Purpose - The Korean government has revised the distribution industry development law to regulate large-scale retailer operations to protecting medium- and small-scale retailers and traditional markets. According to the revised law, large-scale retailers must follow regulations on operating hours and compulsory store closures two days per month. Based on the revised distribution industry development law, most local governments regulate operation hours and they have adopted compulsory closure programs for large-scale retail stores. However, it is argued that fresh food producers suffer from a decrease in sales based on the compulsory closure of stores operated by large-scale retailers. Large-scale retailers reduce their fresh food orders from agricultural and fishery producers because of the compulsory store closures. Fresh food producers also suffer from a decrease in prices because reduced orders lead to a decrease in auction prices based on the availability of excess goods in wholesale markets. This paper investigates the effects of operation regulations for large-scale retailers on agricultural producers by surveying agricultural and fishery producer organizations. Research design, data, methodology - A survey was conducted on 117 producer organizations of fruits and vegetables, cereals, fisheries, and livestock products from September 10 to October 4, 2012. Survey items are annual sales, shares of sales accounted for by large-scale retailers, reduction of orders and prices from large-scale retailers, methods to deal with the sales reduction, unfair trade practices of large-scale retailers, opinion of the large-scale retailer regulations, and so on. The average sales of the sampled producer organizations are 13.7 billion won and the average share of sales accounted for by large-scale retailers is 35.4%. Results - Survey results show that the sample producer organizations' sales decreased 10.1% because of the compulsory closures of stores operated by large-scale retailers. It is estimated that the total sales of producer organizations decreased 371.2 billion won because of the regulations on the operation of large-scale retailers. In addition to the direct effect of a sales decrease due to order reduction, agricultural and fishery producer organizations suffered from the secondary effect of price reduction in wholesale markets. When orders from large-scale retailers decreased, most agricultural and fishery producer organizations shipped redundant products to wholesale markets, decreasing auction prices. It was estimated that the price received decreased 21.9% when sold in other marketing channels. As producer organization sales decreased, it was reported that the labor force employed by producer organizations also decreased by 15.1%. Therefore, we can conclude that the regulations for large-scale retailer operations resulted in negative impacts on agricultural producers. Conclusions - Although the sales reduction due to the regulations for large-scale retailer operations are not great, the cumulative effects due to the continued compulsory closure of stores operated by large-scale retailers could be great. This paper suggests governmental programs that could help agricultural producer organizations to find new and effective marketing channels such as direct marketing, farmers' markets, exports, Internet shopping, and so on.
Journal of the Economic Geographical Society of Korea
/
v.1
no.2
/
pp.21-42
/
1998
This paper aims at examining the regional comparison of the business organization of retailing in the Seoul and Taegu metropolitan areas, as an attempt to understand regional structure of retailing within metropolitan areas which represents the suburbanization. On the national level, retail sales have concentrated on larger metropolitan area, the Seoul metroplitan area, the first largest metropolitan area, having higher sales for population scale. While the Taegu metropolitan area, the third largest metropolitan area, appears to lower retail sales for population scale. In order to confirm such phenomenon, this paper is to analyze and to compare the industrial composition of retailing by industry in 1991 of Seoul with that of Taegu. And this paper is to analyze the regional comparison of business organization of retailing: the percents of establishments under four employees, of juridical establishments, of employees of ordinary times, the annual sales per establishment of retailing. And the characteristics of business organization of retailing by industry are analyzed by principal components analysis, and the explanation of the types with component in each district(city, county, ward) is analyzed by cluster analysis(Ward method). The data of 1991 were obtained from the statistics in the Report on Establishment Census(Vol.3 Wholesale and Retail Trade) published by the National Statistics Office. The results are as follows: 1. The composition of retailing by industry in Seoul metropolitan area by annual sales in 1991 is characterized as appeared very higher composition rates of retailing of textiles, clothing, footwear and apparel accessaries', ‘retailing of furniture, home furnishings and equipment’, retailing of jewellery and watches’, ‘retailing of printed matter and stationery’, ‘retailing of personal transport equipment and gasoline service stations’, and ‘general merchandise stores’. But in Taegu metropolitan area, ‘retailing of food, beverages and tobacco’, ‘retailing of drugs, cosmetics and other chemical goods’, 'retailing household fuel’, and ‘genernal retail trade, n.e.c.’appears very high. Therefore Seoul metropolitan area has larger business scale and retailing of shopping goods has developed than Taegu metropolitan area.
Journal of Physiology & Pathology in Korean Medicine
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v.27
no.5
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pp.667-671
/
2013
The aim of this study was to know the current management status in Korean medical clinics (KMC) and the awareness of Korean medicine doctor. The simple random extraction method from the membership list of 'The Association of Korean Medicine' in 2010 was used for survey. The questionnaire which had used in 2008 was revised, and those were sent to each KMC by mail. A total of 107 data were acquired and frequency analysis was conducted. The result showed that the annual average employees working in each KMC was 2.9 persons and the number of daily outpatient was 33.8 person in 2010. The proportion of sales covered by medical insurance at KMC has been increasing annually as 42.9%, 43.5%, and 44.8% of total sales, whereas the uninsured sales was 57.1%, 56.5%, and 55.2% of total sales in 2008, 2009, and 2010 respectively. All of the responders recognized that the current situation of Korean medical service market was not good and the reason was mainly resulted from undeveloped medical technique, popularized use of functional foods for health and alternative medical care by Western medicine. To expand Korean medical service, the expansion of sales covered by public health medical insurance, government support and advertizement for public relation were needed.
