• IE interfaces
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• v.13 no.3
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• pp.424-430
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• 2000

Supply chain management (SCM) is an area that has recently received a great deal of attention in the business community. While SCM is relatively new, the idea of coordinated planning is not. During the last decades, many researchers have investigated multi-stage inventory problems. However, only a few papers address the problem of cost-optimal coordination of multi-stage inventory control with respect to service measures. Even published approaches have a shortcoming in dealing with a delivery lead time consisted of a shipping time and a waiting time. Assumed that there is no waiting time, or that the delivery lead time is implicitly compounded of a shipping time and a waiting time, the problem is often simplified into a multi-stage buffer allocation and a single-stage stochastic buffer sizing problem at all installations. This paper presents a simulation-based heuristic algorithm and a comparison with others for the problem that cannot be decomposed into a multi-stage buffer allocation and a single-stage stochastic buffer sizing problem because the waiting time ties together all stages. The comparison shows that the simulation-based heuristic algorithm performs better than other approaches in saving average inventory cost for both Poisson and Normal demands.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.2
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• pp.246-253
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• 2007

All of the machines in a production line can be classified into bottleneck and non-bottleneck machines. A bottleneck is a resource whose capacity limits the throughput of the whole production facility. This paper addresses a batch sizing problem at the bottleneck machine. Traditionally, most batch sizing decisions have been made based on the EOQ (economic order quantity) model where setup and inventory costs are considered while throughput rate is assumed to be given. However, since batch size affects the capacity of the bottleneck machine, the throughput rate may not be constant. As the batch size increases, the frequency of the setup decreases. The saved setup time can be transferred to processing time, which results in higher throughput. But, the larger batch size may also result in longer lead time and larger WIP inventory level. This paper presents an alternative method to determine batch size at the bottleneck machine in a manufacturing line. A linear search algorithm is introduced to find optimal throughput rate and batch size at the same time. Numerical examples are provided to see how the proposed method works and to investigate the effects of some parameters.

• Journal of the Korea Safety Management & Science
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• v.14 no.1
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• pp.129-136
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• 2012

This study proposes a collaboration system framework on the web service in a supply chain to implement an efficient virtual supply chain and improve an ability to fulfill received orders over a supply chain. The system based on the framework proposed in this paper plays an important role for automatic order negotiation and placing/receiving an order noticed in web service by the main system. Furthermore, it can evaluate the fulfillment of received orders over a supply chain by using the transaction results from hierarchically related vendors and establish efficient manufacturing plans. In a word, this system is the automated system for creating manufacturing plans, placing and receiving orders. A little more important main function of this system is that it has a dynamic evaluation capability about fulfillment with received orders over a supply chain, and improves the evaluation method of fulfillment ability with received orders with related to direct dealing vendors, which is a main problem in existing system. As a result, this system is able to reduce the work load of the sales and purchasing materials, production control division, to manage accurate inventory promptly, to maintain the optimal inventory level by analyzing the information of fulfillment ability with received orders, and to enhance the level of service for customers.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.1
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• pp.41-54
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• 2019

Although retailers deals with a large number of single-term inventory items, but few cases have been considered in the areas of practical decision making. However, recent moves to strengthen fair trade have created a real need for single-period inventory decision-making problems. This study addresses the problem of ordering quantity decisions that are expected to maximize profits using classical newsvendor models. The research target is data on seasonal and perishable products from retail. We also use data from retailers to actually apply the newsvendor model and calculate the results to compare performance. It also suggests solutions for estimating demand for products sold in order to apply newsvendor models that utilize actual demand ratio versus forecast demand. This study would like to examine the effectiveness of this research through data analysis and make some suggestions for applying it to reality.

• Korean Management Science Review
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• v.18 no.2
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• pp.125-134
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• 2001

This paper is concerned with the development of a GIS-based distribution system with service consideration. The proposed model could be used for a wide range of logistics applications in planning, engineering and operational purpose for logistics system. This research addresses the formulation of those complex prob1ems of two-echelon logistics system to plan the incorporating supply center locations and distribution problems based on GIS. We propose an integrated logistics model for determining the optimal patterns of supply centers and inventory allocations (customers) with a three-step sequential approach. 1) First step, Developing GIS-distance model and stochastic set-covering program to determine Optimel pattern of supply center location. 2) Second step, Optimal sector-clustering to support customers. 3) Third step, Optimal vehicle rouse scheduling based on GIS, GIS-VRP In this research we developed GUI-tree program, the GIS-VRP provide the vehicle to users and freight information in real time. We applied a set of sample examples to this model and demonstrated samp1e results. It has been found that the proposed model is potentially efficient and useful in solving multi-depot problem through examples. However the proposed model can provide logistics decision makers to get the best supply schedule.

