• Title/Summary/Keyword: Price determination

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An Alternative Approach for Setting Equilibrium Prices of Sericultural Products (잠사류의 균형 가격모색)

  • 이질현
    • Journal of Sericultural and Entomological Science
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    • no.12
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    • pp.47-50
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    • 1970
  • There are many factors affecting the development of sericultural industry in Korea. The setting of a rational pricing system for sericultural products is one of important activities of the Korean Government to improve the incentives to producers. The determination o: the prices for many years were based on the production costs including a certain level of profits. Some of cost items are in conflict both in cocoon producers and silk-reeling industries. Government officials have to evaluate these conflicting problems and estimate the consequences of their decisions. In this situation the final decision often became political decisions. This analysis is aimed at providing an alternative method of setting the prices of sericultural products. The criteria of the equilibrium employed in this analysis are based on economic principle which equilibrium condition is determined by the relationships between the marginal productivity of input factors and factor prices. In order to obtain the related information Cobb-Douglas'functions were fitted using KIST computer and data were obtained mostly from the Bank of Korea and the Ministry of Agriculture and Forestru, An important assumption is that "Opportunity Costs" of factors input in both cocoon production and silk-Peeling industries are same, The major finding s obtained are as followings. 1) The sum of coefficient of production elastisity in silk-reeling industries is greater than one. Silk-reeling industries are operating under the situation of increasing return to scale and it is, therefore, expected to develop the industries as the capital-intensive large scale. 2) The cocoon producing farmers are under the situations of the decreasing return to scale and it is expected to continue their cocoon farming as the labor-intensive small scale, assuming the present level of production technology. As the development of commercial farming, the resources input in cocoon production will be shifted to the production for higher profitable crops, 3) The price elastisity of production is higher in cocoon production than in silk-reeling industries. It is expected that the price changing effects on domestic production will be resulted from cocoon producers. 4) Based on analysis results of marginal productivities and the opportunity costs of resources, cocoon price for meeting equilibrium price condition is to be increased by 8-16 percent or standard price level of silk increased by 6-8 percent. There were the possibilities of over evaluation on opportunity cost of resources input in silk-reeling industries, or income transfered from the farmers to the industries. It is recommended that the prices for meeting equilibrium price conditions are to be determined by 72 percent for cocoon and 28 percent for silk-reeling costs, based on standard level of the exporting prices.

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The Profitability Analysis of BESS Installation with PV Generation under RPS (RPS 제도 하에서의 태양광발전 연계형 배터리시스템 수익분석 방법에 관한 연구)

  • Kim, Chang-Soo;Yoo, Tae-Hyun;Rhee, Chang-Ho
    • Journal of Energy Engineering
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    • v.26 no.4
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    • pp.107-117
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    • 2017
  • Since South Korea started to apply Renewable Portfolio Standard (RPS) in 2012, there have been huge investment for deploying renewable technologies. Recently, the government determined to incentivize battery energy storage system(BESS) with renewable generations in order to induce the improvement of dispatching capability. In this paper, the annual pattern of PV generation based on actual generation data in South Korea is analyzed and the duration curve of capacity factor is proposed in order to provide the simplified analyzing methodology of present support policy for additional BESS installation for decision maker who is responsible for supply and demand planning. With suggested methodology, the range of appropriate BESS size with respect to the variation of system marginal price(SMP) and renewable energy certificate(REC) price can be derived briefly, and decision makers easily evaluate the effect of support scheme. Current policy for BESS installation support present additional BESS-related installation policy may give incentives to developers partially, however, the dependence between BESS size and benefit components (SMP and REC) can limit the deployment of the various portfolios of the BESS. Therefore, when improving the current policy in future, addressing the dependence between the technical aspects of battery size and the benefit components separately by the technical and economical parts is needed to set the suitable compensation rules for the renewable generation and BESS.

Study on the Effect of Product Line Pricing on Loading Efficiency and Logistics Cost (상품라인별 가격결정이 적재효율 및 물류비에 미치는 영향에 관한 연구)

  • Jung, Sung-Tae;Yoon, Nam-Soo;Han, Kyu-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.55-69
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    • 2014
  • Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in

    , loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.

