• Korean Management Science Review
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• v.32 no.1
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• pp.83-100
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• 2015

We analyze a duopoly competition when two firms face input cost increases. The objective of this study is to determine the firms' optimal strategy between a price increase and downsizing under conditions of a spatially differentiated market and consumers' diminishing utility on the product size. We develop a theoretical model of two competing firms offering homogenous products using the standard Hotelling model to determine how firms' optimal strategies change when facing input cost increases. In this paper, there are two types of duopoly competitions: symmetric and asymmetric. In the symmetric case, the two firms have the same marginal cost and are producing and selling identical products. In the asymmetric case, the two firms have different marginal costs. The results show that the optimal strategy decision depends on the size of the input cost increase and the cost differences between the two firms. We find that when two firms are asymmetric (i.e., they have different marginal costs), the two firms might choose asymmetric pairs of strategies in equilibrium under certain conditions. When the cost differences between the two firms are sufficiently large and the cost increase is sufficiently small, the cost leader chooses price increase, and the cost-disadvantaged firm chooses downsizing in equilibrium. This asymmetric strategy reduces price competition between two firms, and consumers are better off. When the cost differences between the two firms are sufficiently large, downsizing is the dominant strategy for the cost-disadvantaged firm. The cost-disadvantaged firm finds it more profitable to reduce the product size than to increase its price to reduce price competition, because consumers prefer downsizing to price increases. This paper might be a good starting point for further analytical research in this area.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.3
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• pp.27-40
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• 2006

Today's customer demands in supply chains tend to change quickly, variously even in a short time Interval. The uncertainties of customer demands make it difficult for supply chains to achieve efficient inventory replenishment, resulting in loosing sales opportunity or keeping excessive chain wide inventories. Un this paper, we propose an adaptive vendor managed inventory (VMI) model for a two-echelon supply chain with non-stationary customer demands using the action-reward learning method. The Purpose of this model is to decrease the inventory cost adaptively. The control Parameter, a compensation factor, is designed to adaptively change as customer demand pattern changes. A simulation-based experiment was performed to compare the performance of the adaptive VMI model.

• International Journal of Quality Innovation
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• v.2 no.1
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• pp.106-116
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• 2001

The purpose of business strategy is to achieve competitive advantages which includes higher efficiency, better quality, more innovation and faster customer response. In other words, The business strategy is to build unique capability of lower cost and/or differentiation. In production aspect, unique capability means better production power with better performance at 3M(Man, Machine, Material) of input and PQCDSM (Product, Quality, Cost, Delivery, Safety, Moral) from output. The Total Productive management (TPM), a series of improvement activities focused on reduction of equipment loss, is a tool to establish business competitive advantages. In this paper, several domestic companies who won the Japan TPM Award have been studied. It is found that there is a strong cause-effect relationship between TPM and competitive advantages because. 1. TPM can change employees mindset effectively. 2. TPM can upgrade employees capabilities. 3. TPM can lead to excellent productivity.

• Culinary science and hospitality research
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• v.10 no.1
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• pp.116-127
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• 2004

In rapidly changing environments of Foodservice Industry, it would be leading companies have made constant efforts to establish efficient management through active involvement in management accounting. Especially the foodservice business in Korea needs more critical managerial environment to grow and develope as a going business, these management environment is changed according to deepening of the competition between foodservice companies and customer's wants. In order to succeed in this change of management environment, a new managerial policy is required which the economic environment, estimates the level and the direction of change and makes efficient use of various resources through internal control.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.19 no.39
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• pp.293-299
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• 1996

The breakdown of machines lead to the lateness of parts and the change of schedules. Its treatment is very important problem in the shop floor control system. In this study, we present an algorithm minimize the lateness, earliness and change of schedule by controlling machining speed of available machines. Production time and production cost required to manufacture a piece of product are usually expressed as a unimodal convex fuction with respect to machining speed, and each has its minimal point at the minimum time speed or the minimum cost speed, and a speed range between these two speeds is called 'efficiency speed range'. Therefore, the algorithm determines the machining speed in the efficiency speed range. An example is demonstrated to explain the algorithm.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.147-149
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• 2015

A nuclear power plant construction project normally involves a large construction work of which the total project cost is over 5 trillion Won, Such a large-scale construction project has the risks of schedule delay and quality degradation due to increase in project cost, because designs are changed due to design errors. The reasons for design changes during installation are 1) insufficient engineering capability of the owner, 2) information discontinuance due to the multiple package method, and 3) inefficient constructability review processes. Accordingly, this study proposes, through problem analysis, a method of developing a constructability review system that utilizes constructability review processes and a data-based technology (3D modeling) that are optimized for nuclear power plant construction projects. It also presents a method of establishing a system for reviewing constructability in which constructability review processes and a Database (3D model, Schedule, Design change Items) are linked each other.

• Management Science and Financial Engineering
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• v.16 no.3
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• pp.1-20
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• 2010

In this paper, the impact of various system parameters such as the parameters of actual demand process, the review periods and the lead times, under each combination of inventory policies and information sharing, on the long run average inventory cost per period incurred at each participant in a supply chain, is considered. For this purpose, numerical studies are conducted, from which some valuable information as to how sensitive our long run average inventory cost per period are as the model parameters change is gleaned, from which, in turn, some managerial insights are gleaned in order for industry practitioners to perform better in supply chain management.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.5
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• pp.848-853
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• 2007

This paper presents a methodology of estimating incomplete information in electricity markets for analyzing the gaming behavior of Generating Companies (GENCOs). Each GENCO needs to model its opponents' unknown information of strategic biddings and cost functions. In electricity markets with complete information, each GENCO knows its rivals' payoff functions and tries to maximize its own profit at Nash equilibriurnl Nli) by acknowledging the rivals' cost function. On the other hand, in the incomplete information markets, each GENCO lacks information about its rivals. Load patterns can change continuously due to many factors such as weather, price, contingency, etc. In this paper, we propose the method of the estimation of the opponents' cost function using market price, transaction quantities. and customer load patterns. A numerical example with two GENCOs is illustrated to show the basic idea and effectiveness of the proposed methodology.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.1
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• pp.71-85
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• 2001

This paper considers a cost model for a U-shaped manufacturing cell formation which incorporates a required number of machines and various material flows together under multi-part multi-cell environment. The model is required to satisfy both the specified operation sequence of each part and the total part demand volume, which are considered to derive material handling cost in U-shaped flow line cells. In the model several cost-incurring factors including set-up for batch change-over, processing time for operations of each part, and machine failures are also considered in association with processing load and capacity of each cell. Moreover, a heuristic for a good machine layout in each cell is newly proposed based on the material handling cost of each alternative sequence layout. These all are put together to present an efficient heuristic for the U-shaped independent-cell formation problem, numerical problems are solved to illustrate the algorithm.

• Culinary science and hospitality research
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• v.10 no.2
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• pp.121-134
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• 2004

The research on set menus served at Japanese restaurants at special-rate hotels around Gwangju and Jeonla Province suggests problems and rooms for improvement through examination of the current status of set menus at Japanese Restaurant in hotels of Gwangju and southern Jeonla province, prime cost, and sales volume. Advantageous points of course menus served at Japanese restaurants at hotels are as followings: a variety of courses are available; ingredients can reflect seasonal change; clients are satisfied with food at reasonable cost; and it results in sales increase. Based on such measures, more efforts should be made in order to advance preference and satisfaction with menus, cut back on prime cost, and maximize sales volume.