• Journal of Korean Institute of Industrial Engineers
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• v.14 no.1
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• pp.103-117
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• 1988

Replacement demand plays an important role to forecast the total demand of durable goods, while most of the diffusion models deal with only adoption data, namely initial purchase demand. This paper presents replacement demand forecasting models incorporating repurchase rate, multi-ownership, and dynamic product life to complement the existing diffusion models. The performance of replacement demand forecasting models are analyzed and practical guidelines for the application of the models are suggested when life distribution data or adoption data are not available.

• Proceedings of the KSR Conference
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• 2007.11a
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• pp.758-762
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• 2007

Revenue management is a new approach method to solve the problem of supply and demand, and one of fields which is diffused quickly at the service enterprise to use perishable-asset like the transportation business. It is based on multiple fare policy that discount charge reservation should be received if the benefit value of current discount fare is more than expected profit of the normal fare reservation it will be able to occur in future when suitable goods is sold to the customers at discount fare, at the time they want, and at assigned seat by controlling supply and demand from market. In this research, I will review on initial operation case for special class goods that the seat which is limited is assigned at some of train and portion of KTX for demand dispersion and new demand creation at peak time, put a limit in purchase conditions, and provides discounted fare. I will also try to find implication for strategic operation.

• Industrial Engineering and Management Systems
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• v.12 no.2
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• pp.85-94
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• 2013

This research investigates the supply chain contract between a distributor and a supplier in which the selling period is relatively short in comparison with long production lead time. At the first stage, supplier who is a Stackelberg leader offers the distributor a contract with a set of parameters, and subjected to those parameters, the distributor places the number of initial orders as well as options. In order to purchase the option, the distributor pays non-linear option premium price with respect to the number of purchased options. At the second stage, based on realized demand, the distributor has the right to exercise option as either put or call which is limited up to the number of purchased options. The wholesale price contract is used as a benchmarking contract. This research has confirmed that the supply chain contract with a non-linear option premium price can help to coordinate the supply chain.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.05a
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• pp.904-913
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• 2005

This paper deals with an integrated problem of inventory control and dynamic pricing strategies for a commodity with price and sales-period dependent demand pattern, where a seller and customers have complete information of each other. The problem consists of two parts; one is each buyer's benefit problem which makes the best decision on price and time for buyer to purchase items, and the other one is a seller's profit problem which decides an optimal sales strategy concerned with inventory control and discount schedule. The seller's profit function consists of sales revenue and inventory holding cost functions. The two parts are closely related into each other with some related variables, so that any existing general solution methods can not be applied. Therefore, a simplified model with single seller and two customers in considered first, where demand for multiple units is allowed to each customer within a time limit. Therewith, the model is generalized for a n-customer-classes problem. To solve the proposed n-customer-set problem, a dynamic programming algorithm is derived. In the proposed dynamic programming algorithm, an intermediate profit function is used, which is computed in case of a fixed initial inventory level and then adjusted in searching for an optimal inventory level. This leads to an optimal sales strategy for a seller, which can derive an optimal decision on both an initial inventory level and a discount schedule, in $O(n^2)$ time. This result can be used for some extended problems with a small customer set and a short selling period, including sales strategy for department stores, Dutch auction for items with heavy holding cost, open tender of materials, quantity-limited sales, and cooperative buying in the on/off markets.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.686-692
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• 2002

Disassembly scheduling is the problem of determining the ordering and disassembly schedules of used products while satisfying the demand of their parts of components over a certain planning horizon. The objective is to minimize the sum of purchase, setup, disassembly operation and inventory holding costs. This paper considers products with assembly structure, i.e. products without parts commonality, and suggests a heuristic in which an initial solution is obtained in the form of the minimal latest disassembly schedule, and then improved considering trade-offs among different cost factors. To show the performance of the heuristic suggested in this paper, computational experiments were done on the modified existing examples and the results show that the heuristic can give optimal of very near optimal solutions within very short computation times.

• Journal of Families and Better Life
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• v.7 no.1
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• pp.15-25
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• 1989

The purpose of this study is to examine the factors affecting the consumer's search for information and the relationship between the amount of search and the final price paid. The model indicates the demand for search is affected by the market price of each durable good purchased, the tim available for search, family income, direct cost of search, the initial stock of information, effectiveness of search, and shopping attitudes. The final price savings are a function of search, price of dispersion in the market, the initial stock of information, and effectiveness of search. Data from the Pane Study on Consumer Decisions and Asset Management were used for the empirical testing of the theoretical model. The amount of information search as dependent variable is represented by two different measures, the level of discussion with others and the number of stores visited. The amount of discussion with others depends mainly on the respondent's shopping attitude. The higher the wife's desire to search, the higher the degree of husband's comparison shopping, the less the husband's perception of price-quality relationship, the higher the level of discussions with others. The number of stores visited depends on the average market price of product purchased and the level of family income. The higher the average market price and he higher the level of family income, the greater the number of stores visited. The final savings depend upon the level of information search. The greater the number of store visited, but the less the purchase is discussed with stores, the higher the final savings are.

