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

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
권호 표지
DOI QR코드

DOI QR Code

A Study on Inventory Control Policy for Semi-Finished Product and Optional Components

반제품과 선택품의 재고관리 정책에 대한 연구

  • Lee, Dongju (Dept. of Industrial and Systems Engineering, Kongju National University) ;
  • Lee, Chang-Yong (Dept. of Industrial and Systems Engineering, Kongju National University)
  • 이동주 (공주대학교 산업시스템공학과) ;
  • 이창용 (공주대학교 산업시스템공학과)
  • Received : 2013.10.02
  • Accepted : 2013.10.28
  • Published : 2013.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

Keywords

References

  1. Abdel-Malek, L.L. and Areeratchakul, N., A quadratic programming approach to the multi-product newsvendor problem with side constraints. Euro J of Oper Res, 2007, Vol. 176, p 1607-1619. https://doi.org/10.1016/j.ejor.2005.11.002
  2. Chen, L. and Chen, Y.C., A multiple-item budget-constraint newsboy problem with a reservation policy. Omega, 2010, Vol. 38, p 431-439. https://doi.org/10.1016/j.omega.2009.10.007
  3. Ghalebsaz-Jeddi, B., Shultes, B.C., and Haji, R., A multiproduct continuous review inventory system with stochastic demand, backorders, and a budget constraint. Euro J of Oper Res, 2004, Vol. 158, p 456-469. https://doi.org/10.1016/S0377-2217(03)00363-1
  4. Johnson, A. and Montgomery, D.C., Operations Research in Production Planning, Scheduling, and Inventory Control. New York, USA : Wiley; 1974.
  5. Swaminathan, J. and Tayur, S., Managing Broader Product Lines through Delayed Differentiation Using Vanilla Boxes. Management Sci, 1998, Vol. 44, p 161-172. https://doi.org/10.1287/mnsc.44.12.S161
  6. Lee, D.J., Yoo, J.Y., and Lee, M.S., An Approximation Approach for A Multi-Product Continuous Review Inventory Problem with Budget Constraint. J of the Soci of Korea Ind And Sys Eng, 2008, Vol. 31, p 134-139.
  7. Wang, T.Y. and Hu, J.M., An inventory control system for products with optional components under service level and budget constraints. Euro J of Oper Res, 2008, Vol. 189, p 41-58. https://doi.org/10.1016/j.ejor.2007.05.025
  8. Wang, T.Y. and Hu, J.M., Heuristic method on solving an inventory model for products with optional components under stochastic payment and budget constraints. Exp sys with App, 2010, Vol. 37, p 2588-2598. https://doi.org/10.1016/j.eswa.2009.08.017
  9. Vairaktarakis, G.L., Robust multi-item newsboy models with a budget constraint. Int J Prod Econ, 2000, Vol. 66, p 213-226. https://doi.org/10.1016/S0925-5273(99)00129-2
  10. Zhang, G., The multi-product newsboy problem with supplier quantity discounts and a budget constraint. Euro J of Oper Res, 2010, Vol. 206, p 350-360. https://doi.org/10.1016/j.ejor.2010.02.038

Cited by

  1. 확률적 예산 제약을 고려한 주기적 재고관리 정책에 대한 연구 vol.37, pp.1, 2014, https://doi.org/10.11627/jkise.2014.37.1.165
  2. 예산 제약과 예약 정책이 있는 복수 제품 신문 배달 소년 문제 해결을 위한 효율적 방법론 vol.37, pp.1, 2013, https://doi.org/10.11627/jkise.2014.37.1.50
  3. 군 정비창 자재소요계획 vol.37, pp.4, 2013, https://doi.org/10.11627/jkise.2014.37.4.24
  4. 위치기반 지식정보를 활용한 맛집 추천 앱의 효과: 프라이버시 계산을 중심으로 vol.22, pp.1, 2017, https://doi.org/10.7838/jsebs.2017.22.1.089