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The Prediction of DEA based Efficiency Rating for Venture Business Using Multi-class SVM (다분류 SVM을 이용한 DEA기반 벤처기업 효율성등급 예측모형)

  • Park, Ji-Young;Hong, Tae-Ho
    • Asia pacific journal of information systems
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    • v.19 no.2
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    • pp.139-155
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    • 2009
  • For the last few decades, many studies have tried to explore and unveil venture companies' success factors and unique features in order to identify the sources of such companies' competitive advantages over their rivals. Such venture companies have shown tendency to give high returns for investors generally making the best use of information technology. For this reason, many venture companies are keen on attracting avid investors' attention. Investors generally make their investment decisions by carefully examining the evaluation criteria of the alternatives. To them, credit rating information provided by international rating agencies, such as Standard and Poor's, Moody's and Fitch is crucial source as to such pivotal concerns as companies stability, growth, and risk status. But these types of information are generated only for the companies issuing corporate bonds, not venture companies. Therefore, this study proposes a method for evaluating venture businesses by presenting our recent empirical results using financial data of Korean venture companies listed on KOSDAQ in Korea exchange. In addition, this paper used multi-class SVM for the prediction of DEA-based efficiency rating for venture businesses, which was derived from our proposed method. Our approach sheds light on ways to locate efficient companies generating high level of profits. Above all, in determining effective ways to evaluate a venture firm's efficiency, it is important to understand the major contributing factors of such efficiency. Therefore, this paper is constructed on the basis of following two ideas to classify which companies are more efficient venture companies: i) making DEA based multi-class rating for sample companies and ii) developing multi-class SVM-based efficiency prediction model for classifying all companies. First, the Data Envelopment Analysis(DEA) is a non-parametric multiple input-output efficiency technique that measures the relative efficiency of decision making units(DMUs) using a linear programming based model. It is non-parametric because it requires no assumption on the shape or parameters of the underlying production function. DEA has been already widely applied for evaluating the relative efficiency of DMUs. Recently, a number of DEA based studies have evaluated the efficiency of various types of companies, such as internet companies and venture companies. It has been also applied to corporate credit ratings. In this study we utilized DEA for sorting venture companies by efficiency based ratings. The Support Vector Machine(SVM), on the other hand, is a popular technique for solving data classification problems. In this paper, we employed SVM to classify the efficiency ratings in IT venture companies according to the results of DEA. The SVM method was first developed by Vapnik (1995). As one of many machine learning techniques, SVM is based on a statistical theory. Thus far, the method has shown good performances especially in generalizing capacity in classification tasks, resulting in numerous applications in many areas of business, SVM is basically the algorithm that finds the maximum margin hyperplane, which is the maximum separation between classes. According to this method, support vectors are the closest to the maximum margin hyperplane. If it is impossible to classify, we can use the kernel function. In the case of nonlinear class boundaries, we can transform the inputs into a high-dimensional feature space, This is the original input space and is mapped into a high-dimensional dot-product space. Many studies applied SVM to the prediction of bankruptcy, the forecast a financial time series, and the problem of estimating credit rating, In this study we employed SVM for developing data mining-based efficiency prediction model. We used the Gaussian radial function as a kernel function of SVM. In multi-class SVM, we adopted one-against-one approach between binary classification method and two all-together methods, proposed by Weston and Watkins(1999) and Crammer and Singer(2000), respectively. In this research, we used corporate information of 154 companies listed on KOSDAQ market in Korea exchange. We obtained companies' financial information of 2005 from the KIS(Korea Information Service, Inc.). Using this data, we made multi-class rating with DEA efficiency and built multi-class prediction model based data mining. Among three manners of multi-classification, the hit ratio of the Weston and Watkins method is the best in the test data set. In multi classification problems as efficiency ratings of venture business, it is very useful for investors to know the class with errors, one class difference, when it is difficult to find out the accurate class in the actual market. So we presented accuracy results within 1-class errors, and the Weston and Watkins method showed 85.7% accuracy in our test samples. We conclude that the DEA based multi-class approach in venture business generates more information than the binary classification problem, notwithstanding its efficiency level. We believe this model can help investors in decision making as it provides a reliably tool to evaluate venture companies in the financial domain. For the future research, we perceive the need to enhance such areas as the variable selection process, the parameter selection of kernel function, the generalization, and the sample size of multi-class.

