• East Asian Journal of Business Economics (EAJBE)
• /
• v.10 no.3
• /
• pp.51-61
• /
• 2022

Purpose - The purpose of this study is to establish the government's logistics policy by calculating the logistics cost of the company and grasping the management status, to reduce the logistics cost of the related companies and to provide basic statistical data necessary for the management strategy. This work examines some associations between reasons for reducing corporate logistics costs (RCLC) and corporate classification such as industry and sales size. Research design, data, and methodology - The survey was conducted in 2018 for 2,000 companies based on the business of mining, manufacturing and wholesale and retail industries since 2010. The survey population is 94,976, of which 92,708 are small and medium enterprises and 2,268 are large corporations. The association among factors may be statistically and visually explored by using chi-squared test and correspondence analysis. Result - This study reveals the association between reasons for RCLC and corporate classification and properties and closeness that exist between the categories of each factor can be mined. Conclusion - As a task to reduce logistics costs of industrial products, expansion and operation of joint logistics business, establishment of cooperative logistics network, and establishment of ordinance on support for smart distribution logistics can be proposed.

• Journal of the Korea Convergence Society
• /
• v.11 no.1
• /
• pp.259-266
• /
• 2020

This study analyzes the effects of the obsolescence assets on the asymmetry of costs. Cost asymmetry refers to a lower percentage of costs when sales fall than increases in costs when sales increase. the obsolescence asset induces various decisions, including high maintenance costs and management improvements and replacement of facilities. This study is to analyze the cost behavior according to those decisions. The analysis showed that the higher the obsolescence of assets rate, we found cost elasticity, with a greater reduction in costs when sales decrease than the increase in costs when sales increase. Second, the lower the cost will not appear as the obsolescence of assets rate increases in case that the concentration of an item of property, plant and equipment is high, and when sales decrease. The above result means that the obsolescence of assets rate acts as operating risk and thus operates resources flexibly according to changes in sales, but when the concentration of property, plant and equipment is high, the decision-making constraint make it difficult for the flexible operation.

• Proceedings of the Safety Management and Science Conference
• /
• 2011.04a
• /
• pp.731-746
• /
• 2011

The successful and sustainable growth of SMEs depends on their ability of strengthen their competitiveness in quality and cost and service more than anything else as a fundamental of operation. Among these key competitive factors of SMEs, quality is the most critical factor in manufacturing business fields. Because quality strongly influence cost and service performance on this manufacturing business field. There are many different ways to improve the quality performance but it needs proper management decision to choose the best way what can maximize outputs with minimum inputs. And it needs effective measurement methods and some indicators to analysis the quality performance properly. The quality cost is one of the simplest key indicators to measure the quality performance and the effectiveness of quality related management decisions. The major purpose of this study is to diagnose the categorized current level of actual quality cost of local SMEs to maximize their quality management effectiveness through comparing their level with others what's expressed in early studies. In this study, through survey on local SMEs, we found that their average annual quality cost ratio versus turnover - Total amount of annual quality cost divided by annual turnover - is around 3.69% excluded some SME's performances what have different quality control measures with others. And we found some results what corresponded with the early studies on the correlations between those categorized quality costs factors and some discrepancies between some of the literature model and the early case study results as follows. There were negative correlations between the Prevention costs and the External failure costs, and the Appraisal costs and the External failure costs, and there was positive correlation between the Appraisal costs and Internal failure costs same as early studies. But, we couldn't found any strong negative correlations between the Cost of control - Preventive costs & Appraisal costs - and the Cost of Failure of control - Internal & External failure costs -. It reveals not only the lack of effectiveness on their preventive or appraisal activities but also it can reveal there were so many effective ways to prevent the failure costs properly such as some innovative investment on Factory automation includes Error Proofing and more preventive actions to improve the effectiveness of the typical management methods likes CE (Concurrent Engineering), APQP (Advanced Product Quality Planning), FMEA (Failure Mode & Effect Analysis) etc.

• Journal of Korean Society of Water and Wastewater
• /
• v.21 no.5
• /
• pp.609-619
• /
• 2007

The objective of this paper is to evaluate the feasibility of conjunctive Operation between Multi-regional water supply networks from multiple source as a effective way to meet two conditions: to minimize the electric cost for providing water demanded and meet the water flow rate for satisfying customers. EPAnet Model is used to calculate a hydraulic water distribution condition based on an integrated operation of water supply systems located in short distance. The modeling was conducted on several simulation cases including the individual operation by existing inter-regional water supply networks within short distance, the conjunctive operation of more than two existing networks with valve fully closed and full open constraint. As a study distribution system, water supplying systems of the Geojae-city in the Geongsang Namdo Province was selected and investigated. It was found that a well-allocated water supply scheme based on a conjunctive operation promises to save the electric cost and satisfy all operational goals such as stability and revenues during the period. The result such as unit district costs, pareto optimum pump combination sets will be applied to the optimization for a conjunctive operation of existing inter-regional water supply networks within short distance.

