• Title/Summary/Keyword: Cost Allocation

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An Application of the Aumann-Sharpley Prices for Joint Cost Allocation through Book Profit (Aumann-Sharpley 가격에 의한 공통 제조원가의 배분 - 상대적 이익 기여도를 중심으로-)

  • Lee, Kyung-Keun
    • IE interfaces
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    • v.2 no.2
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    • pp.25-32
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    • 1989
  • We study the joint cost allocation based on the book profit producing power of the output through the A-S price mechanism. We show what part of the A-S book profit is allocated to the joint cost and what part is allocated to the variable total book profit of the short-run book profit function. Also we compare some other classical joint cost allocation methods with this A-S price method.

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Suggestion of Allocation Methodology of Environmental Pollution Cost on Multi - Product (복합생산품에 대한 환경오염비용 배분 방법론)

  • Kim, Deok-Jin
    • Korean Journal of Air-Conditioning and Refrigeration Engineering
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    • v.21 no.5
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    • pp.311-318
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    • 2009
  • In previous study, a new allocation methodology of common cost on multi-product have been suggested. The aim of this study is to suggest the methodology that allocates an environment pollution cost including carbon emission cost to each cost of multi-product. For this study, a supposed multi-energy system composed of twenty kinds of systems was made. The multi-energy system produces eighteen kinds of outputs that are electricity, steam, hot water, chilled water, ice, warm air, and cooling air from seven kinds of energy source that are LNG, coil, geothermal energy, sun heat, hydrogen, bio-mass, and waste. The new methodology was applied to the multi-energy system in order to allocate the environment pollution cost to each production cost, and twenty seven equations were induced. From this result, it is concluded that this methodology can estimate each unit cost and allocate each cost flow in any product of any energy system.

A Game Theoretic Approach to the Container Quay Construction in Busan (게임이론 접근법에 의한 부산항 컨테이너부두의 비용배분에 관한 연구)

  • Seong, Suk-Gyeong
    • Journal of Korea Port Economic Association
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    • v.24 no.3
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    • pp.23-35
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    • 2008
  • The purpose of this paper is to suggest a rational cost allocation method that is efficient and fair. Cost allocation by taking cooperative game theory shows fair allocation considering marginal cost by ship type. Current berth occupancy charging method can not recover quay construction costs. Because it levies charges according to berthing time and tonnage of ships without considering the recovery of quay construction costs. And there are also cross subsidies among ships. This paper suggests the cost allocation method of cooperative game theory as a fair and efficient method.

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Evaluation and Optimization of Resource Allocation among Multiple Networks

  • Meng, Dexiang;Zhang, Dongchen;Wang, Shoufeng;Xu, Xiaoyan;Yao, Wenwen
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.7 no.10
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    • pp.2395-2410
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    • 2013
  • Many telecommunication operators around the world have multiple networks. The networks run by each operator are always of different generations, such as 2G and 3G or even 4G systems. Each system has unique characters and specified requirements for optimal operation. It brings about resource allocation problem among these networks for the operator, because the budget of each operator is limited. However, the evaluation of resource allocation among various networks under each operator is missing for long, not to mention resource allocation optimization. The operators are dying for an algorithm to end their blind resource allocation, and the Resource Allocation Optimization Algorithm for Multi-network Operator (RAOAMO) proposed in this paper is what the operators want. RAOAMO evaluates and optimizes resource allocation in the view of overall cost for each operator. It outputs a resource distribution target and corresponding optimization suggestion. Evaluation results show that RAOAMO helps operator save overall cost in various cases.

