• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.10 no.16
• /
• pp.143-147
• /
• 1987

Safety stocks constitute one of the major means of dealing with the uncertainties associated with variation in demand and lead time. Adeguate safety facilitate production activities and help to assure customers if good service on the other hand, carrying safety storks ties up working capital on goods that sit idle. The major problem of safety stocks management thus of consists of trying to achieve an optimal balance between the other carrying cost and the costs of stock shortage. Therefore, this study aims to find safety stock level of the fixed reorder quantity system and the fixed reorder cycle system of minimizing total cost when both demand and lead time are variable. (The distribution of demand and lead time is a mere assumption that follows the normal distribution) The results can be summarized as follows. i) Safety factor on the safety stock is determined by carrying cost and the costs of stock shortage: An optimal safety stick=the costs of stork shortage($C_s$) (the carrying cost($C_h$)+the costs of stock storage($C_s$). ii) The safety stock level of the fixed reorder quantity system is ($a{\;}_p\sqrt{L}{\sigma}$) under uncertainties. iii) The safety stock level of the fixed reorder cycle system is ($a{\;}_p\sqrt{R+L{\sigma}}$) under uncertain demand and constant lead time. ($a{\;}_p\sqrt{L{\sigma}_d{\;^2+{\mu}^2L{\sigma}^2}$) under demand and lead time uncertainties.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2002.03a
• /
• pp.21-30
• /
• 2002

Busan Port which is the representative social overhead capital facilities for international trade of goods has been the driving force for economic development in Korea. Therefore, the central government should play the major role in building a rear road to Busan Port in order that it may function as a mojor port of Northeastern Asia through the systemization of mutual assistance among connected facilities, completely equipped with port-related facilities befitting to the principal port of imports and exports. In this study, the validity of container tax is being examined, analyzing container tax which Is considered as an obstacle to the development of Busan Port and its purpose, and grasping the present conditions by the realistic speculation on container tax issues and its abolition. First, the port rear road as a social overhead capital facilities, which connects port and expressway, should be considered as part of port, and port is social overhead capital invested by government. Second, the susan City imposes on container tax. As a result, a shipper and a shipping company are paying a double charge by paying container tax with port dues. Third, someone argues that port rear road is constructed as container truck generates much traffic, but it is unreasonable to conclude that container truck is seed of traffic jam because according to traffic survey of Busan City, container truck occupies only 1.45% of total traffic Forth, it has bad influence upon the competitiveness of Busan Port as Northeastern logistics base, as other ports who are competing with Busan Port like Singapore. Hong kong, Kobe make their competitiveness strong by decreasing the cost of pore dues

• Journal of Environmental Science International
• /
• v.9 no.3
• /
• pp.261-266
• /
• 2000

A kinetic study for nitrate removal by anion exchange resin was performed using continuous column reactors. Kinetic approach from the packed bed showed the reaction rate constant k$_1$ was 0.07~0.17 $\ell$/mgㆍhr and maximum exchange quantity q$_{o}$ was 27.75~31.81 mg/g. The results from the continuous column well agreed with that from the batch reactor. An economic analysis of the water treatment plant by anion exchange resin with a regenerating system was performed to design plant and process. Based on the treatment of 20 mg/$\ell$ nitrate-contained wastewater of 10,000 gallons per day to 2 mg/$\ell$, total capital cost and total annual cost are estimated to be 836 million wons and 211 million wons, respectively.y.

• Environmental and Resource Economics Review
• /
• v.12 no.1
• /
• pp.1-27
• /
• 2003

Urban forests have various environmental benefits, contributing to the quality of urban life. However, these values have been underestimated or never been reflected in the urban development planning in Korea. As a result, a number of forests in urban areas were either partly or wholly destroyed without their public's values being assessed explicitly. The objective of this paper is to estimate the economic benefits attached to Mt. Kwanggyo in the Capital Region using contingent valuation method, aiming to provide policy-makers with useful information to make an informed public decision in urban development planning. The survey was carefully designed and implemented to meet a number of recommendation rules suggested in the literature. The overall results show that the respondents well accepted the contingent market and would be willing to pay a significant amount for the proposed program of conserving the mountain. Total economic benefits for the population amounted to approximately 3.8 billion Korean won per year. This quantitative information can be used in cost-benefit analysis of urban development plans.

