• Title/Summary/Keyword: reorder policy

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A study on Inventory Policy (s, S) in the Supply Chain Management with Uncertain Demand and Lead Time (불확실한 수요와 리드타임을 갖는 공급사슬에서 (s,S) 재고정책에 관한 연구)

  • Han, Jae-Hyun;Jeong, Suk-Jae
    • Journal of the Korea Safety Management & Science
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    • v.15 no.1
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    • pp.217-229
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    • 2013
  • As customers' demands for diversified small-quantity products have been increased, there have been great efforts for a firm to respond to customers' demands flexibly and minimize the cost of inventory at the same time. To achieve that goal, in SCM perspective, many firms have tried to control the inventory efficiently. We present an mathematical model to determine the near optimal (s, S) policy of the supply chain, composed of multi suppliers, a warehouse and multi retailers. (s, S) policy is to order the quantity up to target inventory level when inventory level falls below the reorder point. But it is difficult to analyze inventory level because it is varied with stochastic demand of customers. To reflect stochastic demand of customers in our model, we do the analyses in the following order. First, the analysis of inventory in retailers is done at the mathematical model that we present. Then, the analysis of demand pattern in a warehouse is performed as the inventory of a warehouse is much effected by retailers' order. After that, the analysis of inventory in a warehouse is followed. Finally, the integrated mathematical model is presented. It is not easy to get the solution of the mathematical model, because it includes many stochastic factors. Thus, we get the solutions after the stochastic demand is approximated, then they are verified by the simulations.

A Mixed Approach for Single-Vendor-Single-Buyer Production Inventory Integration Problem (판매자-구매자 생산-재고통합 문제를 위한 Mixed Approach)

  • Lee, Dongju
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.4
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    • pp.7-14
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    • 2016
  • Unlike most researches that focus on single manufacturer or single buyer, this research studies the cooperation policy for two participants of supply chain such as single vendor and single buyer. Especially, this paper deals with single vendor-single buyer integrated-production inventory problem. If the buyer orders products, then the vendor will start to make products and then the products will be shipped from the vendor to the buyer many times. The buyer is supposed to order again when the buyer's inventory level hits reorder point during the last shipment and this cycle keeps repeated. The buyer uses continuous review inventory policy and customer's demand is assumed to be probabilistic. The contribution of this paper is to present a mixed approach and derive its cost function. The existing policy assumes that the size of shipping batch from single vendor to single buyer is increasing, called Type 1, or constant, called Type 2. In mixed approach, the size of shipping batch is increasing at the beginning part of the cycle, and then its size is constant at the ending part of the cycle. The number of shipping for Type 1 and Type 2 in a cycle in mixed approach is determined to minimize total cost. The relationship between parameters, for example, the holding cost per product, the set up cost per order, and the shortage cost per item and decision variables such as order quantity, safety factor, the number of shipments, and shipment increasing factor is figured out via sensitivity analysis. Finally, it is statistically proved that the mixed approach is superior to the existing approaches.

Standardization of Maintenance and Failure of Transfer Crane (Transfer Crane의 고장 및 정비 표준화)

  • Yun Won-Young;Lee You-Hyoun;Ha Young-Ju;Kim Gui-Rae;Son Bum-Shin
    • Journal of Navigation and Port Research
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    • v.30 no.6 s.112
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    • pp.525-531
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    • 2006
  • In the port, the yard crane is very important. If a container crane or a transfer crane is broken down, it costs a lot because of the delay of work during the period of repair or reorder. But, we don't have enough spare parts because of the high cost. It is necessary to maintain high reliability of the crane through effective preventive maintenance and failure analysis. In this paper, we analyse the function and failure mechanism of the transfer crane which is a main equipment in the yard Also, we standardize failures and maintenance works using the historical data of failure and maintenance. This study which is a basic work for effective equipment operation and maintenance will support reliability engineers to decide the optimal design of the next generation equipment and operational policy of equipment.

