• Title/Summary/Keyword: Production and Inventory Management

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Decision Strategies Based on Meteorological Forecast Information in a Beer Distribution Game

  • Lee, Ki-Kwang;Kim, In-Gyum;Han, Chang-Hee
    • Journal of Information Technology Applications and Management
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    • v.15 no.3
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    • pp.79-90
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    • 2008
  • With the corporate environment nowadays being surrounded by plenty of information, the sharing of information among businesses through mutual cooperation tops the list of hot issues. Predictions of demands from the customer, business, or consumer by sharing information can affect the inventory and order production system. However, notwithstanding the importance of sharing information, empirical studies on quantitative use of information still remain insufficient in spite of many a discussion now being made on the sharing of information. This paper proposes to examine the ways meteorological information may affect the rises in the achievements of supply chains in distributive businesses, the kind of information that noticeably affects the consumer behavioral patterns in the distributive businesses but rarely perceived as a form of information shared by businesses. This study is based on a model in which meteorological information has been added as the one used to predict demands, after the beer distribution game has been modified to fit the current status, and simulations under an assumptive situation, where decisions are made on a daily basis, were conducted 50 times for a period of 1000 days for the generalization of the results, while at the same time a Duncan Test was conducted to determine the threshold to use the meteorological information that will be most profitable to the retailer, wholesaler, supplier and the supply chain as a whole. Our findings indicate that corporations have thresholds that vary from business to business depending upon the ratio of backlog costs to inventory costs. At the same time, our findings also show that there existed effective thresholds depending upon the ratio of backlog costs to inventory costs for the performance of the overall supply chain.

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Solving a New Multi-Period Multi-Objective Multi-Product Aggregate Production Planning Problem Using Fuzzy Goal Programming

  • Khalili-Damghani, Kaveh;Shahrokh, Ayda
    • Industrial Engineering and Management Systems
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    • v.13 no.4
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    • pp.369-382
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    • 2014
  • This paper introduces a new multi-product multi-period multi-objective aggregate production planning problem. The proposed problem is modeled using multi-objective mixed-integer mathematical programming. Three objective functions, including minimizing total cost, maximizing customer services level, and maximizing the quality of end-product, are considered, simultaneously. Several constraints such as quantity of production, available time, work force levels, inventory levels, backordering levels, machine capacity, warehouse space and available budget are also considered. Some parameters of the proposed model are assumed to be qualitative and modeled using fuzzy sets. Then, a fuzzy goal programming approach is proposed to solve the model. The proposed approach is applied on a real-world industrial case study of a color and resin production company called Teiph-Saipa. The approach is coded using LINGO software. The efficacy and applicability of the proposed approach are illustrated in the case study. The results of proposed approach are compared with those of the existing experimental methods used in the company. The relative dominance of the proposed approach is revealed in comparison with the experimental method. Finally, a data dictionary, including the way of gathering data for running the model, is proposed in order to facilitate the re-implementation of the model for future development and case studies.

The Role of Apparel Merchandisers’in Korea (한국 어패럴 머천다이저의 역할에 대한 연구)

  • 유연실
    • Journal of the Korean Society of Clothing and Textiles
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    • v.24 no.7
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    • pp.995-1003
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    • 2000
  • This study examined the role of apparel merchandisers’in Korea. Data were collected by interviewing 7 apparel merchandisers who had worked for major apparel manufacturers. The interviews were analyzed by use of chronologically sequenced events. Korean apparel merchandisers take part in planning and production of the merchandise, sales management, and promotion. Merchandisers’activities related to merchandise planning were as follows: analysis of fashion trend and market, concept evolvement, planning of assortment and volume assortment, time table set up, color pallette decision, fabrication, line adoption, pricing, line preview, production planning, and placing order of materials. Merchandisers’activities related to apparel production were planning and controlling production and consolidation. In sales, merchandisers analyze retail sales and control inventory by reorder or conducting markdown sale. In relation to promotion, apparel merchandisers monitor merchandise advertisement, and educate salesman.

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Optimal Forest Management Planning for Carbon Sequestration and Timber Production Using Multiobjective Linear Programming (탄소저장(炭素貯藏) 및 목재생산효과(木材生産效果) 중심(中心)의 산림경영계획(山林經營計劃)을 위한 다목적(多目的) 선형계획법(線型計劃法)의 응용(應用))

  • Park, Eun Sik;Chung, Joo Sang
    • Journal of Korean Society of Forest Science
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    • v.89 no.3
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    • pp.335-341
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    • 2000
  • In this study, the multiobjective linear programming (MOLP) formulation was built to solve for the optimal forest management planning considering carbon sequestration and timber production simultaneously. The formulation was applied to a case study problem to investigate the trends of the optimal forest harvest schedules as the function of preference of forest management for carbon sequestration and timber production. The study site was Mt. Kari area in Hongchun. The formulation includes several site-specific constraints for non-declining yields, upper and lower bounds of cut volume and area for timber, ending inventory conditions, etc.. According to the changes of weight combinations for timber production and carbon sequestration, the joint production possibilities curve was proposed as the option for management choice.

