• Proceedings of the SAREK Conference
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• 2009.06a
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• pp.1197-1202
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• 2009

Cost allocation on cogeneration is a methodology dividing the input of common cost to electricity cost and heat cost. In the cost allocation methodology of the electricity and heat on a cogeneration, there are energy method, work method, proportional method, benefit distribution method, reversible work method, various exergetic methods, and so on. In previous study, various cost allocation methodologies have been applied and analyzed on a gas-turbine cogeneration producing the 33.1 MW of electricity and the 32.2 Gcal/h of heat, a steam-turbine cogeneration producing the 22.2 MW of electricity and the 44.3 Gcal/h of heat, and combined-cycle cogeneration producing the 314.1 MW of electricity and the 279.4 Gcal/h of heat. In this study, we integrately analyze the results of previous studies and examine the generality and rationality each methodology. Additionally, a new point of view on the values of alternative electricity efficiency and alternative heat efficiency in the previous methodologies was proposed. As the integrated result, we conclude that reversible work method of various common cost allocation methodologies is most rational.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.21 no.3
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• pp.201-208
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• 2009

Our government will make a plan regulating the cooling limit temperature of the summer season to 26 degree and the heating limit temperature of the winter season to 20 degree for energy saving. Where, the key point of this politic pursuit can be the charge system on heating and cooling cost. We have suggested new cost allocation methodology as a worth evaluation method in the precedent study, and preformed the worth evaluation and cost allocation on four kind of warm air produced from a heating system as an example. In this study, we applied the suggested method to four kind of cool air, and preformed the worth evaluation and cost allocation on each cool air. As a result, similarly to the precedent study, the more energy a customer saved, the more cooling unit cost decreased, and the more energy a customer consumed, the more cooling unit cost increased. From this analysis, we hope that the suggested methodology can offer a theoretical basis to the energy charge policy of government, and induce the spontaneous energy saving of consumers.

• Proceedings of the SAREK Conference
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• 2008.11a
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• pp.499-504
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• 2008

Our government will make a plan regulating the cooling limit temperature of the summer season to 26 degree and the heating limit temperature of the winter season to 20 degree for energy saving. Where, the key point of this politic pursuit can be the charge system on heating and cooling cost. We have suggested new cost allocation methodology as a worth evaluation method in the precedent study, and preformed the worth evaluation and cost allocation on four kind of warm air produced from a heating system as an example. In this study, we applied the suggested method to four kind of cooling air as an example, and preformed the worth evaluation and cost allocation on each cooling air. As a result, similarly to the precedent study, the more energy a customer saved, the more heating unit cost decreased, and the more energy a customer consumed, the more heating unit cost increased. From this analysis, we hope that the suggested methodology can offer a theoretical basis to the politic pursuit of government, and induce the spontaneous energy saving of consumers.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.4
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• pp.220-227
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• 2018

The cooperative game theory consists of a set of players and utility function that has positive values for a subset of players, called coalition, in the game. The purpose of cost allocation method is to allocate the relevant cost among game players in a fair and rational way. Therefore, cost allocation method based on cooperative game theory has been applied in many areas for fair and reasonable cost allocation. On the other hand, the desirable characteristics of the cost allocation method are Pareto optimality, rationality, and marginality. Pareto optimality means that costs are entirely paid by participating players. Rationality means that by joining the grand coalition, players do not pay more than they would if they chose to be part of any smaller coalition of players. Marginality means that players are charged at least enough to cover their marginal costs. If these characteristics are all met, the solution of cost allocation method exists in the core. In this study, proportional method is applied to EOQ inventory game and EPQ inventory game with shortage. Proportional method is a method that allocates costs proportionally to a certain allocator. This method has been applied to a variety of problems because of its convenience and simple calculations. However, depending on what the allocator is used for, the proportional method has a weakness that its solution may not exist in the core. Three allocators such as demand, marginal cost, and cost are considered. We prove that the solution of the proportional method to demand and the proportional method to marginal cost for EOQ game and EPQ game with shortage is in the core. The counterexample also shows that the solution of the proportional method to cost does not exist in the core.

