• Title/Summary/Keyword: Economy of Scale

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Economies of Scale in Multiproduct Firms;Evidence from Air Transport Industry (항공운송산업의 비용분석을 통한 규모의 경제성 추정;초월대수(Translog)비용함수와 푸리에(Fourier) 신축함수 비교 분석을 중심으로)

  • Kim, Je-Chul;Huh, Seok-Min;Lee, Dong-Hui;Lee, Young-Soo
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.14 no.4
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    • pp.38-47
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    • 2006
  • This study analyzes the expense structure of the air transport industry, based on the cost and income data of 18 major airlines, estimates the economic effectiveness of scale and conducts comparative analysis. As for the method of analysis, Translog cost function and the Fourier flexible function were used. The result showed that big companies had the economy of scale based on the Translog cost function, while the Fourier flexible function led to a estimation that expanding the input is not recommended, for the expansion of scale entails the poor economy of scale. It can be presumed that the economy of scale was estimated according to the U shape of the Translog cost function in the given data. On the other hand, the Fourier flexible cost function approaches the unknown function, as it is a Fourier series, and correctly infers the economy of scale based on the analyzed data. As for the flag carrier's economy of scale, it was inferred that the economy of scale existed by any of two functions. Therefore, the conclusion was that further expanding the scale will not cause any problem.

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The Economies of Scale and Scope in the Medical Service Industry of Korea and Its Policy Implications (한국 의료서비스산업의 규모 및 범위의 경제와 그 정책적 시사점)

  • Kim, Seon Jae;Lee, Younghwa
    • The Journal of the Korea Contents Association
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    • v.13 no.11
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    • pp.176-186
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    • 2013
  • The purpose of this study is to investigate the economies of scale and scope in the medical service industry of Korea using the multiple output translog cost function. The results show that the single-product scale economy (SSE) estimated is highly significant and less than one, implying that Korean medical service institutes are on average enjoying the product-specific scale economy in providing their services. In addition, the ray scale economies (RSE) reflects the overall economy of the scale in individual firm, showing less than one. Thus, the medical service industry in Korea is generally operating in the region of increasing returns to scale. The findings provide evidence of the economy of scope, in particular, with the joint production of inpatient and outpatient services as well as inpatient and administrative services.

A Study on Developing Profit Model for Remodelling of Apartment Houses (공동주택 리모델링을 위한 수익모델의 개발 연구)

  • An, Min-Jae;Pyo, Ji-Myeong;Kim, Ui-Sik
    • Journal of the Korea Institute of Building Construction
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    • v.4 no.3
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    • pp.101-108
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    • 2004
  • The physical factor having a great influence among components of making values of profit model in apartment houses is equilibrium change of house and this study suggests an alternative of remodelling. It sets profit models including model dividing household of large scale into that of small scale using value making factor of apartment house and spatial composition techniques and model integrating households of small scale and converting them into those of large scale and finds that its economy is good as over 'average', evaluative value of economy is reduced as discount rate increases and economy of remodelling is superior.

Computable General Equilibrium Analysis of Energy Markets with Imperfect Competition and Scale Economy (불완전경쟁 및 규모의 경제가 에너지 산업에 미치는 영향)

  • Park, Chang Won;Kim, Gene Uhc
    • Environmental and Resource Economics Review
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    • v.11 no.2
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    • pp.291-319
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    • 2002
  • This Paper investigates imperfect competition and economy of scale on Korean energy markets based on computable general equilibrium model. Some industries like energy sector have exhibited that their economies have strong economies of scale and imperfect competition. Thus these industrial organization facts should be incorporated into CGE model. In our model, non-competitive markets are adopted and compare these results with convention perfect competition model.

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Heuristics for Synchronization of Production and Transportation Planning in the Supply Chain (공급사슬에서 생산 및 물류의 동기화를 위한 발견적 기법)

  • Jeong Jeong-U;Lee Yeong-Hae
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.05a
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    • pp.159-166
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    • 2006
  • The aim of synchronization of production and transportation planning in the supply chain is to increase the flexibility and to decrease various costs. The suggested model in this study synchronizes the timing to supply to a downstream manufacturer directly after production and to be consumed in a downstream manufacturer right after receipt. This model deals with the frequent delivery in small amount which is a new trend of the transportation not governed the economy of scale principle. Moreover, various types of transportation governed by the economy of scale principle or not are considered. Then, the two-phase mathematical model is suggested to obtain optimal job sequence and production quantity for each tasks. But, it is difficult to gain optimal solutions if there is a transportation governed by the economy of scale principle in the supply chain, or the size of the problem is increased. Thus, heuristic algorithms based on simulated annealing and genetic algorithm are suggested to find good solutions in the reasonable time.

