• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.2
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• pp.158-170
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• 2009

This paper considers how the optimal export level is influenced by export risk, the degree of risk-averseness for exporting firms, and those firms' cost structure. In addition, export insurance is incorporated into some simple theoretical model to analyze the optimal export level. This paper applies genetic algorithm simulation to show that the exporting firms'risk-averseness do not affect the optimal export decision while export risk and cost function characteristic have relatively more significant effects on the optimal export level. Finally, our findings suggest that the most influential factor for the optimal export levels seems to be the monopoly power of exporting firms.

• The Journal of Information Systems
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• v.30 no.3
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• pp.65-91
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• 2021

Purpose In this study, we investigated the impact of perceived risk and switching costs on switching intention to cloud service based on PPM (Pull-Push-Mooring) model. Design/methodology/approach We focused on revealing the switching factors of the switching intention to the cloud services. The switching factors to the cloud services were defined as perceived risk consisting of performance risk, economic risk, and security risk, and switching costs consisting of financial and learning costs. On the PPM model, we defined the pull factors consisting of perceived usefulness and perceived ease of use, and the push factor as satisfaction of the legacy system, and the mooring factor as policy supports. Findings The results of this study as follows; (1) Among the perceived risk factors, performance risk has a negative effect on the ease of use of pull factors, and finally it was found to affect the switching intention to the cloud services. Therefore, cloud service providers need to improve trust in cloud services, service timeliness, and linkage to the legacy systems. And it was found that economic risk and security risk among the perceived risk factors did not affect the switching intention to the cloud services. (2) Of the perceived risk factors, financial cost and learning cost did not affect the satisfaction of the legacy system, which is a push factor. It indicates that the respondents are positively considering switching to cloud service in the future, despite the fact that the respondents are satisfied with the use of the legacy system and are aware of the switching cost to cloud service. (3) Policy support was found to improve the switching intention to cloud services by alleviating the financial and learning costs required for cloud service switching.

• Journal of Korean Institute of Industrial Engineers
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• v.42 no.1
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• pp.38-49
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• 2016

This paper proposes a mathematical model-based solution for sourcing decisions with an objective of minimizing the manufacturer's total cost in the two-echelon supply chain with supply capacity risk. The risk impact is represented by uniform, beta, and triangular distributions. For the mathematical model, the probability vector of normal, risk, and recovery statuses are developed by using the status transition probability matrix and the equations for estimating the supply capacity under risk and recovery statuses are derived for each of the three probability distributions. Those formulas derived are validated using the sampling method. The results of the simulation study on the test problem show that the sourcing decisions using the proposed solution reduce the total cost by 1.6~3.7%, compared with the ones without a consideration of supply capacity risk. The total cost reduction increases approximately in a linear fashion as the probability of risk occurrence or reduction rate of supply capacity due to risk events is increased.

• Journal of Preventive Medicine and Public Health
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• v.36 no.3
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• pp.230-238
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• 2003

Objectives : To estimate the value of statistical life (VSL) and health damage cost on theoretical mortality estimates due to environmental pollution. Methods : We assessed the health risk on three environmental problems and eight sub-problems. Willingness to pay (WTP) was elucidated from a questionnaire survey with dichotomous contingent valuation method and VSL (which is the division of WTP by the change of risk reduction) calculated from WTP. Damage costs were estimated by multiplying VSL by the theoretical mortality estimates. Results : VSLs from death caused by air pollution, indoor air pollution and drinking water contamination were about 0.3, 0.5 and 0.3 billion won, respectively. Damage costs of particulate matters ($PM_{10}$) and radon were higher in the sub-problems and were above 100 billion won. Because damage cost depends on theoretical mortality estimate and WTP, its uncertainty is reduced in the estimating process. Conclusion : Health damage cost or risk benefit should be considered as one scientific criterion for decision making in environmental policy.

