• Title/Summary/Keyword: Modeling Uncertainty

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A Study on Trends of Key Issues in Port Safety at Busan Port (부산항 항만안전 주요 이슈 동향에 관한 연구)

  • Jeong-Min Lee;Do-Yeon Ha;Joo-Hye Kim
    • Journal of Navigation and Port Research
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    • v.48 no.1
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    • pp.34-48
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    • 2024
  • As global supply chain risks proliferate unpredictably, the high interdependence of port and logistics industry intensifies the risk burden. This study conducted fundamental research to explore diverse safety issues in domestic ports. Utilizing news article data about Busan Port, we employed LDA topic modeling and time-series linear regression to understand key safety trends. Over the past 30 years, Busan Port faced nine major safety issues-maritime safety, import cargo inspection, labor strikes, and natural disasters emerged cyclically. Major port safety issues in Busan Port are primarily characterized by an unpredictable nature, falling under socio-environmental and natural phenomena types, indicating a significant impact of global uncertainty. Therefore, systematic policies need to be formulated based on identified port safety issues to enhance port safety in Busan Port. Additionally, there is a need to strengthen the resilience of port safety for unpredictable risk situations. In conclusion, advanced research activities are necessary to promote port safety enhancement in response to dynamically changing social conditions.

A Study about the Aesthetics of Oriental in Modern Fashion design (현대패션디자인에 나타난 동양의 미의식 연구)

  • 임영자
    • Journal of the Korean Society of Costume
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    • v.30
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    • pp.261-274
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    • 1996
  • In the present age dominate by both cer-taingty of 1% and uncertainty of 99% 'Fuzzy thinking' of Bart Kosko that is the way to solve the problems by the scientific way through a worldview of Buddhism or Taoism greatly prevails around the world over 'Lateral greatly prevails around the world over 'Lateral thinking' and the authenticity or the right and-wrong of the uncertainty which is the thinking way to find the answer of the problems of illogical way of Edward de Beno against the western vertical thinking were Concurrently fashion designers over the world also adopt the oriental elements. But there exist differences of thoughts between the orient and the occident. And they have dif-ferent thinking way of aestheticism and references of the value on the beauty. Not only beauty but the view through the mind as intuitional thought in which not only the rec-ognition of sense but also the rationalism and the naturalness play key role. The aesthetic sense in the orient contains both the truth and virtue. 2) The beauty of the mean It's from the thought of neutralization of Confucius. The mean or moderation state which in harmony with ethical virtue and aes-thetic beauty is the ideal and is the ultimate. Therefore the thought of Confucian is the creativity in which the balance and the har-mony is most important. Fashion design is also one of the representation of the mean because the spirit of the designer is harmonized for-mlessly with the object of the model of the fashion design. 2) The beauty of skillfulness It indicates the Taoism of Lao-tzu and Chuangtzu. It takes a super-artistic declar-ation that human can feel and recognize the color of colorlessness the sound of sound-lessness and the taste of tastelessness. The thought of arts affected by Taoism is 'ad-vanced age' called the beauty of skillfulness. The view of arts of lao-tzu takes the beauty of cosmos and the nature as a standard. Es-pecially the beauty of inactivity is recognized by the linkage between the beauty and the ugliness. And these things appear in fashion design as a design element such as humor or exaggeration. 3) The beauty of non-dualism It is thought of Buddhism that all evil passions of worry occur form the opposition in dualism. Finally this thought leads to that everything is consistent and truth is only one from the point of view that virtue and vice has on linkage that is 'no virtues no vices' and 'one with two, two, with one, one is not two' A big tendency like this became the root forma-tion of the thought of the oriental arts. 3. Characteristics of the oriental aesthetic sense on the present fashion design 1) The formation of the fashion design on the oriental elements In the picture-incantation which was a representation of an era when the thought of 'cosmic dual forces' dominated the basic polygons of 'a circle square triangle' means both 'one two three' and 'the negative positive mean' of cosmic elements. From this point of view the was of planner cutting in the Orient is dif-ferent from that of the Occidental which is in three-dimensional. The planner polygon type of the cut-pieces comes to have the meaning of the three-dimension when they consist of a suit that has the combination of each cut-piece. This shows the consistency with the principle of cosmos creation of Taoism that one is two two is three and three is every-thing. 2) The coloring and the symbolic represen-tation of the fashion design on the orien-tal elements The sense on the colors in the Orient from the thought of 'the cosmic dual forces and the five elements' is not the experi-enced from the knowledge but contains the consideration of philosophy Five-primary-color representing compass directions Blue(East) Red(South) Yellow(Center) White (West) and Black (North) is called ' the posi-tive' for this five-primary-color secondary-color which comes from the compound of the primary colors is called 'the negative' The thought of 'the cosmic dual forces and the five elements' is also an theory containing the natural order of the cos-mos and this shows the perceptional differ-ence that they are not conceptual but to be recognized and fell directly. A thought of Buddhism which is 'Colors are colorlessness and Clolorlessness are color's proves that. 3) The pattern and symbolic representation of the fashion design on the oriental elements The pattern as a visual style is a figure of symbolic representation which adopt the mental and physical world of human and are the compo-sition of artistic revelation of the human nature and the religous thought of incantation. Es-pecially the symbolic representation of the oriental thought of Confusion. Buddhism and Taoism There are patterns such as plants aminals the oriental four gods and geometry. From the above it's the time toward the 21'th century when the world is constructing one global area and one historical zone. And the exotic mood of the Orient represented in the fashion which doesn't make the common feeling in general does not cease to develop only to express the visual modeling but also adopts the thought religion and the art which are the root of the Orientail and contains inherent willing of modeling.

