in detail.

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Item Replacement Policy with Minimal Repair in Stepdown Warranty Model

  • Jae Joong, Kim;Won Joong, Kim
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.18 no.33
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    • pp.87-92
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    • 1995
  • This paper proposes age replacement policy in stepdown warranty policy. The replacement policy is considered in case of minimally repairable items. And renewal theory is used in analyzing warranty costs. The expected cost per unit time is presented in stepdown warranty policy, free replacement, prorata and hybrid policy. In this article it is assumed that item is replaced at the age of T but the any failure is minimally repaired before the age T. At this point the expected cost per unit time is shown in customer's view point. And numerical example is explored in weibull time-to-failure distribution.

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Study on the Guided Tabu Search for the Vehicle Routing Problem (차량경로 문제에 대한 Guided Tabu 검색)

  • Lee, Seung-Woo;Lee, Hwa-Ki
    • Journal of the Korea Safety Management & Science
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    • v.10 no.1
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    • pp.145-153
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    • 2008
  • The vehicle routing problem determines each vehicle routes to find the transportation costs, subject to meeting the customer demands of all delivery points in geography. Vehicle routing problem is known to be NP-hard, and it needs a lot of computing time to get the optimal solution, so that heuristics are more frequently developed than optimal algorithms. This study aims to develop a heuristic method which combines guided local search with a tabu search in order to minimize the transportation costs for the vehicle routing assignment and uses ILOG programming library to solve. The computational tests were performed using the benchmark problems. And computational experiments on these instances show that the proposed heuristic yields better results than the simple tabu search does.

Development of Optimal Design System for AS/RS with Different Sized Cells Using Expert Systems and Mathematical Models (전문가시스템과 수리모델을 이용한 이형랙을 가진 자동창고 최적 설계 시스템 개발)

  • Lee, Young-Hae;Jun, Seong-Jin
    • IE interfaces
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    • v.12 no.2
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    • pp.237-246
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    • 1999
  • The Automated Storage/Retrieval System(AS/RS) is very expensive to be built. But there are few tools available which can be used to design the storage systems optimally considering overall system building costs and constraints. In this paper, we propose a design support system for optimal design of AS/RS which includes different sized cells using expert systems and mathematical models considering customer's demands. The optimization models are to be used to minimize the total cost including building, equipment and operation costs. Expert system technique is utilized for using the experiences of skilled designers. By using the proposed system, AS/RS can be designed accurately, economically and efficiently.

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