• Title/Summary/Keyword: Quantity flexibility Contract

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Development of a Composite Revenue Sharing-Quantity Flexibility Contract

  • Lumsakul, Pasuree;Luong, Huynh Trung
    • Industrial Engineering and Management Systems
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    • v.12 no.3
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    • pp.224-233
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    • 2013
  • In supply chain management, the supply contract can induce collaboration and coordination among the supply chain members in order to optimize supply chain performance. Numerous supply contracts have been examined; however, some difficulties related to the application of these contracts still occur. One of the solutions is to apply the composite supply contract which can assist in the supply chain coordination. This research examines the composite contract of the revenue sharing and quantity flexibility contracts in a two-stage supply chain, which comprises a retailer and a supplier. In this research, a mathematical model of the composite contract is developed; then, the applicability of the proposed composite contract is examined by investigating its capability in terms of supply chain coordination and profit allocation. In the numerical experiments, the composite revenue sharing-quantity flexibility contract showed that it is superior to both component contracts in terms of supply chain coordination and profit allocation among supply chain members.

A Quantity Flexibility Contract Model for Optimal Purchase Decision (최적 구매량 결정을 위한 QF 계약 모형)

  • Kim Jong-Soo;Kim Tai-Young;Kang Woo-Seok
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.2
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    • pp.129-140
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    • 2006
  • Quantity Flexibility contract coordinates individually motivated supplier and buyer to the systemwide optimal outcome by effectively allocating the costs of market demand uncertainty. The main feature of the contract is to couple the buyer's commitment to purchase no less than a certain percentage below the forecast with the supplier's guarantee to deliver up to a certain percentage above. In this paper we refine the previous models by adding some realistic features including the upper and lower limits of the purchase. We also incorporate purchase and canceling costs in a cost function to reflect the real world contracting process more accurately. To obtain the solution of the model, we derive a condition for extreme points using the Leibniz's rule and construct an algorithm for finding the optimal solution of the model. Several examples illustrating the algorithm show that the approach is valid and efficient.

The Effect of Quantity Flexibility Contract on the Military Medicine Inventory Using Dynamic Simulation (수량유연성계약이 육군 의약품 재고에 미치는 영향에 관한 시뮬레이션 연구)

  • Choi, Young-Su;Moon, Seoung-Am;Kim, Dong-Jin
    • Journal of the military operations research society of Korea
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    • v.34 no.2
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    • pp.27-42
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    • 2008
  • This study simulated the effect of the quantity flexibility contract(QFC) on the Korean military inventory system. The results shows that the QFC make the inventory system more efficient. For validity of this study, we assume the basic four demand patterns (increase, decrease, high variation and long seasonality) which are the exogenous variables of these simulation systems. We measured the difference of the traditional military inventory system's and new QFC system's performances. Under the all demand patterns, QFC models have little inventory than the traditional systems. We suggest, therefore, the military change the supply contract into QFC for decrease inventory and expect the results of this study applied to the company level.

Measuring a Value of Contract Flexibility in the Third-Party Warehousing

  • Park, Chul-Soon;Kim, Bo-Won
    • Management Science and Financial Engineering
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    • v.15 no.1
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    • pp.1-31
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    • 2009
  • This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

Comparison of Success Rates of Supply Chain Contract using Simulation (시뮬레이션을 이용한 공급사슬 계약 성사율 비교)

  • Gao, Yang;Seo, Dong-Won
    • Journal of the Korea Society for Simulation
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    • v.31 no.1
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    • pp.19-27
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    • 2022
  • This study compares and analyzes wholesale(or price-only) contract, revenue-sharing contract, quantity-flexibility contract, and channel-rebate contract in a decentralized supply chain consisting of one supplier and one retailer. By setting the parameters of each coordination contract based on the previous results, we conduct simulations using @RISK for several combinations of these parameters. Under the supply chain coordination, we evaluate the probability of successfully signing a contract and the participant in favor of each contract. As a result, the quantity-flexibility contracts is most advantageous for the retailer and the channel-rebate contracts is most advantageous for the supplier. It revealed that revenue-sharing contracts can be used more flexibly because they can be selected in the widest range to redistribute profits between supplier and retailer.

An Improvement Plan of Contract Price Adjustment through the Problem Analysis of the Current Price Escalation Regulation in Construction Projects (현행 건설공사 물가변동 제도의 문제점 분석을 통한 계약금액조정 개선방안)

  • Park, Yang-Ho;Kown, Beom-Jun;Kim, Yong-Su
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2006.11a
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    • pp.435-439
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    • 2006
  • The purposes of study is to propose a new method contract price adjustment in construction projects. The research method of this study includes a case analysis and questionnaire survey. The results of this study are as follows: 1) For improvement method of contract amount adjustment, enactment for legislation pertaining to computation methods such as military's organization through total unit cost, and price flexibility computation at the point of design modification were presented. 2) Arithmetic formulas for cases in which volume is deleted or modified below the price flexibility exemption amount or in which there is no change to quantity, at the occurrence of design modification resulting from price flexibility, were proposed.