• Journal of Korean Institute of Industrial Engineers
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• v.40 no.4
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• pp.435-441
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• 2014

This paper considers a single-product problem for inbound lot-sizing and outbound dispatching at a third-party warehouse, where the demand is dynamic over the discrete time horizon. Each demand must be delivered into the corresponding delivery time window which is the time interval characterized by the earliest and latest delivery dates of the demand. Ordered products are shipped by heterogeneous container types. Each container type has type-dependent carrying capacity and the unit freight cost depends on each container type. Total freight cost is proportional to the number of each container type used. Also it is assumed that related cost functions are concave and backlogging is not allowed. The objective of the paper is to simultaneously determine the optimal inbound lot-sizing and outbound dispatching plans that minimize total costs which include ordering, shipping, and inventory holding costs. The optimal solution properties are characterized for the problem and then a dynamic programming algorithm is presented to find the optimal solution.

• Industrial Engineering and Management Systems
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• v.10 no.2
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• pp.115-122
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• 2011

This research considers a system containing a manufacturing firm who generates waste material during manufacturing process, and a disposal firm who collects and disposes the waste material. Identification of the optimal number of pick ups and the amount of waste to be disposed at certain period of time in terms of cost minimization is studied. Two types of waste accumulation rates, constant and linearly increasing, are discussed and mathematical models are developed. It can be shown that the results for these two different types of waste accumulation differ in a wide range because of the difference in the way of how waste is accumulated, which disturbs the storage cost. An integrated model is also developed and discussed in which both the manufacturing firm and the disposal firm benefit from the coordination between the two parties. It is shown that the optimal policy adopted by the integrated approach can provide a strong and consistent cost-minimizing effect for both the manufacturing firm and the disposal firm over the existing approach. Finally, all the models are verified by a numerical example and the results are compared.

• Management Science and Financial Engineering
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• v.18 no.1
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• pp.1-12
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• 2012

In this paper, we report a case study on the common due-date assignment and scheduling problem in a paper remanufacturing system that produces corrugated cardboards using collected waste papers for a given set of orders under the make-to-order (MTO) environment. Since the system produces corrugated cardboards in an integrated process and has sequence-dependent setups, the problem considered here can be regarded as common due-date assignment and sequencing on a single machine with sequence-dependent setup times. The objective is to minimize the sum of the penalties associated with due-date assignment, earliness, and tardiness. In the study, the earliness and tardiness penalties were obtained from inventory holding and backorder costs, respectively. To solve the problem, we adopted two types of algorithms: (a) branch and bound algorithm that gives the optimal solutions; and (b) heuristic algorithms. Computational experiments were done on the data generated from the case and the results show that both types of algorithms work well for the case data. In particular, the branch and bound algorithm gave the optimal solutions quickly. However, it is recommended to use the heuristic algorithms for large-sized instances, especially when the solution time is very critical.

• Journal of the Korea Safety Management & Science
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• v.15 no.4
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• pp.261-267
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• 2013

In automobile company it is needed to establish the collaborative relationship between the assembly company and the part manufacturing company. In this paper we established the improvement for the procurement logistics and logistics in assembly company and thus we derived the near optimal procurement cycle through the simple EXCEL simulation and the improved inventory management method for H automobile company in CHINA. At this time we adopted the pull manufacturing process instead of push manufacturing process. We resulted that the manufacturing activity of both companies was stabilized and the usage of storage area in assembly company was reduced by 50%, especially it was reduced by 100% in the case of directly delivering the parts to assembly line through the third party logistics company.

• Management Science and Financial Engineering
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• v.13 no.2
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• pp.117-139
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• 2007

This paper contributes by incorporating works addressing supply chain coordination and investing in setup reduction program. Consider a two-echelon, EOQ-like inventory system consisting of a supplier and a buyer. We assume that both the supplier and the buyer can invest in setup cost reduction programs in order to benefit from small order sizes. However, the costs of investing in setup cost reduction programs are different for the two parties, leading to mismatches in individually optimal setup costs and order cycle times. We propose a supply chain coordination contract that makes use of quantity discount as an incentive transfer scheme for supply chain coordination.