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East and West Meet in Africa: Effects on Clothing and Textile Businesses in Kenya's Liberalized Economy

  • Wanduara, M.W.;Oigo, E.B.;Nguku, E.K.
    • The International Journal of Costume Culture
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    • v.13 no.2
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    • pp.101-103
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    • 2010
  • Liberalization may be described as the opening up of the economy to the outside world by relaxing government trade and economic policy restrictions to allow imports. In Kenya, this took place in the early 1990s and it had negative and positive effects on businesses manufacturing and retailing clothing and textiles. This case study narrates what has happened over the last 20 years to businesses in Nairobi, Kenya dealing in clothing and textiles. Some of the original businesses have closed down and been replaced by new ones. More small scale Kenyan businesses have been started dealing in clothing imports from the East and West selling both new and second hand clothes. There has been increased employment in the small scale clothing and textiles sector in garment making and retailing. All in all, liberalization has forced large and medium scale textile manufacture to change strategy so that they target selling to the export market more than to the local market.

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The Developing Economy and Urban Transportation

  • Li Junhao
    • Proceedings of the KOR-KST Conference
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    • 1998.09a
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    • pp.135-140
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    • 1998
  • Social and economic development needs the support of transportation and communications and in turn the development level of society and economy affects urban traffic demand and determines the investment scale of transportation facilities. In the paper based on the analysis of the evolution of urban transportation in Shanghai in the past ten years and the economic background of that period, the urban transportation in the future development of economy is generally prospected.

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A Study on Developing Profit Model and Analyzing Validity for Remodelling of Apartment Houses (공동주택 리모델링의 수익모델 개발과 타당성 분석 연구)

  • Kim, Eui-Sik;Pyo, Ji-Myung;An, Min-Jae
    • Journal of the Korea institute for structural maintenance and inspection
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    • v.8 no.4
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    • pp.257-264
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    • 2004
  • The physical factor having a great influence among components of making values of profit model in apartment houses is equilibrium change of house and this study suggests an alternative of remodelling. It sets profit models including model dividing household of large scale into that of small scale using value making factor of apartment house and spatial composition techniques and model integrating households of small scale and converting them into those of large scale and finds that its economy is good as over 'average', evaluative value of economy is reduced as discount rate increases and economy of remodelling is superior.

A Study on the Cosmetics Store Selection Behavior - Department Stores and Large-Scale Discount Stores - (화장품(化粧品) 점포선택행동(店鋪選擇行動)에 관(關)한 연구(硏究) - 백화점(百貨店)과 대형할인점(大形割引店)을 중심(中心)으로 -)

  • Sun, Jung-Hee;Yoo, Tai-Soon
    • Journal of Fashion Business
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    • v.8 no.2
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    • pp.42-55
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    • 2004
  • The purpose of this study was to classify the contents of department stores and large-scale discount stores of consumer on information source, shopping orientation and store image in an effort to determine which variable gave a crucial impact on cosmetics department stores and large-scale discount stores selection behavior. The subjects of this study were 557 adult women visited department store and large-scale discount store in Busan. The data were analyzed by using Factor analysis, Frequency analysis, Correlation analysis, Cronabach $\alpha$ and Regression analysis. The results were as follows; 1. There was a difference in the demographical characteristics on department stores and large-scale discount stores of consumers. 2. Shopping Orientation of consumers were categorized into 5 types, and information source of consumers did 3 types, and store image of consumers did 5 types. 3. Leisure utilization, store & brand loyalty, store information, personal information, massmedia information, product & operate on, store atmosphere & salesperson and shopping convenience had positive correlations with cosmetics department stores selection beavior. but convenient location, rationality & economy and sales promotion had negative correlations with cosmetics department stores selection beavior. 4. Rationality & economy and sales promotion had positive correlations with cosmetics large-scale discount stores selection beavior. but convenient location, leisure utilization, store & brand loyalty, massmedia information, product & operate on, store atmosphere & salesperson and shopping convenience had negative correlations with cosmetics large-scale discount stores selection beavior. 5. Age, income, business(-), convenient location(-), rationality & economy(-), leisure utilization, store & brand loyalty, store information, personal information, massmedia information, store atmosphere & salesperson, shopping convenience and sales promotion(-) had a direct effect on cosmetics department stores selection beavior. Age, income, marriage, education had an indirect effect on department stores selection beavior through information source and store image, and information source did through store image, and shopping orientation did through store image. 6. Rationality & economy, convenient location(-), leisure utilization(-), store & brand loyalty(-), buying independence(-), personal information, massmedia information(-), product & operate on(-), shopping convenience(-) and sales promotion had a direct effect on cosmetics large-scale discount stores selection beavior. Age, income, marriage, education had an indirect effect on large-scale discount stores selection beavior through information source, shopping orientation and store image, and information source did through store image, and shopping orientation did through store image.