• Title/Summary/Keyword: Total Capital Cost

Search Result 142, Processing Time 0.025 seconds

Debt Issuance and Capacity of Korean Retail Firms (유통 상장기업들의 부채변화에 관한 연구)

  • Lee, Jeong-Hwan;Son, Sam-Ho
    • Journal of Distribution Science
    • /
    • v.13 no.9
    • /
    • pp.47-57
    • /
    • 2015
  • Purpose - The aim of this paper is to investigate the explanatory power of the Pecking-order theory (the cost of financing increases with asymmetric information) among Korean retail firms from the perspective of debt capacity. According to the Pecking-order theory, a firm's first preference is to use internal funds for its capital needs, its next preference is the issuance of debt, and its last preference is the issuance of equity; this is due to the information asymmetry problem between existing shareholders and investors. However, prior empirical studies, such as Lemmon and Zender (2010), argue that the entire sample test for the Pecking-order theory could be misleading due to the different levels of debt issuance capability of each of the individual firms; in fact, they confirm that the explanatory power of the Pecking-order theory improves after taking into account the differences in debt capacity of the U.S. firms they examined. This paper implements a case study approach among Korean retail firms to examine the relationship between debt capacity and the explanatory power of the Pecking-order theory in Korea. Research design, data, and methodology - This study uses the sample of public retail firms on the Korea Composite Stock Price Index (KOSPI) from the time period of 1990 to 2013. We gather related financial and accounting statements from the financial information firm WISEfn. Credit rating information is provided by the Korea Investor Service. We employ the models of Lemmon and Zender (2010) and Son and Kim (2013) to measure a firm's debt capacity. Their logit models use the rating dummy variable as a dependent variable and incorporate other firm characteristics as independent variables to estimate debt capacity. To test the Pecking-order theory, we adopt variants of the financing deficit model of Shyam-Sunder and Myers (1999). In the test of the Pecking-order theory, we consider all of the changes in total debt obligations, current debt obligations, and long-term debt obligations. Results - Our main contribution to the literature is our confirmation of the predicted relationship between debt capacity and the explanatory power of the Pecking-order theory among Korean retail firms. The coefficients on financing deficits become greater as a firm's debt capacity improves. This is consistent with the results of Lemmon and Zender (2010). The coefficients on the square of the financing deficits are also negative for the firms in the largest debt capacity group, which is also consistent with the predictions in prior literature. Conclusions - This study takes a case study approach by examining Korean retail firms. We confirm that the Pecking-order theory explains the capital structure of retail firms more appropriately, after taking into account the debt capacity of each firm. This result suggests the importance of debt capacity consideration in the testing of the Pecking-order theory. Our result also implies that there has been a potential underestimation of the explanatory power of the Pecking-order theory in existing studies.

Practical Evaluation of Intellectual Capital (IC) Measurement Tool for Contract Foodservice Management Company (위탁급식전문업체 지적자본 측정도구의 운용시험 평가)

