• Title/Summary/Keyword: Production and Inventory Management

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A Reengineering Technique for Logistics Process Innovation and Case Study (수주-생산-출하업무 프로세스 혁신 재설계 방법 및 추진사례)

  • 박연기
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.22 no.50
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    • pp.293-302
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    • 1999
  • This paper presents an efficient reengineering technique for the logistics process innovation which is the foundation of supply-chain management. Based on consulting experience on the domestic manufacturing firms, this paper provides promotion step for logistics innovation and six reengineering points including check system for customer's credit limit, check system of real-time inventory information, automatic system for sequential production plan, automatic order-release system, automatic packing system, and happy-call system for order-forward information. For each reengineering point, application cases in domestic industry are also presented.

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A Supply Chain Management Process Modeling for an Agriculture Marketing Information System (농산물 유통 정보화를 위한 공급사슬경영 프로세스 모델링)

  • Myung, Kwang-Sick;Park, Sei-Kwon;Kang, Dae-Won
    • IE interfaces
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    • v.13 no.3
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    • pp.358-377
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    • 2000
  • A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. SCM(Supp1y Chain Management), by definition, encompasses all activities associated with moving goods, from the raw materials stage through to the end user. It includes source and procurement, production scheduling, order processing, inventory management, transportation, warehousing, and customer service. Importantly, it encompasses the information systems used to monitor these activities. In this paper, the present situation and problems of marketing process in Korean agricultural environments were reviewed through a systematic methodology, and then we proposed a new business process for solving these problems by appling a supply chain management. We expect this supply chain management system applied to agricultural marketing process can improve significantly the rationality and transparency of Korean agricultural marketing structure.

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An Population Management Genetic algorithm on coordinated scheduling problem between suppliers and manufacture (부품 공급업자와 조립업자간의 공동 일정계획을 위한 모집단 관리 유전 해법)

  • Yang, Byoung-Hak;Badiru, Adedeji B.
    • Journal of the Korea Safety Management & Science
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    • v.11 no.3
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    • pp.131-138
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    • 2009
  • This paper considers a coordinated scheduling problem between multi-suppliers and an manufacture. When the supplier has insufficient inventory to meet the manufacture's order, the supplier may use the expedited production and the expedited transportation. In this case, we consider a scheduling problem to minimize the total cost of suppliers and manufacture. We suggest an population management genetic algorithm with local search and crossover (GALPC). By the computational experiments comparing with general genetic algorithm, the objective value of GALPC is reduced by 8% and the calculation time of GALPC is reduced by 70%.

A Generalized Integrated Inventory Model for a Multi-Item and its Raw Materials (공급사슬에서 다완제품-원자재의 통합재고정책에 관한 연구)

  • Kim, Dae-Hong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.35 no.4
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    • pp.83-97
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    • 2012
  • In this paper, we consider a single-manufacturer single-buyer supply chain problem where a single manufacturer purchases and processes raw materials into a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time Purchasing. An integrated multi-item lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Previous research on the integrated model assumed that the manufacturer orders raw materials m (integer) times for every production run (lot multiplier policy for the raw material). In this paper, we consider a generalized policy in the replenishment of raw materials, allowing lot multiplier policy and lot splitting policy. An iterative solution procedure is developed to find the order interval for finished goods and raw materials, and number of shipments between buyer and manufacturer. We show by numerical example that when the integrated policy is adopted by both buyer and manufacturer in a cooperative manner, both parties can benefit.

A Case Study on the e-SCM Web-service Design for Auto-parts Industry of a Commercial Vehicle (상용차 부품 조달 기업을 위한 e-SCM 웹서비스 설계 및 구현 사례 연구)

  • Oh, Myung-Hyun;Yang, Jae-Kyung
    • 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.

