• Title/Summary/Keyword: Value Chain Optimization

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Policy Safety Stock Cost Optimization : Xerox Consumable Supply Chain Case Study (정책적 안전재고의 비용 최적화 : 제록스 소모품 유통공급망 사례연구)

  • Suh, Eun Suk
    • Journal of Korean Institute of Industrial Engineers
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    • v.41 no.5
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    • pp.511-520
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    • 2015
  • Inventory, cost, and the level of service are three interrelated key metrics that most supply chain organizations are striving to optimize. One way to achieve this goal is to create a simulation model to conduct sensitivity analysis and optimization on several different supply chain policies that can be implemented in actual operation. In this paper, a case of Xerox global supply chain modeling and analysis to assess several "what if" scenarios for the consumable policy safety stock is presented. The simulation model, combined with analytical cost model and optimization module, is used to optimize the policy safety stock level to achieve the lowest total value chain cost. It was shown quantitatively that the policy safety stock can be reduced, but it is offset by the inbound premium transportation cost to expedite supplies in shortage, and the outbound premium transportation cost to send supplies to customers via express shipment, requiring fine balance.

Optimization of Agri-Food Supply Chain in a Sustainable Way Using Simulation Modeling

  • Vostriakova, Viktorija;Kononova, Oleksandra;Kravchenko, Sergey;Ruzhytskyi, Andriy;Sereda, Nataliia
    • International Journal of Computer Science & Network Security
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    • v.21 no.3
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    • pp.245-256
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    • 2021
  • Poor logistical infrastructure and agri-food supply chain management leads to significant food waste in logistic system. The concept of the sustainable value added agri-food chains requires defined approach to the analysis of the existing situation, possible improving strategies and also assessment of these changes impact on further development. The purpose of research is to provide scientific substantiation of theoretical and methodological principles and develop practical recommendations for the improvement of the agri-food logistics distribution system. A case study methodology is used in this article. The research framework is based on 4 steps: Value Stream Mapping (VSM), Gap and Process Analysis, Validation and Improvement Areas Definition and Imitation Modelling. This paper presents the appropriateness of LEAN logistics tools using, in particular, Value Stream Mapping (VSM) for minimizing logistic losses and Simulation Modeling of possible logistics distribution system improvement results. The algorithm of VSM analysis of the agri-food supply chain, which involves its optimization by implementing the principles of sustainable development at each stage, is proposed. The methodical approach to the analysis of possible ways for optimizing the operation of the logistics system of the agri-food distribution is developed. It involves the application of Value Stream Mapping, i.e. designing of stream maps of the creation of the added value in the agri-food supply chain for the current and future state based on the minimization of logistic losses. Simulation modeling of the investment project on time optimization in the agri-food supply chain and economic effect of proposed improvements in logistics product distribution system functioning at the level of the investigated agricultural enterprise has been determined. Improvement of logistics planning and coordination of operations in the supply chain and the innovative pre-cooling system proposed to be introduced have a 3-year payback period and almost 75-80% probability. Based on the conducted VSM analysis of losses in the agri-food supply chain, there have been determined the main points, where it is advisable to conduct optimization changes for the achievement of positive results and the significant economic effect from the proposed measures has been confirmed. In further studies, it is recommended to focus on identifying the synergistic effect of the agri-food supply chain optimization on the basis of sustainable development.

Research on the Way to Promote the Value Chain of Animation Digital Publishing in the Context of AI

  • Zhang, Tiemo;Zhang, Mengze;Bae, Ki-Hyung
    • International Journal of Contents
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    • v.15 no.4
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    • pp.107-112
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    • 2019
  • With the development of AI (artificial intelligence), animation digital publishing has been integrated with intellectualization. This paper adopts the theory of the global value chain, and analyzes the basic structure of the animation publishing value chain. Then focuses on the analysis of digital technology and artificial intelligence technology to play an active role in the topic selection and content customization of animation digital publishing products, optimization of publishing platforms, and user experience of publishing products. Finally, it proposes the use of artificial intelligence data analysis and deep learning technology. The purpose of this paper is to realize the upgrading of animation digital publishing, product upgrading, industrial chain upgrading, and identify some promotion methods for the value chain, such as copyright protection.

