• Journal of the Korea Safety Management & Science
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• v.5 no.4
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• pp.209-217
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• 2003

The traditional Kanban needs a lot of preconditions for fitting conditions of dynamic production processing environment. The traditional Kanban isn't suitable conditions of dynamic production processing environment. Therefore conditions of dynamic production processing environment is needed more stable system. This study is describe CONWIP system such as suitable in dynamic production processing environment. Most Pull system is a Kanban system than use Kanban cards or signal for production management and inventory control. The object of Kanban system is reducing inventory between shop-floor that can reduce inventiry cost. If the system reduce the number of Kanban cards would be reduce the working process WIP, can be reduced and can be found all potential problem of production between shop-floors. This study apply to CONWIP system model for Korean industrial companies.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.506-512
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• 2006

In this paper, we propose a lot-sizing and scheduling problem that seeks to minimize the sum of production cost and inventory cost over a given planning horizon while considering idle state of a machine in a batch production system. For this problem, we develop an integer programming model. And, we develop an efficient 2-phase heuristic algorithm to find a high quality feasible solution within reasonable time bounds. In the first phase, we seek to minimize the production cost by assigning batches to machines. Then, in the second phase, we find a production sequence of batches that reduces the inventory cost, while considering adding or deleting idle states between batches. Computational results show that the developed heuristic algorithm finds excellent feasible solutions within reasonable time bounds. Also, we could significantly reduce the total cost consisting of production cost and inventory cost by using the developed heuristic algorithm at a real manufacturing system that produces zinc alloys.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.4
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• pp.35-47
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• 2006

This paper considers an integrated scheduling problem for consecutive production and delivery stages in a two-stage supply chain. The Production is performed on a single facility and then the finished products are delivered to the customer by capacitated multiple vehicles. The objective of this paper is to obtain job sequencing and delivery batching minimizing the total cost of the associated WIP inventory, finished product inventory and delivery. The inventory cost is characterized by the sum of weighted flowtime. The delivery cost is proportional to the required number of delivery batches. Some polynomial-solvable cases are derived. For the general case, two efficient heuristic algorithms are suggested, and then the heuristics are tested through some numerical experiments.

• Korean Management Science Review
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• v.32 no.1
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• pp.101-111
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• 2015

The glass production is classified into an energy intensive industry. This study develops a systematic procedure to derive Greenhouse Gas (GHG) emission inventory for the Korean glass industry. Based on the bottom-up approach in which the energy intensity in each production process is characterized, the EBs (energy balances) of glass production processes are derived. And the GHG emission is calculated for each of four types of glasses-flat glass, container glass, fiber glass, and LCD glass.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.139-151
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• 2009

Based on single-vendor single-buyer integrated production-inventory problem, a model considering freight costs discounts is suggested when the cargo capacity is constrained. With the cost function formulated, several properties of the model are derived and analyzed. An efficient algorithm to find solutions such as shipment lot size, number of shipments and number of full truckloads using properties derived is suggested. Numerical results are provided to illustrate the proposed solution procedures and to provide additional insights.

• Industrial Engineering and Management Systems
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• v.8 no.2
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• pp.72-79
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• 2009

The ultimate goal of inventory management is to decide the timing and the quantity of ordering in response to uncertain demands. Recently, some researchers have focused upon an impact of distortions in the information, e.g., customer order cancellation, on an economical inventory policy. The customer order cancellation is considered a kind of distortions in demands, because a demand that is eventually cancelled is equivalent to a phony demand. Also, there are some additional distortions in the inventory information. For instance, the procurement of suppliers may include some nonconforming items as a result of imperfect production and inspection by the suppliers, and/or damage in transit. The nonconforming item should be considered a kind of distortions in the inventory information, because the nonconforming item is equivalent to a phony stock. In this article, we consider an inventory model under the situation that customers can cancel their orders and the procurement of suppliers may include some nonconforming items. Then, we introduce the customer order reservation into the inventory model for the purpose of avoiding the costly backlogs, because the customer order reservation gives retailers a period to fulfill customer's requests. We formulate a periodic review (s, S) inventory model and investigate the economical operation under the situation mentioned above. Further, through the sensitivity analysis, we show the impact of these distortions and the effect of the customer order reservation on the inventory policy.