  • Park, Moon-Kyunkg;Yang, Il-Sun
    • Journal of Nutrition and Health
    • /
    • v.38 no.10
    • /
    • pp.880-894
    • /
    • 2005
  • The purposes of this study were to a) measure the IC identified of CFMC (contract foodservice management company) ,b) examine IC circumstance of CFMC, c) evaluate practically IC measurement tool of CFMC, and d) present information for selecting an adequate CFMC to clients. The questionnaires of IC measurement were handed out to 108 CFMCs, there composing of main office employees, foodservice managers, customers, and clients of 207 school,38 hospital, and 86 husiness/industry foodservices. The statistical data analysis was completed using SPSS Win (ver 12.0) for descriptive analysis, t-test, Mann-Whitney U test. First, CFMCs had operational experience for an average of 8 years and 8 months, and served an average of 38,540 meals a day. Most of the respondent companies specialized in the school foodservice field and managed an average of 66 clients for the contract period of 2 years and 3 months. Second, the respondent companies had gotten a score of 77.78 points for the total average, 77.7 points in the large enterprise group and 78.1 points in the small and medium-sized enterprise group. Therefore, the minimum number of points for the accrediting license on Qualification is suggested to be over 70 out of a 100 point scale; this study would be serve as reference for the certification license on qualification. On the level of evaluation category, the scores were 14.15 to 20 points on $\ulcorner$finance$\urcorner$, 19.24 to 25 points on $\ulcorner$customer$\urcorner$, 19.33 to 25 points on $\ulcorner$process$\urcorner$, 14.31 to 20 points on $\ulcorner$human resource$\urcorner$, and 8.6 to 10 point on $\ulcorner$renewal and development$\urcorner$ . $\ulcorner$Renewal and development$\urcorner$ and $\ulcorner$customer focus$\urcorner$ received better grades than other evaluation categories. Third, $\ulcorner$Finance$\urcorner$ indicated similar distribution overall. Small and medium-sized companies had lower grades than large companies on 'market ability' of $\ulcorner$customer$\urcorner$ , but, clients of small and medium-sized companies had higher grade for 'client satisfaction' than large companies. Most of the companies supported 'infrastructure support for foodservice operation' of $\ulcorner$process$\urcorner$ by the main office of CFMCs, but, the branch chain offices of CFMCs were not applied efficiently. Large companies made more effort to improve the 'employee ability' of $\ulcorner$human focus$\urcorner$ than small and medium-sized CFMC. The 'research and development cost' of $\ulcorner$renewal and development$\urcorner$ was increased compared to the previous year. In conclusion, if CFMCs were to perform self-evaluation and a routine checkups by utilizing CFMC's IC measuring tool, improvements in CFMC operational capacities as well as foodservice quality can be noted. (Korean J Nutrition 38(10)'880$\sim$894,2005)

Optimal Design of Nonsequential Batch-Storage Network (비순차 회분식 공정-저장조 망구조 최적 설계)

  • 이경범;이의수
    • Journal of Institute of Control, Robotics and Systems
    • /
    • v.9 no.5
    • /
    • pp.407-412
    • /
    • 2003
  • An effective methodology is .reported for determining the optimal capacity (lot-size) of batch processing and storage networks which include material recycle or reprocessing streams. We assume that any given storage unit can store one material type which can be purchased from suppliers, be internally produced, internally consumed and/or sold to customers. We further assume that a storage unit is connected to all processing stages that use or produce 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. The objective for optimization is to minimize the total cost composed of raw material procurement, 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 hold-up. The expressions for the Kuhn-Tucker conditions of the optimization problem can be reduced to two subproblems. The first yields analytical solutions for determining batch sizes while the second is a separable concave minimization network flow subproblem whose solution yields the average material flow rates through the networks. For the special case in which the number of storage is equal to the number of process stages and raw materials storage units, a complete analytical solution for average flow rates can be derived. The analytical solution for the multistage, strictly sequential batch-storage network case can also be obtained via this approach. The principal contribution of this study is thus the generalization and the extension to non-sequential networks with recycle streams. An illustrative example is presented to demonstrate the results obtainable using this approach.

OPTIMAL DESIGN OF BATCH-STORAGE NETWORK APPLICABLE TO SUPPLY CHAIN

  • Yi, Gyeong-beom;Lee, Euy-Soo;Lee, In-Beom
    • 제어로봇시스템학회:학술대회논문집
    • /
    • 2004.08a
    • /
    • pp.1859-1864
    • /
    • 2004
  • An effective methodology is reported for the optimal design of multisite batch production/transportation and storage networks under uncertain demand forecasting. We assume that any given storage unit can store one material type which can be purchased from suppliers, internally produced, internally consumed, transported to or from other plant 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 plant 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 sizes 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 large-scale supply chain system.

  • PDF

Burden of Cancers Related to Smoking among the Indonesian Population: Premature Mortality Costs and Years of Potential Life Lost