  • Production Cost Analysis of Leaf tobacco farm Households (잎담배 재배농가의 생산비 분석)

    • Kim, Jai-Hong;Kang, Il-Tack
      • Korean Journal of Agricultural Science
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      • v.31 no.2
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      • pp.149-160
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      • 2004
    • This study had carried out an analysis of leaf tobacco production cost by cost items, growing stages, and farm sizes per 10a to provide the basic data for determination of the purchasing price of leaf tobacco by KT&G. Considering the survey results of 12 tobacco farm households, the composition rates of production cost by items revealed as 7-10% for land service, 5-22% for depreciation, 13-25% for material costs, 50-65% for labour cost respectively. The production cost of leaf tobacco by growing stages were shown as 15.3% in nursery bed period, 32.3% in main growing period in field, 30.8% in harvesting period and 21.6% in packing period. The magnitude of wage expenditure was appeared as harvesting stage, packing stage, growing stage on main field and nursery bed stage in order. The amount of material costs were revealed as the growing stage in main field, harvesting stage, nursery bed stage and packing stage respectively. The production costs of leaf tobacco per 10a by farm sizes were shown as 1,615,879won for small farm, 1,446,896won for medium farm and 1,454,408won for large farm respectively. The production cost of leaf tobacco had shown decreasing tendency according to increasing farm sizes. To promote the international market competitiveness of leaf tobacco producing farms, labour saving production technologies and cost effective farm size to decrease tobacco production cost should be developed.

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    A Study on the Determination of Optimum Level of Payments in the Direct Payment Program for Aquaculture Extruded Pellets (양식업 배합사료 직접지불제의 적정 지원수준 결정에 관한 연구 : 직접지불제의 생산 및 소득효과 분석을 중심으로)

    • Kim, Do-Hoon;Oh, Tae-Gi
      • The Journal of Fisheries Business Administration
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      • v.38 no.1 s.73
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      • pp.1-17
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      • 2007
    • This study is aimed at investigating optimum level of payments in the direct payment program for aquaculture extruded pellets both theoretically and practically by analyzing the effects on production and income in accordance with Green Box conditions of WTO Agreement on Agriculture. In particular, by analyzing both effects on production and income, it evaluates and compares payments affecting to the level of production and income, respectively. Analysis results indicate that the optimum level of payments in the direct payment program for aquaculture extruded pellets is determined by the growth rate of farmed fish, farming period, price and volume of extruded pellets, and additional amount of cost increase and decrease. Suppose that growth rates of farmed fish by extruded pellets(EP) and raw fish - based moist pellets(MP) are the same, it reveals the optimum level of payment should be lowered from the current level of payment. However, when the growth rate of farmed fish by EP is lower than that by MP, the optimum level of payment should be raised from the current level and total amount of payments by area should be increased as well.

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    Comparison Study on the Estimation Algorithm of Land Surface Temperature for MODIS Data at the Korean Peninsula (MODIS 자료를 이용한 한반도 지표면 온도산출 알고리즘의 비교 연구)

    • Lee, Soon-Hwan;Ahn, Ji-Suk;Kim, Hae-Dong;Hwang, Soo-Jin
      • Journal of Environmental Science International
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      • v.18 no.4
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      • pp.355-367
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      • 2009
    • Comparison study on the land surface temperatures, which are calculated from four different algorithms for MODIS data, was carried out and the characteristics of each algorithm on land surface temperature estimation were also analysed in this study. Algorithms, which are well used for various satellite data analysis, in the comparisons are proposed by Price, Becker and Li, Ulivieri et al., and Wan. Verification of estimated land surface temperature from each algorithm is also performed using observation based regression data. The coefficient of determination ($R^2$) for daytime land surface temperature estimated from Wan's algorithm is higher than that of another algorithms at all seasons and the value of $R^2$ reach on 0.92 at spring. Although $R^2$ for Ulivieri's algorithm is slightly lower than that for Wan's algorithm, the variation pattern of land surface temperature for two algorithms are similar. However, the difference of estimated values among four algorithms become small at the region of high land surface temperature.

    Free-Radical Copolymerization of Glycidyl Methacrylate with Phthalimidoethyl Acrylate : Synthesis and Determination of Monomer Reactivity Ratios (GMA와 프탈이미드아크릴레이트의 공중합체 합성과 반응성비)

    • Oh, Seung-Min;Oh, Dae-Hee
      • Journal of the Korean Applied Science and Technology
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      • v.30 no.2
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      • pp.297-304
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      • 2013
    • Free-radical copolymerization of glycidyl methacrylate(GMA) and N-phthalimidoethyl acrylate(NPEA) were carried out at $60^{\circ}C$ in dimethylformamide(DMF) solution in the presence of benzoylperoxide(BPO) at low conversion. The polymers were characterized by IR and $^1H$-NMR. The compositions of the copolymer was analyzed by ultra violet(UV/Vis) spectrophotometry. The reactivity ratios of the monomer was determined by the application of Fineman-Ross(FR) and Kelen-T$\ddot{u}$d$\ddot{o}$s(KT) methods. The monomer reactivity ratios of the system and Alfrey-Price's resonance effect(Q) and polar effect(e) value for NIEA were determined as follow. The reactivity ratios of the monomer obtained from FR and KT are found to be $r_1$=0.87, $r_2$=0.98 and $r_1$=0.88, $r_2$=0.99 respectively. The Q and e values of poly(GMA-co-NPEM) calculated from $r_1$ and $r_2$ was Q= 1.31, e=0.75 respectively.

