If service level is increased, then service cost such as labor cost and facility cost will be increased. This service cost is included in the budget constraint in this paper. This service cost makes the problem difficult to solve. The purpose of this research is to develop an efficient approach for a continuous review inventory system with budget constraint when the semi-finished product and optional components are required to be assembled. Assuming that the reorder point for semi-finished product is given, order quantity for semi-finished product and order quantity and reorder point will be determined to minimize total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is checked by using an example.

1. 서론 
 2. 문제정의
 3. 기존의 해법과 제안하는 해법
 4. 예제
 5. 결론
 참고문헌

• Dongju Lee(Dept of Industrial & Systems Engineering , Kongju National University) | 이동주
• Chang-Yong Lee(Dept of Industrial & Systems Engineering , Kongju National University) | 이창용 교신저자