A Study on the Characteristics of Each Section Based on Visitor's Satisfactions of the Dulegil in Bukhansan National Park (북한산국립공원 둘레길 탐방객 만족도에 따른 구간별 특성화 연구)

  • Han, Bong-Ho;Choi, Jin-Woo;Hur, Ji-Yeon;Kim, Sun-Hee;An, Kyung-Jin
    • Journal of the Korean Institute of Landscape Architecture
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    • v.41 no.2
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    • pp.69-82
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    • 2013
  • The purpose of this study is to evaluate the effect of Dulegil in Bukhansan National Park in dispersing peak climbing hikers, characterize each section of Dulegil and suggest ideas of improvement. This study was conducted based on the survey completed by visitors in all 21 sections of Dulegil. After the construction of Dulegil, the number of visit to Dulegil grew and it was analyzed that Dulegil attracted new visitors given that the rate of young people(aged 19~30) who visited for the first time was quite high. Regarding the frequency of peak climbing, 7.6% of the respondents said "decreased" and 46.2% said "increased", showing that Dulegil's effect to disperse peak climbing hikers is nominal. Seven qualities were evaluated regarding Dulegil's level of satisfaction. Out of those seven, the quality of recreational place and taking a walk achieved high scores of 3.74 and 3.61 respectively. The quality of culture and history scored the lowest with 3.09. The analysis on the characteristic of each section of Dulegil, reason of visit, and the visitors' level of satisfaction showed that Dulegil is now regarded as a place where they can improve their health through light exercise and walking. In addition, a positive effect can be expected for a long time since there are different ways of utilizing the resources of the National Park, such as getting in touch with nature, preserving ecology, learning history and enjoying beautiful landscapes. If infrastructure and programs specific to each section of Dulegil were improved in a long-term perspective, it would be effective to encourage peak climbers and enjoy the lower parts of the mountain.

The Neuropsychological Characteristics of the Elementary School Aged Child by 'Computerized Neurocognitive Function Test' ('전산화 신경인지기능검사'를 통한 학령기 정상아동의 신경심리학적 특성)

  • Lee, Jong-Bum;Kim, Jin-Sung;Seo, Wan-Seok;Shin, Hyoun-Jin;Bai, Dai-Seg;Lee, Jun-Heob
    • Korean Journal of Psychosomatic Medicine
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    • v.11 no.2
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    • pp.118-136
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    • 2003
  • Objective: This study is to examine the neuropsychological and developmental characteristics of the Computerized Neurocognitive Function Test among normal children in elementary school. Methods: K-ABC, K-PIC, and Computerized Neurocognitive Function Test were performed to the 120 body of normal children(10 of each male and female) from June, 2002 to January, 2003. Those children had over the average of intelligence and passed the rule out criteria. One-way ANOVA and Bonferroni were used for statistical analysis. Results: In sampling of normal children in elementary school, the control of intelligence level and strict rule out criteria were applied. As a result, although 21.1% were excluded from of total participants, the children that passed the rule out criteria had over the average of intelligence and not differ in the intelligence level among the graders. Comparing Computerized Neurocognitive Function Test results among the graders, almost of variables had significant difference among the graders and especially between the 1st to 2nd and the 5th to 6th graders. In the attention tests, as rising the graders, the performance of tests were improved. In the short-term memory tests, the difference between forward and backward tests were same as the previous research result. The verbal auditory learning test composed of recall task and visual figure memory test composed of recognition task were same as the previous research result using the individual power or achievement test and also as rising the graders, the performance of those tests were improved. The higher cognitive function tests had the same results with other tests. Conclusion: The Computerized Neurocognitive Function Test devised for adult can be used of assessing child neuropsychological characteristics. For this objective, more strict sampling criteria, control of the intelligence and psychopathology were needed.

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A Comparative Study on the Dietary Culture Consciousness and Their Consumption Attitude of Traditional Foods between Korean and Japanese Women (한국과 일본여성의 식문화 의식과 전통식품 소비실태 비교 연구)

