• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.1
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• pp.165-171
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• 2014

We develop an optimization algorithm for a periodic review inventory system under a stochastic budget constraint. While most conventional studies on the periodic review inventory system consider a simple budget limit in terms of the inventory investment being less than a fixed budget, this study adopts more realistic assumption in that purchasing costs are paid at the time an order is arrived. Therefore, probability is employed to express the budget constraint. That is, the probability of total inventory investment to be less than budget must be greater than a certain value assuming that purchasing costs are paid at the time an order is arrived. We express the budget constraint in terms of the Lagrange multiplier and suggest a numerical method to obtain optional values of the cycle time and the safety factor to the system. We also perform the sensitivity analysis in order to investigate the dependence of important quantities on the budget constraint. We find that, as the amount of budget increases, the cycle time and the average inventory level increase, whereas the Lagrange multiplier decreases. In addition, as budget increases, the safety factor increases and reaches to a certain level. In particular, we derive the condition for the maximum safety factor.

• Journal of Climate Change Research
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• v.7 no.4
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• pp.485-492
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• 2016

For reporting national greenhouse gas inventory in forest sector, the forest growing stock from the National Forest Inventory (NFI) system has used as activity data sources. The National Forest Inventory system was changed from rotation system by province to annual system by 5 years across the country. The forest growing stocks based on the new inventory system produced a different trend compared to the previous estimations. This study was implemented to recalculate previous forest growing stocks for time series consistency at a national level. The recalculation of forest growing stock was conducted in an overlap approach by the IPCC guideline. In order to support the more consistency data, we used calibration factors between applied stand volumes in 1985 and 2012, respectively. As a result, the time series of recalculated forest growing stock was to be consistency using the overlap approach and the calibration factor with the lower middle/middle site index. According to the applied overlap period, however, we will recalculate activity data using more complete data from national forest inventory system.

• Journal of the Korean Operations Research and Management Science Society
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• v.25 no.4
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• pp.27-44
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• 2000

In this study we consider a spares provisioning problem for repairable items in which a parts inventory system is incorporated. If a machine fails, a replacement part must be obtained at the parts inventory system before the failed machine enters the repair center. The inventory policy adopted at the parts inventory system is the (S, Q) policy. Operating times of the machine before failure, ordering lead times and repair times are assumed to follow a two-stage Coxian distribution. For this system, we develop an approximation method to obtain the performance measures such as steady state probabilities of the number of machines at each station and the probability that a part will wait at the parts inventory system. For the analysis of the proposed system, we model the system as a closed queueing network and analyze it using a product-form approximation method. A recursive technique as well as an iterative procedure is used to analyze the sub-network. Numerical tests show that the approximation method provides fairly good estimation of the performance measures of interest.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.3
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• pp.226-232
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• 2001

This paper presents an efficient method for the problem of determining the spare inventory level of a multi-echelon repairable-item inventory system. We consider the system with two levels of inventory, two levels of service and with a general service time distribution. We propose an algorithm that determines the spare inventory level to satisfy the minimum fill rate with the minimum cost. Experimental results show that the algorithm is accurate and efficient.

• Journal of the Korean Operations Research and Management Science Society
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• v.3 no.1
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• pp.69-73
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• 1978

This paper deals with the problem of determining the optimal inventory-transportation policy of the idealistically simple inventory-transportation system with the following assumptions: (1) The system consists of a single central warehouse and a single local warehouse, (2) The planning horizon is finite, (3) Demand rate is fixed costant, and so forth. Developed is the algorithm by which to identify the optimal inventory policy which minimizes the total cost incurred to the system over the given finite planning horizon. A sample numerical example is presented along with a discussion of the possible applications of the approach used n the algorithm.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.19 no.38
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• pp.77-83
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• 1996

The design of multi -echelon distribution system is need for appropriate inventory control strategy considering for systematic tradeoff between trunk cost in central warehouse and inventory cost in regional warehouse. This study presents a method of the efficient inventory control of multi-echelon distribution system through partial leadtime management.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.21 no.48
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• pp.15-23
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• 1998

This paper concerns the problem of determining the spare inventory level for multi-echelon repairable-item inventory system with finite number of operating items. We consider the system which has several bases and a central depot. When an item fails, it is dispatched to a repair facility and, a spare, if available, is plugged in immediately. When the failed item is repaired, it is sent to the base and either is used to fill a backorder or is stored at a spare inventory point. Using queueing network, we develop an algorithm to find the spare inventory level which minimizes the total expected cost and, simultaneously, satisfies a specified minimum fill rate. The results of the algorithm clearly indicate that the algorithm successfully generate output with optimal solution.

• IE interfaces
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• v.21 no.3
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• pp.343-353
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• 2008

Vendor-managed inventory(VMI) is a supply chain strategy to improve the inventory turnover and customer service in supply chain management. Unfortunately, many VMI programs fail because they simply transfer the transactional aspects of placing replenishment orders from customer to vendor. In fact, such VMI programs often degrade supply chain performance because vendors lack capability to plan the VMI operations effectively in an integrated way under the dynamic, complex, and stochastic VMI supply chain environment. This paper presents a decision support system, termed DSSV, for VMI in the retail supply chain. DSSV supports the market forecasting, vendor's production planning, retailer's inventory replenishment planning, vehicle routing, determination of the system operating parameter values, retailer's purchase price decision, and what-if analysis. The potential benefits of DSSV include the provision of guidance, solution, and simulation environment for enterprises to reduce risks for their VMI supply chain operations.

• Journal of the Korean Data and Information Science Society
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• v.10 no.1
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• pp.271-277
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• 1999

In this paper, a case study is introduced on the development of an inventory management system for the textile industry. For the low-cost and high-efficient production, a systematic management is needed from make-to-order to delivery. In this paper, an integrated inventory management system for the D company is developed to manage the whole information related with make-to-order, production, delivery, and inventory, and so forth.

• Korean Management Science Review
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• v.31 no.2
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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.