• Nuclear Engineering and Technology
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• v.29 no.1
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• pp.78-84
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• 1997

The specific purpose of this study is to develop the numerical guide for the cost-benefit analysis of ORE ($/person-Sv reduction) to meet the criterion of ALARA in the design stage of the KNGR. In deriving the guide, the risk factor which is defined by the risk to unit collective radiation exposure dose (deaths/person-Sv) and the monetary value of human life ($/death) are required. The risk factor has been estimated from various clinical data accumulated for a number of years and continuously modified. And the monetary value of human life is usually quantified using the human capital approach. In this study, the risk to radiation exposure perceived by a group of people is investigated through an extensive poll survey conducted among university students in order to modify the existing risk factor for radiation exposure. And in evaluating the monetary value of human life, the QOL factor is introduced in order to incorporate the degree of public welfare or quality of life. As a result of study, a value within the range of 151, 000~172, 000 dollars per person-Sv reduction is recommended as the appropriate interim numerical guide for cost-benefit analysis of ORE to meet the criterion of ALARA in the design stage of the KNGR. A poll survey was also conducted in order to see whether the public acceptance cost of nuclear power should be incorporated in developing the guide, and the result of study shooed that such a cost does not need to be considered.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2004.05a
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• pp.113-117
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• 2004

We need the contingency cost in order to deal with the uncertainty to be accompanied inevitably at the construction and an every kind risk not to forecast in advance. And also the contingency colt needed for the change order and we need it for reduction of the delay and reduce the trouble between owner and constructor. This study, through checking and analyzing the risk factor, in the step of domestic construction, suggests optimal management reserve to specific business about the contract type and the scale. The main results of this research are summarized as follow. First, I investigated the recognition about the contingency cost, grasped the risk to be happened at the construction step and found out the frequency occurrence, through making up question to engineer are carrying out their job in the domestic construction. Second, I computed optimal contingency cost rate by the statistics investigation, and proposed an improvement plan and problem when compute a contingency cost.

• Journal of Korean Institute of Industrial Engineers
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• v.21 no.3
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• pp.299-311
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• 1995

Conventional discounted cash flow techniques fail to capture the risk associated with investments. This paper proposes an annual cash flow model that considers risk, cost structure and inventory liquidation in the evaluation of investment alternatives. The risk differential of investments is included using the capital asset pricing model while the stochastic version of the cost-volume-profit approach is used to consider inventory liquidation and cost structure. Tradeoffs between fixed and variable costs have been investigated, and portrayed using iso-cash flow curves. The proposed cash flow model has been developed, in particular, to enable an accurate evaluation of advanced manufacturing systems.

• Communications for Statistical Applications and Methods
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• v.25 no.1
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• pp.91-97
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• 2018

In this paper, we show that there exists an optimal investment policy for the surplus in a risk model, in which the surplus is continuously invested to other business at a constant rate a > 0, whenever the level of the surplus exceeds a given threshold V > 0. We assign, to the risk model, two costs, the penalty per unit time while the level of the surplus being under V > 0 and the opportunity cost per unit time by keeping a unit amount of the surplus. After calculating the long-run average cost per unit time, we show that there exists an optimal investment rate $a^*$>0 which minimizes the long-run average cost per unit time, when the claim amount follows an exponential distribution.

• Structural Monitoring and Maintenance
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• v.2 no.2
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• pp.133-143
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• 2015

Civil engineering infrastructure is aging and requires cost-effective maintenance strategies to enable infrastructure systems operate reliably and sustainably. This paper presents an approach for determining risk-cost balanced repair strategy of corrosion damaged reinforced concrete structures with consideration of uncertainty in structural resistance deterioration. On the basis of analytical models of cover concrete cracking evolution and bond strength degradation due to reinforcement corrosion, the effect of reinforcement corrosion on residual load carrying capacity of corroded reinforced concrete structures is investigated. A stochastic deterioration model based on gamma process is adopted to evaluate the probability of failure of structural bearing capacity over the lifetime. Optimal repair planning and maintenance strategies during the service life are determined by balancing the cost for maintenance and the risk of structural failure. The method proposed in this study is then demonstrated by numerical investigations for a concrete structure subjected to reinforcement corrosion. The obtained results show that the proposed method can provide a risk cost optimised repair schedule during the service life of corroded concrete structures.

• Asia Pacific Journal of Business Review
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• v.5 no.2
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• pp.1-18
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• 2021

This present study investigatesed the impact of the team innovation-oriented human resource management (HRM) practices on employees' turnover intention among financial, pharmaceuticals, distribution, and manufacturing industries in Korea. Furthermore, we explored whether risk perception of turnover and the cost of changing job would mediate the relationship between team innovation-oriented human resource management practices with employees' turnover intention in different industries in Korea. To that end, PLS structural equation modeling was used to exam the research hypothesis. We have found that team innovation-oriented HRM practices have a significant impact on employees' turnover intention. Moreover, we have discovered risk perception of turnover and the switching cost of changing job playing mediating role in the relationship of team innovation-oriented HRM practices with turnover intention among different type of industries employee. Lastly, the theoretical implications were discussed based on these findings.