  • Koh, Kyung-Hee
    • Journal of the Korean Society of Food Culture
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    • v.18 no.4
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    • pp.333-345
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    • 2003
  • We conducted a survey on Japanese women's consciousness of food culture and their traditional food consumption by self filling-out questionnaire during January, 2000 for the period of a month, For the survey we selected 250 women residing in Kyoto, Japan. For the statistic work we used SAS package system, and t-test, $\cal{X}^2-test$ and Duncan's multiple range test were also used to verify the results significance. The purpose of this survey lies in gathering a basic data on the comparative direction of Korean and Japanese women's food culture in the future 1. Comparing the preferred food purchase place, In case of Korean women, traditional market was comparatively more preferred while Japanese women relatively preferred convenience store (p<0.001). 2. In case of Japanese women, they answered there is no difference from ordinary days on New Year's Day (71%) and Christmas (40%) while 38% answered they prepare food at home. 40% said they prepare food on parents-in-law's birthday, and 41% said no difference from ordinary days. 52% said they prepare food at home on husband's birthday. For their own birthday, 32% said yes to preparing food at home while 45% said no difference and 22.3% said eating out. For children's birthday 65% said preparing at home, 16.3% said no difference and 14.9% said eating out. 3. Comparing the conception on traditional food, Korean women answered 'complicated' (77%) most while 'simple' (5%) least, which indicates their demands for simplified recipes. In case of Japanese women, 'complicated' (44%) was most while 'scientific' (6%) was least which indicates their demands for scientific way of recipes. There were differences shown by age (p<0.001) and the older the more said 'simple' or 'logical' (p<0.01). 4. As the reason for the complicity of traditional food recipes, Koreans said 'too many hand skill' (60%) most while 'too many spices' (8%) least. For Japanese, 'various kind of the recipe' (55%) was most while 'too many hand skill' (7%) was least. There were significant differences shown by academic background (p<0.01) and income(p<0.01), and the lower the academic background, the more said 'too many spices' as the reason for the complicity in making traditional food. Generally, the lesser the income, the more tendency to say 'various kinds of the recipe'. 5. In case of Koreans, 'the recipe is difficult' (56%) was high while 'uninterested' (9%) was low in answer which showed differences by academic background (p<0.05), and in case of Japanese, 'no time to cook' (44%) was high while 'uninterested' (7%) was low. 6. The following is the reasons for choosing traditional food as a snack for children. In case of Koreans, they answered as 'traditional food' (34%), 'made from nutrious and quality materials' (27%), 'for education' (22%) and 'suites their taste' (17%) revealing 'traditional food' is highest. In case of Japanese, it was revealed in the order of 'made from nutrious and quality materials' (36.3%), 'traditional food' (25.2%), 'suites their taste' (22.6%), 'for education' (12.8%) and 7. Comparing the most important thing for the popularization of traditional food in the world, Koreans answered 'taste and nutrition' (45%) most while 'shape and color' (6%) least. In case of Japanese, 'taste and nutrition' (75%) was answered most while 'hygienic packaging' (4%) was least. Both considered 'taste and nutrition' as most important thing for the popularization of traditional food in the world. 8. In case of Koreans, they answered they learn how to make traditional food 'from mother' (47%), 'media' (18%), 'school' (15%), 'from mother-in-law' (14%), 'private cooking school' (4%) and 'close acquaintances' (2%). In case of Japanese, they said mostly learn 'from mother', but it was also shown that the lower the academic background the lesser the tendency of learning 'from mother' but 'from school' (p<0.001). 9. About the consumption of traditional fermented food, Koreans said they make kimchi (90%), pickled vegetables (39%), soy sauce (33%), bean paste (38%), salted fishery (12%) and traditional liquors (14%) at home while 67% for salted fishery and 48% for traditional liquors answered they buy rather than making at home. On the other hand, Japanese answered they mostly buy kimchi (60%), soy sauce (96%), bean paste(91%), natto(92%), salt fermented fish foods (77%) and traditional alcoholic beverage (88%) to eat. This difference was shown very distinct between Korean and Japanese women (p<0.001). 10. About the most important thing in food, Koreans answered in the order of 'liking and satisfaction' (33%), 'for health' (32%), 'for relieve hunger' (18%) and 'convenience' (17%). In case of Japanese, it was revealed in the order of 'for health' (61%), 'liking and satisfaction' (20%), 'to relieve hunger' (16%) and 'convenience' (3%). This shows that Japanese women take comparably more importance to health than Korean women. The conception of food was shown different between Korean and Japanese women (p<0.001), and Koreans showed level 4-5 of food culture while Japanese showed level 5.

