• Journal of Korean Institute of Industrial Engineers
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• v.5 no.1
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• pp.59-66
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• 1979

The objective of this paper is to develop a stochastic inventory system model under the so-called continuous-review policy with a Poisson one-at-a-time demand process, iid customer inter-arrival times {Xi}, backorders allowed, and constant procurement lead time $\gamma$. The distributions of the so-called inventory position process {$IP_{(t-r)}$} and lead time demand process {$D_{(t-r,t)}$} are formulated in terms of cumulative demand by time t, {$N_t$}. Then, for the long-run expected average annual inventory cost expression, the "ensemble" average is estimated, where the cost variations for stock ordering, holding and backorders are considered stationary.

• Journal of the Korea Institute of Military Science and Technology
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• v.21 no.4
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• pp.520-528
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• 2018

This paper studies the optimal inventory levels of Korea Assault Amphibious Vehicle(KAAV)'s assemblies in order to assure the required operational availability. The simulation model is built and implemented for the impact of the inventory levels on operational availability. Using regression analysis and integer programming, the optimal inventory levels of essential assemblies are suggested and analyzed. Finally, sensitivity analysis is conducted with recycling maintenance delay time.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.1
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• pp.105-115
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• 2006

In this paper, we investigate the problem of minimizing average inventory costs subject to a fill rate constraint in a two-stage serial inventory model with a normally distributed demand. Fill rate is the fraction of demand that is satisfied immediately from on-hand inventory. We first find the lower bounds of base-stock levels in each node by using the exact base-stock level that satisfies a fill rate in a single node model proposed by Sobel. And then, we extensively analyze the system and show that the cost function is convex. Using such convexity and some other useful properties, we can easily find optimal base-stock levels numerically.

• IE interfaces
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• v.16 no.1
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• pp.111-116
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• 2003

Business integration has been considered as one of the most critical success factors that enable the firms to gain competitive edges. Despite this trend, it has also been found among not a few companies that the activities that should be functionally tied with are performed even independently. In this study, an integrated model of production planning and inventory has been developed. Computerization of the production planning activities is proposed and implemented. We also proposed the reasonable inventory levels of each item using historic data of the items, which are composed of safety stock from the given fill-rate, operating stock from the production patterns, and reserved stock from the production planning. This study has helped the firm to have clearer job definition of the related processes, to tightly control the inventory by setting and tracing the reasonable fill rates for every product, and to quickly respond to the market changes through the computerized production planning process.

• Communications for Statistical Applications and Methods
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• v.11 no.3
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• pp.631-641
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• 2004

In this paper, a model for an inventory whose stock decreases with time is considered. When a deliveryman arrives, if the level of the inventory exceeds a threshold $\alpha$, no stock is delivered, otherwise a delivery is made. It is assumed that the size of a delivery is a random variable Y which is exponentially distributed. After assigning various costs to the model, we calculate the long-run average cost and show that there exist unique value of arrival rate of deliveryman $\alpha$, unique value of threshold $\alpha$ and unique value of average delivery m which minimize the long-run average cost.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.26 no.3
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• pp.50-57
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• 2003

In this paper, we consider an integrated inventory system where a single supplier purchases and processes raw materials in order to deliver finished goods to a single buyer for effective implementation of Just-In-Time purchasing. An integrated JIT lot-splitting model of facilitating multiple shipments in small lots is developed in a JIT purchasing environment. Also, an iterative solution procedure is developed to find the order quantity for the finished goods and raw materials, and the number of shipments between buyer and supplier. We show by example that the integrated policy adopted by both buyer and supplier in a cooperative manner can provide them a greater economic benefit than seeking the local optimal inventory policy independently.

• Journal of the Korea Institute of Military Science and Technology
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• v.22 no.3
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• pp.416-424
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• 2019

This paper studies the optimal inventory levels of P-3 assemblies in order to assure the required operational availability. A simulation model is developed for identifying the impact of the inventory levels on operational availability. Based on the result of the simulation model, multiple regression analysis is performed. Finally, the optimal inventory levels of critical P-3 assemblies are determined with integer programming. Additionally, sensitivity analysis of depot maintenance period is also conducted for its impact on the operational availability.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2023.05a
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• pp.254-255
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• 2023

This paper discovers a robust managerial strategy for a stochastic inventory of perishable products, where the model experiences changing factors including inner parameters and an external disturbance with unknown form. An analytical solution for the optimization problem can be obtained by applying the Hamilton-Bellman-Jacobi equation, however the policy result cannot completely suppress the oscillation from the external disturbance. Therefore, an intelligent approach named Radial Basis Function Neural Networks is applied to estimate the unknown disturbance and provide a robust controller to manipulate the inventory level more effective. The final results show the outstanding performance of RBFNN controller, where both the estimation error and control error are guaranteed in the predefined limit.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.4
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• pp.61-68
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• 2019

Currently many companies are interested in reduction of the carbon emissions associated with their supply chain activities such as transportation and operations. Operational decisions, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Cap-and-trade regulation, sometimes called emissions trading, is a market-based tool to limit greenhouse gas emissions. Under cap-and-trade regulation, emission credits are allocated to the firms and the firms trades emissions under cap-and-trade schemes. In this paper, we propose a single-manufacturer single-buyer two-echelon supply chain problem under the cap-and-trade mechanism incorporating the carbon emissions caused by transportation and warehousing activities where a single manufacturer produces a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time (JIT) Purchasing. An integrated multi-product lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Also, an iterative heuristic algorithm is developed to derive the common order interval, the number of intervals for each product and the number of shipments between the buyer and the manufacturer during the common interval. A numerical example is given to illustrate the savings in reduction of total cost and carbon emissions by the inventory model incorporating cap-and-trade mechanism compared to the classical inventory model. The proposed inventory model could be useful for the practical solution of two-echelon supply chain inventory problem under cap-and-trade mechanism.

• Industrial Engineering and Management Systems
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• v.12 no.1
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• pp.23-29
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• 2013

This paper presents inventory models for fresh agriculture products with time-varying deterioration rate. Due to the particularity of fresh agriculture products, the demand rate is a function that depends on sale price and freshness. The deterioration rate increases with time and is assumed to be a time-varying function. In the models, the inventory cycle may be constant or variable. The optimal solutions of models are discussed for different freshness and the deterioration rate. The results of experiments show that the profit depends on the freshness and deterioration rate of products. With the increasing inventory cycle, the sale price and profit increase at first and then start decreasing. Furthermore, when the inventory cycle is variable, the total profit is a binary function of the sale price and inventory cycle. There exist unique sale price and inventory cycle such that the profit is optimal. The results also show that the optimal sale price and inventory cycle depend on the freshness and the deterioration rate of fresh agriculture products.