• The Journal of Society for e-Business Studies
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• v.18 no.4
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• pp.327-338
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• 2013

Effective and efficient selection of IT projects is crucial for company's competitiveness. The selection of IT projects usually involves consideration of budget constraints but existing IT project selection models often neglect budget constraints. This paper presents an IT project selection model which considers budget constraints. AHP(Analytic Hierarchy Process) and Knapsack problem model have been combined to develop the proposed model, AHP-K model, where AHP is used to estimate weights of selection criteria and, then, a knapsack problem model is utilized to optimize selection of IT project while meeting the budget constraints. In this paper, a case study is provided to validate the effectiveness of the proposed AHP-K model. It has been shown that the proposed AHP-K model is better than the AHP model in terms of total utility of projects and investment efficiency.

• Journal of the Society of Disaster Information
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• v.8 no.3
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• pp.267-275
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• 2012

Long-term national railway building comprehensive review of the proposal had 100 in railway history, railway rail network plan. Planning routes for establishing a plan, but, considering the rail network, the plan was that could with the very important meaning in the What more economical route considering the costs and benefits of building a rail network under budget constraints, went through the process of background lines of business unit interval expenses to adopt a business unit interval. Especially in building the railway network, as well as the road plan was to reflect in order to build for the future railway facilities was secured examine the possibility of possible budget commitment. Budget of securing the transportation tax, gasoline tax, and other transportation facilities in order to secure and commit the current funding approach and Review Bodu possible budget scenarios based on it written. Was also enforce rail system built in reviewing the demand more than anything that can take advantage of the railway distance by railway and the merits of the competition means to compete in the form of the assumed situation. The rail network deployment plan, considering this was discussed, based on the results of the plan to establish the first annual or period of the plan change was based on the budget that was unknown.

• Journal of the military operations research society of Korea
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• v.6 no.1
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• pp.93-101
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• 1980

An effectively designed budget system in the poor resources environment necessarily has three design criteria : (i) to be both planning-oriented and control-oriented, (ii) to be both rationalistic and realistic, (iii) to be sensitive to the variations of resources environment. PPB system is an extreme (planning-oriented and rationalistic) and conventional OEB/OUB system is the other extreme (control-oriented and incrementalistic). Generally, the merits of rationalism are limited because of the infeasibility of applications. Hence, mixtures of the two extremes such as MBO, ZBB, and RZBB have been examined and applied during the last decade. The classical mathematical models of capital budgeting are the starting points of the development of the Budget-Mix Model introduced in this paper. They are modified by the followings: (i) technological-resource constraints, (ii) bounded-variable constraint, (iii) the exchange rules. Special emphasis is laid on the above (iii), because we need more efficient interresource exchanges in the budget-mix process. The Budget-Mix Model is not based on optimization, but a heuristic approach which assures a satisficing solution. And the application fields of this model range between the incremental Nonzero-Base Budgeting and the rational Zero-Base Budgeting. In this thesis, the author suggests 'the budget- mix concept' and a budget-mix model. Budget-mix is a decision process of making program-mix and resource-mix together. For keeping this concept in the existing organization realistic, we need the development of quantitative models describing budget-mix situations.

• IE interfaces
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• v.24 no.4
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• pp.295-303
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• 2011

This paper presents a discrete time optimal asset buying problem with a predetermined final deadline where an available budget is limited. A cost is paid to search for assets called the search cost. A seller who shows up offers a price for the asset and then the buyer decides whether or not to buy the asset by comparing the offered price to his optimal selection threshold. When the budget becomes less than the search cost or the price of the asset the buyer can get a necessary loan with some interests. We clarify the properties of the buyer's optimal selection threshold in order to maximize the expected value of budget which is left after paying all the search costs and the price of the asset at that point in time.

• Journal of the Korean Society for Railway
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• v.7 no.3
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• pp.223-231
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• 2004

The accumulated BMS data have made it easy to make reasonable decision-making for bride maintenance and repair work. In the developing period of BMS, the bridge management was not easy due to the lack of understanding of BMS and low credibility of the data. In recent years, it has been possible to enhance the credibility of the data and to expand the application scopes of BMS with the efforts of Local Road Construction Offices. The reasonable decision making for bridge management can improve the performance of bridges under the practical constraints such as limited budget. It can then result in the reduction of bridge maintenance budget. This study provides the methodology for the application of mobile internet-based KOBMS for bridge management. The data flow for BMS is the most important factor for decision-making on budget allocation, and this study establishes the basic scheme of the data flow for BMS. The implementation of PDA for BMS may suggest a new paradigm of 'Mobile' in the field of construction management.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.17-24
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• 2016