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Disassembly Scheduling with Multiple Product Types and Parts Commonality (공통 부품을 포함한 복수 제품들에 대한 분해 일정계획)

  • Kim, Hwa-Joong;Lee, Dong-Ho;Xirouchakis, Paul
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.05a
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    • pp.421-424
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    • 2004
  • This paper focuses on the problem of determining the quantity and timing of disassembling used products while satisfying the demand of their parts or components over a planning horizon. The case of multiple product types with parts commonality is considered for the objective of minimizing the sum of setup, disassembly operation, and inventory holding costs. A heuristic is suggested, in which an initial solution is obtained using a linear programming relaxation method, and then improved by perturbing the given solution using a dynamic programming approach and a look-ahead check while considering the trade-offs among different cost factors.

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Integer Programming Models for Disassembly Scheduling (분해 일정계획 문제에 대한 정수계획 모형)

  • Lee Dong-Ho;Kim Hwa-Joong;Xirouchakis Paul
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2003.05a
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    • pp.369-374
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    • 2003
  • Disassembly scheduling is the problem or determining the ordering and disassembly schedules or used or end-of-life products while satisfying the demand or their parts or components over a certain planning horizon. To represent and optimally solve the basic case. i e ., single product type without parts commonality, an Integer programming model is suggested for the objective or minimizing the sum or purchase, setup, inventory holding, and disassembly operation costs. Then, the basic model is offended to consider the cases or single and multiple product types with parts commonality. Computational experiments done on the examples obtained from the literature show that the integer programming approach suggested in this paper works well.

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Managing Inventories of Brand-New and Recovered Products in a Reverse Supply Chain with Downward Demand Substitution (하방 수요 대체가 허용되는 역공급망에서 신제품 및 재생제품 재고 관리)

  • Kim, Eungab
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.2
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    • pp.97-109
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    • 2014
  • This paper considers a reverse supply chain with simultaneous recovery of used products and manufacturing of brand-new ones. Recovered products are downgraded and have to be sold in a market different from that of brand-new products at a different price. In case of a shortage of recovered product inventory, a brand-new item, if available, can be offered at the price of a recovered product. In other words, one-way demand substitution is allowed. We address the joint decision of when to manufacture brand-new product, when to recover returned product, and how to control demand substitution to maximize the hybrid production system's profits. To this end, we propose a Markov decision Process model and investigate the structure of the optimal policy. Performance comparison is numerically implemented between the models with and without downward demand substitution option under different operating conditions of the system parameters.

Developing Ubiquitous Computing Service Model for Family Restaurant Management

  • Kim, Kyung-Kyu;Choi, Seo-Yun Chris;Ryoo, Sung-Yul
    • International Journal of Contents
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    • v.5 no.2
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    • pp.20-25
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    • 2009
  • The purpose of this study is to seek new u-business services in restaurant management. Using the concept of business model methodology in family restaurant management domain, this study identifies customers' needs in services at the stage of management of purchase of materials, the production management, and the sales management. In addition, this study suggests two killer applications of a family restaurant management linking with the latest ubiquitous computing technologies: the service of the customer-oriented menu recommendation and the service of the inventory-oriented menu recommendation. These findings may offer practical insights in the context of ubiquitous service model of restaurant management.

Sequencing for a mixed model assembly line in just-in-time production system (JIT 상황하에서 다품종 조립라인 작업물 투입 순서 결정 방안)

  • Hwang, Hark;Jeong, In-Jae;Lim, Joon-Mook
    • Korean Management Science Review
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    • v.11 no.1
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    • pp.91-106
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    • 1994
  • In mixed model assembly lines, products are assembled seqeuntially that have different combination of options specified by customers. In just in time (JIT) environment, production smoothing becomes an important issue for sub-lines which supply the necessary parts to each workstation of the assembly line. Another important issue is to avoid line stopping caused by work overload in workstations. To find a sequence which minimizes the costs associated with line stoppage and the option parts inventory level, a nonlinear mixed integer programming is formulated. Recognizing the limit of the Branch and Bound technique in large sized problems, a heuristic solution procedure is proposed. The performance of the heuristic is compared with the Branch and Bound technique through randomly generated test problems. The computational results indicate that on the average the heuristic solutions deviate approximately 3.6% from the optimal solutions.

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Coordination of Product Variety and Delayed Product Differentiation (제품 다양화와 제품 차별화 지연 생산의 조화)

  • Lee Ho-Chang
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.2
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    • pp.57-67
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    • 2006
  • One of challenging issues of market oriented manufacturing organization is product proliferation. However, increasing product variety not only incurs additional direct and indirect production cost, but also aggravates production system performance such as inventory level, customer lead time and fill rate. Recently, as one of the most beneficial strategic choices to menage the risks associateed with product variety and uncertain sales, special attention is focused on the product/process redesign to delayed product differentiation. In this paper, we develop an analytical model to demonstrate the existence of an optimal level of product differentiation, which can be used to provide theoretical basis in establishing market oriented SCM strategy.