A Study on the Effect of Setup Time Reduction on Production Lot Sizes (생산준비시간 단축과 생산로트사이즈에 대한 연구)

  • 구일섭;김진수
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.17 no.32
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    • pp.121-126
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    • 1994
  • Setup Time Reduction is an important aspect of the Just-in-Time(JIT) and Zero Inventory(Zl) Concepts since it supports reductions in manufacturing lead times and inventories. It also enables small lot sizes and kanban systems implementation for material flow - achieving major improvements in production floor management. One concept fundamental to the pursuit of JIT production in Japan and other countries is adoption of a setup time reduction. This paper looks at the necessities of setup time reduction and the relations to machine utilization. By using an EOQ model for evaluate the effect of setup time reduction, we get the results that over 75 % reduction in setup time is obtain the desired results in the lot size reduction.

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Current situation and future prospects for beef production in China - A review

  • Li, Xiang Zi;Yan, Chang Guo;Zan, Lin Sen
    • Asian-Australasian Journal of Animal Sciences
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    • v.31 no.7
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    • pp.984-991
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    • 2018
  • The beef industry is an important part of livestock and meat production in China. China ranks third in the world for beef production. With the rapid development of the Chinese economy, beef consumption has grown rapidly, and beef consumption has been increasing with rising per capita gross domestic production. However, the domestic beef industry in China has not been able to keep pace with growth in consumption, making China a net importer of beef from other countries. Moreover, the volume of production has increased little despite rising demand. The slowing of growth in beef production in recent years has led to a sharp rise in beef prices. Domestic beef production and consumption is restricted by a shortage of beef cattle inventory. The Chinese beef industry is facing many technical problems including transformation of traditional practices, feeding and management systems, and genetic improvement of cattle breeds. The long-term, sustainable development of the Chinese beef industry is an important issue for China.

Development of Distributed MRP System for Production Planning and Operation in Korean OEM/ODM Cosmetics Manufacturing Company (국내 OEM/ODM 화장품 제조기업의 생산계획 및 효율화를 위한 분산형 MRP시스템 개발)

  • Jang, Dongmin;Shin, Moonsoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.43 no.4
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    • pp.133-141
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    • 2020
  • Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.

Batch Scheduling Problem with Multiple Due-dates Constraints

  • Mohri, Shintaro;Masuda, Teruo;Ishii, Hiroaki
    • Industrial Engineering and Management Systems
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    • v.10 no.1
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    • pp.1-6
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    • 2011
  • This paper describes the issue of batch scheduling.In food production, the lead-time from produc-tion to sale should be decreased becausefreshness of the product is important. Products are shipped at diverse times depending on a demand of sellers, because the types of sellers has become diversified such as super-markets, convenience stores and etc. production of quantity demanded must be completed by time to ship it then. The authors consider a problem with due-dates constraints and construct the algorithm to find the opti-mal schedule that satisfy the due-dates constraint, batch size constraint, inventory time constraint and mini-mize total flow time.

Design and Performance Evaluation of an Assemble-To-Order System (주문- 조립시스템의 설계 및 성능평가)

  • 박찬우;이효성
    • Journal of the Korean Operations Research and Management Science Society
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    • v.27 no.4
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    • pp.41-65
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    • 2002
  • We study a multi-component production/inventory system in which individual components are made to meet various demand types. We assume that the demands arrive according to a Poisson process, but there is a fixed probability that a demand requests a particular kit of different components. Each component is produced by a flow line with several stations in which the processing times of each station follow a two-stage Coxian distribution. The production of each component is operated by an independent base-stock policy with blocking. We assume that the time needed to assemble final products follows a general distribution and the capacity of an assembling facility is sufficiently large. The objective of this study is to obtain key performance measures such as the distribution of the number of each orders for each final product and the mean time of fulfilling a customer order. The basic principle of the proposed approximation method is to decompose the original system into a set of subsystems, each subsystem being associated with a flow line. Each subsystem is analyzed in isolation using a Marie's method. An iterative procedure is then used to determine the unknown parameters of each subsystem. Numerical results show that the accuracy of the approximation method is acceptable.