• Asian-Australasian Journal of Animal Sciences
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• v.26 no.11
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• pp.1511-1517
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• 2013

This study was performed to estimate the effect of age at first calving and first two calving intervals on productive life and life time profit in Korean Holsteins. Reproduction data of Korean Holsteins born from 1998 to 2004 and lactation data from 276,573 cows with birth and last dry date that calved between 2000 and 2010 were used for the analysis. Lifetime profit increased with the days of life span. Regression of Life Span on Lifetime profit indicated that there was an increase of 3,800 Won (approximately $3.45) of lifetime profit per day increase in life span. This is evidence that care of each cow is necessary to improve net return and important for farms maintaining profitable cows. The estimates of heritability of age at first calving, first two calving intervals, days in milk for lifetime, lifespan, milk income and lifetime profit were 0.111, 0.088, 0.142, 0.140, 0.143, 0.123, and 0.102, respectively. The low heritabilities indicated that the productive life and economical traits include reproductive and productive characteristics. Age at first calving and interval between first and second calving had negative genetic correlation with lifetime profit (-0.080 and -0.265, respectively). Reducing age at first calving and first calving interval had a positive effect on lifetime profit. Lifetime profit increased to approximately 2,600,000 (2,363.6) from 800,000 Won ($727.3) when age at first calving decreased to (22.3 month) from (32.8 month). Results suggested that reproductive traits such as age at first calving and calving interval might affect various economical traits and consequently influenced productive life and profitability of cows. In conclusion, regard of the age at first calving must be taken with the optimum age at first calving for maximum lifetime profit being 22.5 to 23.5 months. Moreover, considering the negative genetic correlation of first calving interval with lifetime profit, it should be reduced against the present trend of increase.

• Journal of Animal Science and Technology
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• v.55 no.5
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• pp.343-349
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• 2013

Data including 1,372,050 milk records pertaining to 438,019 cows from 1983 to 2011 collected during performance tests conducted by the National Livestock Cooperative Dairy Improvement Center were used to calculate milk income and profit of individuals and investigate the effects of production levels of early lactation (parity 1 and 2, respectively). Individuals with a moderate level of early lactation stayed longer in herds. Among parity 1, the 9,000 kg or higher group had a lower mean number of lactations than the overall mean of 3.13. The 7,000 kg or lower and 10,000 kg or higher groups had lower mean life time milking days than the overall mean of 1,076.8 days. Standard deviations of lifetime traits tended to decrease as production levels increased. For parity 2, the 11,000 kg or higher group had a lower mean number of lactation than the overall mean of 3.43. The lifetime milking days was highest in the 12,000 kg group (1,212.0 days), and generally smaller in the lower groups. Profit increased as the production level of groups increased for both parity 1 and 2. In groups with low production levels, profit of parity 1 was higher than that of parity 2, while the reverse was true in groups with high production levels. These results suggest that individuals in the low production groups had a greater likelihood to be culled due to reproductive or other problems. Furthermore, the accuracy of the prediction of lifetime profit of individuals with a milk yield of 305 days seems to be higher for parity 2 than parity 1; therefore, it is desirable to predict lifetime profit using the 305d milk yield of parity 2. In conclusion, breeding goals are based on many factors in functions for the estimation of profit; however, production levels during early lactation (parity 1 and 2) can be used as indicators of profit to extend profitability.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.11a
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• pp.187-190
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• 2003

Since the early 1980s, the concept of relationship management in marketing area has gained its importance. Acquiring and retaining the most profitable customers are serious concerns of a company to perform more targeted marketing campaigns. For effective CRM (Customer Relationship Management), it is important to gather information on customer value. Many researches have been performed to calculate customer value based on CLV (Customer Lifetime Value). It, however, has some limitations. It is difficult to consider the churn of customers, because the previous prediction models have focused mainly on expected future cash flow derived from customers'past profit contribution. In this paper we suggest a CLV model considering past profit contribution, potential benefit, and churn probability of a customer. We also cover a framework for analyzing customer value and segmenting customers based on their value. Customer value is classified into three categories: current value, potential value and customer loyalty. Customers are segmented according to the three categories of customer value. A case study on calculating customer value of a wireless communication company will be illustrated.