The Effect of Integrated Mind Map Activities on the Creative Thinking Skills of 2nd Year Students in Junior High School (통합형 마인드맵 활동이 중학교 2학년 학생들의 창의적 사고력에 미치는 영향)

  • Yoon, Hyunjung;Kang, Soonhee
    • Journal of the Korean Chemical Society
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    • v.59 no.2
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    • pp.164-178
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    • 2015
  • The purpose of this study was to design a teaching and learning method conductive to the development of creative thinking skills and investigate its effects. It has been developed integrated mind map with feature of visualizing the divergent thinking to the aspects of Science (S), Technology (T) & Engineering (E), Arts (A), Mathematics (M). Integrated mind map can be divided into four types of STEAM type, STEA type, STEM type, STE type depending on the category of key words in the first branch. And Integrated mind map can be divided into three levels of guided, intermediate, open depending on the teacher's guide degree. And also integrated mind map activities were carried out in the form of group, class share as well as individual. This study was implemented during a semester and students in experiment group experienced individual-integrated mind map activity 10 times, group-integrated mind map activity 10 times, class share-integrated mind map activity 3 times. The results indicated that the experimental group presented statistically meaningful improvement in creative thinking skills (p<.05). And there was a statistically meaningful improvement in fluency, flexibility, originality as a sub-category of creative thinking skills(p <.05). Also creative thinking skills are not affected by the level of cognitive, academic performance, gender (p<.05). In conclusion, it was found that 'integrated mind map activity' improved student's creative thinking skills. There was no interaction effect about creative thinking skills between the teaching strategy and cognitive level, achivement, gender of those students.

A Prospective Study on Attitude of Professional Student toward Population Related Issues in Korea (대학전공별(大學專攻別) 전문직학생(專門職學生)들의 인구관련문제(人口關聯問題)에 대한 연차적(年次的) 변화(變化) 연구(硏究))

  • Lee, Kyung-Sik;Kim, Hwa-Joong
    • Journal of Preventive Medicine and Public Health
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    • v.9 no.1
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    • pp.11-24
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    • 1976
  • This study was a part of large scale of a prospective study on attitudes of professional students in medicine, nursing and teaching toward population related issues in Korea. The study was first conducted in May 1974 and then in May 1975 for the 1974 class cohot using a questionaire consisted of attitude scales and other items developed by Lee. The purpose of stuay was twohold, namely, to determine the difference in students among specializations on one hand and between the first and second years in the 1974 class cohot regarding tile subject matter. A one-way analysis of variance was used for attitude scale, and absolute and relative frequency were computed for the analysis of non-attitude scale items by employing Fishers' Ratio and Duncan's multiple range test at 5% level and chi square test at 5% level as significance tests. The hypothesis 'students in health profession are more likely to have positive attitudes toward population related issues progressively as class year advances than students in teaching profession' was tested and the following results were obtained: 1) Nursing students were more likely to display favarable attitudes toward family planning than medical or teaching students although the class cohot showed slightly negative improvement in the second year. Medical and teaching students apperaed to have slightly improved attitudes in the second year. 2) Respondents in general perceived national family planning program as a means of population control and this tendency was more true among nursing students as the class year advances than two other professional groups of students. Students in teaching profession appeared to perceive it more as a means to improve individual family welfare while health students were likely to see as to improve maternal and child health. This tendency was progressively improved as the class year advanced. 3) The majority of students regardless of their respective specializations believed that family planning program should be directed toward the improvement of individual family welfare. No progressive changes in the class cohot were observed. 4) About the plan to use contraceptives in future, no singnificant differences were observes among different specializations nor in different class years. However, the majority was confirmed to have a plan to use contracepives in future. An increasing proportion of the undecided category was observed, as class year advanced among health students. 5) Students in health profession were found to be more favorable about 'more leisure opportunities' as motive for limiting number of children whereas education students indicated the reasons as 'facilitate ambitions' and 'economic base' The progressive changes toward positive direction in both groups were observed as the class years advanced. 6) Attitudes toward induced abortions of the health students were observed to be positively related to class years while an inverse relationship was found in teaching students who showed much less favor in the subject matter than health students. This phenomenon may be due to the different exposure to learning environments unique to respective specializations. 7) Health students were found to have more favorable attitudes toward population education in general than the teaching students. The teaching students appeared to have changed more to the negative direction when they became the second year while no such development was observed in health students. The teaching students seemed to hold a very conservative position with regard to sex education in schools. 8) About the equality of sexes, the nursing group was found to be most favorable while the reverse was true in the teaching group. A change in the negative direction as the class year advanced was found in the teaching group. 9) About questions related to fertility values-the 10 percent of respondents regardless of specialization indicated that they would maintain their single status in future, however no change was observed in the second year. The desired number of children was found to be two by the majority of students in nursing, medicine and teaching in order of high proportion. No changes in a different class year were observed. The childless marriage was seen by nursing students as a problem more than other students, but a slight change in positive direction was found when the nursing students became the second year. In summing, as data supported in the above, students in health profession demonstrated more favorable attitudes toward population related issues than the teaching students and this tendency became more apparent in the second year. It was noticed that health students were more conscious about the health aspect of population and family planning program while the teaching students gave more attention to the socioeconomic aspect. The sex variable seemed to have operated in the item related to the equality of sexes. In conclusion, as data presented in the above, the hypothesis of this study was accepted except in the few items. It should be noted that the limitation of this study is the short duration of the observation in measuring the possible attitude changes. It should include curriculum analysis for the respective specializations in order to indentify the area of curriculum impact on students in future study.