Many organizations have transformed their business in order to survive and compete in the future. They generate projects by creating a vision, using strategies and objectives with funds aligning strategies and make efforts to complete them successfully because project success leads to business success. All projects have triple constraints such as scope, time, and cost to be completed. Project cost performance is a key factor to achieve project goals and which is mostly related with risks among various cost drivers. Projects require a cost estimation method to complete them within their budget and on time. An accurate budget cannot be estimated due to the uncertainties and risks. Thus some additional money should be funded in addition to the base budget as a contingency reserve for identified risks and a management reserve for unidentified risks. While research on contingency reserve for identified risks included in project budget baseline have been presented, research on management reserve for unidentified risks included in total project budget is still scarce. The lack of research on estimation method and role of the management reserve have made project managers little confidence to estimate project budget accurately with reasonable basis. This study proposes a practical model to estimate budgets including contingency and management reserves for not only project cost management but also to keep the balance of organization's total funds to maximize return on investments for project portfolio management. The advantages of the proposed model are demonstrated by its application to construction projects in Korea and the processes to apply this model for verification are also provided.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.1
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• pp.50-59
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• 2014

In this paper, we develop an efficient approach to solve a multiple-item budget-constraint newsboy problem with a reservation policy. A conventional approach for solving such problem utilizes an approximation for the evaluation of an inverse of a Gaussian cumulative density function when the argument of the function is small, and a heuristic method for finding an optimal Lagrangian multiplier. In contrast to the conventional approach, this paper proposes more accurate method of evaluating the function by using the normalization and an effective numerical integration method. We also propose an efficient way to find an optimal Lagrangian multiplier by proving that the equation for the budget-constraint is in fact a monotonically increasing function in the Lagrangian multiplier. Numerical examples are tested to show the performance of the proposed approach with emphases on the behaviors of the inverse of a Gaussian cumulative density function and the Lagrangian multiplier. By using sensitivity analysis of different budget constraints, we show that the reservation policy indeed provides greater expected profit than the classical model of not having the reservation policy.

• Journal of Korea Port Economic Association
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• v.32 no.3
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• pp.139-154
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• 2016

The port incentive scheme currently implemented in various Korean ports is used as a marketing tool to increase price competitiveness. Typically, ports implement piecemeal imitation strategies to enhance their competitiveness, rather than a precisely designed system. A precise analysis of the effectiveness of a port's system and scheme redesign are lacking because budget allocation is done without input from customers and freight groups. This study models the incentives faced by ports using a linear programming model. We use the Gwangyang port as the base case. Our analysis of the Gwangyang port reveals that there are insufficient incentives implemented when a traditional qualitative analysis is used. We also identify any excess, deficiency, or absence of the incentive effect for each type of customer and freight group. We find the overall budget of the incentive scheme to be more rational when ports allocate funds to minimize port mileage, and allocate 61.77 percent and 38.23 percent of the budget on existing and new (or increased) cargo inventory, respectively. Future studies can build on our work by further considering basic inputs, and by adding a system to estimate the input data of our model to identify constraints and thus provide a more accurate incentive scheme.

• Journal of Korean Institute of Industrial Engineers
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• v.40 no.5
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• pp.481-491
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• 2014

In this paper, we discussed a problem for improving the throughput of a crankshaft manufacturing line in an automotive factory in which the budget for purchasing new machines and installing additional buffers is limited. We also considered the constraint of available space for both of machine and buffer. Although this problem seems like a kind of buffer allocation problem, it is different from buffer allocation problem because additional machines are also considered. Thus, it is not easy to calculate the throughput by mathematical model, and therefore simulation model was developed using $ARENA^{(R)}$ for estimating throughput. To determine the investment plan, a modified Arrow Assignment Rule under some constraints was suggested and it was applied to the real case.

• Korean Management Science Review
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• v.27 no.2
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• pp.31-44
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• 2010

It is very important to forecast demand and determine the optimal procurement quantities of spare parts. The Army has been forecasting demand not with actual usage of spare parts but with request quantities. However, the Army could not purchase all of forecasted demand quantities due to budget limit. Thus, the procurement quantities depend on the item managers' intuition and their meetings. The system currently used contains many problems. This study suggests a new determination procedure; 1) forecasting demand method based on actual usage, 2) determining procurement method through LP model with budge and other constraints. The newly determined quantities of spare parts is verified in the simulation model, that represents the real operational and maintenance situation to measure the operational availability. The result shows that the new forecasting method with actual usage improves the operational availability. Also, the procurement determination with LP improves the operational availability as well.