Optimal Capacity and Allocation Distributed Generation by Minimization Operation Cost of Distribution System (배전계통 운영비용의 최소화에 의한 분산전원의 최적 용량과 위치결정)

  • 배인수;박정훈;김진오;김규호
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.53 no.9
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    • pp.481-486
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    • 2004
  • In operation of distribution system, $DG_s$ Distributed Generations) are installed as an alternative of extension and establishment of substations and transmission and distribution lines according to increasing power demand. In operation planning of $DG_s$, determining optimal capacity and allocation gets economical pro(it and improves power reliability. This paper proposes determining a optimal number, size and allocation of $DG_s$ needed to minimize operation cost of distribution system. Capacity of $DG_s$ (or economical operation of distribution system estimated by the load growth and line capacity during operation planning duration, DG allocations are determined to minimize total cost with power buying cost. operation cost of DG, loss cost and outage cost using GA(Genetic Algorithm).

A Study on the cost allocation method of the operating room in the hospital (수술실의 원가배부기준 설정연구)

  • Kim, Hwi-Jung;Jung, Key-Sun;Choi, Sung-Woo
    • Korea Journal of Hospital Management
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    • v.8 no.1
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    • pp.135-164
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    • 2003
  • The operating room is the major facility that costs the highest investment per unit area in a hospital. It requires commitment of hospital resources such as manpower, equipments and material. The quantity of these resources committed actually differs from one type of operation to another. Because of this, it is not an easy task to allocate the operating cost to individual clinical departments that share the operating room. A practical way to do so may be to collect and add the operating costs incurred by each clinical department and charge the net cost to the account of the corresponding clinical department. It has been customary to allocate the cost of the operating room to the account of each individual department on the basis of the ratio of the number of operations of the department or the total revenue by each operating room. In an attempt to set up more rational cost allocation method than the customary method, this study proposes a new cost allocation method that calls for itemizing the operation cost into its constituent expenses in detail and adding them up for the operating cost incurred by each individual department. For comparison of the new method with the conventional method, the operating room in the main building of hospital A near Seoul is chosen as a study object. It is selected because it is the biggest operating room in hospital A and most of operations in this hospital are conducted in this room. For this study the one-month operation record performed in January 2001 in this operating room is analyzed to allocate the per-month operation cost to six clinical departments that used this operating room; the departments of general surgery, orthopedic surgery, neuro-surgery, dental surgery, urology, and obstetrics & gynecology. In the new method(or method 1), each operation cost is categorized into three major expenses; personnel expense, material expense, and overhead expense and is allocated into the account of the clinical department that used the operating room. The method 1 shows that, among the total one-month operating cost of 814,054 thousand wons in this hospital, 163,714 thousand won is allocated to GS, 335,084 thousand won to as, 202,772 thousand won to NS, 42,265 thousand won to uno, 33,423 thousand won to OB/GY, and 36.796 thousand won to DS. The allocation of the operating cost to six departments by the new method is quite different from that by the conventional method. According to one conventional allocation method based on the ratio of the number of operations of a department to the total number of operations in the operating room(method 2 hereafter), 329,692 thousand won are allocated to GS, 262,125 thousand won to as, 87,104 thousand won to NS, 59,426 thousand won to URO, 51.285 thousand won to OB/GY, and 24,422 thousand won to DS. According to the other conventional allocation method based on the ratio of the revenue of a department(method 3 hereafter), 148,158 thousand won are allocated to GS, 272,708 thousand won to as, 268.638 thousand won to NS, 45,587 thousand won to uno, 51.285 thousand won to OB/GY, and 27.678 thousand won to DS. As can be noted from these results, the cost allocation to six departments by method 1 is strikingly different from those by method 2 and method 3. The operating cost allocated to GS by method 2 is about twice by method 1. Method 3 makes allocations of the operating cost to individual departments very similarly as method 1. However, there are still discrepancies between the two methods. In particular the cost allocations to OB/GY by the two methods have roughly 53.4% discrepancy. The conventional methods 2 and 3 fail to take into account properly the fact that the average time spent for the operation is different and dependent on the clinical department, whether or not to use expensive clinical material dictate the operating cost, and there is difference between the official operating cost and the actual operating cost. This is why the conventional methods turn out to be inappropriate as the operating cost allocation methods. In conclusion, the new method here may be laborious and cause a complexity in bookkeeping because it requires detailed bookkeeping of the operation cost by its constituent expenses and also by individual clinical department, treating each department as an independent accounting unit. But the method is worth adopting because it will allow the concerned hospital to estimate the operating cost as accurately as practicable. The cost data used in this study such as personnel expense, material cost, overhead cost may not be correct ones. Therefore, the operating cost estimated in the main text may not be the same as the actual cost. Also, the study is focused on the case of only hospital A, which is hardly claimed to represent the hospitals across the nation. In spite of these deficiencies, this study is noteworthy from the standpoint that it proposes a practical allocation method of the operating cost to each individual clinical department.