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Middle Schooler's Perception of the Unit "Housing Education" of the 9th Grade Technology and Home Economics (주생활 영역 학습에 대한 중학생의 인식)

  • Choi, Hyun-Suk;Jang, Sang-Ock
    • Journal of Korean Home Economics Education Association
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    • v.20 no.3
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    • pp.1-16
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    • 2008
  • The purpose of this study is to investigate the perception of middle schooler's lesson of 9th grade "Housing Education" Questionnaire survey was conducted with 394 middle school students in Gyeongnam in 2006 and the dada analyzed by the descriptive statistics, t-test, One-way ANOVA, Duncan's multiple range test, Pearson correlation and multiple regression analysis by using SPSS 14. program. The result of this study were as follows. The unit 'Use of dwelling space' was perceived useful in real life, interesting in explanation & visual materials of the text, taught easily to understand the students and ranked highest in class satisfaction compared with the rest two units. The unit 'Indoor environment & equipment' was least interesting, most difficult and ranked lowest in class satisfaction. The unit 'House management & repair' was relatively interesting and easy, but not useful in real life, not much interesting in explanation & visual materials in text, taught difficult by teachers. The class satisfaction ranked second of the units. Female students perceived that the unit 'Use of dwelling space' was easy, but male students perceived that all the units were interesting in the explanation & visual materials in textbook, various teaching-learning methods, interesting experiment & practice, and was satisfied with the unit 'House management & repair'. As their academic achievement of "Technology & Home Economics" was lower, they perceived that the education contents and various experiment & practice were more difficult. The class satisfaction of middle schoolers about the unit "Housing Education" were affected by how easily the teacher taught the subject, making it more understandable, the level of difficulty of the contents and the level of interest of explanation & visual materials of text.

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A survey of the Necessity and Perceptions of Character Education of Health Science and Non-health Science University Students (일개 보건계열 및 비보건계열 학생들의 인성교육에 대한 필요성 및 인식도 조사)

  • Choi, Yong-Keum;Oh, Tae-Jin;Lee, Hyun;Lim, Kun-Ok;Hong, Ji-Heon;Kim, Eun-Jeong
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.8
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    • pp.344-351
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    • 2019
  • The purpose of this study was to obtain the basic data for developing more advanced courses on character education by surveying and analyzing the perception and demands of character education of university students and further, to provide useful information for creating institutional protocol on character education. The study was conducted from April 2018 to May 2018 on students attending the departments of non-health science and health science university students. A total of 206 students participated in this study, and all the students in the non-health science and health science departments were found to be highly aware of the need for character education, its importance and the possibility of personality development through learning. Students from all the departments showed high levels on average in terms of self-understanding according to their personality abilities, and especially their high levels of 'consideration' and 'responsibility'. For the differences in perception of self-efficacy, the lowest level of recognition was for 'will' and the average values were not high. In their response to personality level, all students answered that their personality was 'high' (42.1%), and that the personality education courses at the schools they are currently attending were 'not satisfied' with both the non-health science and health science students. As a result, there were higher results overall for the health science students than that for the non-health science students, but there were not many significant differences. To this end, education institutes will have to prepare conditions for university students to cultivate their expertise in character, while at the same time helping them grow into human beings with the qualities demanded by society. In addition, the government should establish curriculums and content by accurately identifying the needs of character education and devising concrete measures for their implementation, and by more faithfully considering quantitative and qualitative context types for the content base of character education.