Eliminating Request Starvation due to Expectation Discrepancy between NCQ and I/O Scheduler (NCQ와 입출력 스케줄러의 기대 불일치로 인한 입출력 요청의 굶주림 현상 제거)

  • Yu, Young-Jin;Shin, Dong-In;Jung, Im-Young;Yeom, Heon-Young
    • Journal of KIISE:Computing Practices and Letters
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    • v.15 no.5
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    • pp.400-404
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    • 2009
  • Native Command Queueing is a technology to maximize throughput of disk system by reordering requests in its command queue. Recent S-ATA 2 standard specifies a protocol for the purpose of dealing with NCQ feature, making most vendors implementing it in their disk devices. However, the new feature, NCQ, may lead to information gap between OS and disk drive. 05 considers that disk will service I/O requests in the order as OS has dispatched. Unfortunately, it isn't true any more since NCQ would simply ignore the policy of OS and reorder the sequence OS has expected. Let us define the term as expectation-discord. Due to the discord, serious performance anomalies or starvation of requests may occur in I/O subsystem. In this paper, we confirm that the expectation-discord actually brings about starvation of requests. We propose a solution to settle it. Our solution is very simple, effective, cheap(not requiring any hardware modification) and portable across various OS. Experimental results show that our solution can balance throughput and response time very well.

Standardization of maintenance and failure of Transfer Crane (Transfer Crane의 고장 및 정비 작업 표준화)

  • Yun Won-Young;Lee You-Hyoun;Ha Young-Ju;Kim Gui-Rae;Son Beom-Sin
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2006.06b
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    • pp.363-366
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    • 2006
  • In the port, Yard Crane is very important. If container crane or transfer crane broke down, it costs much money for delaying of work during the period of repair or reorder. But, we can not have enough spare parts for its high cost. It is necessary for having the reliability of crane through the effective preventive maintenance and failure analysis. In this paper, we analysed the system's function and failure mechanism of transfer crane which is main equipment in the yard. Also, we standardized the failure and maintenance work using the historical data of failure and maintenance. This study which is the basic work for IT of equipment operation and maintenance is going to be new attempt for optimal design of next generation equipment and operation policy of equipment.

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An Inventory Problem with Lead Time Proportional to Lot Size and Space Constraint (로트크기에 비례하는 리드타임과 공간 제약을 고려한 재고관리 정책)

  • Lee, Dongju
    • 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.

Approximate Continuous Review Inventory Models with the Consideration of Purchase Dependence (구매종속성을 고려한 근사적 연속검토 재고모형)

  • Park, Changkyu;Seo, Junyong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.4
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    • pp.98-108
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    • 2015
  • This paper introduces the existence of purchase dependence that was identified during the analysis of inventory operations practice at a sales agency of dealing with spare parts for ship engines and generators. Purchase dependence is an important factor in designing an inventory replenishment policy. However, it has remained mostly unaddressed. Purchase dependence is different from demand dependence. Purchase dependence deals with the purchase behavior of customers, whereas demand dependence deals with the relationship between item-demands. In order to deal with purchase dependence in inventory operations practice, this paper proposes (Q, r) models with the consideration of purchase dependence. Through a computer simulation experiment, this paper compares performance of the proposed (Q, r) models to that of a (Q, r) model ignoring purchase dependence. The simulation experiment is conducted for two cases : a case of using a lost sale cost and a case of using a service level. For a case of using a lost sale cost, this paper calculates an order quantity, Q and a reorder point, r using the iterative procedure. However, for a case of using a service level, it is not an easy task to find Q and r. The complexity stems from the interactions among inventory replenishment policies for items. Thus, this paper considers the genetic algorithm (GA) as an optimization method. The simulation results demonstrates that the proposed (Q, r) models incur less inventory operations cost (satisfies better service levels) than a (Q, r) model ignoring purchase dependence. As a result, the simulation results supports that it is important to consider purchase dependence in the inventory operations practice.