• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• IE interfaces
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• v.25 no.1
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• pp.127-133
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• 2012

This paper considers the preventive maintenance scheduling problem of the cluster tool which is one of the most important manufacturing equipments in the next-generation semiconductor production environment. We define a random process that expresses the successive amount of chemicals accumulating inside the tool. Based on the renewal theory, we find the expected value and probability distribution of the time that the amount of accumulated chemicals exceeds a predetermined level. For a given probability that the accumulated chemicals exceeds the predetermined level we present a method to obtain the number of chamber operations to perform the preventive maintenance of that chamber. In addition, a method to get the preventive maintenance schedule for the whole cluster tool is presented. A numerical example is provided to illustrate our method.

• Proceedings of the KSME Conference
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• 2004.11a
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• pp.404-409
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• 2004

The electrical contact resistance is here estimated using the multiscale microcontact distribution of elastic contact between rough surfaces, simulated from the Archard's model, and the electrical contact conduction theory suggested by Greenwood. These analysis confirms that the electrical contact resistance is converged to a values, larger than would be obtained if the contact spots were widely separated and hence independent. In multiscale process, the base potential is close to the value of the potential difference between the contact surface and the extremity of body, suggesting a possibility to obtain the multiscale electrical contact resistance relations.

• Transactions of the Korean Society of Mechanical Engineers
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• v.7 no.2
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• pp.153-160
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• 1983

The flows in an axial flow turbomachine are calculated numerically in the two sets of flow surfaces of H-S and B-B surfaces assuming that the flow is axisymmetric. The calculation is performed by regarding the governing equations as the quasi-Poisson's equations and using the finite element method for the flow regions divided into triangular elements. The results of numerical calculation agree comparatively well with the experimental results and it has been found that the distribution of an axial velocity component at the rotor exit is not necessarily uniform under the influences of the inlet guide vanes and the front shape of the hub even if the rotor is designed by the free-vortex theory. Also it has been found that the existence of the optimum value of the blade number can be estimated from the results of calculation of deviation angles at rotor exit if we consider the viscous flow-loss, and that the flows of B-B surfaces are affected very sensitively by the degree of satisfaction of Kutta condition.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.165-168
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• 2006

Exponential smoothing methods do not adapt well to unexpected changes in underlying process. Over the past few decades a number of adaptive smoothing models have been proposed which allow for the continuous adjustment of the smoothing constant value in order to provide a much earlier detection of unexpected changes. However, most of previous studies presented ad hoc procedure of adaptive forecasting without any theoretical background. In this paper, we propose a detection-adaptation procedure applied to simple and Holt's linear method. We derive level and slope change detection statistics based on Bayesian statistical theory and present distribution of the statistics by simulation method. The proposed procedure is compared with previous adaptive forecasting models using simulated data and economic time series data.

• The Korean Journal of Applied Statistics
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• v.13 no.2
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• pp.477-488
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• 2000

A distance measure between two Latin-hypercube designs is defined and its expected value is computed. It was computed by using mathematical statistics, numerical analysis (multidimensional numerical integration), Monte-carlo method, and the theory of asymptotic normal distribution. For the comparison of two Latin-hypercube designs with same structure but different randomness, the difference of expected values of response function and information mass of experimental designs are considered. These methods may be useful in comparison between two general experimental designs.

• Carbon letters
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• v.3 no.2
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• pp.93-98
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• 2002

Short pitch fibers were prepared from petroleum based isotropic precursor pitch by melt-blown technology. The pitch fibers were stabilized in oxidizing condition, followed by steam activations at various conditions. The fiber surface and pore structures of the activated carbon fibers (ACFs) were respectively characterized by using SEM and applying BET theory from nitrogen adsorption at 77 K. The weight loss of the oxidized fiber was proportional to activation temperature and activation time, independently. The adsorption isotherms of the nitrogen on the ACFs were constructed and analyzed to be as Type I consisting of micropores mainly. The specific surface area of the ACFs proportionally increased with the weight loss at a given activation temperature. The specific surface area was ranged 850~1900 $m^2/g$ with pores of narrow distribution in sizes. The average pore size was ranged 5.8~14.1 ${\AA}$ with the larger value from the more severe activation condition.

• 한국전산유체공학회:학술대회논문집
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• 2008.03b
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• pp.304-307
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• 2008

Two-dimensional Stokes flow due to the line source and line sink of same strength in semi-infinite flow region with free surface is analysed using complex variable theory and conformal mapping. Surface tension effects are included while gravity is neglected. From the results of analysis, flow pattern and free surface shape are obtained and velocity distribution on the free surface is determined with 2 independent parameters Ca (capillary number) and h (non-dimensionalized distance between source and sink). When the location of the sink is above the source, velocity on the free surface converges and a cusp occurs on the free surface for the value of Ca above some critical capillary number.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.2
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• pp.266-272
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• 2011

Real Time Pricing(RTP) is used not only to stabilize the price volatility in electricity market, but to hedge the price risk for Load Serving Entity(LSE). This paper presents an efficient method to reduce the risk of the price volatility in real-time electricity market. For designing the RTP, load patterns of customer are calculated by applying the demand elasticity and customer's utility is also analyzed to compute the RTP revenue through the risk-attribute of the LSE. In the end, the distribution of the LSE's profits can be evaluated to lead the optimal RTP value, depending on the level of customer's participation. Results from the case study based on PJM data are reported to illustrate the proposed method.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.4
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• pp.560-566
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• 2008

Today, as the power trades between generation companies and power customer are liberalized, the uncertainty level of operated power system is rapidly increased. Therefore, transmission operators as decision makers for transmission expansion are required to establish a deliberate investment plan for effective operations of transmission facilities considering forecasted conditions of power system. This paper proposes the methodology for the optimal solution of transmission expansion in deregulated power system. The paper obtains the expected value of transmission congestion cost for various scenarios by using occurrence probability. In addition, the paper assumes that increasing rates of loads are the probability distribution and indicates the location of expanded transmission line, the time for transmission expansion with the minimum cost for the future by performing the Montecarlo simulation. To minimize the investment risk as the variance of the congestion cost, Mean-Variance Markowitz portfolio theory is applied to the optimization model by the penalty factor of the variance. By the case study, the optimal solution for transmission expansion plan considering the feature of market participants is obtained.