  • Kristina, Susi Ari;Endarti, Dwi;Prabandari, Yayi Suryo;Ahsan, Abdillah;Thavorncharoensap, Montarat
    • Asian Pacific Journal of Cancer Prevention
    • /
    • v.16 no.16
    • /
    • pp.6903-6908
    • /
    • 2015
  • Background: As smoking is the leading preventable cause of multiple diseases and premature cancer deaths, estimating the burden of cancer attributable to smoking has become the standard in documenting the adverse impact of smoking. In Indonesia, there is a dearth of studies assessing the economic costs of cancers related to smoking. This study aimed to estimate indirect mortality costs of premature cancer deaths and years of potential life lost (YPLL) attributable to smoking among the Indonesian population. Materials and Methods: A prevalence based method was employed. Using national data, we estimated smoking-attributable cancer mortality in 2013. Premature mortality costs and YPLL were estimated by calculating number of cancer deaths, life expectancy, annual income, and workforce participation rate. A human capital approach was used to calculate the present value of lifetime earnings (PVLE). A discount rate of 3% was applied. Results: The study estimated that smoking attributable cancer mortality was 74,440 (30.6% of total cancer deaths), comprised of 95% deaths in men and 5% in women. Cancers attributed to smoking wereresponsible for 1,207,845 YPLL. Cancer mortality costs caused by smoking accounted for USD 1,309 million in 2013. Among all cancers, lung cancer is the leading cause of death and economic burden. Conclusions: Cancers related to smoking pose an enormous economic burden in Indonesia. Therefore, tobacco control efforts need to be prioritized in order to prevent more losses to the nation. The data of this study are important for advocating national tobacco control policy.

Research trends in outdoor pig production - A review

  • Park, Hyun-Suk;Min, Byungrok;Oh, Sang-Hyon
    • Asian-Australasian Journal of Animal Sciences
    • /
    • v.30 no.9
    • /
    • pp.1207-1214
    • /
    • 2017
  • Since the industrialization of swine production in the late 1900s, swine farms in the United States, as well as in Europe, have largely become consolidated. Pig farms became larger in size but fewer in number, with 91% of market pigs being produced by large operations with 5,000 or more pigs on-site in the US, and only 3% of the total utilized agricultural land representing organic farming. Such change in the market made it difficult for small farmers to stay competitive, forcing them to find alternative ways to reduce the cost of production and increase profit using the outdoor production system. In contrast to the indoor confinement system, outdoor production system uses pasture-based units and/or deep-bedded hoop structures that promote animal welfare and environmental sustainability with a lower capital investment. In accord with the growing concern for animal and environmental welfare and food safety by the consumers, small farmers practicing an outdoor production system are seeing increased opportunities for marketing their products in the pork niche market. Unlike the general belief that the reproductive and growth performance measures of the outdoor sows and piglets are poorer in comparison with the animals reared indoors, studies showed that there was no significant difference in the performance measures, and some traits were even better in outdoor animals. Improved reproductive and production traits can increase the sustainability of outdoor farming. Present study reviewed the recent studies comparing the performance measures, meat quality and health of indoor and outdoor animals, as well as the efforts to improve the outdoor production system through changes in management such as hut types and breed of animals.

Ganoderma lucidum균 전처리를 이용한 볏짚의 상압.소다펄프화

  • 주용찬;강진하
    • Journal of Korea Technical Association of The Pulp and Paper Industry
    • /
    • v.34 no.4
    • /
    • pp.51-60
    • /
    • 2002
  • This study was carried out to develop the biochemical pulping method to enhance energy saving and decrease the capital cost through the soda pulping under atmospheric pressure (100%). Nonwood substrates, rice straw, were pretreated by white-rot fungi, Ganoderma Iucidum. It has acquired several basic data that can be applied in bio-soda pulping. The results of this study were as follow. Without any nutrients or with glucose, N and glucose+N the weight losses of rice straws inoculated by Canoderma Iucidum were 8.5~29.8%, 9.3~32% 11.8~30.1% and 11.8~24.4% respectively for 5, 10, 15, 20, 25 and 30 days incubation. The more extending incubation periods, the more increasing weight losses. The yield of untreated rice saw was 54.8% after pulping. When any nutrients was not added or glucose, N and glucose+N were added for the pretreatment, the total yields were ranged 50.6~38.5%, 48.6~34.4%, 47.2~38.4% and 49.5~42.6% respectively for 5, 10, 15, 20, 25 and 30 days incubation. The yields were gradually decreased based on extending of incubation. The physical properties of rice straw soda pulps without fungal treatment, the density, breaking length, burst index, tear index and folding endurance were 0.24 g/$\textrm{cm}^3$, 2.32 km, 0.91 kPa $m^2$/g, 56.7 mN.$m^2$/g and 35 times, respectively. After pretreatment without any nutrients or with glucose, N and glucose+N as nutrients the density was 0.27~0.30 g/$\textrm{cm}^3$, the breaking length 3.14~5.25 km, burst index 1.42~2.78 kPa.$\textrm{m}^2$/g, tear index45.8~64.5 mN.$\textrm{m}^2$/g and folding endurance 47~288 times at all incubating periods when pulping was done. The physical properties were increased with the increasing incubation periods. However, when glucose+N was added, the physical properties were shown superior results each incubating duration.

