• Journal of Information Technology Applications and Management
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• v.10 no.3
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• pp.75-92
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• 2003

In order to investigate IS(Information Systems) outsourcing cost estimation model preference of firms, this study reviews previous literatures on outsourcing and firm characteristics. The relationships between firm characteristics and IS outsourcing cost estimation model preference are analysed. Four major factors of firms characteristics are found and classified. IS outsourcing cost estimation model with SLA are found to have a strong relationship with organizational culture. Future research will be needed to verify the result of this exploratory study.

• IE interfaces
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• v.25 no.3
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• pp.347-356
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• 2012

The acquisition cost of defense weapon system has been continuously increasing because of art-of-technology of it. This phenomenon requires efficiency and transparency in the weapon system acquisition process through cost estimation. Therefore cost estimation is very important to the government acquisition programs to support decisions about funding and to evaluate resource requirement as a key decision point. The Commercial parametric cost estimating models have been using extensively to obtain appropriate cost estimates in early acquisition phase. These models have many restrictions to ensure the cost estimating result in Korean defense environment because they are developed based on foreign R&D data. Also estimation results are different from Korean defense industry accounting system. So, some studies have been tried to develop a CER (Cost Estimation Relationship) based on the Korean historical data. However, there are some restrictions to improve the predictability and ensure the stability of the developed singular CERs which consider the following data characteristics individually. The the abnormal conditions of data that is multicollinearity, outlier and heteroscedasticity under rack of the number of observations. In this paper, a CER's Linear Combining Model is proposed to overcome those limitations which guarantee more accurate estimation (25.42% higher precision) than other singular CERs. At least, this study is meaningful as a first attempt to improve the predictability of CER with insufficient data. The methodology suggested in this study will be useful to develop a complex Korean version cost estimating model development in future.

• Korean Management Science Review
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• v.19 no.2
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• pp.191-204
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• 2002

As the portion of information systems (IS) budget to the total government budget becomes greater, the cost estimation of IS development and maintenance projects is recognized as one of the most important problems to be resolved for scientific and efficient management of IS budget. Since IS budget makes much effect on the delivery time, quality and productivity of IS projects, the exact cost estimation is also necessary for the successful accomplishment of IS projects. The primary concern in the cost estimation of IS projects is software cost estimation, which requires the measurement of the size of softwares. There are two methods for sizing software : line-of-code approach, function point model. In this paper, we propose a function-point-based model for estimating software cost. The proposed model is derived by collecting about fifty domestic IT projects in public sector and analyzing their relationship between cost drivers and development effort. Since the proposed model is developed by simplifying the function point model that can be used only when detailed user requirements are specified, it can be also applied at project planning and budgeting phase.

• Journal of Power Electronics
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• v.6 no.2
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• pp.139-145
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• 2006

This paper describes the ultra precise position estimation of a servomotor using a sinusoidal encoder based on Arcsine Interpolation Method for the cost reduction of circuit design. The amplitude and offset errors of the sinusoidal encoder output signals, from the encoder itself and analog signal processing procedures, are effectively compensated and on-line tuned by utilizing a low cost programmable differential amplifier without any special expensive equipment. For a theoretical evaluation of the practical resolution of this system, the relationship between the amplitude of ADC(Analog to Digital Converter) input signal errors and the anticipated resolution is also addressed. The performance of the proposed method is verified by comparing it with speed control characteristics of the servomotor driving system using a digital incremental 50,000ppr encoder in the experiments.

• Korean Management Science Review
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• v.27 no.1
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• pp.33-43
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• 2010

This paper presents a method for the estimation and analysis of the economic value of weather forecasts for CRM decision-making problems in the leisure industry. Value is calculated in terms of the customer's satisfaction returned from the user's decision under the specific payoff structure, which is itself represented by a customer's satisfaction ratio model. The decision is assessed by a modified cost-loss model to consider the customer's satisfaction instead of the loss or cost. Site-specific probability and deterministic forecasts, each of which is provided in Korea and China, are applied to generate and analyze the optimal decisions. The application results demonstrate that probability forecasts have greater value than deterministic forecasts, provided that the users can locate the optimal decision threshold. This paper also presents the optimal decision strategy for specific customers with a variety of satisfaction patterns.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.246-252
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• 2017

