• Journal of the Korean Institute of Intelligent Systems
• /
• v.15 no.5
• /
• pp.545-551
• /
• 2005

The main objective of fraud detection is to minimize costs or losses that are incurred due to fraudulent transactions. Because of the problem's nature such as highly skewed, overlapping class distribution and non-uniform misclassification costs, it is, however, practically difficult to generate a classifier that is near-optimal in terms of classification costs at a desired operating range of rejection rates. This paper defines a performance measure that reflects classifier's costs at a specific operating range and offers a cost-sensitive learning approach that enables us to train classifiers suitable for real-world credit card fraud detection by directly optimizing the performance measure with evolutionary programming. The experimental results demonstrate that the proposed approach provides an effective way of training cost-sensitive classifiers for successful fraud detection, compared to other training methods.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
• /
• v.6 no.6
• /
• pp.469-477
• /
• 2016

This study develops an approach to assign numbers of facilities (rectangular shape) in a given plant and compares the test results by proposed approach with those by approaches in the literature. An improvement approach is proposed to minimize material handling cost given initial layout. Like popular heuristic approaches, the developed heuristic approach employs interchange routine to improve material handling cost in current layout. Horizontal interchange and vertical interchange procedures are applied to obtain better solution. Also, it is possible to rotate facility layout when the sizes of both facilities are same. However, the proposed approach generates good solutions without shape distortion. That means the shape of facilities remains rectangle in the final solution. In addition, the improve approach can find global optimal solution from local optimal solution by applying Tabu search technique. Based on 25 test problems in the literature, we obtained better solutions than other facility layout approaches in the literature when there are many facilities.

• The KIPS Transactions:PartD
• /
• v.12D no.5 s.101
• /
• pp.737-744
• /
• 2005

As the portion of software cost in construction of the system related to the national defence is getting higher, the required accuracy of cost estimation on defense software in development is also getting higher. The PRICE S is used to estimate the software cost at the first stage in the development of software promptly. However, the PRICE S is appropriate for the American environment not for the Korean circumstances. Thus, we will present a method to compensate the PRICE S with comparing with the model of Korea Software Industry Association. Moreover, we also present another method to estimate software cost based on function point with backfiring approach, which will be used for the software projects planned. Finally, we expect that our works will provide a solution for applying the function point in the future and will increase the accuracy of cost estimation in software development.

• Journal of Korean Society for Quality Management
• /
• v.51 no.4
• /
• pp.481-496
• /
• 2023

Purpose: The main theme of this study is to derive a profit curve by a cubic cost function for nonlinear CVP analysis. According to the analytical approach to derive a nonlinear profit function in this study, it is possible with only the existing cost structure to calculate the profit maximization and downtime point sales unlike the classical CVP analysis. Furthermore, the profit curve by the mathematical model of this study could serve as a tool to quantify the qualitative evaluation of each stage of the industry life cycle. Methods: This study followed the mathematical approach from the cubic cost function model of microeconomics, and using real data of the Bank of Korea Results: The nonlinear profit function suggested by this study is as follows; ${\pi}(x)=-a\left(x-\frac{f}{1-v}\right)^3+(1-v)x-k$ where $a=\frac{1}{3}v\left(\frac{(1-v)}{f}\right)^2,k=f-a\left(1-\frac{f}{1-v \right)^3$ Conclusion: The process and results of this study would be able to contribute not only in practice of nonlinear CVP analysis required in the management accounting or financial management, but also in cost theory of microeconomics. Also, since the life cycle of all industries in Korea was verified to the growth or mature stage, decision makers should pay careful attention to determining life cycle stages and consider the profit curve by the average variable cost ratio over multi periods.

• Communications for Statistical Applications and Methods
• /
• v.12 no.3
• /
• pp.673-682
• /
• 2005

In this paper, we generalize the software reliability growth model by assuming that the testing cost and maintenance cost are random and adopt the Bayesian approach to determine the optimal software release time. Numerical examples are provided to illustrate the Bayesian method for certain parametric models.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.23 no.4
• /
• pp.75-86
• /
• 1998

We address the problem of determining the optimal processing times and pallet/fixture allocation in Flexible Manufacturing systems in order to minimize tool cost while meeting throughput targets of multiple part types. The problem is formulated as a nonlinear program superimposed on a closed queueing network of the FMSs under consideration. A numerical example reveals the potential of our approach for significant cost saving. We argue that our model can be Integrated Into the process planning system of an FMS to generate efficient process plans quickly.

• Proceedings of the KIEE Conference
• /
• 2005.07a
• /
• pp.757-759
• /
• 2005

This rarer presents the cost- effectiveness analysis system of DSM programs on the web. The purpose of this paper is to analyze the energy consumption and peak reduction of DSM programs, evaluate the cost-effectiveness for DSM programs, and identify the benefits and the costs for each California Test. The proposed approach is applicable to DSM programs post-conducting in Korea.

• Proceedings of the KIEE Conference
• /
• 2003.11a
• /
• pp.426-428
• /
• 2003

This paper presents the cost-effectiveness evaluation of DSM programs. The purpose of this paper is to analyze the energy consumptions and peak reductions of DSM programs, evaluate the cost effectiveness for each DSM program, and identify the benefits and the costs for each California Test. The proposed approach is applicable to DSM programs post-conducting in Korea.

• Journal of Electrical Engineering and Technology
• /
• v.8 no.4
• /
• pp.667-674
• /
• 2013

Wind power producers face many regulation costs in deregulated environment, which remarkably lowers the value of wind power in comparison with conventional sources. One of these costs is associated with the real-time variation of power output and being paid in frequency control market according to the variation band. This paper presents a new approach to coordination of battery energy storage in wind generation system for reducing the payment in frequency control market. The approach depends on the statistic data of wind generation and the prediction of frequency control market price to determine the optimal variation band which is then kept by the real-time charging and discharging of batteries, ultimately the minimum cost of frequency regulation can be obtained. The optimization problem is formulated as trade-off between the decrease in the regulation payment and the increase in the cost of using battery, and vice versus. The approach is applied to a study case and the results of simulation show its effectiveness.

• Journal of the Korea Concrete Institute
• /
• v.21 no.3
• /
• pp.359-366
• /
• 2009

A new life-cycle cost (LCC) evaluation scheme for marine reinforced concrete structures is proposed. In this method, unlike the conventional life-cycle cost evaluation performed during the design process, the life-cycle cost is updated successively whenever new information of the chloride penetration is available. This updating is performed based on the Bayesian approach. For important structures, information required for this new method can be obtained without any difficulties because it is a common element of various types of monitoring systems. Using the new method, the life-cycle maintenance cost of structures can be estimated with a good precision.