• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.1
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• pp.7-15
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• 2020

It is a general phenomenon for manufacturers to provide vertically differentiated product line for more profit through improved market coverage. For such manufacturers, the compatibility between vertically differentiated products is an important decision issue. Some manufacturers provide full compatibility between high and low version products, whereas some provide only downward compatibility for the purpose of recommending high version product. In this study, the two representative compatibility strategies, full or downward, between vertically differentiated products produced by a single manufacturer are analyzed, especially under network externality and in the viewpoint of profit maximization. To do this we used a market model which captures the basic essence of vertical differentiation and network externality. Based on the proposed market model, the profit maximizing solutions are derived and numerically analyzed. The results can be summarized as follows : (1) Regardless of compatibility strategy, under network externality, vertical differentiation is always advantageous in terms of profit. (2) The full compatibility strategy is shown to be the most advantageous in terms of profit. In addition, it is necessary to make quality difference between differentiated products as wide as possible to maximize profit. (3) To gradually drive low version product out of the market and shift the weight pendulum of market to high version product, it is shown that the downward compatibility strategy is essential. Unlike intuition, however, it is also shown that in order to drive low version product out of market, it is necessary to raise the quality of the low version product rather than to lower it.

• Industrial Engineering and Management Systems
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• v.3 no.1
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• pp.52-58
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• 2004

This report examines the issue of designing an efficient production system by increasing several types of flexibility. Increasing manufacturing flexibility is a key strategy for efficiently improving market responsiveness in the face of uncertain market demand for final products. The manufacturing system comprises multiple plants, of which individual plants have multiple manufacturing lines that are designed to produce limited types of products in accordance with their size and materials. Imbalance in the workload occurs among plants as well as among manufacturing lines because of fluctuations in market demand for final products. Thereby, idleness of some manufacturing lines and longer lead times in some manufacturing lines occur as a result of the high workload. We clarify how these types of flexibility affect manufacturing performance by improving only one type of flexibility or by improving multiple types of flexibility simultaneously. The average lead time and the imbalance in workload are adopted as measures of manufacturing performance. Three types of manufacturing flexibility are interrelated: machine flexibility, routing flexibility, and process flexibility. Machine flexibility refers to the various types of operations that a machine can perform without requiring the prohibitive effort of switching from one order to another. Routing flexibility is the capability of processing a given set of part types using more than one line (alternative line) in the plant. Process flexibility results from being able to build different types of final products at the same plant.

• Journal of Korean Institute of Industrial Engineers
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• v.12 no.1
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• pp.31-41
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• 1986

In this paper, an integrated production inventory model is developed for two products on a single facility in which the raw materials are fed to the production system as required at the facility. The aim is to determine simultaneously the optimal production schedule for two products and the optimal procurement policies for the raw materials in a way that minimizes the total variable cost of the production system. The production schedule for the more frequently set-up product is formulated by the method of equal or unequal lot sizes. For the model developed, we present a computational scheme of finding the optimal policies and carry out sensitivity analysis through example problem.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.2
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• pp.174-182
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• 2007

Mass customization meets various needs of customers as well as produces various products and service in low cost like mass production. However, low cost and product diversity have conflicting concepts. Therefore, in order to solve this problem, we need standardization methods. In this paper, we suggest a method for determining the product platform which is a set of common parts in a product family. To achieve the method, we used the Contradiction Analysis of TRIZ (Theory of Inventive Problem Solving), Using this approach, we found a model that obtains various products within limited resources and conditions. Also, we suggest another method that increases the flexibility of our method by Design Structure Matrix.

