• Journal of Institute of Control, Robotics and Systems
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• v.10 no.6
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• pp.537-544
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• 2004

An effective methodology is reported for determining the optimal lot size of batch processing and storage networks which include uncertain demand forecasting. We assume that any given storage unit can store one material type which can be purchased from suppliers, internally produced, infernally consumed, transported to or from other sites and/or sold to customers. We further assume that a storage unit is connected to all processing and transportation stages that consume/produce or move the material to which that storage unit is dedicated. Each processing stage transforms a set of feedstock materials or intermediates into a set of products with constant conversion factors. A batch transportation process can transfer one material or multiple materials at once between sites. The objective for optimization is to minimize the probability averaged total cost composed of raw material procurement, processing setup, transportation setup and inventory holding costs as well as the capital costs of processing stages and storage units. A novel production and inventory analysis formulation, the PSW(Periodic Square Wave) model, provides useful expressions for the upper/lower bounds and average level of the storage inventory. The expressions for the Kuhn-Tucker conditions of the optimization problem can be reduced to two sub-problems. The first yields analytical solutions for determining lot sires while the second is a separable concave minimization network flow subproblem whose solution yields the average material flow rates through the networks for the given demand forecast scenario. The result of this study will contribute to the optimal design and operation of the global supply chain.

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.19 no.5
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• pp.399-407
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• 2007

Two reliability models, AFDA(Approximate Full Distribution Approach) and Monte-Carlo simulation method, are directly developed to study on both hydraulic failure mode of berm recession and structural failure mode of armour breakage of berm breakwaters. By comparing the present results with the results of other researcher, it may be confirmed that two reliability models can be straightforwardly applicable to berm breakwaters. Relative influence of each random variable on hydraulic and structural failure probabilities could be properly analyzed. The upper bound and the lower bound of failure probability can be evaluated by using bi-modal bounds of the multiple failure mode analysis, from which it may be possible to investigate some kinds of dependence into between two failure modes. Finally, it may also be found that the structural failure mode of armour breakage could become a main failure mode of berm breakwaters in the condition of more than any allowable berm recession.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.137-146
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• 2017

For the competitive business environment under purchase dependence, this paper proposes a new approximate calculation of order fill rate which is a probability of satisfying a customer order immediately using the existing inventory. Purchase dependence is different to demand dependence. Purchase dependence treats the purchase behavior of customers, while demand dependence considers demand correlation between items, between regions, or over time. Purchase dependence can be observed in such areas as marketing, manufacturing systems, and distribution systems. Traditional computational methods have a difficulty of the curse of dimensionality for the large cases, when deriving the stationary joint distribution which is utilized to calculate the order fill rate. In order to escape the curse of dimensionality and protect the solution from diverging for the large cases, we develop a greedy iterative search algorithm based on the Gauss-Seidel method. We show that the greedy iterative search algorithm is a dependable algorithm to derive the stationary joint distribution of on-hand inventories in the retailer system by conducting a comparison analysis of a greedy iterative search algorithm with the simulation. In addition, we present some managerial insights such as : (1) The upper bound of order fill rate can be calculated by the one-item pure system, while the lower bound can be provided by the pure system that consists of all items; (2) As the degree of purchase dependence declines while other conditions remain same, it is observed that the difference between the lower and upper bounds reduces, the order fill rate increases, and the order fill rate gets closer to the upper bound.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.12
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• pp.226-231
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• 2016

Binomial trees are used to price barrier options. Since barrier options are path dependent, option values of each node are calculated from binomial trees using backward induction. We use generalized Catalan numbers to determine the number of cases not reaching a barrier. We will generalize Catalan numbers by imposing upper and lower bounds. Reaching a barrier in binomial trees is determined by the difference between the number of up states and down states. If we count the cases that the differences between the up states and down states remain in a specific range, the probability of not reaching a barrier is obtained at a final node of the tree. With probabilities and option values at the final nodes of the tree, option prices are computable by discounting the expected option value at expiry. Without calculating option values in the middle nodes of binomial trees, option prices are computable only with final option values. We can obtain a probability distribution of exercising an option at expiry. Generalized Catalan numbers are expected to be applicable in many other areas.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.14 no.1
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• pp.179-187
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• 2014

The underlay protocol is a cognitive radio method in which secondary or cognitive users use the same frequency without affecting the quality of service (QoS) for the primary users. In addition, because of the broadcast characteristics of the wireless environment, some nodes, which are called eavesdropper nodes, want to illegally receive information that is intended for other communication links. Hence, Physical Layer Security is applied considering the achievable secrecy rate (ASR) to prevent this from happening. In this paper, a performance analysis of the amplify-and-forward scheme under an interference constraint and Physical Layer Security is investigated in the cooperative communication mode. In this model, the relays use an amplify-and- forward method to help transmit signals from a source to a destination. The best relay is chosen using an opportunistic relay selection method, which is based on the end-to-end ASR. The system performance is evaluated in terms of the outage probability of the ASR. The lower and upper bounds of this probability, based on the global statistical channel state information (CSI), are derived in closed form. Our simulation results show that the system performance improves when the distances from the relays to the eavesdropper are larger than the distances from the relays to the destination, and the cognitive network is far enough from the primary user.

• Journal of Korea Water Resources Association
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• v.42 no.6
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• pp.457-464
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• 2009

This paper proposes methodologies for analyzing the accuracy of the proportional hazards model in predicting consecutive break times of water mains and estimating the time interval for economical water main replacement. By using the survival functions that are based on the proportional hazards models a criterion for the prediction of the consecutive pipe breaks is determined so that the prediction errors are minimized. The criterion to predict pipe break times are determined as the survival probability of 0.70 and only the models for the third through the seventh break are analyzed to be reliable for predicting break times for the case study pipes. Subsequently, the criterion and the estimated lower and upper bound survival functions of consecutive breaks are used in predicting the lower and upper bounds of the 95% confidence interval of future break times of an example water main. Two General Pipe Break Prediction Models(GPBMs) are estimated for an example pipe using the two series of recorded and predicted lower and upper bound break times. The threshold break rate is coupled with the two GPBMs and solved for time to obtain the economical replacement time interval.