• Nuclear Engineering and Technology
• /
• v.9 no.3
• /
• pp.139-149
• /
• 1977

An attempt is made to establish an optimum fuel cycle strategy for the Go-ri nuclear power plant units 1 and 2. The total capital required for the fuel cycle operation is selected as a figure of merit for economic comparison of several alternative fuel cycle schemes available for the plant, and evaluated using a probabilistic method coupled with a sampling procedure of the fluctuating fuel cost data. The results are presented in the form of probability histograms. On the basis of the most likely values of the capital requirement obtained from the histograms, a conclusion is drawn that reprocessing cycle with either uranium only or both uranium and plutonium recycled is the most economic choice for the Go-ri plant.

• Journal of Distribution Science
• /
• v.14 no.6
• /
• pp.39-44
• /
• 2016

Purpose - This paper aims to study the competition that occurs in the Islamic Banking industry and to analyze the variables that affect the total revenue of Islamic Banking in Indonesia. Research Design, Data and Methodology - This study observed 10Islamic banks for the period 2010-2013. The annual data are taken from Direktori Perbankan Indonesia, published by Bank Indonesia, and annual report of the observed banks. In analyzing data, Panzar Rosse Approach was applied to analyze the type of Islamic Bank Market and Panel Regression Model for the estimated co-efficients has been used in the Panzar Rosse Approach. Results - Estimation model shows that all the banking cost elements such as the price of capital, unit price of labor, and unit prices of funds have significant positive correlation to Revenue as a dependent variable. The estimated value of H-statistic for the period 2010-2013 is 0.69. It can be interpreted that Islamic banking market in Indonesia shows monopolistic competition. Price of capital and funds has statistically significant effect on Bank's Revenue. Conclusions - The study revealed that the Islamic banking market competition in Indonesia is monopolistic and the major contribution to the H-statistic comes from mainly price of funds.

• Korean Journal of Agricultural Science
• /
• v.23 no.1
• /
• pp.159-176
• /
• 1996

This study is aimed at reviewing the methods of joint cost allocation and allocating the joint cost of estuary dam with specially repect to Kumgang Large-scale Agricultural Comprehensive Development Project. Apart from the water resource development project propelled by Water Resource Development Corporation in connection with Law of Multipurpose Dam Development, the Largescale Comprehensive Agricultural Development Projects couldn't ins-titutionally be carried out cost allocation of common facilities, even though it were concerned with irrigation, municipal and industrical water supply, flood control, sightseeing and industrial zone development components. To decrease farmer's burden of the project costs and, operation and maintenance costs, the joint costs of common facilities like estuary dam included in agricultural development projects have to be allocated by suitable method as alternative cost-remaining benefit method and the analytical activity should be supported by revising the concerned laws as Rural Development and Promotion and, Rural Rearrangement conpatible with the law for multipurpose dam development. Kumgang Agricultural Comprehensive Development Project was selected as a case study for the estimation of socio-economic benefits by project components and joint cost allocation of the estuary dam. The main results of the study are as follows; Joint cost allocation and unit charges by components 1. The project area will be 25,554ha with total project cost of 624,860 million won including the estuary dam cost of 120,843 million won. The project costs were ex-pressed by 1994 constant price. 2. Total quantity of water was estimated 365 million tons which were consisted of 245 million tons for irrigation, 73 million tons for municipal water and 47 million tons for industrial water. 3. The rates of joint cost allocation were amounted to 34.2% for agriculture, 2.5% for sightseeing, 45.7% for transportation, 11.8% for M & I water supply and 5.8% for flood control respectively. 4. The unit financial charges by project components were estimated at 7.88 won per ton for irrigation, 16.11won for M & I water, 1,686won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The financial charges using straitline method for depreciation were estimated at 7.88won per ton for irrigation, 9.12won per ton for M & I water, 624won per vehicle one pass for transportation and 331won per Pyeong for sightseeing area. 5. The unit economic charges by project components were estimated at 21.1 won per ton for irrigation, 15.2won for M & I water, 977won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The economic charges using straitline method for depreciation were estimated at 11.72won per ton for irrigation, 8.61won per ton for M & I water, 331won per vehicle one pass for transportation. Policy recommendation 1. The unit operation and maintenance costs for irrigation water in the paddy field couldn't be imposed as the water resource cost untreated. 2. The dam costs including investment cost and O & M cost, as a joint cost, had to be allocated by each benefited components as transportation, M & I water supply, flood control, irrigation and drainage, and sightseeing. But the agricultural comprehensive project have been dealt as an irrigation project without any appraisal socio-economic benefits and any allocating the joint cost of estuary dam. 3. All the associated project benefits and costs must be evaluated based on accounting principle and rent recovery rate of the project costs and O & M costs should be regulated by the laws concerned. 4. The rural development and promotion law and rural rearrangement law have to be revised comprising joint cost allocation considering free rider problems. 5. The government subsidy for the agricultural base development project has to be covered all the project costs. In case of common facilities representing joint cost allocation problems, all the allocated casts for other purposes like transportation and M & I water supply etc. should be recovered for formation in investment fund for agricultural base development and to procure O & M costs for irrigation facilities.

