• Management Science and Financial Engineering
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• v.15 no.1
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• pp.1-31
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• 2009

This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

• Journal of the Korea Safety Management & Science
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• v.10 no.4
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• pp.181-187
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• 2008

The market of air cargo in Korea grows very quickly and diversifies. It is an essential factor in the process of development of Northeast-Asia as a hub for Air Cargo logistics. But the process of air cargo in Korea is complex as compared with other north-east asia nations and it has many problems and causes inconvenience to owners of freight. We emphasize that 4PL(Fourth party Logistics) is the excellent solution from among many alternatives. The wave of 4PL added to strategic consulting based on new IT techniques, for example RFID, with logistics outsourcing through existing 3PL service is a great issue. It is also worthy of notice that EPCglobal network strengthen the role of 4PL. In conclusion, the 4PL system based on EPCglobal network will result in a good success, so it will raise a prestige of air cargo in Korea to a higher position. This study deals with the new logistics system, air cargo logistics system based on u-4PL system, RFID and EPCglobal network, that will bring many advantages. At the end, we verify the u-4PL air cargo logistics system by simulation tool.

• International Commerce and Information Review
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• v.17 no.2
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• pp.253-284
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• 2015

More manufacturing companies tend to outsource their logistics functions to logistics service providers to ensure their own competitiveness than before. This paper investigates the differences between customer perceptions and expectations on three key logistics outsourcing decisions. For testing logistics service qualities, a research model which employs a SERVQUAL model was developed and a survey targeting manufacturing companies has been conducted. The average difference of logistics service level between customer perceptions and expectations was derived as 8% from a result of gap analyses. The findings here reveal the level of service quality of Korean logistics service providers as well as suggest core capabilities for them in order for gaining a competitive edge on the competitors and improving their performances.

• International Commerce and Information Review
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• v.15 no.1
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• pp.35-65
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• 2013

In December 2012, the Ministry of Land, Transport and Maritime Affairs and Ministry of Knowledge Economy held a commission and distributed a standardized logistics contract between the shipper and the logistics companies in order to spread and to promote contract standardization. With such background in place, this study examines the leading research on different types and attributions in present logistics contracts in order to propose guidelines for creating contract clauses that would lead to a win-win relationship among the parties involved in the logistics outsourcing relationships. This study further compares and contrasts the concreteness of local and international logistics contracts through case studies, and provides practical thought-provoking points on concretization of clauses on potential risks and additional expenses for local logistics companies when signing logistics contracts. Firstly, the composition and contents of both local and international logistics contracts are similar in the way that both deal with the basic principles between the concerned parties such as the following: contract terms, validity, scope of work, operational procedures, payment terms, and dispute resolutions. Secondly, for flexibility of potential dispute resolution, both logistics contracts define the definition of dispute and follow the classical contractual approach of dispute resolution through third-party arbitration. Thirdly, compared to local contracts, international logistics contracts provide more concretized and specific clauses on the occurrence of potential risks and hazards; on the other hand, compared to international logistics contracts, it seemed that local contracts contained more clauses in favor of the shipper. This research then suggests ideas to eliminate the classic tradition - logistics companies enduring the damages that occur as a result of the structural differences between the shipper and the logistics companies - through efforts to actively negotiate in advance the predictable problems and risks and by reflecting the mutually agreed points in the contract, and further offers guidelines on contract concretization for distribution of standardized logistics contracts in the future.

• Journal of Korea Port Economic Association
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• v.18 no.2
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• pp.65-90
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• 2002

Despite the importance and necessity, the 3PL has not been activated to date. Among many views, customers claim that logistics service provider(LSP) are not prepared or capable of offering satisfactory 3PL services, while LSP emphasize the lack of mutual trust, closed corporate culture of the customer and excessive demand for reducing the costs. With this keeping in mind, it surveyed difference of perception between users and providers of 3PL services in terms of the actual status of using 3PL services, the degree of satisfaction and key factors for selecting 3PL provider through the questionnaire. As shown in this study, 43.3％ of the respondents outsourced logistics services. However, Most company outsourced only inland transportation (49.5％) which is a simple and limited scope of 3PL services, but it also indicated that the percentage of users have ranged was less then 10% in outsourcing their whole logistics sector to 3PL provider and employing other logistics functions. Among respondents, a majority of the service provider stated that they offered satisfactory cost-saving to the customers, while users felt that the degree of satisfaction for using 3PL services was evaluated as at an average level and they more highly regarded the strong partnership of their 3PL provider rather than the saving of cost and improvement of customer's services. Moreover, in contrast to the 3PL providers which regard the most important factor for selecting 3PL service provider is the logistics cost quoted, users of 3PL services felt that the quality of services was more significant than the reduction of cost, and this tendency for selecting 3PL providers was shown in more advanced countries. While users of 3PL services indicated that the main reason for not using 3PL services was to avoid disclosing information of their business and it costs much for employing 3PL providers than doing themselves, 3PL providers thought it was due to reluctancy of opening information and resistance from the logistics division engaged in logistics activities concerned. Accordingly, providers and users of 3PL services should trust each other and prepare plan to activate 3PL services under the collaborative relationships as soon as possible.

