• Journal of applied mathematics & informatics
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• v.42 no.2
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• pp.379-390
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• 2024

This study proposes a fuzzy inventory model for managing large-scale production, incorporating cost considerations. The model accounts for two types of expenditure scenarios-parametric and exponential. Uncertainty surrounds holding costs, setup costs, and demand rates. The approach considers a supply chain system with a complex manufacturing process, factoring in transportation costs based on the quantity of goods and distance between the supplier and retailer. The initial crisp model is then transformed into a fuzzy simulation, incorporating specific fuzzy variables affecting inventory costs. The proposed method significantly reduces overall inventory costs for the entire supply chain. Retailer demand is linked to inventory levels, and vendor/distributor storage deteriorates over time. The fuzzy condition assumes hexagonal variables for all associated factors. The study employs the signed distance method for defuzzification to determine the optimal order quantity with hexagonal fuzzy numbers. Mathematical examples are provided to illustrate the practicality of the proposed approach.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.312-321
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• 2007

We address a disposal issue of returned products in a product recovery system where a single product is stocked in order to meet a demand from customers who may return products after usage. Product returns occur randomly and can be accepted for remanufacturing or disposed of depending on the state of the system. We examine the structure of the optimal disposal policy for returned product that utilizes the information of the inventory of both serviceable and remanufacturable products. Numerical study indicates that it can be characterized by a monotonic threshold type of the curve. A disposal is allowed only when the remanufacturable inventory level exceeds a threshold which is the function of the inventory level of serviceable product and it is decreasing as the serviceable inventory level increases. Sensitivity analysis also indicates that the optimal disposal policy and the optimal profit have monotonic properties with respect to system parameters.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.11-28
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• 2009

Intelligent investment in setup cost reduction and process reliability improvement is crucial to an emerging integrated lean six sigma practice today. This study examines a cost-minimizing problem of jointly determining production lot size, setup cost reduction, and process reliability improvement decisions for a manufacturer with an imperfect production process. We develop models for previously untapped discrete shipping in a supply chain context as well as continuous shipping and solve them optimally using differential calculus and nonlinear programming. We also conduct analytic and numerical sensitivity analyses to provide various important managerial insights into practices.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.267-284
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• 2008

Consider a supply chain where products are produced at a manufacturing system, shipped to a distribution center, and then supplied to customers. The distribution center controls inventory based on a base-stock policy, and whenever a unit of product is demanded by a customer, an order is released to the production system. Unsatisfied demand is backordered, and the inventory and backordered units are a function of the base-stock level. The manufacturing system is modeled as an M/M/s/c queueing system, and orders exceeding the limited buffer capacity are blocked and lost. The throughput of the manufacturing system and the steady state distribution of the outstanding orders are functions of number of servers and buffers of the manufacturing system. There is a profit obtained from throughput and costs due to servers and buffers of the manufacturing system, and also costs due to inventory positions of the distribution center, and we want to maximize the total production profit minus the total cost of the supply chain by simultaneously determining the optimal number of servers and buffers of the manufacturing system and the optimal base-stock level of the distribution center. We develope two algorithms, one analytical but without guarantee of the optimal solution and one optimal but without complete analytical proofs. The problem integrates strategic problem of the manufacturing system with tactical problem of the distribution center in a supply chain.

• Journal of the Korean Operations Research and Management Science Society
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• v.21 no.2
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• pp.95-109
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• 1996

In automobile industry, the depot (distribution center) system is utilized to adjust the inventory and to supply the demands to the firm timely. In case of the small lot demands of short delivery cycle and the long distance from the parts manufacturing to the firm, the depot system is very important. In this paper, a model to minimize the sum of costs of holding, inventory and transportation, is proposed to determine the optimal quantities of production and transportation in JTT system. Finally, computational results that verify the effectiveness of the proposed model are demonstrated.