• IE interfaces
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• v.17 no.2
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• pp.142-148
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• 2004

The objective of bridge construction cost allocation is to distribute in a fair and rational manner the bridge construction costs among those vehicles using the bridge. In most bridge construction cost allocation studies, bridge construction costs are mainly distributed according to traffic load(gross vehicle weight), without any consideration of bridge capacity requirements(the number of lanes). In this paper, a bridge cost allocation method for considering both traffic capacity and traffic loads is developed. The proposed method is based on cooperative game theory, particularly two concepts known as the Aumann-Shapley (A-S) value and Shapley value. This method can help to analyze the impact of traffic capacity costs. By applying the proposed method to an example, traffic capacity cost is found to be high so that traffic capacity should be considered to allocate the bridge construction costs to vehicle classes in a more equitable manner.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.10
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• pp.496-499
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• 2005

In many parts of the world, the electric power industry is undergoing unprecedented changes. Therefore, in order to reform the electric power industry efficiently and minimize the confusion of this restructuring, the systematic studies related to transmission pricing and transmission cost allocation issues are required essentially. However, even now, the basis of transmission cost allocation rate is not equipped so that the regulation body has determined the allocating rate under the common practice. In this paper, we demonstrate that the decision of transmission cost allocation rate is the regulation body's own right. For this analysis, we apply game theory to the procedure determining this rate and the competition to determine this rate between gencos and distcos is modeled as the arbitration game.

• KIEE International Transactions on Power Engineering
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• v.5A no.1
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• pp.9-15
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• 2005

In the operation of distribution systems, DGs (Distributed Generations) are installed as an alternative to extension and the establishment of substations, transmission and distribution lines according to the increasing power demand. In the operation planning of DGs, determining optimal capacity and allocation achieves economical profitability and improves the reliability of power distribution systems. This paper proposes a determining method for the optimal number, size and allocation of DGs in order to minimize the operation costs of distribution systems. Capacity and allocation of DGs for economical operation planning duration are determined to minimize total cost composed with power buying cost, operation cost of DGs, loss cost and outage cost using the GA (Genetic Algorithm).

• Journal of Digital Convergence
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• v.10 no.8
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• pp.91-96
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• 2012

The purpose of this study is to examine the rationality for public organizations' cost allocation method through the case of special post offices. The proper use of allocation method is crucial to promote and nurture the public organization sector. On that note, this paper presents how to apply the proper estimation method. The cost allocation method is to split the total expense into appropriate services and departments. Using the basic expense rate and the standard depreciation rate and area at each post office, the total cost is calculated into the cost per person and area. As a result, the correct cost can be assigned through allocation per according service unit.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.20 no.9
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• pp.624-630
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• 2008

When various kinds of outputs are produced from a single energy system, the methodology which allocates the common cost to each output cost is very important because it is directly related with the profit and loss of producers and purchasers. In the cost allocation methodology of the heat and the electricity on a cogeneration, there are energy method, work method, proportional method, benefit distribution method, exergetic methods, and so on. On the other hand, we have proposed a worth method which can be applied to any system. The definition of this methodology is that the unit cost of a product is proportion to the worth. Where, worth is a certain evaluating basis that can equalize the worth of products. In this study, we applied worth method to a steam-turbine cogeneration which produces 22.2 MW of electricity and 44.4 Gcal/h of heat, and then we allocated 2,578 $/h of common cost to electricity cost and heat cost. Also, we compared with various cost allocation methods. As the result, we conclude that exergy of various kinds of worth basis evaluates the worth of heat and electricity most reasonably on this system.

• Journal of the military operations research society of Korea
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• v.35 no.3
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• pp.31-45
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• 2009

Reliability should be done from the initial stage of development to secure performance and safety of system. To establish and achieve target reliability of a system, reliability should be allocated into the subsystems. In the acquisition and development of a system, frequent failures will cause a negative effect on performing mission and occurs increasing operating cost. This study reviewed and evaluated the existing reliability allocation models using operation and maintenance costs to find the correlation between reliability allocation models and its operating cost. A target system reliability on the diesel engine to be developed for naval vessels is allocated into its subsystem based on the existing reliability allocation models. A selection methodology for reliability allocation models was made to minimize operating cost by using simulation based on the given operating diesel engine data for naval vessels.