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Comparative Analysis of SWAT Generated Streamflow and Stream Water Quality Using Different Spatial Resolution Data (SWAT모형에서 공간 입력자료의 다양한 해상도에 따른 수문-수질 모의결과의 비교분석)

  • Park, Jong-Yoon;Lee, Mi-Seon;Park, Geun-Ae;Kim, Seong-Joon
    • Journal of Korea Water Resources Association
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    • v.41 no.11
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    • pp.1079-1094
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    • 2008
  • This study is to evaluate the impact of varying spatial resolutions on the uncertainty of Soil and Water Assessment Tool (SWAT) predicted streamflow, non-point source (NPS) pollution loads transport in a small agricultural watershed (1.21 $km^2$) for three cases of model input; Case A is the combination of 2 m DEM, QuickBird land use, Case B is the combination of 10 m DEM, 1/25,000 land use, and Case C is the combination of 30 m DEM, Landsat land use, soil data is used 1/25,000 for three cases respectively. The model was calibrated for 2 years (1999-2000) using daily streamflow and monthly water quality records, and verified for another 2 years (2001-2002). The average Nash and Sutcliffe model efficiency was 0.59 for streamflow and RMSE were 2.08, 4.30 and 0.70 tons/yr for sediment, T-N and T-P respectively. The model was run for a small agricultural watershed with three cases of spatial input data. The hydrological results showed that output uncertainty was biggest by spatial resolution of land use. Streamflow increase the watershed average CN value of QucikBird land use was 0.4 and 1.8 higher than those of 1/25,000 and Landsat land use caused increase of streamflow. On the other hand, The NPS loadings from the model prediction showed that the sediment, T-N and T-P of QuickBird land use (Case A) showed 23.7 %, 43.3 % and 48.4 % higher value than 1/25,000 land use (Case B) and 50.6 %, 50.8 % and 56.9 % higher value than Landsat land use (Case C) respectively.

The Impact of Perceived Risks Upon Consumer Trust and Purchase Intentions (인지된 위험의 유형이 소비자 신뢰 및 온라인 구매의도에 미치는 영향)