• Korean Management Science Review
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• v.31 no.3
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• pp.13-26
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• 2014

This paper considers an integrated one-vendor multi-buyer production-inventory model where the vendor manufactures multiple products in lot at their associated finite production rates. In the model, it is allowed for each product to be shipped in lot to the buyers even before the whole product production is not completed yet. Each product lot is dispatched to the associated buyer in a number of shipments. The buyers consume their products at fixed rates. The objective is to the production and shipment schedules in the integrated system, which minimizes the total cost per unit time. The total cost consists of production setup cost, inventory holding cost and shipment cost. For the model, an iterative optimal solution procedure with shipment consolidation policy incorporated. It is then tested through numerical experiments to show how efficient and effective the shipment consolidation policy is.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.3
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• pp.117-126
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• 2015

This paper is to analyze an integrated production and inventory model in a single-vendor multi-buyer supply chain. The vendor is defined as the manufacturer and the buyers as the retailers. The product that the manufacturer produces is supplied to the retailers with constant periodic time interval. The production rate of the manufacturer is constant for the time. The demand of the retailers is constant for the time. The cycle time of the vendor is defined as the elapsed time from the start of the production to the start of the next production, while the cycle times of the buyer as the elapsed time between the adjacent supply times from the vendor to the buyer. The cycle times of the vendor and the buyers that minimizes the total cost in a supply chain are analyzed. The cost factors are the production setup cost and the inventory holding cost of the manufacturer, the ordering cost and the inventory holding cost of the retailers. The cycle time of the vendor is investigated through the cycle time that satisfies economic production quantity with the production setup cost and the inventory holding cost of the manufacturer. An integrated production and inventory model is formulated, and an algorithm is developed. An numerical example is presented to explain the algorithm. The solution of the algorithm for the numerical examples is compared with that of genetic algorithm. Numerical example shows that the vendor and the buyers can save cost by integrated decision making.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.3
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• pp.8-15
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• 2014

For zero inventory and mixed assembly production, JIT (Just In Time) production system in Toyota and JIS (Just-In-Sequence) production system in Hyundai motor co. have been proposed in automobile production areas. Even though the production systems are popular in the areas, many subcontract companies producing part-modules for final production at a parent company suffers from excessive or shortage amount of inventory due to the time gap of production and delivery to the parent company. In this study, we propose an efficient real-time assembly sequence system applying a well-known Pareto method using Paint-In information in painting process and daily production planning information. Based on this system, a production line can estimate the shortage amount of UPH (Units Per Hour) at production line and recovers the amount before operating assembly production in the line. The proposed system provides efficiency on productivity compared with the previous system.

• Journal of Korean Society for Quality Management
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• v.50 no.1
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• pp.153-167
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• 2022

Purpose: The purpose of this study is to guide the operation managers who plan daily production of large mass-processing facility that services multi-customers with multi-product, small-batch item characteristics by providing the practical best production quantity and the inventory allowed to build. Methods: Close observation of a subcontract paint-shop operator captured the daily decision process which was reflected in the subcontractor-unique mathematical model and the system dynamics simulation model. Multiple simulations were run to find the practical best production quantity and the maximum allowable stock level of inventory that did not undermine the profit from practical best daily production. Actual data and a few constant values were obtained from the firm under study. Results: While the inventory holding cost for the customer-owned material harms the total profit of the subcontractor, the running cost of the processing facility hinders production in small batches. This balances the maximum possible productions and results in practical best daily production which can be found through simulation runs with actual data. The maximum level of stocked inventory is deduced from the practical best daily production. Conclusion: To build a large volume that enables economy-of-scale production, operators should deal with multi-product small-batch items from multiple customers. When the planned schedule of the time and amount of material in-flow tend not to be reliable, operators can find it practical to execute level production across the planning horizon instead of adjusting to day-to-day in-flow fluctuations.