• Journal of the Korea Safety Management & Science
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• v.3 no.1
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• pp.93-105
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• 2001

Many production management systems for increasing productivity, minimizing inventory, keeping due dates and maximizing use of resources have been proposed, and GT, MRP and JIT are frequently used among these systems. The three systems have merits and demerits through comparing with each other. Because each system has mutual dependence, a hybrid production system Is necessary for using their merits maximally. In this study, a hybrid production system is designed by combining GT, MRP and JIT, which is suitable in the domestic production system and it is presented as followings. -. Basic research works for G7, MRP and JIT. -. Comparison and analysis are carried out for each system.- . The hybrid production system is designed. -. The hybrid production system is developed.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.05a
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• pp.938-946
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• 2005

We study the firm's strategy to price its products and plan the spare parts manufacturing so as to maximize its profit and at the same time to fulfill its commitment to providing the customers with the key parts continuously over the relevant decision time horizon, i.e., the production plus warrantee period. To examine the research question, we developed and solved a two-stage optimal control theory model. Our analysis suggests that if the cost to produce the spare part during the warrantee period is more expensive than that during the production period, the firm should increase its sales price gradually throughout the production period to control its sales. In addition, during the production period it is optimal for the firm to produce the spare parts more than needed so that the overproduced spare parts can be used to partially meet the demand during the warrantee period. We conducted numerical analysis to investigate the sensitivity dynamics among key variables and parameters such as inventory holding cost, unit spare part production costs, part failure rate, and parameters in the demand function.

• Journal of Navigation and Port Research
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• v.34 no.2
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• pp.131-136
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• 2010

The aim of the paper is to solve the problem of customer reduction due to the difficulty of parts sourcing which impacts production delay and delivery delay in SC networks. Furthermore, this paper is to suggest the new inventory policy of MTS in order to solve the problem of current inventory policy. In order to compare two policies, a LCD maker is selected as a case study and the real data for 2007 years is used for simulation input. The maker uses MTO policy for parts sourcing which has the problem of lead time even if it has some advantage of inventory cost. Based on current process. The simulation program of AS-IS model and TO-BE model using ARENA 10 version is developed for evaluation. In a result, the order number of two policies shows that MTO is 52 and MTS is 53. However the quantity of order shows big difference such that MTO is 168,460 and MTS is 225,106. Particularly, the lead time of new inventory policy shows much shorter that that of MTO such that MTO 100 is days and MTS is 16 days. In spite of short lead time by MTS policy, new policy has to take burden of inventory cost per year. Total inventory cost per year by MTS policy is US$ 11,254 and each part inventory cost is that POL is US$ 1,807, LDI is US$ 2,166 and Panel is US$ 7,281. The implication of the research is that the company has to consider the cost and the service simultaneously in deciding the inventory policy. In the paper, even if the optimal point of deciding is put into tactical area, the ground of decision is suggested in order to improve the problem in SC networks.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.1
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• pp.1-10
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• 2009

Inventory Management has become a very important issue in supply chain management, because inventories may be used as a means to accomplish the certain strategic goals in company decisions. RFID(radio frequency identification) technology is used to help manage inventories. It is known that the ideal control of inventories is to replenish item by item. This paper points out several misinterpretations from the Wal-mart report presented in '07 Seoul Forum and suggests the new direction of RFID application. In this paper we consider RFID as not 'identification technology' but 'information technology.' The 'RF-Kanban' suggested here is adopted from the'Kanban'concept of TPS(Toyota Production System). The RF-Kanban system shows the easier control for replenishing various items in boxes. Lots of inventories can be reduced through RF-Kanban System. This work develops the protocol of RF-Kanban and introduces the case study for easier understanding.

• Journal of the Korean Operations Research and Management Science Society
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• v.4 no.1
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• pp.25-31
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• 1979

We consider the optimal ordering policy for a single-product two-stage inventory system where the main assumptions are as follows: (i) constant continuous demand only at stage 2, (ii) constant input (production) rate at stage 1, (iii) instantaneous delivery (transportation) from stage 1 to stage 2, (iv) backlogging is allowed only at stage 2, (v) an infinite planning horizon. Costs considered are ordering and linear holding costs at both stages, and linear shortage cost only at stages 2. By solving 9 different case problems, we have observed the general from of the optimal ordering policies for our model which minimizes the total cost per unit time. It is noticeable from this observation that the questionable but more often than not adopted assumption by many authors in determining the optimal potimal policy for multistage inventory systems, that the ordering (lot) sizes at each stage remain constant thruout the planning horizon, is not valid.