    Serum Carotenoid and Vitamin A Concentration of Cattle Fed on Hay and on Pasture (유우(乳牛) 및 한우(韓牛)의 혈청중(血淸中) Carotenoid 및 Vitamin A 함량(含量))

    • Cho, Jong Hoo;Yang, Yong Gwan;Lee, Kwang Won
      • Korean Journal of Veterinary Research
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      • v.13 no.1
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      • pp.13-16
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      • 1973
    • Sera obtained from 20 milk cows and 20 Korean cattle in group feeding and from 20 Korean cattle from different farmhouses were analyzed for the determination of carotenoid and vitamin A by Carr-Price reaction. The result obtained were as follows: 1. Carotenoid contents of sera from milk cows and Korean cattle in group feeding, and from Korean cattle from different farmhouses were in winter $394.7{\mu}g/100ml$, $157.8{\mu}g/100ml$ and $187.9{\mu}g/100ml$, respectively, and were in summer $735.3{\mu}g/100ml$, $728.2{\mu}g/100ml$ and $760.3{\mu}g/100ml$, respectively. 2. Vitamin A contents of sera from milk cows and Korean cattle in group feeding and from Korean cattle from different farmhouses were in winter 101.2 IU/100 ml, 88.9 IU/100 ml and 48.4 IU/100 ml, respectively, and were in summer 212.0 IU/100 ml, 208.7 IU/100 ml and 208.3 IU/100 ml respectively.

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    Determination of Quality Cost Policy under Multiple Assignable Causes (다중이상원인하의 경제적 품질비용 정책결정)

    • 김계완;김용필;박지연;윤덕균
      • Journal of Korean Society of Industrial and Systems Engineering
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      • v.26 no.1
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      • pp.7-16
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      • 2003
    • At present, company has to produce a product that consumer like with a competitive price, a good quality, and a fitting time to supply. Process control and quality control are very important to supply with a product uniformly and inexpensively. Process control is given much weight in the quality control in manufacturing system. Statistical process controls(SPC) that are used in process generally have major impact on manufacturing, product design activities, and process development potentially. Control charts in statistical process control method can be interpreted the data from quality characteristics in production process and discriminated between chance variation and assignable variation in process. In addition, control chart can be used to monitor the process output and detect when changes in the inputs are required to bring the process back to an in-control state. The models that relate the influential inputs to process outputs help determine the nature and magnitude of the adjustments required. In this paper, the characteristic of product quality is monitored by control chart during the machining process and construction of quality control cycle is considered to divide into two types in this case that different assignable causes lead to shifts having different magnitudes. Then we are intended to find a process shift magnitude which has economical quality cost policy and are considered to quality cost functions to find a process shift magnitude. Those costs are categorized into the well-known categories of prevention, appraisal, and internal failure and external failure. This paper ends with numerical examples that demonstrate the usefulness of the model.

    Determination of Development Strategy for a Pepper Harvester (고추수확기의 개발방향 설정)

    • 이종호;박승제;김철수;이중용;김명호;김용현
      • Journal of Biosystems Engineering
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      • v.20 no.1
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      • pp.22-35
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      • 1995
    • Pepper is the most important horticultural plant in Korean farm. Pepper harvesting has been known to be the most difficult process in pepper cultivation so that demand for mechanization is strong. In a research to develop a pepper harvesting machine performance and capacity of the harvester should be determined based on both economical feasibility and machine design concept. In order to accomplish an economical analysis of the pepper harvester, a mathematical model for comparing manual harvesting cost to machine harvest cost was developed. Validity of the model depends on the data used in the model. Economical information for the model variables was acquired from the result of farm survey on pepper cultivation technique and economics of pepper farmer. Technical information on pepper harvester were also collected through literature review and analyzed. Based on the economical analysis and synthesis of the technical information on pepper harvesters, its performance and capacity were determined. The operating performances of the harvester such as cutting, conveying, flipping, pepper removing and post-processing (sorting) were determined. Daisy capacity of the machine was determined to be 0.41 ha. A pepper harvester with the suggested capacity was economically feasible if the price of pepper harvester, pepper recovery ratio and service life of harvester were about 6 million won, 80%, and 4 years, respectively.

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