Application of customer service level control and supply chain management to improving operation income of traditional industries

• Main Authors: Chi-Luu Chang, 張治魯
• Other Authors: Cheng-Chang Lin
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/s7kx5x

碩士 === 國立成功大學 === 交通管理學系碩博士班 === 90 === ABSTRACT The purposes of supply chain management are lowering down the total cost, creating new revenues and higher profits from goods sold. In this research, two models are developed. The first one is a demand deterministic production-inventory-distribution model. The objection function is to maximize the profit, which is the difference between revenues and costs. Production, selling, and inventory amount are the control variables. In this model setup and inventory costs are considered. The inventory level can be set at different number. The production plan is arranged to make the setup and inventory cost lowest. The second model is a production-service level-distribution model. The model can decide the service level to each “customer – product” pair to make the profit maximized. The service level is defined as the ability to satisfy a customer’s delivery date – for instance, the percent of all orders sent on or before the promised delivery date. In this research we select a synthetic rubber maker in Kaohsiung, Taiwan as the case company. Their Styrene-Butadiene rubbers are the products being studied with two production lines A line and B line. There are three kinds of products in the A line, A1, A2, and A3 which are applied in the first model to study how to improve profit under the condition of production capacity is higher than the customers’ requirement. The profit can increase 32% when its inventory level at 0.6 time of next period’s requirement when compared with the result calculated from using the real production data. There are four kinds of products in the B line. The production amount of B line is under the requirement of customers. We apply the second model to study how to sell B-line products to make the highest profit. By implementing the customer service levels solved out by the model can improve 8.5% profit. The opinion of yield management is applied in this model.