• Journal of the East Asian Society of Dietary Life
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• v.18 no.3
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• pp.322-330
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• 2008

This study was performed to the possibility of developing anti-aging convenient food that is to Koreans' taste. Editor: this abstract appears to describe a study of public opinion and not related to the development of anti-aging convenient foods. In total, The 150 adults, living in Seoul (Korea), participated in this study in the capacity of subjects. Editor: You really have to mention the age-range of the subjects, as senility is an old age disease. In particular, you talk about the intention of subjects (discussed below) to buy anti-aging food products. This would be directly related to their age, as I assume that older people would be more concerned about senility that relatively younger subjects. They were randomly assigned to 25 groups. In result initial descriptive analysis revealed that, 82 percent of subjects awoke to were aware of senility, and the while 26.7 percent were seriously thought of it concerned. Furthermore, The 58.7 percent said that believed food has the possibility has a role in of controlling senility, and the while 64.0 percent said stated that senility may be controlled by eating constitutional foods. Further comparative analysis of In the case of the group of which members subjects have been who were trying to control senility revealed that their, the reliance on food general and constitutional food was significantly higher than those who have not tried to do so did nothing. The From the 61.3 percent have been of subject who were trying to control senility, from among them, the 74.0 percent and the 22.7 percent were relied on physical taking exercises and anti-aging foods, respectively. Likewise, it was ascertained When asked whether subjects intend to purchase anti-aging convenient food if it was is developed. The 67.3 percent and the 72.7 percent indicated their intentionded to purchase the normal product and constitutional products, respectively. Resultantly, anti-aging convenient food was in demand to some extent. Given that anti-aging products are in high demand, In such a case, senile severity (p<0.05), anti-aging possibility in constitutional foods (p<0.001) and anti-aging action (p<0.001) are regarded as variables in the purchase of the normal products. In the case of relation to constitutional products, anti-aging possibility in constitutional food (p<0.001) and anti-aging action (p<0.001) were regarded as variables.

• Journal of Biosystems Engineering
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• v.37 no.6
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• pp.434-438
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• 2012

Purpose: This study was performed in order to improve problems and to seek the efficient operating plan by surveying and analyzing the actual status of operating the agricultural machinery rental business supported by the government. Method: The data was collected through two times of survey targeting lease business operators and the leasing business reports published for the past 3 years ('08~'10) 120 cities and counties. Results: As a result of surveying 120 cities and counties nationwide of operating the agricultural machinery rental business, 96% of agricultural machinery rental businesses were indicated to be operated in the form of short-term rent for about 1~3 days centering on small-sized agricultural machinery and attachment for upland crop. As for the unit number of possessing rental agricultural machinery and the purchase cost, it was indicated to be greatly reduced the agricultural machinery for rice farming and to be expanded into upland crop whose mechanization is insufficient. The annual rental days ('10) are 9.5 days/unit, thereby being a little insufficient. Rental fee for 1 day is 0.2~0.8% of the initial purchase cost of agricultural machine, thereby being greatly lower compared to 2.0% (annually 10-day rent) of the proper rents, resulting in being demanded improvement. Conclusions: To be continuously driven the rental business of agricultural machinery with having the ability to propagate, it is judged to be likely to necessarily collect optimum rental fee in consideration of rental days as well as increasing the use days per unit by buying the agricultural machinery, which is secured the rental demand, and by possessing the reasonable unit number.

• Asia Marketing Journal
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• v.16 no.1
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• pp.35-69
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• 2014

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

• Information Systems Review
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• v.10 no.3
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• pp.21-38
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• 2008

After the introduction stage, Korean mobile game market is approaching to the growing stage leading mobile contents market. The environment for the mobile contents business is getting better by the expansion of the 3G mobile networks and the enhancement of the mobile devices. In this research, at a content level, not a service level, market success factors of mobile games and the differences by genres and their changes over time were investigated through the analysis of the real market data of mobile games launched by a Korean mobile carrier. The most important factors for market success, especially for the genres of RPG/Tycoon/Simulation and Shooting/Action/Arcade, were found to be the 'design' factor and its effect turned to be getting stronger as time goes by after the launch. Consumers' purchase rate was actually higher for the mobile games of popular genres or in relation with socially popular subject matters. Also 'design' and 'creativity' factors which are related to the quality of contents, have gotten more important over time. One of the most interesting results was that there existed a "blue ocean" genres like Sports/Racing/Leisure which had a steady demand but not many competing games. In the analysis of the 'convenience' factor, one interesting implication for mobile game producers was that there exists a trade off between the ease of initial adoption and the steady sales of a mobile game.