• Korea Trade Review
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• v.47 no.4
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• pp.69-88
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• 2022

Recently, International commerce has continuously expanded with the development of logistics technology. However, the cost of international logistics is rising rapidly. The Korea International Trade Association (2021) proposes that the use of international commercial terms in Incoterms® could be an effective way against logistics costs. The purpose of this study is to verify the effect on the flexible operation of international commercial terms. For the detection of variables and data collection for empirical analysis based on previous studies and in-depth interviews. The questionnaires were distributed after pilot-study to a random sample of companies based on the list of members such as the Korea International Trade Association, the Korea Trade-Investment Promotion Agency, and the Global Small and Medium Business Association. A total of 800 questionnaires were distributed, and 166 were used for empirical analysis. The results of this study are as follows. First, mutual cooperation and Flexibly using of international commercial terms has a positive (+) effect on logistics efficiency. This is in line with the study of Yang (2021) and Stojanović et al. (2021) that logistics by using international commercial terms will increase the efficiency of logistics. Second, use of international commercial terms based on mutual understanding mediates the relationship between the logistics environment of the other country and the logistics efficiency. As in the study of Vidrova (2020), it is important to operate on international commercial terms mutually.

• Journal of the military operations research society of Korea
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• v.22 no.2
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• pp.182-199
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• 1996

Many vehicle routing methods have been suggested, which minimize the routing distances of vehicles to reduce the total transportation cost. But the more considerations the method takes, the higher complexites are involved in a large number of practical situations. The purpose of this paper is to develop a vehicle distribution planning system using heuristic algorithms and simulation techniques for home electronics companies. The vehicle distribution planning system developed by this study involve so complicated and stochastic conditions such as one depot, multiple nodes(demand points), multiple vehicle types, multiple order items, and other many restrictions for operating vehicles. The proposed system is compared with the nearest neighbor method and the savings method in terms of total logistics cost and driving time. This heuristic algorithm and simulation based distribution planning system is efficient in computational complexity, and give improved solutions with respect to the cost as well as the time. This method constructs a route with a minimum number of vehicles for a given demand.

• Management Science and Financial Engineering
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• v.15 no.1
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• pp.1-31
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• 2009

This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

• Journal of Korean Institute of Industrial Engineers
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• v.5 no.2
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• pp.45-56
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• 1979

This report presents the development of an integrated logistics support system for a large-scale machinery manufacturing organization. The system consists of 3 major production management systems and 5 assisting systems. The major systems are: i) production planning and control system, ii) cost control system, and iii) material management system. The assisting systems are: i) personnel management system. ii) technology transfer system, iii) quality assurance system, iv) marketing assisting system, and v) management information system. In addition, other management systems such as planning system, R.&.D. system can be considered according to the organizational need. Several system flow models are developed and presented for the total logistics support system.

• Journal of the Korea Safety Management & Science
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• v.12 no.1
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• pp.97-104
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• 2010

Expanded muti-source Weber problem (EWP), which introduced in this paper, is a reverse logistics network design problem to minimize the total transportation cost from customers thorough regional center to central center. Decision factor of EWP are the locations of regional centers and a central center. We introduce a GRASP heuristics for the EWP. In the suggested GRASP, an expanded iterative location allocation method (EILA) is introduced based on the Cooper's iterative location allocation method[3]. For the initial solution of GRASP, allocation first seed (AFSeed) and location first seed (LFSeed) are developed. The computational experiment for the objective value shows that the LFSeed is better than the AFSeed. Also the calculating time of the LFSeed is better than that of the AFSeed.

• Korean Management Science Review
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• v.21 no.2
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• pp.15-25
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• 2004

Great effort has been exerted to redesign the supply chain network as a means to improve corporate competitiveness. In this study, we present a mathematical model and a solution system to help redesign corporate logistics networks. The objective of the model is to minimize total logistics costs. We applied the solution system to real problem cases. We use the model and the concept to develop decision support system that is based on C++ with the use of CPLEX callable library as a solution engine. We tested and verified the DSS for redesigning the network of a large Korean electronics company. Through various scenario analyses. we recommend to redesign their supply chain network that demonstrates the possibility of substantial logistics cost savings.