  • Hong, Il-Yoo B.;Kim, Woo-Sung;Lim, Byung-Ha
    • Asia pacific journal of information systems
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    • v.21 no.4
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    • pp.1-25
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    • 2011
  • Internet-based commerce has undergone an explosive growth over the past decade as consumers today find it more economical as well as more convenient to shop online. Nevertheless, the shift in the common mode of shopping from offline to online commerce has caused consumers to have worries over such issues as private information leakage, online fraud, discrepancy in product quality and grade, unsuccessful delivery, and so forth, Numerous studies have been undertaken to examine the role of perceived risk as a chief barrier to online purchases and to understand the theoretical relationships among perceived risk, trust and purchase intentions, However, most studies focus on empirically investigating the effects of trust on perceived risk, with little attention devoted to the effects of perceived risk on trust, While the influence trust has on perceived risk is worth studying, the influence in the opposite direction is equally important, enabling insights into the potential of perceived risk as a prohibitor of trust, According to Pavlou (2003), the primary source of the perceived risk is either the technological uncertainty of the Internet environment or the behavioral uncertainty of the transaction partner. Due to such types of uncertainty, an increase in the worries over the perceived risk may negatively affect trust, For example, if a consumer who sends sensitive transaction data over Internet is concerned that his or her private information may leak out because of the lack of security, trust may decrease (Olivero and Lunt, 2004), By the same token, if the consumer feels that the online merchant has the potential to profit by behaving in an opportunistic manner taking advantage of the remote, impersonal nature of online commerce, then it is unlikely that the merchant will be trusted, That is, the more the probable danger is likely to occur, the less trust and the greater need to control the transaction (Olivero and Lunt, 2004), In summary, a review of the related studies indicates that while some researchers looked at the influence of overall perceived risk on trust level, not much attention has been given to the effects of different types of perceived risk, In this context the present research aims at addressing the need to study how trust is affected by different types of perceived risk, We classified perceived risk into six different types based on the literature, and empirically analyzed the impact of each type of perceived risk upon consumer trust in an online merchant and further its impact upon purchase intentions. To meet our research objectives, we developed a conceptual model depicting the nomological structure of the relationships among our research variables, and also formulated a total of seven hypotheses. The model and hypotheses were tested using an empirical analysis based on a questionnaire survey of 206 college students. The reliability was evaluated via Cronbach's alphas, the minimum of which was found to be 0.73, and therefore the questionnaire items are all deemed reliable. In addition, the results of confirmatory factor analysis (CFA) designed to check the validity of the measurement model indicate that the convergent, discriminate, and nomological validities of the model are all acceptable. The structural equation modeling analysis to test the hypotheses yielded the following results. Of the first six hypotheses (H1-1 through H1-6) designed to examine the relationships between each risk type and trust, three hypotheses including H1-1 (performance risk ${\rightarrow}$ trust), H1-2 (psychological risk ${\rightarrow}$ trust) and H1-5 (online payment risk ${\rightarrow}$ trust) were supported with path coefficients of -0.30, -0.27 and -0.16 respectively. Finally, H2 (trust ${\rightarrow}$ purchase intentions) was supported with relatively high path coefficients of 0.73. Results of the empirical study offer the following findings and implications. First. it was found that it was performance risk, psychological risk and online payment risk that have a statistically significant influence upon consumer trust in an online merchant. It implies that a consumer may find an online merchant untrustworthy if either the product quality or the product grade does not match his or her expectations. For that reason, online merchants including digital storefronts and e-marketplaces are suggested to pursue a strategy focusing on identifying the target customers and offering products that they feel best meet performance and psychological needs of those customers. Thus, they should do their best to make it widely known that their products are of as good quality and grade as those purchased from offline department stores. In addition, it may be inferred that today's online consumers remain concerned about the security of the online commerce environment due to the repeated occurrences of hacking or private information leakage. Online merchants should take steps to remove potential vulnerabilities and provide online notices to emphasize that their website is secure. Second, consumer's overall trust was found to have a statistically significant influence on purchase intentions. This finding, which is consistent with the results of numerous prior studies, suggests that increased sales will become a reality only with enhanced consumer trust.

A study on the Success Factors and Strategy of Information Technology Investment Based on Intelligent Economic Simulation Modeling (지능형 시뮬레이션 모형을 기반으로 한 정보기술 투자 성과 요인 및 전략 도출에 관한 연구)

  • Park, Do-Hyung
    • Journal of Intelligence and Information Systems
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    • v.19 no.1
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    • pp.35-55
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    • 2013
  • Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.