• Journal of Korean Society for Quality Management
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• v.7 no.2
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• pp.22-28
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• 1979

The problem considered in this paper is to select the vital factor effect to the product quality through the experimental design and analysis of response surface, so as to control the quality improvement of industrial product. In this time, even through the mathematical model is unknown it could be applicable to control the quality of industrial products and to determine optimum operating condition for many technical fields, particulary, for industrial manufacturing process. When a set of data is available from an experimental design, it is often of interest 1:0 fit polynominal repression model in independent variables (eg, time, temperature, pressure, etc) the optimize the response variable (eg. yield, strength etc). This paper proposes a method known to obtain the optimum operating condition, and how to find the condition by using table of orthogonal array experiments, and optimization methodology of statistical model. A criterion can be applied determining to optimum operating conditions in manufacturing industry and improving the fit of response surface which may be used for prediction of responses and quality control of industrial products.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.22 no.53
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• pp.79-88
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• 1999

This paper presents an integral model for product safety and product liability resulting from a defective product. The essence of the paper is the process of supply of manufacturing products which satisfy the product liability and the product safety in terms of consumers expectation levels. The main criteria of the product safety is the hazard level which involves in the severity and frequency. The proposed model shows the process to supply the manufactured products under the conditions that they are suitable in comparison of hazard level and safety level established by each company. If the product do not meet the safety level, this paper proposes that four different types of PL and PS countermeasures for the risk types are forward, respectively.

• IE interfaces
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• v.19 no.1
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• pp.53-61
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• 2006

We propose a new supply chain planning methodology for both a manufacturer and a distributor in order to find a global supply chain plan for functional product markets. Functional products as opposed to innovative products include the staples that people buy regularly from their nearby places to satisfy basic needs. In the functional product market, the distributor has an initiative of supply chain control and planning with a freedom to request any profit maximizing order quantities until the manufacturer refuses, whereas the manufacturer may not provide more than requested. In this paper, two independent agents on behalf of the manufacturer and the distributor are introduced, and supply chain planning can be conducted by collaboration between them. In addition, mathematical models and a numerical example are presented to show the possibility of the proposed methodology.

• Journal of the Korean Society of Industry Convergence
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• v.24 no.5
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• pp.537-546
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• 2021

Remanufacturing is one of the most important resource recycling technology in response to resource depletion and environmental pollution. Domestic remanufacturing industry don't invigorate compared to other advanced countries because of low price and reliability of remanufactured product. In this study, remanufactured hydraulic pump and solenoid valve were evaluated durability by accelerated life test. In order that standard remanufacturing process was developed by core analysis and failure mode and effect analysis. And cores were remanufactured by standard remanufacturing process. For accelerated life test, the evaluation item and criteria were deduced by results of FMEA, reliability standards and enterprise interior criteria. To evaluate durability of remanufactured product, the remanufactured hydraulic pump and solenoid valve were evaluated performance after accelerated life test and the results were satisfied with criteria. This study showed that remanufactured products have a similar level of durability to new products by definition of remanufacturing.

• Journal of the Korea Society of Computer and Information
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• v.12 no.5
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• pp.179-190
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• 2007

This study aimed to present the policy scheme for agricultural interchange forming community group with North Korea through counterplot providing our agricultural products to Korean labor who advanced Kaesong industrial complex and North Korean workers. Trying to promote agricultural products contracting cultivation for forming community group as follows; First, we must understand North Korean political system. Second, on occasion to contract cultivation about limited items, we will drive to consult item and agricultural output with the Ministry of National Unification before contracting with North Korea. Third, dealing with contraction in the concrete. Finally, it must be supported by government and international level.

• IE interfaces
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• v.15 no.1
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• pp.64-72
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• 2002

Broaching machine is widely used for machining inner shaped slots in the work-pieces, and provides vertical motion (usually hydraulically powered) between tool and work-piece. In this study, we modelled the tool life process and investigated economic tool life of broaching machine. Tool life process is divided into wear-process and succeeding failure process. Wear process is defined as machining wear and failure process as 'chipping' occurred by random shock. We modelled wear process as linear regression function for products amounts and assumed failure process as Poisson process. Economic tool life is defined as the number of lots which minimizes average tool related cost per lot and analyzed by using age replacement policy technique. As tool-related cost factors, we consider tool replacement cost, tool maintenance cost and quality costs of products. The results of this study can be applied to analyze life process of general machining tools.