A Quantitative Model for a Supply Chain Design

  • Cho, Geon;Ryu, Il;Lee, Kyoung-Jae;Park, Yi-Sook;Jung, Kyung-Ho;Kim, Do-Goan
    • Proceedings of the Korea Society of Information Technology Applications Conference
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    • 2005.11a
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    • pp.311-314
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    • 2005
  • Supply chain optimization is one of the most important components in the optimization of a company's value chain. This paper considers the problem of designing the supply chain for a product that is represented as an assembly bill of material (BOM). In this problem we are required to identify the locations at which different components of the product arc are produced/assembled. The objective is to minimize the overall cost, which comprises production, inventory holding and transportation costs. We assume that production locations are known and that the inventory policy is a base stock policy. We first formulate the problem as a 0-1 nonlinear integer programming model and show that it can be reformulated as a 0-1 linear integer programming model with an exponential number of decision variables.

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Study on Simulation and Optimization of C3MR Liquefaction Cycle (천연가스 액화공정의 C3MR 냉동사이클의 공정모사와 최적화에 관한 연구)

  • Park, Chang Won;Cha, Kyu Sang;Lee, Sang Gyu;Lee, Chel Gu;Choi, Keun Hyung
    • Journal of the Korean Institute of Gas
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    • v.17 no.1
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    • pp.67-72
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    • 2013
  • The LNG liquefaction plant which have a higher value-added business in the LNG value chain takes about 35% of total cost. Liquefaction process is core technology of liquefaction plant. Almost all of cost which was consumed from the liquefaction plant, using for operation energy of liquefaction process. The cost can be reduced by increasing efficiency of liquefaction cycle. C3MR(propane pre-cooled, mixed refrigerant cycle) which liquefies NG using propane and MR cycle has the high efficiency, so C3MR is mostly used liquefaction process in LNG industry. In this study, process simulation and analysis were performed for C3MR process. C3MR process variables were found through this simulation and analysis, and then the process optimization was performed. It is considered that the results of process analysis, process variables and process optimization study can be utilized to develope new liquefaction process.

Integrating Multiple Mathematical Models for Supply Chain Optimization (공급사슬 최적화를 위한 다중의 수리적 모델 활용 구조)

  • 한현수
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2001.10a
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    • pp.97-100
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    • 2001
  • 제조 기업의 가치사슬 최적화를 위한 전략적, 운영상 의사결정 문제는 수리적 모델을 이용한 DSS의 효과적인 활용을 통하여 해결 될 수 있다. 의사결정 프로세스는 필연적으로 공급사슬의 여러 성과 목표와 관련 조직간의 Trade-off 및 연계관계(Interaction)가 고려되므로 복수의 DSS 활용이 필요하게 된다. 이와 관련하여 본 논문에서는 공급 사슬 전체의 최적화를 위한 다수의 전략적 목표 및 의사결정 프로세스, 연계된 수리적 모델들을 정의하고, 관련 조직 및 성과 지표 별 부분적 최적화(Local Optimality)를 지양하고 전체최적화 (Global Optimality)를 달성하기 위한 DSS Logic을 철강산업 프로세스를 대상으로 수리적 모델들의 분할(Decomposition) 및 통합개념을 통하여 제시하였다.

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Vendor-Managed Inventory in Three Stage Supply Chain

  • Ryu, Chungsuk
    • Journal of Distribution Science
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    • v.15 no.8
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    • pp.15-28
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    • 2017
  • Purpose - Many researchers analyze VMI as a supply chain collaboration program to reveal its true value. Most of them focus on the dyadic relationship in two stage supply chain systems. This study examines the effect of VMI when it is applied to the different parts of three stage supply chain systems. Research design, data, and methodology - Based on three stage supply chain, this study compares three different systems including full VMI, partial VMI, and non-VMI by using mathematical models. The performances of three systems are compared with the numerical examples of the proposed supply chain models. Results - The numerical examples reveal that full VMI where the manufacturer controls inventories at all stages outperforms any other systems in terms of the system profit and enables all individual members to gain greater profits than non-VMI. Meanwhile, under partial VMI where VMI is implemented between the wholesaler and retailer, only these two members improve their performances and the manufacturer who does not belong to VMI makes less profit than even under non-VMI. This study also examines the impact of market size and profit margin on the system performance. Conclusions - The result of this study supports the common belief that VMI secures the best result when it is applied to the entire supply chain system. The additional findings from the numerical analysis are discussed.

