A Study on the Profit Increase through a New Production/Distribution Method at S Plastic Injection Molding Factory

S 플라스틱 사출성형 공장에서 새로운 생산/배송 방법에 의한 수익증가의 연구

  • Jung, Gyu-Bong (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University) ;
  • Park, Yang-Byung (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University)
  • 정규봉 (경희대학교 공과대학 산업경영공학과) ;
  • 박양병 (경희대학교 공과대학 산업경영공학과)
  • Received : 2010.03.09
  • Accepted : 2010.04.25
  • Published : 2010.09.30

Abstract

S plastic injection molding factory located at Namdong Industrial Complex in Incheon produces plastic parts for semiconductor, vacuum cleaners, office furniture, etc. It produces the parts to customers' order and delivers them directly to customers at due dates using the trucks of freight company. In recent years, it has been suffered from the excessive production cost, high lost sales rate, rigid response to customers' order, and high delivery cost, which affect negatively on its profit. This paper introduces a case study on the profit increase through a newly proposed production and distribution method which applies a make-to-stock and multi-visit delivery strategy at S plastic injection molding factory. The proposed method is evaluated by comparing with the current method with respect to sales profit using the historical data of customer demand. It is confirmed through the computational experiments that the proposed production and distribution method yields almost double increase in profit resulted from the increased production, reduced lost sales, reduced production cost, and reduced delivery cost.

Keywords

References

  1. 노형진; SPSS/Excel에 의한 재미있는 시계열 분석, 효산, 2007.
  2. 장경; 최신 예측이론과 활용, 교우사, 2003.
  3. Ballou, R. H.; Business Logistics/Supply Chain Management, 5th ed., Prentice Hall NJ, USA, 53-57, 2004.
  4. Box, G. E. P. and Jenkins, W. M., and Reinsel, G.; Time Series Analysis, John Wiley and Sons, Inc., New York, USA, 2008.
  5. Chopra, S. and Meindl, P.; Supply Chain Management: Strategy, Plannin and Operations, 3rd ed., Pearson Education, Inc., NJ, USA, 275-278, 2007.
  6. Groover, M. P.; Automation, Production Systems, and Computer-Integrated Manufacturing, 3rd ed., Prentice Hall, NJ, USA, 422-445, 2008.
  7. McKay, K. N. and Black, G. W.; "The Evolution of a Production Planning System : A 10-year Case Study," Computersin Industry, 58(8/9) : 756-771, 2007.
  8. Nonino, F. and Panizzolo, R; "Integrated Production/Distribution Planning in the Supply Chain : The Febal Case Study," Supply Chain Management, 12(2) : 150-163, 2007. https://doi.org/10.1108/13598540710737334