• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.3
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• pp.129-138
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• 2014

This paper is to analyze the cycle time of the vendor in a single-vendor multi-buyers supply chain. The vendor is the manufacturer and the buyers are the retailers. The cycle time of the vendor is the elapse time from the beginning time of the production to the beginning time of the next production. The cycle time of the vendor that minimizes the total cost in a supply chain is analyzed. The cost factors are the production setup cost and the inventory holding cost of the vendor, the ordering cost and the inventory holding cost of the retailers. The cycle times of the vendor obtained with the costs of the vendor is compared with those obtained with the costs of the vendor and the retailers. Various numerical examples are tested if the cycle times of the vendor for both methods are the same.

• Asia pacific journal of information systems
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• v.16 no.2
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• pp.143-158
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• 2006

This paper considers probable determinants of the application software outsourcing costs and focuses on the service level agreement (SLA) influence. Recently, outsourcing clients and vendors have contracted SLA and tried to reflect them on outsourcing prices. While application software maintenance has been one of the most frequently outsourced functions, its cost did not reflect the service level requirements by the client. This paper empirically shows that the service urgency requirement on SLA increases the maintenance programmers' effort and thus increases the vendor's cost. This result can be used by vendors for program allocation purposes.

• Journal of Korean Institute of Industrial Engineers
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• v.40 no.1
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• pp.108-117
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• 2014

This study considers warehouse sizing decisions in an integrated single vendor-single buyer production inventory system by incorporating new decision variables and constraints associated with warehouse size into the formulations. Two typical inventory control policies proposed in the literature (i.e., Identical Delivery Quantity and Deliver What is Produced) have been investigated with consideration of warehouse investment costs. The numerical study shows that Deliver What is Produced is less flexible than Identical Delivery Quantity, resulting in the conclusion that the latter would be preferable when considering warehouse investment costs.

• Journal of the Korean Operations Research and Management Science Society
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• v.25 no.3
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• pp.49-64
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• 2000

A vendor supplies a product to a sole/major buyer on a lot-for-lot basis under deterministic inventory control conditions. The basic premise is that the setup cost reduction technologies are available to both the buyer and the vendor, and that the vendor's inventory and setup reduction investment costs differ from the buyer's. Therefore, an individually designed ordering and setup cost reduction policy will likely cause mismatches between the vendor's and the buyer's optimal cycle times. For this situation, we show that a joint optimal setup cost reduction and ordering policy, together with an appropriate side payment(quantity discount or premium price) schedule, can be designed in a spirit in a spirit of coordination to eliminate mismatches in individual optimal cycle times.

• 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.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.9 no.2
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• pp.556-563
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• 2008

One of the most important issues of managing a supply chain is to determine the inventory level whenever shortage is permitted and vendor is responsible fur management of the both buyer and supplier's inventory. We present two vendor managed inventory models in the form of two-echelon supply chain models for: 1) one buyer-one supplier problem, and 2) two buyers- one supplier problem. We assume that shortage is permitted. The proposed methods of this paper provides a simple condition, which makes it easy to decide when and how vendor managed inventory model costs less than traditional one. The paper is supported with some numerical examples to show the implementation of the proposed methods.

• Asia pacific journal of information systems
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• v.6 no.1
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• pp.195-222
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• 1996

Faced with the challenge of reducing costs and improving competitive position, firms have recognized outsourcing as an important information systems (IS) strategic option. It has not been understood clearly what determines IS outsourcing. Based on the IS literature and transaction cost economics, cost efficiency related factors were identified, and a questionnaire survey was conducted. The results based on 181 responses from the bank executives in U.S. revealed that vendor production cost advantage and transaction risk are significant predictors of degree of outsourcing and outsourcing preference for data processing services. Insufficiency of IS funds and information technology uncertainty were found to be not only positively associated with vendor production cost advantage, but also directly associated with outsourcing preference and degree of outsourcing. Firm size is, however, not significantly related to vendor production cost advantge and IS outsourcing.

• Journal of the Korea Safety Management & Science
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• v.7 no.4
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• pp.179-191
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• 2005

Recently, Vendor Managed Inventory(VMI) has been commonly recognized as one of the supply chain application that delivers clear value to the sectors of electic & electronic components. VMI is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI is providing the benefits of smoother demand, lower inventories(work in process, safety stock) and reduced costs. This study focused on improvement of safety level inventory efficiency by VMI. The results indicated that VMI allowed the company to serve its customers more surely and efficiently.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.109-116
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• 2015

This paper is concerned with the single vendor single buyer integrated production inventory problem. To make this problem more practical, space restriction and lead time proportional to lot size are considered. Since the space for the inventory is limited in most practical inventory system, the space restriction for the inventory of a vendor and a buyer is considered. As product's quantity to be manufactured by the vendor is increased, the lead time for the order is usually increased. Therefore, lead time for the product is proportional to the order quantity by the buyer. Demand is assumed to be stochastic and the continuous review inventory policy is used by the buyer. If the buyer places an order, then the vendor will start to manufacture products and the products will be transferred to the buyer with equal shipments many times. The mathematical formulation with space restriction for the inventory of a vendor and a buyer is suggested in this paper. This problem is constrained nonlinear integer programming problem. Order quantity, reorder points for the buyer, and the number of shipments are required to be determined. A Lagrangian relaxation approach, a popular solution method for constrained problem, is developed to find lower bound of this problem. Since a Lagrangian relaxation approach cannot guarantee the feasible solution, the solution method based on the Lagrangian relaxation approach is proposed to provide with a good feasible solution. Total costs by the proposed method are pretty close to those by the Lagrangian relaxation approach. Sensitivity analysis for space restriction for the vendor and the buyer is done to figure out the relationships between parameters.

• 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.