• Industrial Engineering and Management Systems
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• v.11 no.1
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• pp.11-17
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• 2012

Along with the recent trend toward increasing variety and shorter life of products in the market, evaluation of risk for economic investment alternatives is of practical importance in manufacturing companies. This paper assumes that each alternative is composed of demand volume and unit sales price as income factors, and unit variable cost and fixed cost as expense factors. The paper assumes that these four factors move worse from the originally expected values, toward the direction of decreasing profit. Values of these four factors are also assumed to fluctuate from year to year over the entire multi-period. By applying the analysis of the breakeven points to each of the four factors, safer area against these changes is represented on the two dimensional domain called normalized total-cost unit-cost domain. A practical numerical example is analyzed to verify the validity of the proposed method.

• Industrial Engineering and Management Systems
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• v.9 no.2
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• pp.107-120
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• 2010

In today's uncertain economic environment, the evaluation of safety for investment alternatives is of practical importance in manufacturing companies. This paper examines a method of quantitatively evaluating profitability and risk for multiple alternatives using the total-cost unit-cost domain. The paper assumes such factors as unit sales price, sales and production volume, unit variable cost, fixed cost, and yield for each alternative. The paper incorporates the relationship between production capacity and demand, distinguishing between cases of production capacity surplus and shortage for each year over the entire planning horizon. The paper investigates the case in which the values of each factor independently move in the direction of decreasing profit each year, and clarifies the procedure of comparing safety among multiple investment alternatives on a single consolidated total-cost unit-cost domain. The difficulty of the problem lies in the method of consolidating multiple total-cost unit-cost domains into a single domain since the combination of years of capacity surplus and shortage depends upon the change values in each factor under consideration. A systematic method of evaluating profitability as well as risk is presented, and the validity of the proposed method is verified using a numerical example.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.21 no.4
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• pp.171-176
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• 2021

This paper deals with bid evaluation problem that chooses the vendors and quantity with minimum purchasing cost for bid information of setup cost and unit price. For this problem, the branch-and-bound(BB) and branch-and-cut(BC) methods are well-known. But these methods can be fail to obtain the optimal solution. This paper gets the initial feasible solution with procuring quantity assignment principle in accordance with the unit price or setup cost rank-first. Then procuring quantity moving optimization(vendor change) is execute take account of unit price or setup cost rank. As a result of experimentation, the propose algorithm is significantly lower compared to BB and BC.

• Management Science and Financial Engineering
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• v.18 no.2
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• pp.23-27
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• 2012

The problem of jointly determining a robust optimal bundle of price and order quantity for a retailer in a single-retailer, single supplier, single-product supply chain is considered. Demand is modeled as a decreasing power function of product price, and unit purchasing cost is modeled as a decreasing power function of order quantity and demand. Parameters defining the two power functions are uncertain but their possible values are characterized by ellipsoids. We extend a previous study in two ways; the purchasing cost function is generalized to take into account the economies of scale realized by higher product demand in addition to larger order quantity, and an exact transformation into an equivalent convex optimization program is developed instead of a geometric programming approximation scheme proposed in the previous study.

• Nuclear Engineering and Technology
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• v.41 no.8
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• pp.1005-1014
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• 2009

The Dual Unit Optimizer 2000 MWe (DUO2000) is put forward as a new design concept for large power nuclear plants to cope with economic and safety challenges facing the $21^{st}$ century green and sustainable energy industry. DUO2000 is home to two nuclear steam supply systems (NSSSs) of the Optimized Power Reactor 1000 MWe (OPR1000)-like pressurized water reactor (PWR) in single containment so as to double the capacity of the plant. The idea behind DUO may as well be extended to combining any number of NSSSs of PWRs or pressurized heavy water reactors (PHWRs), or even boiling water reactors (BWRs). Once proven in water reactors, the technology may even be expanded to gas cooled, liquid metal cooled, and molten salt cooled reactors. With its in-vessel retention external reactor vessel cooling (IVR-ERVC) as severe accident management strategy, DUO can not only put the single most querulous PWR safety issue to an end, but also pave the way to very promising large power capacity while dispensing with the huge redesigning cost for Generation III+ nuclear systems. Five prototypes are presented for the DUO2000, and their respective advantages and drawbacks are considered. The strengths include, but are not necessarily limited to, reducing the cost of construction by decreasing the number of containment buildings from two to one, minimizing the cost of NSSS and control systems by sharing between the dual units, and lessening the maintenance cost by uniting the NSSS, just to name the few. The latent threats are discussed as well.