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Supply Chain Contract Model with Vague Demand Information (모호한 수요정보에서의 공급망 계약 모델)

  • Kim, Gi-Tae;Park, Jun-Cheul
    • The Journal of Information Systems
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    • v.21 no.2
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    • pp.181-196
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    • 2012
  • 본 논문은 고객의 수요정보에 대해 모호한 정보를 가진 공급자와 구매자 사이의 공급망 계약에 관한 것을 다루고 있는 것으로, 고객 수요에 대한 불확실성은 확률적 프로그래밍 모델에서 공식적으로 다루어져왔다. 확률적 프로그램의 한 가지 핵심적인 가정은 널리 알려져 있는바와 같이 수요에 대한 확률분포가 알려져 있다는 것이다. 그럼에도 불구하고 만약 수요에 대한 정보가 모호하거나 정확하지 않다면 수요에 대한 확률분포가 정확하지 않다는 점이다. 이런 상황에서 퍼지 이론은 수요정보를 나타내는데 유용하다고 할수 있다. 본 논문은 퍼지 랜덤수요변수들을 분산시스템의 공급망 계약에서 다루고 있다. 이 계약은 구매자의 주문량을 조정하는 옵션을 이용한다. 본 연구는 퍼지 랜덤 변수들을 GMIR(Graded Mean Integration Representation)을 이용하여, 알고리즘을 통해 구현함으로써 실증적 결과 값을 제시하고 미래 연구의 확장 가능성을 제시하고 있다.

Development of an Algorithm for Automatic Quantity Take-off of Slab Rebar (슬래브 철근 물량 산출 자동화 알고리즘 개발)

  • Kim, Suhwan;Kim, Sunkuk;Suh, Sangwook;Kim, Sangchul
    • Korean Journal of Construction Engineering and Management
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    • v.24 no.5
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    • pp.52-62
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    • 2023
  • The objective of this study is to propose an automated algorithm for precise cutting length of slab rebar complying with regulations such as anchorage length, standard hooks, and lapping length. This algorithm aims to improve the traditional manual quantity take-off process typically outsourced by external contractors. By providing accurate rebar quantity data at BBS(Bar Bending Schedule) level from the bidding phase, uncertainty in quantity take-off can be eliminated and reliance on out-sourcing reduced. In addition, the algorithm allows for early determination of precise quantities, enabling construction firms to preapre competitive and optimized bids, leading to increased profit margins during contract negotiations. The proposed algorithm not only streamlines redundant tasks across various processes, including estimating, budgeting, and BBS generation but also offers flexibility in handling post-contract structural drawing changes. In particular, the proposed algorithm, when combined with BIM, can solve the technical problems of using BIM in the early phases of construction, and the algorithm's formulas and shape codes that built as REVIT-based family files, can help saving time and manpower.

Study on economic effects of outsourcing of food materials on the hotel kitchen - Focus on cooking Western food in the first class hotel - (식재료 아웃소싱이 경제적 주방에 미치는 영향에 관한 연구 - 특1급호텔 양식조리를 중심으로 -)

  • 성태종
    • Journal of Applied Tourism Food and Beverage Management and Research
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    • v.13 no.2
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    • pp.45-69
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    • 2002
  • This study is designed to examine feasibility and limitation of outsourcing in cooking Western food in a hotel, to interpret importance of outsourcing(eg. outside order, outside procurement, outside supply) in a broad sense in order to reinforce the core capacity in the cooking department, and to know whether the cooking human power is efficiently used and how much the chefs recognize outsourcing of food materials. As many companies conduct restructuring to cut down its size, the reduction of human power led the Western food cooking in the hotel to lower core capacities, lower quality, and lower efficiency. In addition, the sagging morale of chefs undermined creativity. To change from the traditional kitchen to an economic kitchen needs to look into importance of outsourcing, cognitive attitude of chefs, relation with outside suppliers. Here suggests performance of positive changes in the structure The study examined feasibility and limitation of outsourcing in the hotel kitchen as well as chefs' cognitive attitude toward outsourcing of food materials to reinforce core capabilities of the hotel kitchen. 1. Companies of outsourcing are selected according to variability of price conditions, flexibility of contract conditions, popularity of the outsourcing company, and reputation of the outsourcing company. 2. The importance of outsourcing in the Western food cooking is divided into 4 factors such as standard of selecting outsourcing companies, policies of cooking manu, quality of cooking, and quantity of cooking. 3. The most feasible section in outsourcing of food materials is a process of kneading flour for bread, which shows that many Western-food chefs expect to put higher possibility of outsourcing on the kneading. In other words, when it comes to confectionery and bakery, there are many outside expert processing companies supplying high quality products. In the order of outsourcing feasibility, sauce is followed by processed vegetable, garnish of main dish, and soup. The least feasible section in outsourcing of food materials is appetize. Appetize includes a concept of a improvised dish and needs speed. Due to its color, freshness, and sensibility of taste, the appetize plays a key role in the Western food cooking. 4. When outsourcing is taken in place, the highest risk is to lower the inner cooking skills. Therefore chefs in charge of the Western food sequently recognize both internal problems including storage of cooking skills, unstability of layoffs, and loss of cooperation between departments, and external problems including inferior goods, difficulty of differentiating manu, delay of delivery, and expiration date. It shows that most of the Western food chefs consider risks of the internal problems at first. 5. A effective outsourcing needs appropriate selection of outsourcing companies, maintenance of credibility, active communication, check and management of hygiene. However regardless of their position or career, chefs in charge of the Western food have the same cognitive attitude toward selecting successful outsourcing companies after the outsourcing system is enforced. The core of cooking, or a final stage in the full process of so-called artistic cooking, should be treated with insourcing. Reduction of several cooking processes resulted in shortened cooking time, increased efficiency, faster cooking, cutting the waiting-lines, and finally more room for customers. The outsourcing system can reduce or eliminate the following processes in cooking: buying various food materials, checking, storing, preparing, and processing. Especially in the Western food cooking department of a hotel, the outsourcing system should be enforced to make an economic kitchen and to efficiently manage it. Wow it's time to change from the traditional kitchen to an economic kitchen in the hotel cooking department. For that, the cooking department should become a small but strong organization by outsourcing except its core work.

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