The Effect of Herding Behavior and Perceived Usefulness on Intention to Purchase e-Learning Content: Comparison Analysis by Purchase Experience (무리행동과 지각된 유용성이 이러닝 컨텐츠 구매의도에 미치는 영향: 구매경험에 의한 비교분석)

  • Yoo, Chul-Woo;Kim, Yang-Jin;Moon, Jung-Hoon;Choe, Young-Chan
    • Asia pacific journal of information systems
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    • v.18 no.4
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    • pp.105-130
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    • 2008
  • Consumers of e-learning market differ from those of other markets in that they are replaced in a specific time scale. For example, e-learning contents aimed at highschool senior students cannot be consumed by a specific consumer over the designated period of time. Hence e-learning service providers need to attract new groups of students every year. Due to lack of information on products designed for continuously emerging consumers, the consumers face difficulties in making rational decisions in a short time period. Increased uncertainty of product purchase leads customers to herding behaviors to obtain information of the product from others and imitate them. Taking into consideration of these features of e-learning market, this study will focus on the online herding behavior in purchasing e-learning contents. There is no definite concept for e-learning. However, it is being discussed in a wide range of perspectives from educational engineering to management to e-business etc. Based upon the existing studies, we identify two main view-points regarding e-learning. The first defines e-learning as a concept that includes existing terminologies, such as CBT (Computer Based Training), WBT (Web Based Training), and IBT (Internet Based Training). In this view, e-learning utilizes IT in order to support professors and a part of or entire education systems. In the second perspective, e-learning is defined as the usage of Internet technology to deliver diverse intelligence and achievement enhancing solutions. In other words, only the educations that are done through the Internet and network can be classified as e-learning. We take the second definition of e-learning for our working definition. The main goal of this study is to investigate what factors affect consumer intention to purchase e-learning contents and to identify the differential impact of the factors between consumers with purchase experience and those without the experience. To accomplish the goal of this study, it focuses on herding behavior and perceived usefulness as antecedents to behavioral intention. The proposed research model in the study extends the Technology Acceptance Model by adding herding behavior and usability to take into account the unique characteristics of e-learning content market and e-learning systems use, respectively. The current study also includes consumer experience with e-learning content purchase because the previous experience is believed to affect purchasing intention when consumers buy experience goods or services. Previous studies on e-learning did not consider the characteristics of e-learning contents market and the differential impact of consumer experience on the relationship between the antecedents and behavioral intention, which is the target of this study. This study employs a survey method to empirically test the proposed research model. A survey questionnaire was developed and distributed to 629 informants. 528 responses were collected, which consist of potential customer group (n = 133) and experienced customer group (n = 395). The data were analyzed using PLS method, a structural equation modeling method. Overall, both herding behavior and perceived usefulness influence consumer intention to purchase e-learning contents. In detail, in the case of potential customer group, herding behavior has stronger effect on purchase intention than does perceived usefulness. However, in the case of shopping-experienced customer group, perceived usefulness has stronger effect than does herding behavior. In sum, the results of the analysis show that with regard to purchasing experience, perceived usefulness and herding behavior had differential effects upon the purchase of e-learning contents. As a follow-up analysis, the interaction effects of the number of purchase transaction and herding behavior/perceived usefulness on purchase intention were investigated. The results show that there are no interaction effects. This study contributes to the literature in a couple of ways. From a theoretical perspective, this study examined and showed evidence that the characteristics of e-learning market such as continuous renewal of consumers and thus high uncertainty and individual experiences are important factors to be considered when the purchase intention of e-learning content is studied. This study can be used as a basis for future studies on e-learning success. From a practical perspective, this study provides several important implications on what types of marketing strategies e-learning companies need to build. The bottom lines of these strategies include target group attraction, word-of-mouth management, enhancement of web site usability quality, etc. The limitations of this study are also discussed for future studies.

Impact Assessment of Spatial Resolution of Radar Rainfall and a Distributed Hydrologic Model on Parameter Estimation (레이더 강우 및 분포형 수문모형의 공간해상도가 매개변수 추정에 미치는 영향 평가)

  • Noh, Seong Jin;Choi, Shin Woo;Choi, Yun Seok;Kim, Kyung Tak
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.34 no.5
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    • pp.1443-1454
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    • 2014
  • In this study, we assess impact of spatial resolution of radar rainfall and a distributed hydrologic model on parameter estimation and rainfall-runoff response. Radar data measured by S-band polarimetric radar located at Mt. Bisl in the year of 2012 are used for the comparative study. As different rainfall estimates such as R-KDP, R-Z, and R-ZDR show good agreement with ground rainfall, R-KDP are applied for rainfall-runoff modeling due to relatively high accuracy in terms of catchment averaged and gauging point rainfall. GRM (grid based rainfall-runoff model) is implemented for flood simulations at the Geumho River catchment with spatial resolutions of 200m, 500m, and 1000m. Automatic calibration is performed by PEST (model independent parameter estimation tool) to find suitable parameters for each spatial resolution. For 200m resolution, multipliers of overlandflow and soil hydraulic conductivity are estimated within stable ranges, while high variations are found from results for 500m and 1000m resolution. No tendency is found in the estimated initial soil moisture. When parameters estimated for different spatial resolution are applied for other resolutions, 200m resolution model shows higher sensitivity compared to 1000m resolution model.

