Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Study on the Operation of Distribution System for the Rationalization of Safety Stock under the Price Discount

가격할인하 안전재고 합리화를 위한 분배시스템 운영에 관한 연구

  • Kim, Byeong-Chan (Dept. of Industrial Engineering, Kyonggi University) ;
  • Kim, Hong-Ki (Dept. of Industrial Engineering, Kyonggi University)
  • 김병찬 (경기대학교 공과대학 산업경영공학과) ;
  • 김홍기 (경기대학교 공과대학 산업경영공학과)
  • Published : 2009.12.31
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Abstract

The objective of this was to improve a transportation cost relation between Central Distribution Centers(CDCs) and Regional Distribution Centers(RDCs), to control inventory cost concerning safety stock for each service level, by reviewing distribution steps connecting CDCs and RDCs under the price discount. It was also to examine and compare operating costs for the following two alternative suggestions for setting the service standard as a counter measure for a stock-out of the distribution network system management. First, provision by dispersing the safety stock to the CDCs and RDCs; and second, exclusive provision of the safety stock only to the RDCs. The cost comparison analysis was made for each category of purchase costs, regular transportation costs, express transportation costs, and inventory holding costs.

Keywords

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