• Proceedings of the KIEE Conference
• /
• 2001.07a
• /
• pp.233-236
• /
• 2001

Parallel operation scheme to several transformers is adopted because of the load increase, economic problem, or load shedding. For the transformer's parallel operation, loads proportional to each transformer's capacity must be allotted, and circulation currents must be limited as much as without causing any problem in a real operation. But, both transformers in parallel operation can be tripped when either faults at lower voltage side of a transformer or faults in a bus occurs. Therefore, parallel operation scheme to distribution transformers in Korea is not adopted in a normal state but only when loaded or load-shedded. These are due to the insufficiency of the construction in communication network and AVR scheme. Besides that, those are because bus bar protection scheme to lower voltage side of a transformer is not applied. In spite of enormous initial investment costs, advanced countries take so much account of power system reliability and stable supply that they adopt the parallel operation scheme in a normal state. One of the problems in parallel operation is the overheat of transformers due to the excessive circulation currents. This paper presents the scheme that controls voltages between both transformers using circulation currents that occurs in parallel operation.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.4
• /
• pp.153-165
• /
• 2014

We present a new framework for rental capacity management in which rental capacity is dynamically managed by means of temporary inventory addition/return. While serving customers with its own (native) capacity, the rental firm rents additional rental capacity from an upper echelon rental company so that it can avoid lost sales which may occur when stock is not sufficient, and returns it when stock becomes sufficiently large enough to cope with demands. Formulating the model as a Markov decision process, we investigate a flexible capacity addition/return policy that maximizes the firm's profit with respect to system costs. Numerical study indicates that rental operation with capacity addition/return can be economically favorable over rental operation without capacity expansion/return and can contribute the reduction in the size of native rental capacity.

• Journal of Information Technology Applications and Management
• /
• v.11 no.1
• /
• pp.39-51
• /
• 2004

Application systems outsourcing is an important part of IT outsourcing services. Application systems outsourcing costs is determined by service levels of outsourcers. Recent researches show there is a strong need to build industry-specific cost estimation models. In this study, an industry-specific application systems operation cost estimation model is suggested. We reviewed operation cost models of previous researches, and proposed a cost estimation model for security industry. Industry-specific service factors are defined and service levels are determined by Interviews with experts. The proposed model is tested and adjusted with empirical data. The new model shows more accurate prediction than previous general models. Future research will be needed to develop outsourcing cost estimation models for other industries and to refine cost models developed in this study.

• Smart Structures and Systems
• /
• v.6 no.9
• /
• pp.1079-1105
• /
• 2010

Railway transport of goods and passengers is effective in terms of energy conservation and travel time savings. Safety and ride quality have become important issues as train speeds have increased. Due to increased speeds, minor damage to railway structures and abnormal interactions between trains and structures have given rise to increasingly serious accidents. Therefore, structural health and operational conditions must be monitored continuously in all service environments. Currently, various health and operation management systems are being developed and these are reducing both maintenance frequency and costs associated with disassembly. In this review, major damage and malfunctions and their locations are first analyzed based on numerous references. Then advanced train health and operation management technologies are classified into wayside detection methods and advanced integrated sensor methods and their operating principle and functions are reviewed and analyzed.

• The Transactions of the Korean Institute of Electrical Engineers
• /
• v.41 no.1
• /
• pp.9-17
• /
• 1992

Proper resource allocation is also a very important topic in power system problems, especially in operation and planning. One such is optimal maintenance problem in operation and planning. Least cost and highest reliability should be the subjects to be pursued. A probabilistic operation simulation model developed recently by authors is applied to the proboem of optimal maintenance scheduling. Three different methods are compared, marginal maintenance cost, levelized risk and maintenance space. The method by the marginal maintenance costs shows the least cost, the highest reliability and the highest maintenance outage rates. This latter characteristics may considerably influence the results of genetation planning, because the usual maintenance outages obtained from the other methods have shown to be lower.

• Proceedings of the KIEE Conference
• /
• 1993.07a
• /
• pp.198-201
• /
• 1993

In this paper a numerical model of the industrial cogeneration system which have a thermal storage tank is proposed for the short-term operation strategy. Short-term operation costs of towing cycle and bottoming cycle are calculated by using the proposed model of a thermal storage tank. Simulation results of four cases are compared and analyzed each other. By these simulations which are similar to real operation circumstances, the validity of the proposed model is verified.