Optimal Design Of Multisite Batch-Storage Network under Scenario Based Demand Uncertainty (다수의 공장을 포함하는 불확실한 수요예측하의 회분식 공정-저장조 망의 최적설계)

  • 이경범;이의수;이인범
    • Journal of Institute of Control, Robotics and Systems
    • /
    • v.10 no.6
    • /
    • pp.537-544
    • /
    • 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.

A Study on Socio-economic Investment Effects of Ginger Storage in Artificial Caves (In the Case of Seochun Districts in Chungnam Province) (토굴을 이용한 생강저장의 사회 경제적 투자효과 분석 - 서산지역을 중심으로 -)

  • Lee, Mu Won;Lim, Jae Hwan
    • Korean Journal of Agricultural Science
    • /
    • v.25 no.2
    • /
    • pp.310-320
    • /
    • 1998
  • This study is aimed at identifying the socio-economic effects of storage of ginger in artificial caves. The gingers stored in artificial caves in Seochun, 12 sampled areas, were surveyed to get information on the socio-economic effects. The surveyed data were processed by TSP, Qbasic and B/C Ratio computer programs and analyzed the decision making criteria such as B/C ratio, NPV and IRR. The socio-economic effects of the storages of the gingers are as follows. 1. The storage benefits per ton was showed as 184,050won. 2. Considering 10% of the opportunity cost of capital, the uper limits of investments for the cave storages was analyzed as 6,784 thousand won for ginger. 3. The investment of the natural cave storages was revealed economically feasible considering the decision making criteria as B/C ratio = 1.33, NPV = 35.059 thousand won and IRR = more than 100%. The other socio-economic effects of the ginger storages was expected as ; 1. The cave storages will contribute to increase consumer's and producer's welfare through the control of supply and demand and price stability. 2. Long-term storage of ginger without damaging quality and grades will be made on account of the storage conditions as relatively low temperature, high humidity and indifferent affects from the outside climate. 3. Utilization of the underground space, the caves, for storage will maximize the land use and the sustainable environment considering the mountainous area, two third of the total national land area. 4. Construction costs of the underground storage facilities as caves are cheaper than the ground storage facilities by 15 to 20% in general. In conclusion, the underground space like natural and artificial caves are considered the most suitable for storage of ginger on account of the storage conditions as temperature, humidity and blocking the sun light. Accordingly a study on convenient utilization of new development of artificial caves should be made considering transportation and input-output of the farms. Financial support of the government should be institutionally rearranged for the successful implementation of storing farm products like ginger in natural and man-made caves.

  • PDF

Optimal Design of Process-Inventory Network under Cycle Time and Batch Quantity Uncertainties (이중 불확실성하의 공정-저장조 망구조 최적설계)

  • Suh, Kuen-Hack;Yi, Gyeong-Beom
    • Journal of Institute of Control, Robotics and Systems
    • /
    • v.16 no.3
    • /
    • pp.305-312
    • /
    • 2010
  • The aim of this study is to find an analytic solution to the problem of determining the optimal capacity of a batch-storage network to meet demand for finished products in a system undergoing joint random variations of operating time and batch material loss. The superstructure of the plant considered here consists of a network of serially and/or parallel interlinked batch processes and storage units. The production processes transform a set of feedstock materials into another set of products with constant conversion factors. The final product demand flow is susceptible to joint random variations in the cycle time and batch size. The production processes have also joint random variations in cycle time and product quantity. The spoiled materials are treated through regeneration or waste disposal processes. The objective function of the optimization is minimizing the total cost, which is composed of setup and inventory holding costs as well as the capital costs of constructing processes and storage units. A novel production and inventory analysis the PSW (Periodic Square Wave) model, provides a judicious graphical method to find the upper and lower bounds of random flows. The advantage of this model is that it provides a set of simple analytic solutions while also maintaining a realistic description of the random material flows between processes and storage units; as a consequence of these analytic solutions, the computation burden is significantly reduced. The proposed method has the potential to rapidly provide very useful data on which to base investment decisions during the early plant design stage. It should be of particular use when these decisions must be made in a highly uncertain business environment.