• The Journal of the Korea Contents Association
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• v.9 no.12
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• pp.245-252
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• 2009

The electrical power industry has been recognized as a natural monopoly industry for its technological and industrial characteristics. However, a competitive market system has been introduced to that industry in Europe, North America and Australia to overcome the inefficiencies originated from the monopolistic system for decades. In Korea, the power industry is expected to be placed in a competitive market system within several years after separation and privatization of vertically integrated industry in progress. Hence, there is a need for a research on the increase of customer value in that industry, however, existing studies have little dealt with that problem and there is no research on the price policy to consider churn and retention of customers. Therefore, this study provides a methodology for increasing customer loyalty and lifetime value by presenting the lowest pricing plan which leads to diminishing customers' cost. It is verified through an empirical examination that firms can enhance customer loyalty using a price element in that industry and maximize their profit by finding out customers whose lifetime values would increase.

• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.221-227
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• 2009

There are customer services jointly provided by two facilities so that each customer will complete the course made up of both facilities' sub-services. The two facilities are assumed invested respectively by an infrastructure owner and one subordinate facility owner, whose partnership is built on their capital investments. This paper presents a mathematical model of Stackelberg competition between the two facility owners to derive their optimal Nash equilibrium. In this study, each facility owner's profit is consisted of fixed revenue fractions of sold services, operating costs (including depreciation cost) and maintenance costs of her facility. The maintenance costs of one facility are incurred both by failures and deterioration due to usage. Moreover, for both facilities, failures are rectified immediately by minimal repairs and preventive maintenance is carried out at a fixed time epoch. Additional assumptions are also employed to develop the model such as customer arrivals are manipulated to follow a Poisson process, and each facility's lifetime is independently Weibull-distributed. The Stackelberg game proceeds as follows. At the first stage of decision making process, the infrastructure owner (acting as a leader) decides the allocation of revenue shares based on her self-interest. After observing the allocation of revenue shares, the subordinate facility owner determines her own optimal price of services. This paper investigates actions and reactions of the two partners in the system. Then analytical conditions are proposed to achieve a unique optimal Nash equilibrium. Finally, some suggestions for further research are discussed.

• Journal of Electrical Engineering and Technology
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• v.12 no.2
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• pp.981-987
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• 2017

In this paper, we estimate the economic benefits of Energy Storage Systems (ESSs) for peak load shaving in an urban railway substation using the annual cost. The annual investment cost of ESSs is estimated using Net Present Value (NPV) and compared with the cost reduction of electricity by the ESS. The optimal capacities of the battery and Power Converting System (PCS) are determined for peak load shaving. The optimal capacity of the ESS and the peak load shaving is determined to maximize the profit by the ESS. The proposed method was applied to real load data in an urban railway substation, and the results show that electric power costs can be reduced. Other aspects of the ESS, such as the lifetime and unit price of the battery, are also investigated economically.

• Journal of the Korea Safety Management & Science
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• v.4 no.3
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• pp.131-140
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• 2002

Today's environment of enterprise is changing, They have to face customer' demands with the right product, the right service and supply them at the right time. And also cut down logistics and inventory cost and bring up the profit as much as they can. This means the change of putting enterprise first in importance to putting customer first importance. therefore to correspond to customer's demand, shorting lead time is becoming a essential condition. The answer to this changes of environment is supply chain management. In this paper, It consolidates the necessity on a LTV(Life Time Value) and analyzes data which is concerned of Customer Value. Under the these environments, defines the LTV(Life Time Value) rule that can improve the customer value. We solved this problems using AHP(Analytic Hierarchy Process) for consistency at relationship matrix, AHP(Analytic Hierarchy Process) is based on Saaty's consistency rate. If consistency rate is under 0.1 point, preference rate's weights are acceptable. This study develop a program for AHP weights and support Satty's consistency rate.

• Asia Marketing Journal
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• v.15 no.3
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• pp.141-157
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• 2013