• Korean Chemical Engineering Research
• /
• v.47 no.6
• /
• pp.781-787
• /
• 2009

This report investigates the economic proprieties of commercial 50,000 barrel per day direct/indirect coal liquefaction(DCL/ICL) plants to produce commercial-grade diesel and naphtha liquids. The scope of the study includes capital and operating cost estimates, sensitivity analyses and a comparative financial analyses. Based on plant capacity of 50,000BPD, employing Illinois #6 bituminous coal as feed coal, the total capital cost appeared $3,994,858,000(DCL) and $4,962,263,000(ICL). Also, the internal rate of return of DCL/ICL appeared 13.27% and 12.68% on the base condition respectively. In this case, coal price and sale price of products were the most influence factors. And ICL's payback period(6.8 years) was longer than DCL's(6.6 years). According to sensitivity analyses, the important factors on both DCL/ICL processes were product sale price, feed coal price and the capital cost in order.

• Korean Chemical Engineering Research
• /
• v.54 no.3
• /
• pp.320-331
• /
• 2016

Linze-Donawitz gas (LDG) adjunctively produced in the steel mill contains over 60% of CO. Two processes that recover high purity CO from LDG were considered: COSORB and CO-Pressure swing adsorption (PSA). This study aimed to decide which one is more economically feasible than the other by techno-economic analysis (TEA). From the technical point of view of TEA, the process flow diagram (PFD) was constructed, the mass and energy balances were calculated, and the equipment type and size were determined in order to estimate the total capital investment (TCI) and the total production cost (TPC). From the economic point of view of TEA, economic performance such as return on investment (ROI) and payback period (PBP) was evaluated, and the sensitivity analysis was carried out to identify key factors influencing ROI and PBP. It was found that CO-PSA is more economically feasible due to higher ROI and lower PBP. The CO price highly influenced ROI and PBP.

• Journal of Korea Technology Innovation Society
• /
• v.10 no.1
• /
• pp.47-72
• /
• 2007

Ideas do not become exhausted, and there are no diminishing returns in the creation of knowledge. Nonetheless, growth ultimately ceases in this simplest model of endogeneous innovation. The reasons are similar to those that are discussed in the context of the neoclassical model of capital accumulation. Even if the resource cost of creating new goods does not rise, the economic return to invention may decline as the number of available products increases. When the rate of return to R&D falls to the level of the discount rate, private agents cease to be willing to defer consumption in order to invest in product development. But, if we treat knowledge capital as a public capital considering of its non-appropriable benefits, economic growth can be sustained in the economy. Romer(1986) has pointed out that growth might be sustainable if the accumulation of knowledge is not subject to long-run diminishing returns. Actually Romer assumed diminishing returns in the production of private knowledge from available resources, but increasing returns in the production of output from labor and total (public and private) knowledge. His condition for the sustainability of long-run growth amounts to an assumption that the diminishing returns in the former activity do not outweigh the increasing returns in the latter. The Johansen(1988) cointegration test method is used for finding long-run equilibrium relationship between R&D input and the product innovation. Test results indicate the existence of cointegrating equation between each pair of regression variables including dependent variable in the knowledge production function. And, the signs of cointegrating vectors are well accord to the prediction of sustainable growth. In the empirical analysis, from all cases of the form for the knowledge production function, we could not reject the null hypothesis that R&D spillover effect is significant($H_{0}:\;{\gamma}=1$). In summary, we showed that considering goodness of fit of regression model, we can see that the empirical evidence is strongly in favor of the character of knowledge as the public knowledge capital. So, we can expect that by product innovation, economic growth can be sustained in the Korean economy.