Empty Container Repositioning

Kim Chang-hwanPark Young-minSeong Sang-hwa

2007 Industrial Engineering Project

INDEX

2. Approach to Demand Forecasting

4. To be- Planning

1. Review of Focus and Goal

3. Approach to Modeling

1. Review of Focus and Goal

► In this class, according to our focus and goal, we will show you research data for application of academic method.

Focus Research flexible probability inventory model of empty containers that depends on demands

Goal

Research inventory model to determine appropriate inventory level of empty containers which can minimize cost/unit stock left-over and cost/unit demand missing.

2. Approach to Demand Forecasting

• Reason for demand forecasting– Actual demand is not deterministic.– And It depends on season & trend of economic performance.– If we know ‘same as actual demand’, that make to reduces the

cost loss .

• Demand forecasting– Demand has seasonality ( cf. summer demand more than winter)

– Depended flow of market

2. Data for Forecasting

• Probability model for demand forecasting

Model name Holt’s model (winter’s model)

- It is a kind of SCM method. That is for demand forecasting method more accurately using trend and seasonality (Seasonality is only used at winter’s model.)

-We can get more exact information of demand by using seasonality& trend.

-But it’s hard to get initial trend and seasonality

3. Data for Modeling – Object, Constraints

• Assumption for modeling– Container number of Owner have is determined before planning of

inventory model step– Container demand is probabilistic in each period– If rent container as same term, rental cost is expensive as long as

rental period– Don’t consider space insufficiency

• Mathematical method using by inventory model– OR method (EOQ)

• Once order quantity for minimize order cost and holding cost

3. Approach to Modeling

Conditions for

Objective function

Length of planning Number of length for usable containers purchased Rent cost per container ( per period ) Inventory cost per container ( per period ) Demand for number of containers ( probability ) Maximum number of rentable containers Number of rent containers ( per period )

Number of non-used containers

4. To be- Planning

Anaiyze Contributions and effects

for society and management

Anaiyze Contributions and effects

for society and management

Research

Continuously

Research

Continuously

Final

Presentation

Final

Presentation

13 week13 week 14 week14 week 15 week15 week

To be continue…

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