• The Research Journal of the Costume Culture
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• v.12 no.4
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• pp.547-565
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• 2004

The purpose of this study was to evaluate the level of SCM activities and the logistics performance by SCM of the three company types in fashion industry· fabric suppliers, apparel manufacturers, and retailers. The level of SCM activities was estimated through the examination of seven factors: commitment and leadership of a top management, flexibility of management, understanding of demand characteristics, integrated management organization, information system, cooperative partnership and communication and exchange of opinion. The logistics performance was measured by improvement in customer service(on time delivery ratio of products, returning rate, treat ratio for A/S, order fill rate, substitute providing capability for being out of stock) and delivery cost reduction. Through questionnaire survey, a total of 214 data for 108 companies of three company types were collected: 46 for 40 fabric suppliers, 123 for 64 apparel manufacturers and 45 for 4 retailers. The analysis of SCM activity levels showed that fabric suppliers had higher degrees in the factor of understanding of demand characteristics, and apparel manufacturers had higher degrees in the factor of information systems. For retailers, the factor of communication and exchange of opinion represented higher degrees. The study on relationship between the SCM activity levels and logistics performance showed that the SCM activity factor of understanding of demand characteristics greatly improved a substitute providing capability for being out of stock in fabric suppliers, and information system improved a substitute providing capability for being out of stock, on time delivery ratio of products and order fill rate in apparel manufacturers. In retailers, the SCM activity factor of understanding of demand characteristics decreased returning rate highly and improved on time delivery ratio of products. The study results showed that SCM activities in fashion industry brought more improvement in customer service levels rather than in delivery cost reduction.

• Journal of the Korean Society for Railway
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• v.12 no.2
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• pp.205-211
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• 2009

There is need to reform the road-based logistic transportation system into the railway-based logistics transportation system in order to decrease the total social cost related with logistics transportation. And new transportation modes such as dual mode trailer (DMT) are under consideration, which are expected to decrease current market share of road. But, most of current studies about estimating economical efficiency are focused on developing the probabilistic choice model and then estimating the market share of each mode. We present an approach to compute the optimal market share of each mode in terms of total social cost. To do so, we suggest an optimization model capturing both user choice to maximize his utility and subsidy policy intended to minimize total social cost, simultaneously. Using this model, we present the optimal modal split of container freight.

• Journal of the Korea Society for Simulation
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• v.22 no.3
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• pp.25-33
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• 2013

The research focuses on the method to improve the Logistics considering investigating the present state of the fast growing social commerce. The improving Logistics is the jointed transport system, which proposes the concept of the packaged delivery for customers in same area and the condition-specific benefits as the transport cost and delay period. Customers in this system will obtain the advantage as the decrease of transport cost and social commerce companies will make the effect about growing the number of customer and the sales by the lowest price in the online markets. There are 7 scenarios for simulation. The performance assessment of the results from simulation is carried out by total number of orders, finished number of orders, sales, delivery times, delivery cost, earlier rate of delivery, and fluctuation of number of wrong delivery. The results of the research show that the total number of orders, finished number of orders and sales are increased, while the times and cost of delivery are decreased.

• Industrial Engineering and Management Systems
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• v.11 no.3
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• pp.288-298
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• 2012

Lot sizing and shipment scheduling are two interrelated decisions made by a manufacturing plant and a third-party logistics distribution center. This paper analyzes a dynamic inbound ordering problem and shipment problem with a freight container cost, in which the order size of multiple products and single container type are simultaneously considered. In the problem, each ordered product placed in a period is immediately shipped by some freight containers in the period, and the total freight cost is proportional to the number of containers employed. It is assumed that the load size of each product is equal and backlogging is not allowed. The objective of this study is to simultaneously determine the lot-sizes and the shipment schedule that minimize the total costs, which consist of production cost, inventory holding cost, and freight cost. Because the problem is NP-hard, we propose three meta-heuristic algorithms: a simulated annealing algorithm, a genetic algorithm, and a new population-based evolutionary meta-heuristic called self-evolution algorithm. The performance of the meta-heuristic algorithms is compared with a local search heuristic proposed by the previous paper in terms of the average deviation from the optimal solution in small size problems and the average deviation from the best one among the replications of the meta-heuristic algorithms in large size problems.