Numerical Simulation of Urban Flash Flood Experiments Using Adaptive Mesh Refinement and Cut Cell Method (적응적 메쉬세분화기법과 분할격자기법을 이용한 극한 도시홍수 실험 모의)

  • An, Hyun-Uk;Yu, Soon-Young
    • Journal of Korea Water Resources Association
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    • v.44 no.7
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    • pp.511-522
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    • 2011
  • Two-dimensional shallow water model based on the cut cell and the adaptive mesh refinement techniques is presented in this paper. These two mesh generation methods are combined to facilitate modeling of complex geometries. By using dynamically adaptive mesh, the model can achieve high resolution efficiently at the interface where flow changes rapidly. The HLLC Reimann solver and the MUSCL method are employed to calculate advection fluxes with numerical stability and precision. The model was applied to simulate the extreme urban flooding experiments performed by the IMPACT (Investigation of Extreme Flood Processes and Uncertainty) project. Simulation results were in good agreement with observed data, and transient flows as well as the impact of building structures on flood waves were calculated with accuracy. The cut cell method eased the model sensitivity to refinement. It can be concluded that the model is applicable to the urban flood simulation in case the effects of sewer and stormwater drainage system on flooding are relatively small like the dam brake.

Impact of Emission Inventory Choices on PM10 Forecast Accuracy and Contributions in the Seoul Metropolitan Area (배출량 목록에 따른 수도권 PM10 예보 정합도 및 국내외 기여도 분석)

  • Bae, Changhan;Kim, Eunhye;Kim, Byeong-Uk;Kim, Hyun Cheol;Woo, Jung-Hun;Moon, Kwang-Joo;Shin, Hye-Jung;Song, In Ho;Kim, Soontae
    • Journal of Korean Society for Atmospheric Environment
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    • v.33 no.5
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    • pp.497-514
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    • 2017
  • This study quantitatively analyzes the effects of emission inventory choices on the simulated particulate matter (PM) concentrations and the domestic/foreign contributions in the Seoul Metropolitan Area (SMA) with an air quality forecasting system. The forecasting system is composed of Weather Research and Forecasting (WRF)-Sparse Matrix Operator Kernel Emissions (SMOKE)-Community Multi-Scale Air Quality (CMAQ). Different domestic and foreign emission inventories were selectively adopted to set up four sets of emissions inputs for air quality simulations in this study. All modeling cases showed that model performance statistics satisfied the criteria levels (correlation coefficient >0.7, fractional error <50%) suggested by previous studies. Notwithstanding the apparently good model performance of total PM concentrations by all emission cases, annual average concentrations of simulated total PM concentrations varied up to $20{\mu}g/m^3$ (160%) depending on the combination of emission inventories. In detail, the difference in simulated annual average concentrations of the primary PM coarse (PMC) was up to $25.2{\mu}g/m^3$ (6.5 times) compared with other cases. Furthermore, model performance analyses on PM species showed that the difference in the simulated primary PMC led to gross model overestimation in general, which indicates that the primary PMC emissions need to be improved. The contribution analysis using model direct outputs indicated that the domestic contributions to the annual average PM concentrations in the SMA vary from 44% to 67%. To account for the uncertainty of the simulated concentration, the contribution correction factor method proposed by Bae et al. (2017) was applied, which resulted in converged contributions(from 48% to 57%). We believe this study shows that it is necessary to improve the simulated concentrations of PM components in order to enhance the accuracy of the forecasting model. It is deemed that these improvements will provide more accurate contribution results.

Determinants of Department Store Sales Commissions Under Consignment Contracts: An Integrated Perspective (백화점 특약매입 거래에서 판매수수료의 결정요인 : 거래비용, 힘-의존이론과 자원기반이론의 통합적 관점)

  • Yi, Ho-Taek;Yeom, Min-Sun;Seo, Hun-Joo
    • Journal of Distribution Science
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    • v.13 no.11
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    • pp.47-58
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    • 2015
  • Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.