• Journal of the Korean Operations Research and Management Science Society
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• v.25 no.2
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• pp.23-31
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• 2000

Many studies in marketing and economics have attempted to model price and sales path under the dynamic diffusion process. Most of these models have been based on a fixed product lifetime. The current business climate requiring intensive development of new products however affects the diffusion of new products and their lifetime. Many products have not enjoyed the expected life cycle at the launching stage due to intense technical development competitive reactions, and financial problems. Most diffusion models however have not taken account of the lifetime uncertainty of new product. If the products do not last over the planning horizon set by those models. the optimal price derived from them could be futile. Therefore we had better take such lifetime uncertainty into consideration when developing diffusion models, In this paper we study the impact of uncertain product lifetime on its optimal pricing path in non-competitive market. We develop an optimal pricing model under uncertain product lifetimes and conduct a simulation study to investigate their effects on the optimal pricing and corresponding sales paths. The simulation study provides some interesting findings on optimal pricing policy under uncertain product lifetime. This study could be a stepping stone for the further extended study of optimal pricing strategy with uncertain product lifetime.

• Journal of the Korean Operations Research and Management Science Society
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• v.41 no.2
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• pp.1-16
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• 2016

Yield management, which originated from the U.S. service industry, uses pricing techniques and information systems to make demand management decisions. Demand uncertainty is an important factor in the area of demand management. A key strategy to reduce the effects of demand uncertainty is substitution. The most generally known type of substitution is inventory-driven substitution, in which consumers substitute an out-of-stock product by buying a similar or other type of product. Another type of substitution is the price-driven substitution, which occurs as a result of price changes. In this research, we consider two market segments that have unique perishable products. We develop yield management optimization models with stochastic demand based on the newsvendor model where inventory-driven and price-driven substitutions are allowed between products in the two market segments. The most significant contribution of this research is that it develops analytical procedures to determine optimal solutions and considers both types of substitution. We also provide detailed theoretical analysis and numerical examples.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.1
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• pp.109-116
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• 2001

The detection of corporate failures is a subject that has been particularly amenable to cross-sectional financial ratio analysis. In most of firms, however, the financial data are available over past years. Because of this, a model utilizing these longitudinal data could provide useful information on the prediction of bankruptcy. To correctly reflect the longitudinal and firm-specific data, the generalized linear model with assuming the first order AR(autoregressive) process is proposed. The method is motivated by the clinical research that several characteristics are measured repeatedly from individual over the time. The model is compared with several other predictive models to evaluate the performance. By using the financial data from manufacturing corporations in the Korea Stock Exchange (KSE) list, we will discuss some experiences learned from the procedure of sampling scheme, variable transformation, imputation, variable selection, and model evaluation. Finally, implications of the model with repeated measurement and future direction of research will be discussed.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1998.10a
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• pp.43-46
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• 1998

Internet is now changing the paradigms of traditional commercial activities. As more and more companies are actively involved in electronic commerce using Internet, it is becoming more imperative to understand the customers' perception of electronic commerce to foster healthy growth of Internet electronic commerce. However, research on customer satisfaction in electronic commerce has been scarce. This research investigates the factors affecting customer perception of electronic commerce and suggests the models and the results of the empirical study.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.403-406
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• 2006

This paper provides an M/G/1 queueing model for the operations management problem at the toll plaza. This queueing process is incorporated with two non-linear integer programming models - the user cost minimization model during the peak times and the operating cost minimization model during the off-peak hours.

• Journal of the Korean Operations Research and Management Science Society
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• v.30 no.2
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• pp.41-61
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• 2005

The concept of revenue management (RM) has been used widely in the air-transportation industry, and proven as a good system for managing perishable assets. While the airlines are the oldest and most sophisticated users of RM, these practices have been an enormously important innovation in other service industries such as the travel, the railway, the internet and the manufacturing industries. In this paper, reviewing several studies on RM, we introduce the fundamental concepts and the major models of RM covering seat allocation with multiple fare classes and overbooking. Future research directions also are suggested.

• Journal of the Korean Operations Research and Management Science Society
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• v.12 no.1
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• pp.175-175
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• 1987

Business reengineering (BR) is an emerging idea that attempts to restructure inefficient, current business processes through redesigning jobs and exploiting new information technology (IT), and helps achieving significant improvements in white-collar productivity and returns of IT investment. This research analyzed order-taking and purchasing processes of a company (a coil distributor) using BR concepts, models and principles. We also made proposals for reengineering the present business processes. For this, BR literatures were reviewed to derive BR models and principles to be used for analyses. We applied these ideas to six(6) types of order-taking and purchasing processes of Company T. For each type, current processes, BR analyses, and proposals for BR were described. Finally, findings were summarized and discussed.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.1
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• pp.97-108
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• 2001

Design and evaluation of AGV-based material handling systems are very complicated due to the randomness and the large number of variables involved Vehicle travel time is a key parameter for designing and evaluating AGV systems. Although loaded travel time is relatively easy to estimate, determination of empty vehicle travel time is difficult due to the inherent randomness of material handling systems. Most previous studies assume that the empty vehicle travel time is the same as the loaded travel time or assume very specific environments. This paper presents new vehicle travel time models for AGV-based material transport systems. The research effort is focused on the estimation of empty vehicle travel time under various vehicle dispatching policies. Simulation experiments are used to verify the proposed travel time models.

• Journal of the military operations research society of Korea
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• v.25 no.1
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• pp.87-106
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• 1999

There are many technical datum in related with design, test & evaluation and logistic support which will be exchanged between geographically isolated units and heterogeneous hardwares & softwares in developing and operating the weapon systems. The paper proposes the conceptual database schema to establish configuration management information systems in which these datum can be automatically interchanged, tracked, audited and status-accounted without errors under the various environments. The paper investigates how to identify and classify the data in accordance with document identification, task analysis, system development, logistic support, system test & evaluation and data management. Furthermore, the investigation includes drawing the subject areas and modeling the conceptual database schema to explain the relationships between these datum. Thus, the paper results in the conceptual framework and data models of configuration management information systems, while additional customization efforts be required in applying the models to a specific weapon systems R&D.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.10a
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• pp.157-160
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• 2000

This study is concerned with how to optimize the Input sequence of product models with sequence -dependent setup time in Mixed-Model Assembly Line (MMAL) using conveyor system. Usually MMAL consists of a number of stations linked by conveyor belt and each station has a work zone limited by upstream and downstream boundaries. To avoid improper interference between operators in the adjacent stations and excess of machine moving range, operators are forced to complete their operations within their predetermined work zone. In this study, our goal is to determine sequence of models for minimizing the total work unfinished within their work zone. A generalized formulation of the product sequencing problem in MMAL is presented and we developed an optimal procedure using Branch & Bound. Also we developed a heuristic procedure using local search.