• The Journal of the Convergence on Culture Technology
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• v.8 no.5
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• pp.577-582
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• 2022

Credit transactions are used as a means of price discrimination from competitors in order for suppliers to increase customer demand. In particular, in the case of a two-stage supply chain consisting of a supplier, a retailer, and a customer, the deferral of payment for goods allowed by the supplier is a means of reducing the inventory investment cost of the retailer. Retailers have the opportunity to discount the selling price while anticipating an increase in end-customer demand through the reduction of the inventory investment cost. In view of the fact that such trade credit is provided for the purpose of increasing demand as a means of discrimination from competitors, it may be more general that the credit transaction period is allowed flexibly according to the transaction volume. In particular, in the case of deteriorating products, the credit transaction period given according to the order volume is a factor that increases the order volume of the retailer, but product deterioration can be a limiting factor in the increase in the order volume. The deterioration rate actually plays an important role in determining the inventory policy of the retailer. Therefore, in this paper, the effect of such deterioration rate on the inventory policy of retailer is analyzed.

• The Journal of Information Systems
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• v.16 no.4
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• pp.33-49
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• 2007

The purpose of this study is to identify the interorganizational factors that influence both the supplier-buyer's EDI utilization and the business performance in domestic retail industry. In terms of successful supply chain implementation and operation, we deduced the structural factors in the context of the interorganizational characteristics between mass merchandisers and vendors. This study therefore focused on suggesting the ways of managing the partnership in supply chain and conceptualizing the big picture of EDI development model in the scope of a retailer's IT strategy. This paper implicates that it is important to leverage the level of organizational capabilities for the success of supply chain adoption and operation. In the stream of SCM initiatives from the manufacturing industry, retailers should concentrate on improving the interorganizational environment and implementing the effective information technology for supporting business strategy.

• Journal of Korean Society for Quality Management
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• v.46 no.4
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• pp.959-972
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• 2018

Purpose: This study developed a simulation model that incorporates the uncertainty of demand and yield to obtain optimized results for supply chain coordination within environmental constraints. The objective of this study is to examine whether yield management for perishable products can achieve the goal of supply chain coordination between a single buyer and a single supplier under a variety of environmental conditions. Methods: We investigated the efficiency of a revenue-sharing contract and a wholesale price contract by considering demand and yield uncertainty, profit maximizing ratio, and success ratio. The implications for environmental variation were derived through a comparative analysis between the wholesale price contract and the revenue-sharing contract. We performed Monte Carlo simulations to give us the results of an optimized supply chain within the environments defined by the experimental factors and parameters. Results: We found that a revised revenue-sharing contracting model was more efficient than the wholesale price contract model and allowed all members of the supply chain to achieve higher profits. First, as the demand variation (${\sigma}$) increased, the profit of the total supply chain increased. Second, as the revenue-sharing ratio (${\Phi}$) increased, the profits of the manufacturer gradually decreased, while the profits of the retailer gradually increased, and this change was linear. Third, as the quality of yield increased, the profits of suppliers appear to increased. At last, success rate was expressed as the profit increased in the revenue-sharing contract compared to the profit increase in the wholesale price contract. Conclusion: The managerial implications of the simulation findings are: (1) a strategic approach to demand and yield uncertainty helps in efficient resource utilization and improved supply chain performance, (2) a revenue-sharing contract amplifies the effect of yield uncertainty, and (3) revised revenue-sharing contracts fetch more profits for both buyers and suppliers in the supply chain.

• Journal of the Economic Geographical Society of Korea
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• v.8 no.1
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• pp.131-152
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• 2005

The purpose of this paper is to find out the spatial characteristics of the relationships between urban large retailer and agro-food suppliers. For this purpose, Dong-A department store which is one of the most famous local distribution company was selected as a case study firm. The case study company has its own systematic food supply chain in the process of food procurement, selection, delivery, and marketing. It mainly does businesses in Daegu and Gyeongbuk province, but also procures and delivers products all around the country. Customers' recent concerns over the freshness and the period of circulation made the company use the local physical distribution system that it purchases products in nearby areas and perform procurement and delivery in nationwide areas. It is identified that trading types are significantly different by locations of suppliers in that more thin 40$\%$ of suppliers in Daegu are food manufacturers, whereas suppliers in Gyeongbuk mainly belong to the ones in fresh food production areas. In terms of durability of the retailer-supplier relation, the case study firm has relatively long-term relationship with suppliers, maintaining the relationship fer over 5 years in more than 70$\%$ of suppliers.

• Management Science and Financial Engineering
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• v.18 no.2
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• pp.23-27
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• 2012

The problem of jointly determining a robust optimal bundle of price and order quantity for a retailer in a single-retailer, single supplier, single-product supply chain is considered. Demand is modeled as a decreasing power function of product price, and unit purchasing cost is modeled as a decreasing power function of order quantity and demand. Parameters defining the two power functions are uncertain but their possible values are characterized by ellipsoids. We extend a previous study in two ways; the purchasing cost function is generalized to take into account the economies of scale realized by higher product demand in addition to larger order quantity, and an exact transformation into an equivalent convex optimization program is developed instead of a geometric programming approximation scheme proposed in the previous study.

• 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.

• Journal of the Korea Safety Management & Science
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• v.14 no.2
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• pp.137-145
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• 2012

본 연구는 공급자(supplier), 소매상(retailer) 그리고 고객(customer)으로 구성된 2 단계 공급사슬에서 소매상의 관점에서 소매상의 최적 재고정책 결정에 관한 문제를 다루었다. 공급자는 수요 증대를 목적으로 소매상의 주문량에 따라 다단계로 일정기간동안 제품 판매대금에 대한 지불 연기(외상)를 허용하고, 고객의 수요는 소매상의 제품 재고량에 영향을 받는다는 가정 하에 재고 모형을 설계하였다. 모형 분석을 통하여 소매상의 이익을 최대화하는 최적 주문량 결정 방법을 제시하였고, 예제를 통하여 그 제시된 해법의 타당성을 보였다.