Research on a simulation-based ship production support system for middle-sized shipbuilding companies

  • Song, Young-Joo;Wo, Jong-Hun;Shin, Jong-Gye
    • International Journal of Naval Architecture and Ocean Engineering
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    • v.1 no.2
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    • pp.70-77
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    • 2009
  • Today, many middle-sized shipbuilding companies in Korea are experiencing strong competition from shipbuilding companies in other nations. This competition is particularly affecting small- and middle-sized shipyards, rather than the major shipyards that have their own support systems and development capabilities. The acquisition of techniques that would enable maximization of production efficiency and minimization of the gap between planning and execution would increase the competitiveness of small- and middle-sized Korean shipyards. In this paper, research on a simulation-based support system for ship production management, which can be applied to the shipbuilding processes of middle-sized shipbuilding companies, is presented. The simulation research includes layout optimization, load balancing, work stage operation planning, block logistics, and integrated material management. Each item is integrated into a network system with a value chain that includes all shipbuilding processes.

Artificial neural fuzzy system and monitoring the process via IoT for optimization synthesis of nano-size polymeric chains

  • Hou, Shihao;Qiao, Luyu;Xing, Lumin
    • Advances in nano research
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    • v.12 no.4
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    • pp.375-386
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    • 2022
  • Synthesis of acrylate-based dispersion resins involves many parameters including temperature, ingredients concentrations, and rate of adding ingredients. Proper controlling of these parameters results in a uniform nano-size chain of polymer on one side and elimination of hazardous residual monomer on the other side. In this study, we aim to screen the process parameters via Internet of Things (IoT) to ensure that, first, the nano-size polymeric chains are in an acceptable range to acquire high adhesion property and second, the remaining hazardous substance concentration is under the minimum value for safety of public and personnel health. In this regard, a set of experiments is conducted to observe the influences of the process parameters on the size and dispersity of polymer chain and residual monomer concentration. The obtained dataset is further used to train an Adaptive Neural network Fuzzy Inference System (ANFIS) to achieve a model that predicts these two output parameters based on the input parameters. Finally, the ANFIS will return values to the automation system for further decisions on parameter adjustment or halting the process to preserve the health of the personnel and final product consumers as well.

Value Chain Optimization in Timber Supply Chain: Case Study in Gangwon-do

  • Kang, Byongrho;Kim, Hyoungtae;Jang, Jaeyoung;Woo, Heesung;Woo, Jongchoon
    • Journal of Forest and Environmental Science
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    • v.34 no.4
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    • pp.304-312
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    • 2018
  • This study investigates to identify the impact factors of timber production cost on the relationship between production cost components and revenues generated by evaluating the entire timber supply chain. In this research, selected 13 logging zones as target areas and classified 14 forest production cost factors, six groups. Additionally, established 13 externalenvironmental factors with related stakeholders and forestry experts. And the BCR (Benefit Cost Ratio) method was then used to analyze the economics of each zone. Filled up a checklist and rated using 5 point scale for each target region, and extracted major cost factors for the production economy of the item. The analysis of major cost factors in the timber production revealed that wood grab equipment usage fee was the first ranked and forest trees purchase cost was ranked in the $2^{nd}$Also, the $3^{rd}$ranking was logging expenses, and transport cost, which accounted for 84% of the total cost, was ranked in the $4^{th}$. In addition, the rock land ratio, slope, timber payment (forest trees purchase cost), special timber, ratio of timber, DBH (Diameter at Breast Height), and mixed forest ratio were the factors that most affected the timber supply chain cost.