• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.183-189
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• 2021

Transfer pricing is a matter of concern for countries. It affects the interests of the parties involved in the commercial transaction. Through manipulation of prices in transactions, businesses take advantage of tax rates in a country to adjust profits for economic gain. This affects the fairness and rationality of economic transactions between related parties. The article uses a two-year time series from 2018 to 2019 of 50 foreign direct investment enterprises in Vietnam. The article uses ordinary least squares to test the hypotheses of the research model. The article uses four independent variables related to ownership structure affecting transfer pricing decisions including total ownership, organization ownership, concentration ownership, and area ownership. Research results show that two variables have a positive influence on transfer pricing decisions including total ownership and organization ownership. Organization ownership has a higher degree of influence than total ownership. To be able to control transaction activities related to transfer pricing, Vietnam's state management agencies need to pay attention to perfecting the legal framework based on supplementing and amending regulations related to transfer pricing. Legal regulations need to be regulated based on international common practices to ensure uniformity on a global scale.

• Journal of Korean Institute of Industrial Engineers
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• v.16 no.2
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• pp.81-89
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• 1990

Transfer pricing mechanism is applied to the problem of input buffer size in the context of interfacing a flexible manufacturing system with multiple following production lines. The size of the input buffers can be determined economically by using non-linear transfer pricing either in a decentralized organization or in a centralized organization. Under the certain conditions, input buffer size determined from this non-linear transfer pricing is more economical than the traditional economic lot size model. The benefit comes from transferring part of FMS' inventory to the following production lines. And this non-linear transfer pricing makes sense if the FMS' unit inventory holding cost is high enough.

• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.213-220
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• 2009

A revenue sharing contract is one of the mechanisms that coordinate decision makers in a decentralized supply chain toward the consensual goal. The transfer prices between different echelons in the supply chain influence the total supply chain profits. The study aims to explore various transfer pricing heuristics on the supply chain coordination in terms of the supply chain profits and their interactions with the revenue sharing rate. A model is proposed for formulating the collaborative production and distribution planning in a decentralized supply chain with the revenue sharing mechanism. Experiment results indicate that the transfer price and the revenue sharing rate affect significantly the coordination. Among the studied pricing heuristics, the variable-cost pricing method led to the best SC profits. Raising the revenue sharing rate reduced the SC profits no matter what heuristics were employed. Furthermore, the experiments provide us clues for finding the optimal transfer price for the supply chain.

• 한국지구물리탐사학회:학술대회논문집
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• 2003.11a
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• pp.669-675
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• 2003

This paper examines structural breaks and asymmetries of prices of four domestic petroleum products, i.e., gasoline, kerosene, diesel, and bunker-C, following the changes in the pricing policies pertaining to petroleum products in Korea from the government-controlled pricing system to the market pricing system. We use the monthly wholesale market price data for the sample period between July 1988 and December 2001. Using the four methods: the Chow test, the CUSUM/CUSUMQ tests, the Bayesian approach and the Dufour test, the structural behaviors of the petroleum product prices are examined. We found that structural change occurred in all petroleum products, with the exception of Kerosene, at the point of pricing policy change from government-controlled to the spot-price related pricing system. We, also conducted asymmetric analysis using the Borenstein, Cameron, and Gilbert (1997)'s model and found evidences of price asymmetry for all four product types, but in different pattern for each product.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.2
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• pp.68-75
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• 2011

The purpose of this paper is to suggest a supplier and buyer's pricing decision strategy model with discount-policy over a long-term replenishment contract in a supply chain environment by small and medium size manufacturing company. We assume that the buyer has a superior economic power over a supplier and each agent in a supply chain is unaware of each other. The supplier proposes pricing decision strategy to induce the buyer to choose the terms of contract for the benefit of the supplier. Then buyer decides the terms of contract to maximize her profit considering supplier's discount-policy. We also present a numerical example to illustrate the efficiency of pricing decision strategy.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.37 no.7B
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• pp.550-564
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• 2012

In this work we propose a new pricing scheme for the wireless Internet services over WiMAX system. First, let us review the characteristics of wireless network which is based on multi-hop relay WiMAX system. Next, we show why usage-based and QoS-aware pricing scheme is needed in the wireless Internet. After that, we propose a theoretical model for the price of multimedia services called a DAP (DiffServ-aware pricing) scheme for the WiMAX multimedia network which takes into account the consumed radio resource of WiMAX system as well as the supported QoS in the IP backbone network. Finally, we present explicit formulae for the packet price, price of consumed radio resource, and price of consumed bytes.

• Industrial Engineering and Management Systems
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• v.12 no.2
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• pp.95-102
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• 2013

It is difficult to determine an appropriate discount price for daily perishable products to increase profit from a long-term standpoint. Even if the discount pricing is efficient to increase profit of the day, consumers memorize the sales price and they might hesitate to purchase the product at a regular price the following day. The authors discussed the inventory clearance pricing for a single period in our previous study by constructing a mathematical model to derive an optimal sales price to maximize the expected profit by considering the reference price effect of demand. This paper extends the discussion to handle the discount pricing for multiple periods. A mathematical analysis is first conducted to reveal the properties on an objective function, which is the present value of total expected profits for multiple periods. An algorithm is then proposed to derive an optimal price for asymmetric consumers. Numerical experiments investigate the characteristics of the objective function and optimal pricings.

• Smart Media Journal
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• v.12 no.1
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• pp.54-61
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• 2023

Pricing, as one of the most important aspects of a business, should be taken seriously. Whatever affects a company's pricing system tends to affect its profits and losses as well. Currently, many manufacturing companies fix product prices manually by members of an organization's management team. However, due to the imperfect nature of humans, an extremely low or high price may be fixed, which is detrimental to the company in either case. This paper proposes the development of a fuzzy-based price expert system (Expert Fuzzy Price (EFP)) for manufacturing companies. This system will be able to recommend appropriate prices for products in manufacturing companies based on four major pricing strategic goals, namely: Product Demand, Price Skimming, Competition Price, and Target population.

• ETRI Journal
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• v.37 no.1
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• pp.197-202
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• 2015

A smart grid is a modernized electrical grid that uses information about the behaviors of suppliers and consumers in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity. In the operation of a smart grid, demand side management (DSM) plays an important role in allowing customers to make informed decisions regarding their energy consumption. In addition, it helps energy providers reduce peak load demand and reshapes the load profile. In this paper, we propose a new DSM scheduling scheme that makes use of the day-ahead pricing strategy. Based on the Rubinstein-Stahl bargaining model, our pricing strategy allows consumers to make informed decisions regarding their power consumption, while reducing the peak-to-average ratio. With a simulation study, it is demonstrated that the proposed scheme can increase the sustainability of a smart grid and reduce overall operational costs.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.3
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• pp.107-125
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• 2006

We introduce a two-stage game theoretic model to support decision making processes for product Positioning and pricing in competitive environment. In the first stage, firms decide on entry and product position, in the second stage, firms compete with price. 'Alpha rule' is used as a choice model. Demand parameters of the choice model are estimated by conjoint analysis. We investigate conditions for the existence of Nash price equilibria in the pricing game. Nash equilibria in the entry and positioning game are produced using a concept of stable sets. An example of the online game industry in Korea is examined.