In order to settle down structural causes of the process of distribution and apparel production in domestic fashion industry, and to raise competitive power with changing market environment, we need to bulid up Quick Response(QR) system based on information technology such as EDI(Electronic Data Interchange), KAN(Korea Article Number), and POS(Point of Sales), POS is the most valuable information tool to promote QR system paractically. The purpose of this study was to investigate motivation of POS adoption, problems in operating the system, and satisfaction on POS effects. Data were collected by sending questionnaire to the managers in apparel firms which were using POS. Statistical devices were t-test, frequency with SAS program. The results fo the study were as follows: 1. The degree of satisfaction to POS effects was rather good. Especially, rapid evaluations on new products gave the greatest satisfaction to the users. 2. Satisfaction degree of POS effects according to introduces time and organization characteristic(number of employees) have no significant difference, but the firms which have higher annual sales volume showed higher satisfaction degree. Merchandise department showed higher satisfaction on POS effects. 3. The motivation of POS adoption was an effective logistics control with consumer information as a marketing strategy. The problems in operating the system were lack of investment, and professionals. They almost didn't have KAN code, instead, have their own code system.
According to the lack of specific research on small business, this study analyzed the effects of a limited edition marketing strategy in a small business, whereas many previous studies focused only on large businesses. The test was performed by releasing and selling a limited edition (LE) product of a small brand with annual sales of about $10,000, for a limited time (one week), alongside social network advertising on Instagram. As this strategy resulted in a 10 times increase in sales from the previous year, the author concluded that a limited edition marketing campaign can significantly improve brand awareness and increase sales in a small independent business as well as larger businesses.
Journal of Korean Institute of Industrial Engineers
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v.24
no.1
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pp.127-136
/
1998
This paper presents a stochastic partial backorder inventory model for the situation in which demand follows normal distribution and back order ratio during that stockout period decreases exponentially according to the length of backorder period. In the paper, an objective function is formulated to minimize the average annual cost, which is the sum of the ordering, carrying, time-proportional backordering, and lost sales cost. And then sensitivity analysis for various exponential backorder ratios and standard deviations of leadtime demand are presented. The inventory model in the paper is reduced to a backorder model and lost sales model, when backorder ratio is 1 and 0, respectively.
Wholesale club is one of the fastest expanding retailer formats. Given its key features such as limited assortment and no promotion policy, the current paper provides a theory on why the wholesale clubs charge their members fixed annual fees. In a competitive setting with supermarkets, the proposed model demonstrates that the membership fee is the optimal reaction of wholesale clubs to supermarkets" sales promotion. More specifically, the positive amount of annual fee is only justified under the condition that there exists consumer heterogeneity in consumption rate and when the supermarket exercises price promotion on the product that the wholesale club carries. This paper describes the competition in a stylized fashion and derives the optimal membership fee under a scenario where retail promotion is present. This study is valuable in that it offers a different explanation on wholesale club membership fee than conventional wisdoms such as cost sharing and that it provides insights to the managers who consider no-fee format.
Journal of the military operations research society of Korea
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v.9
no.1
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pp.69-74
/
1983
This article presents a deterministic inventory model for situations in which, during the stockout period, a fraction ${\beta}$ of the demand is backordered and the remaining fraction $1-{\beta}$ is lost. By defining a time proportional backorder cost and a fixed penalty cost per unit lost, a convex objective function representing the average annual cost of operating the inventory system is obtained. The optimal operating policy variables are calculated directly. At the extremes ${\beta}\;=\;1$ and ${\beta}\;=\;0$ the model presented reduces to the usual backorders and lost sales case, respectively.
The objectives of this study were to investigate the failure characteristics of a total of 90 parts of tractor driveline, and to predict their average annual demands required to perform the after-sales service. The failure characteristics such as failure mode, mean time between failures, characteristic life and reliability were analyzed using the data collected through the experienced mechanics at the part centers of the tractor manufacturers. The analysis was based on the assumption that the failure distribution follows the Weibull distribution. The average annual demands were also predicted for the replacement parts using the mean time between failures and the renewal theory based on the Weibull distribution. The results of the study revealed that the driveline parts failure was mostly from wearout and their average characteristic life is about 1.760 hours. The estimated mean time between failures was in a range of 670∼3,740 hours and reliability in a range of 40∼60%. The annual replacement demands were in a range of 4∼45 for a service of 100 tractors.
Kim, Heeyong;Song, Se Hyun;Lee, Sunkil;Kim, Jong-Bin;Yoo, Joon-Taek;Jang, Dae-Soo
Journal of the Korean Society of Fisheries and Ocean Technology
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v.49
no.3
/
pp.250-260
/
2013
The annual and monthly fluctuation in the species composition and the catch abundance of dominant species were analyzed using the daily sales slip catch data by a set net in the offshore waters off Dolsan Island in Yeosu from March 2004 to December 2011. Mean catch from 2004 to 2011 is 372M/T and the maximum and the minimum catch are 526 M/T in 2005 and 27 2M/T in 2009, respectively. The dominant species were Engraulis japonicus mainly in spring and Scomberomorous niphonius in Autumn and therefore the set net catch that is dominated by S. niphonius's catch was much higher in autumn than in spring. Through comparative analyses for the environmental factors to the annual catch fluctuation, it is revealed that the water temperature variation affected the recruitment property of S. niphonius to the fishing ground but the effect of typhoon on the catch fluctuation was not distinct. Furthermore, the big blooming event of jellyfish, particularly Nemopilema nomurai, that occurred in 2009 showed a tendency of faster appearance and later extinction until December. The occurring characteristic of N. nomurai became a direct cause that brought about the lowest total catch in 2009 since the dominant species catch of the set net fishery was concentrated mostly in Autumn.
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