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

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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The Competitive Time Guarantee Decisions Via Continuous Approximation of Logistics Systems

연속적 근사법에 의한 물류시스템의 경쟁적 시간보장 의사결정 최적화에 관한 연구

  • Kim, Hyoungtae (Department of Global Service Management, Woosong University)
  • 김형태 (우송대학교 글로벌서비스경영학부)
  • Received : 2014.09.01
  • Accepted : 2014.09.04
  • Published : 2014.09.30
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Abstract

We show how a supplier can peg cost measures to the reliability of his time guarantees via the penalty costs considered in the framework. The framework also enables us to study the connections between the logistics network and the market. In this context, we show that even when the market base increases significantly, the supplier can still use the logistics network designed to satisfy lower demand density, with only a marginal reduction in profit. Finally we show how the framework is useful to evaluate and compare various logistics system improvement strategies. The supplier can then easily choose the improvement strategy that increases his profit with the minimal increase in his logistics costs.

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