A Servicism Model of the New Legal System (서비스주의 법제도 구조와 운용 연구)

  • Hyunsoo Kim
    • Journal of Service Research and Studies
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    • v.11 no.4
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    • pp.1-20
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    • 2021
  • This study was conducted to derive a model of the legal system that is the basis for realizing the service economy, political administration, and social education system. Based on the experience of mankind's legal system operation in the historical era for the past 5,000 years, a legal system model that will make the future human society sustainable has been established. The problems of the current legal system were analyzed at the fundamental level. The root cause of injustice and unfairness was analyzed and a new legal system was designed. Through the legal systems of various national societies that have been attempted in the history of mankind, the structure of the legal system that is desirable for the modern society was designed. Human society, which has experienced how much good legal system has been and is being abused by human irrationality and nonsense, needs to make an effort to change the legal system paradigm itself by learning lessons from failure. This study derives the basis for a legal system that can realize justice and a fair society in the long term. It proposed a model for improving the legal system that allows human society to be happy for a long time. To this end, the fundamental role of the legal system was analyzed at the ideological level and the problems of the current legal system were presented. In addition, the problem of fundamental assumptions about human nature was analyzed and improved assumptions were presented. The structural system of the current legal system was analyzed and a new structure was proposed. In addition, a plan for the operation of a new legal system based on a new structure was suggested. The new legal system was named servicism system. This is because it is a model centered on thorough checks and balances between all opponents, not a simple linear one-dimensional legal system, but a multidimensional legal system, and because it is a viewpoint that clearly recognizes both human reason and desire. The new system is a model that reflects the confrontation between the rule of law and the non-law rule and the confrontation between the power people and the general public. A follow-up study is needed on a concrete plan for transitioning from the current legal system to a new legal system.

Strategy for Store Management Using SOM Based on RFM (RFM 기반 SOM을 이용한 매장관리 전략 도출)

  • Jeong, Yoon Jeong;Choi, Il Young;Kim, Jae Kyeong;Choi, Ju Choel
    • Journal of Intelligence and Information Systems
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    • v.21 no.2
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    • pp.93-112
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    • 2015
  • Depending on the change in consumer's consumption pattern, existing retail shop has evolved in hypermarket or convenience store offering grocery and daily products mostly. Therefore, it is important to maintain the inventory levels and proper product configuration for effectively utilize the limited space in the retail store and increasing sales. Accordingly, this study proposed proper product configuration and inventory level strategy based on RFM(Recency, Frequency, Monetary) model and SOM(self-organizing map) for manage the retail shop effectively. RFM model is analytic model to analyze customer behaviors based on the past customer's buying activities. And it can differentiates important customers from large data by three variables. R represents recency, which refers to the last purchase of commodities. The latest consuming customer has bigger R. F represents frequency, which refers to the number of transactions in a particular period and M represents monetary, which refers to consumption money amount in a particular period. Thus, RFM method has been known to be a very effective model for customer segmentation. In this study, using a normalized value of the RFM variables, SOM cluster analysis was performed. SOM is regarded as one of the most distinguished artificial neural network models in the unsupervised learning tool space. It is a popular tool for clustering and visualization of high dimensional data in such a way that similar items are grouped spatially close to one another. In particular, it has been successfully applied in various technical fields for finding patterns. In our research, the procedure tries to find sales patterns by analyzing product sales records with Recency, Frequency and Monetary values. And to suggest a business strategy, we conduct the decision tree based on SOM results. To validate the proposed procedure in this study, we adopted the M-mart data collected between 2014.01.01~2014.12.31. Each product get the value of R, F, M, and they are clustered by 9 using SOM. And we also performed three tests using the weekday data, weekend data, whole data in order to analyze the sales pattern change. In order to propose the strategy of each cluster, we examine the criteria of product clustering. The clusters through the SOM can be explained by the characteristics of these clusters of decision trees. As a result, we can suggest the inventory management strategy of each 9 clusters through the suggested procedures of the study. The highest of all three value(R, F, M) cluster's products need to have high level of the inventory as well as to be disposed in a place where it can be increasing customer's path. In contrast, the lowest of all three value(R, F, M) cluster's products need to have low level of inventory as well as to be disposed in a place where visibility is low. The highest R value cluster's products is usually new releases products, and need to be placed on the front of the store. And, manager should decrease inventory levels gradually in the highest F value cluster's products purchased in the past. Because, we assume that cluster has lower R value and the M value than the average value of good. And it can be deduced that product are sold poorly in recent days and total sales also will be lower than the frequency. The procedure presented in this study is expected to contribute to raising the profitability of the retail store. The paper is organized as follows. The second chapter briefly reviews the literature related to this study. The third chapter suggests procedures for research proposals, and the fourth chapter applied suggested procedure using the actual product sales data. Finally, the fifth chapter described the conclusion of the study and further research.