• International Commerce and Information Review
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• v.14 no.3
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• pp.281-306
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• 2012

Global competition has resulted in companies' expectations to heighten competitiveness and enhance customer service through ownership companies' reduced investment on logistics costs, in turn focusing on the development of core competence, in addition to logistics companies' increased tendencies to satisfy customers' needs and requirements through logistics outsourcing. However, a partial perspective of the logistics contract exists due to its flexible characteristic in order to act accordingly in times of sudden changes and uncertainty. Therefore, this study is designed to test through a survey the standard of desired format of logistics contract in comparison to the currently existing format based on the results of researcher's previous study on the specific clauses in the logistics contract and its effect on the logistics outcome. A hypothesis has been designed to test the differences of perspective between two test groups, and a t-test &IPA (Importance-Performance Analysis) was performed. As a result, firstly, there was a significant difference of perspective between the ownership companies and logistics companies when dealing with the logistics contract; secondly, a significant difference of perspective was also expressed between the two groups on how to guide and re-direct the present standard of logistics contract. In addition, the two groups also showed a difference of expectations between the current and future service standard. Therefore, this study is designed to specify the difference of perspective and expectations between the ownership companies and the logistics companies in order to provide a gateway for the two groups in order to further develop and enhance the field of logistics.

• IE interfaces
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• v.17 no.1
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• pp.71-77
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• 2004

At the present time, container transportation plays a key role in the international logistics and the efforts to increase the productivity of container logistics become essential for Korean trucking companies to survive in the domestic as well as global competition. This study suggests an approach for determining fleet size for container road transportation with dynamic demand. Usually the vehicles operated by the transportation trucking companies in Korea can be classified into three types depending on the ways how their expenses occur; company-owned truck, mandated truck which is owned by outsider who entrust the company with its operation, and rented vehicle (outsourcing). Annually the trucking companies should decide how many company-owned and mandated trucks will be operated considering vehicle types and the transportation demands. With the forecasted monthly data for the volume of containers to be transported a year, a heuristic algorithm using tabu search is developed to determine the number of company-owned trucks, mandated trucks, and rented trucks in order to minimize the expected annual operating cost. The idea of the algorithm is based on both the aggregate production planning (APP) and the pickup-and-delivery problem (PDP). Finally the algorithm is tested for the problem how the trucking company determines the fleet size for transporting containers.

• East Asian Journal of Business Economics (EAJBE)
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• v.11 no.2
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• pp.39-57
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• 2023

Purpose - This paper is to examine the work of a third party in the process of import and export management. In other words, the purpose of this paper is investigate the status and functional role of a third party in relation to each terms of the trade contract. Research design, data, methodology - This study consists of 5 chapters through literature survey. It will examine the involvement of the third party through each terms. Chapter 1 introduction, Chapter 2 deals with trade contracts, Chapter 3 investigates the shipping terms, payment terms, and insurance terms, and Chapter 4 reviews with commercial arbitration. And in Chapter 5, it looks at the conclusion and implications. Results - The relevant party in the import and export management process may be a third party through outsourcing, not the principal. At this time, in fulfilling each condition of trade, it can be seen that the implementation of tasks through the participation of a third party with high expertise can more smoothly and productively implement the overall import and export management. Therefore, it can be seen that the implementation of the trade business in which the third party participated can be interpreted in terms of derivative effects and at the same time can be a way to improve the principal's competitiveness procedurally. Conclusions -Through this study, in the import and export management, the performance of the work through the agent makes the entire process more smooth and efficient. Outsourcing of roles using the expertise of a third party, a subcontractor rather than a principal, is desirable and important.

• Korea Journal of Hospital Management
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• v.28 no.1
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• pp.1-13
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• 2023

Purpose: This study purposed to analyze the economic feasibility of introducing a third party logistics system as a strategic alternative to hospital management. Methods: Economic analysis was performed by measuring changes in costs and benefits before and after implement the third party logistics system and estimating the size of net benefits for the next five years for the target hospital. A questionnaire survey and in-depth interview with stake-holders were conducted to find out the satisfaction and effectiveness of the system. Findings: According to results, the cost-benefit ratio for the implementation of the system was 1.18. For the next five years, the cost-benefit ratio was 1.48, the net present value was about 1.7 billion won, and the internal rate of return was 64%. The satisfaction of internal stake-holders was relatively high, in terms of improving the concentration of unique tasks and increasing the efficiency of inventory management. Practical Implications: It was found that the increase in benefits had a greater effect on the change in the cost-benefit ratio than the increase in costs resulting from the expansion of logistics, and the increase in the present value of net benefits gradually decreased as the cost increased. In addition, overall job satisfaction and satisfaction with outsourcing companies were relatively low, which means that stabilization of the new system is important. Further study is needed for more accurate economic analysis.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.12
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• pp.417-425
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• 2020

Recently, the development of weapons systems in conjunction with the Fourth Industrial Revolution has increased the number of weapon systems that integrate individual commercial systems by actively incorporating the superior fields of private commercial technologies. In the case of such commercial product-based weapons systems, however, the development of ILS elements across all areas, such as technical manual, military field maintenance support equipment, interactive electronic technical manual (IETM), and Computer Based Training (CBT) development, and weapons system Reliability, Availability, Maintainability(RAM) target values, and logistics support analysis (LSA) was requested to expand the level of development by developers. The commercial product-based System Integration (SI) weapon system will be able to complete the comprehensive military balance for complementing and effective maintenance of the military and developers only when the ILS development, which is limited to the essential elements of the required group, Request For Proposal (RFP) and Post-Logistics Support (PLS) directions were applied in the framework of outsourcing maintenance implementation. As a result, by checking the operation status of current weapons systems, the logistics support of commercial product-based weapon systems selected outsourcing as the basic policy that is decided based on the development requirements, focusing on maintaining operation through a rational decision-making process, and presented a plan for applying the development plan to the RFP for the determined core elements and PLS.