Managing customers based on customer equity (CE) has emerged as the most effective way of doing business because of its ability to foster profitable customer relationship management (CRM) through appropriate marketing activities. Most research studies provide conceptual and empirical evidence of the positive link between CE and firm performance. However, regarding this possibility, it has been suggested by some researchers that this link may not hold true for other firms with different firmographic factors, such as firm growth rate, size, and resources. As previous research emphasizes that marketing managers should implement a strategy based on their unique business environment, our study addresses this issue by extending the framework to a different industry setting to investigate the impact of CE on firm performance. We develop a model for examining the relationship between the firm's estimated CE and firm performance by each time period using a distributed lagged model. Then, we investigate the effect of CE on the firm's profitability using a regression analysis. Finally, even though CRM is in increasing demand and firms are focusing on the customer as an asset, we conclude that there is a limited condition for this positive effect of CE. When the life cycle was divided by growth rate, CE was shown to have a distinctive effect on profit. In the case of a high-growth stage, the effect of CE on profit is positive because of its potential customer base, whereas the effect is not significant in a low-growth stage. That is, when the business environment is saturated and the firms are no longer competing in the market, CRM may not be effective. In other words, a long-term performance orientation may not be as effective as previously believed. This research contributes to the previous literature, providing a counterintuitive suggestion that firm managers should be cautious about implementing a CRM strategy and should allocate resources properly in terms of their resource capabilities and ability depending on their situation.

• The Journal of Industrial Distribution & Business
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• v.1 no.1
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• pp.33-41
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• 2010

In the age of globalization, effective and efficient corporate management is becoming more important as domestic and international business circumstances changes. In the middle of endless changes in business circumstances, fast reaction to customers and market, and offering customized goods and service became essential. In this respect, CRM designed to utilize customer information scientifically and systematically, has become an essential system and marketing strategy to enhance corporate competitiveness. CRM has placed the importance of customers in the front of marketing and has focused every process and business minds on customers. Recent change in the market and the trend of establishing and introducing CRM system has lead us to concentrate on the introduction of CRM in the financial institutions. This study searched for several views about CRM in academic and industrial papers. Through theoretical approach on CRM, the background of the introduction of CRM, the purpose of CRM, the characteristic and application of CRM, and the expected effect of CRM will be discussed. This study is focused on financial institutions where CRM is widely used. And through documents about examples of the introduction of CRM, the status of the establishment of domestic CRM and the necessity and trend of CRM will be discussed. Also the problem of CRM in the financial institutions and the improvement of CRM in domestic banks will be analyzed. When discussing CRM in the financial area, customers are the main source of corporate profit and through relationship management with the customers enhancing loyalty and maximizing profit can be obtained. Especially in CRM in financial institutions, maintaining existing customers makes higher profit ratio, so repurchasing and cross selling becomes important for obtaining lifetime value of existing customers who contribute to most of the profit of corporations. As a result, CRM should be completely customer oriented. CRM in financial institutions is not merely marketing work, but organizational competence which is made up of standardized work process through total process integration inside the corporation. Corporations which plan to introduce CRM should analyze the characteristics and conditions of corporations and establish purpose and strategy of CRM. And they need long term view to find out the factors which best fit for the introduction of CRM. To enable this, strategy composed of daily marketing activity and CRM concept is necessary. Also continued improvement through drill and training for operating organization should be followed to maintain CRM well. And corporate culture must settle customer as the center of corporate value. The race for introducing and improving CRM has already begun. CRM should not be regarded as a choice. It should be accepted as something essential. In this reality financial institutions should solve subdivision problem of customers and necessity of customers with the mind of 'customer's profit is my profit'. Customer focused management should not be emphasized only by words. Efforts like viewing from the customer's point must be nurtured to provide methods to help customers. That is, we should not just follow what is done in foreign countries. We should solve the problem of our customers according to the situation of our country, our industry, our corporation. Then we can gain the trust of customers, and the value derived from the customers will become the background of CRM which will lead the corporation to success.

• Asian-Australasian Journal of Animal Sciences
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• v.22 no.12
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• pp.1693-1702
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• 2009

Economic values of 14 production and functional traits for two Slovak dairy sheep breeds (Improved Valachian and Tsigai) were calculated. Semi-extensive production systems with one lambing per year were simulated using a bio-economic deterministic computer model. The marginal economic value of a trait was defined as the partial derivative of the profit function with respect to that trait. The relative economic value expressed the percentage proportion of standardized economic value (marginal economic value${\times}$genetic standard deviation) of a trait in the sum of the absolute values of the standardized economic values over all traits. Milk yield was of highest relative importance (26% and 32% in Improved Valachian and Tsigai) followed by productive lifetime and conception rate of ewes (16% and 15% in Improved Valachian and Tsigai, in both traits). Conception rate of female lambs and litter size had nearly the same relative economic importance in both breeds (9% to 11%). Survival rate of lambs at lambing and till weaning reached slightly lower economic values (4% to 7%). The economic importance of all remaining traits was less than 4%.