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Analysis on the Decision of Transmission Cost Allocation Rate Using the Arbitration Game (중재계임을 이용한 송전비용배분비율 결정에 관한 분석)

  • Chung, Koo-Hyung;Yoo, Chong-Il;Kang, Dong-Joo;Han, Seok-Man;Kim, Bal-Ho
    • Proceedings of the KIEE Conference
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    • 2002.11b
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    • pp.375-377
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    • 2002
  • In many parts of the world. the electricity industry is undergoing unprecedented changes. Hence, in order to reform the electricity industry readily and efficiently and minimize the confusion by these restructuring, it is required the systematic studies related to transmission pricing and transmission cost allocation issues. However, even now the basis of transmission cost allocation rate is not equipped so that the regulation body has determined the allocating rate under the common practice. In this paper it is demonstrated that the decision of transmission cost allocation rate is the regulation body's own right. For the analysis, game theory is applied to the procedure determining this rate and the competition to determine this rate between generators and distributors is modeled as the arbitration game.

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Cost-Aware Dynamic Resource Allocation in Distributed Computing Infrastructures

  • Ricciardi, Gianni M.;Hwang, Soon-Wook
    • International Journal of Contents
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    • v.7 no.2
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    • pp.1-5
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    • 2011
  • Allocation of computing resources is a crucial issue when dealing with a huge number of tasks to be completed according to a given deadline and cost constraints. The task scheduling to several resources (e.g. grid, cloud or a supercomputer) with different characteristics is not trivial, especially if a trade-off in terms of time and cost is considered. We propose an allocation approach able to fulfill the given requirements about time and cost through the use of optimizing techniques and an adaptive behavior. Simulated productions of tasks have been run in order to evaluate the characteristics of the proposed approach.

Development of a Technology Cost Model for Advanced Manufacturing Systems (첨단생산시스템을 위한 기술원가모델의 개발)

  • Park, Ju-Chull
    • IE interfaces
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    • v.8 no.1
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    • pp.31-43
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    • 1995
  • This study is intended to develop a technology cost model (TCM) which treats technology costs appropriately under present advanced manufacturing technology environment. TCM is composed of two elements : cost classification system and cost allocation model. It is proposed to include technology-related department expenses as well as technology investment in the categories of technology costs. For the cost allocation, technology activities are divided into four homogeneous groups. Costs are accumulated into one of the four cost pools and allocated to the cost object using the pool's unique allocation base. It is also proposed to use the capital recovery costs including interest expense rather than the depreciation costs for an invested capital. A case study is performed to verify the applicability of the developed model.

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An Algorithm to Optimize Deployment Cost for Microservice Architecture (마이크로서비스 아키텍처의 배포 비용을 최적화하는 알고리즘)

  • Li, Ziang;Lee, Scott Uk-Jin
    • Proceedings of the Korean Society of Computer Information Conference
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    • 2020.07a
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    • pp.387-388
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    • 2020
  • As the utilization of microservice architectural style in diverse applications are increasing, the microservice deployment cost became a concern for many companies. We propose an approach to reduce the deployment cost by generating an algorithm which minimizes the cost of basic operation of a physical machine and the cost of resources assigned to a physical machine. This algorithm will produce optimal resource allocation and deployment location based on genetic algorithm process.

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