In the defense acquisition, a company's goal is to maximize profits, and the government's goal is to allocate budgets efficiently. Each year, the government estimates the ratio of indirect cost sector to defense companies, and estimates the ratio to be applied when calculating cost of the defense articles next year. The defense industry environment is changing rapidly, due to the increasing trend of defense acquisition budgets, the advancement of weapon systems, the effects of the 4th industrial revolution, and so on. As a result, the cost structure of defense companies is being diversifying. The purpose of this study is to find an alternative that can enhance the rationality of the current methodology for estimating the ratio of indirect cost sector of defense companies. To do this, we conducted data analysis using the R language on the cost data of defense companies over the past six years in the Defense Integrated Cost System. First, cluster analysis was conducted on the cost characteristics of defense companies. Then, we conducted a regression analysis of the relationship between direct and indirect costs for each cluster to see how much it reflects the cost structure of defense companies in direct labor cost-based indirect cost rate estimates. Lastly a new ratio prediction model based on regularized regression analysis was developed, applied to each cluster, and analyzed to compare performance with existing prediction models. According to the results of the study, it is necessary to estimate the indirect cost ratio based on the cost character group of defense companies, and the direct labor cost based indirect cost ratio estimation partially reflects the cost structure of defense companies. In addition, the current indirect cost ratio prediction method has a larger error than the new model.

• Journal of the Korean Society of Propulsion Engineers
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• v.23 no.4
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• pp.1-9
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• 2019

Recently, in the space market, there has been a rapid reduction of the launch price. The major reason is that a few commercial companies, especially SpaceX, began to enter into the space market about ten years ago, which has changed the space market from monopolization to competition, and accelerated the adoption of commercial efficiency in the technology and management. Also, the successful landing and recovery of a first stage in 2016 by SpaceX proved to be a prelude to opening a new era of reusable launch vehicles, and SpaceX declared the groundbreaking launch price through using the reusable launch vehicle. This study calculates the total launch cost required to put a certain satellite into the LEO, compares the launch cost in three cases with different payload weights, and reviews the impacts of the payload on the cost effectiveness of a reusable vehicle. The total launch cost is divided into 6 subsections cost, namely development cost, production cost, refurbishment cost, operation cost, fixed-cost of factory and launch site, and insurance cost. The cost estimation relationships used in the calculation are taken from the commonly proven cost models such as TRANSCOST.

• Journal of the military operations research society of Korea
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• v.36 no.3
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• pp.43-56
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• 2010

Recently, the acquisition environment of the Korean defense weapon system is emphasizing more the importance of cost analysis in terms of efficient execution for defense acquisition budget. While cost analysis, however, is emphasized in law and process, its infrastructures are still insufficient We have been using computerized cost models to obtain an estimate at early phase of project. But those models have been developed by foreign companies, and so they have many limitations when using in Korean defense environment. For this reason, it began to sympathize that we need the development of the Korean version cost estimation model suitable for our defense industry environment, and now many studies are proceeding. In this study, we suggest Cost Estimating Relationships(CERs) developing methodologies which is key logics of Korean version cost estimation model. Especially, we proposed a new CER's development process depending upon data characteristics such as, multicolinearity, outlier, small samples and heteroscedasticity. Also, we presented a case study for artillery weapon system using these methods we developed. We find that these CERs could be verified through theoretical methods.

• Journal of Distribution Science
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• v.20 no.5
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• pp.119-127
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• 2022

Purpose: The purpose of this study is to analyze the Cost-Effectiveness Analysis (CEA) of wholesale and retail brokerage businesses in Korea. And give managerial implications and contribute to academics. Research design, data and methodology: This research empirically analyzes the relationship between expenses and business performance. As for business performance, this research considered two financial performances; sales and profit. As for antecedent variables, this research measured three cost investment expenses; human resource management (HRM), marketing (MKT) and corporate social responsibility (CSR). This research used frequency analysis, correlation analysis, stepwise regression analysis and curve estimation analysis. Results: The result shows that HRM and CSR positive significant influence on sales yet marketing negatively significant influence on sales. And for profit, HRM and CSR give a positive significant influence. However, marketing's influence was not significant. According to curve estimation analysis, the relation between individual cost and performance, best functional relation was all quadratic functions. Some results show ∩ shape and others show shape. Conclusions: Based on this study result, implications for practical management to Wholesale and Retail Brokerage companies in Korea. And the contribution to academics is expected. Also, based on the limitation of this study, future research is suggested.

• Journal of the Korean Statistical Society
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• v.13 no.2
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• pp.107-113
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• 1984

In a linear regression model the idependent variables are frequently subject to measurement errors. For this case, the problem of estimating unknown parameters has been extensively discussed in the literature while very few has been concerned with the effect of measurement errors on prediction. This paper investigates the behavior of the predicted values of the dependent variable in terms of the average mean square error of prediction (AMSEP). AMSEP may be used as a criterion for selecting an appropriate estimation method, for designing an estimation experiment, and for developing cost-effective future sampling schemes.