• Industrial Engineering and Management Systems
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• v.6 no.2
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• pp.136-145
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• 2007

The selection of suppliers and the determination of order quantities to be placed with those suppliers are important decisions in a supply chain. In this research, a non-linear mixed integer programming model is presented to select suppliers and determine the order quantities. The model considers the purchasing cost which takes into account quantity discount, the cost of transportation, the fixed cost for establishing suppliers, the cost for holding inventory, and the cost of receiving poor quality parts. The capacity constraints for suppliers, quality and lead-time requirements for the parts are also taken into account in the model. Since the purchasing cost, which is a decreasing step function of order quantities, introduces discontinuities to the non-linear objective function, it is not easy to employ traditional optimization methods. Thus, a heuristic algorithm, called particle swarm optimization (PSO), is used to find the (near) optimal solution. However, PSO usually generates initial solutions randomly. To improve the PSO solution quality, a heuristic procedure is proposed to find an initial solution based on the average unit cost including transportation, purchasing, inventory, and poor quality part cost. The results show that PSO with the proposed initial solution heuristic provides better solutions than those with PSO algorithm only.

• Journal of the Korean Operations Research and Management Science Society
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• v.26 no.1
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• pp.61-69
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• 2001

This paper presents a two stage game model which examines the effect of learning-by-doing and spillover. Increases in the firm’s cumulative experience lower its unit cost in future period. However, the firm’s rival also enjoys the experience via spillover. Unlike previous theoretical research model, a cost asymmetric market entry game model is developed between the incumbent firm and new entrant. Mathematical results show that the incumbent firm exploits the learning curve to gain future cost advantage, and that the diffusion of learning to the new entrant induces the incumbent firm to choose decreasing output strategically. As a main result, we show that the relative magnitude between the learning and spillover rate determines the market share ratio of competing firms.

• Proceedings of the Safety Management and Science Conference
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• 2004.05a
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• pp.303-307
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• 2004

Is not used by consistency transport at transport of freight nothing but is using Pallet only by pedestal when work palletized unit load or materials handling when keep simplicity receptacle which fill raw material or product in factory in our country. Therefore, pallet that is most important function of Pallet is not empled circulation to end consumer from manufacturing plant which is circulation process whole path being done and factory. It is real condition stopping only in extremely determinate part process use of warehouse back. Additionally, it is possible to figure out the flow of all the materials loaded on the RFID pallet; product, material, raw material immediately, so that epoch-making management is possible and it contributes to the reduction of logistics cost because there are little loss or outflow of pallet. The materials flow is getting speedy and inventory is decreasing in the logistics process, and also bad inventory and loss problems are prevented. As a result, not only logistics cost of company but also national logistics cost is decreased. Thus it contributes to the strength of national competitiveness.

• Journal of Electrical Engineering and Technology
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• v.8 no.6
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• pp.1596-1604
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• 2013

Coordinating operation between large-scale wind power and thermal units in multiple time scale is an important problem to keep power balance, especially for the power grids mainly made up of large coal-fired units. The paper proposes a novel operation mode of multi-scale unit commitment (abbr. UC) that includes mid-term UC and day-ahead UC, which can take full advantage of insufficient flexibility and improve wind power accommodation. First, we introduce the concepts of multi-scale UC and then illustrate the benefits of introducing mid-term UC to the wind-coal intensive grid. The paper then formulates the mid-term UC model, proposes operation performance indices and validates the optimal operation mode by simulation cases. Compared with day-ahead UC only, the multi-scale UC mode could reduce the total generation cost and improve the wind power net benefit by decreasing the coal-fired units' on/off operation. The simulation results also show that the maximum total generation benefit should be pursued rather than the wind power utilization rate in wind-coal intensive system.

• Proceedings of the SAREK Conference
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• 2007.11a
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• pp.459-465
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• 2007

This study was conducted to calculate the LCC of a apartment complex with a type of heating system, district heating and cogeneration system. For the purpose of analyzing LCC according to size of apartment complex, 500, 1,500 and 4,000 houses of model apartment selected. This research performs design of heating system and the life cycle cost analysis including an initial cost, energy cost, maintenance and operation cost, replacement cost and renovation cost during the project period(15years). According to the calculated results, 1) Initial cost of cogeneration system with 500, 1500 and 4000 houses is higher than district heating system each of 20%, 13%, 12%. 2) In case of cogeneration system, the payback period by electric generation is 5.21, 4.92 and 4.47 years and saving cost was calculated 29 billion won, 94 billion won and 262 billion won after payback period. 3) Cogeneration system LCC was 1.12, 1.07 and 1.06 times larger than district system with the size of apartment complex. According to the case of this study district heating system is more efficient than cogeneration system in terms of the reduction of LCC. 4) Gas Engine Co-generation System is more efficient than other systems because it can collect progressive part from electric charge progressive stage system. However, the efficiency is decreasing because of raising of fuel bills(LNG) and lowering of power rate for house use. Especially the engine is foreign-made so the cost of maintenance and repair is high and the technical expert is short. 5) District heating is also affected by fuel bills so we should improve energy efficiency through recovering of waste heat(incineration heat, etc.). Also, we should supply district cooling on the pattern of heat using of let the temperature high in winter and low in summer.