• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.3
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• pp.55-69
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• 2009

It is often to apply revenue sharing models in rental industries which consist of a retailer and a wholesaler. This research analyzed the influences to profit of the supply chain if we adopt the revenue sharing model when the demand is uncertain and price sensitive. We found the conditions of the revenue sharing model to maximize the profit of the supply chain, and identified incentive compatible conditions for revenue sharing. It is proved that vertical integration guarantees maximization of profit for the supply chain. Also we found that it is possible to derive Incentive compatible schemes by controlling ranges of revenue sharing ratios.

• Journal of the Korea Institute of Building Construction
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• v.5 no.2 s.16
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• pp.107-113
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• 2005

This study analyzes remaining repair rate and applied repair rate with the presentation of profit model for the purpose of pursuing maximization of added value through remodeling of apartment house. Objects of remodeling and item applying the whole replacement of functionality evaluation items include exterior of building (3 items maintaining the current conditions, 8 items requiring the whole replacement), water supply/sanitary/gas/ventilation facilities (6 items maintaining the current conditions, 6 items requiring the whole replacement, electric/fire fighting/elevator facilities (8 items maintaining the current conditions, 20 items requiring the whole replacement) and heating/water heater facilities (2 items requiring the whole replacement).

• IE interfaces
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• v.23 no.1
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• pp.12-23
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• 2010

A semiconductor market is one of the most competitive markets in the world. To survive this competition, important targets for production planning are on-time delivery and profit maximization. In our research, we modify the linear programming model for the current production planning by adding new objective functions that maximize the profit. In addition, we propose a production planning process that gives a priority to new products, reflecting daily fluctuations in demand to weekly production planning. We validate our model with real data sets obtained from a major company semiconductor manufacturer and performed the paired t-test to verify the results. The results showed that our model forecasted profit and loss with 93.2% accuracy and improved the due date satisfaction by 10%.

• Journal of Korean Society for Quality Management
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• v.51 no.4
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• pp.481-496
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• 2023

Purpose: The main theme of this study is to derive a profit curve by a cubic cost function for nonlinear CVP analysis. According to the analytical approach to derive a nonlinear profit function in this study, it is possible with only the existing cost structure to calculate the profit maximization and downtime point sales unlike the classical CVP analysis. Furthermore, the profit curve by the mathematical model of this study could serve as a tool to quantify the qualitative evaluation of each stage of the industry life cycle. Methods: This study followed the mathematical approach from the cubic cost function model of microeconomics, and using real data of the Bank of Korea Results: The nonlinear profit function suggested by this study is as follows; ${\pi}(x)=-a\left(x-\frac{f}{1-v}\right)^3+(1-v)x-k$ where $a=\frac{1}{3}v\left(\frac{(1-v)}{f}\right)^2,k=f-a\left(1-\frac{f}{1-v \right)^3$ Conclusion: The process and results of this study would be able to contribute not only in practice of nonlinear CVP analysis required in the management accounting or financial management, but also in cost theory of microeconomics. Also, since the life cycle of all industries in Korea was verified to the growth or mature stage, decision makers should pay careful attention to determining life cycle stages and consider the profit curve by the average variable cost ratio over multi periods.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.13-22
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• 2020

This research explores the appropriate rubber pricing model and the consistent empirical evidence. This model has been derived from the utility function and firm profit-maximization model of commodity goods. The finding shows that the period t - 1 affects expected commodity price and expected profit of commodity production. In fact, a change in the world price of rubber in the past period led to a change in the expected price of rubber in the short run which influenced the expected rubber profit. As a result, the past-period free on board price has an entirety effect on expected farm price of rubber given an exchange rate. In addition, the rubber pricing model indicates that the profit of local farmer on rubber plant depends solely on the world price of rubber in the short run in case of Thailand. In an empirical study, it was found that a change in the price of ribbed smoke sheet 3 in Singapore Commodity Exchange significantly and positively determined the fluctuation of rubber price at the farm gate in Thailand which was consistent with the behavior of the Thai farmers. Both prices are also cointegrated in the long run. That is, the result states that the VECM is an appropriated pricing model for forecasting the farm price in Thailand.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.3
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• pp.509-516
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• 2011

This paper studies a novel method to find the profit-maximizing Nash Equilibriums in allocating generation quantities with consideration of ramp-rates under competitive market environment. Each GenCo in a market participates in a game to maximize its profit through competitions and play a game with bidding strategies. In order to find the Nash equilibriums it is necessary to search the feasible combinations of GenCos' strategies which satisfy every participant's profit and no one wants various constraints. During the procedure to find Nash equilibriums, the payoff matrix can be simplified as eliminating the dominated strategies. in each time interval. Because of the ramp-rate, generator's physically or technically limits to increase or decrease outputs in its range, it can restrict the number of bidding strategies of each generator at the next stage. So in this paper, we found the Nash Equilibriums for multi-stage generation allocation game considering the ramp-rate limits of generators. In the case studies, we analyzed the generation allocation game for a 12-hour multi-stage and compared it with the results of dynamic economic dispatch. Both of the two cases were considered generator's ramp-rate effects.

• Journal of Technology Innovation
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• v.15 no.1
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• pp.175-201
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• 2007

Licensing contracts between partners in International Joint Ventures(IJV) have not only aspects of relation contract, which is interdependent and long-term cooperative relationships in interpartner but also aspects of discrete contract which is exposed to opportunistic risk caused by IJV partners who maximize individual profit instead of joint payoff maximization. In this circumstance, appropriate compensation structures such as lump-sum and royalty can reduce conflicts and spur interpartner cooperation. In addition, compensation structures that stipulate each party's rights, duties, and responsibilities under various sets of environmental conditions have strong implications for transaction cost minimization and joint payoff maximization. On the other hands, compensation structures such as lump-sum and royalty in IJV licensing contract have benefits and costs depending on IJV partners uncertainty, partner dependency, and environment uncertainty. Therefore, the purpose of this paper is to empirically show how partner uncertainty, partner dependence and environment uncertainty influence compensation structure chosen by licensor in IJV.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.1
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• pp.7-15
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• 2020

It is a general phenomenon for manufacturers to provide vertically differentiated product line for more profit through improved market coverage. For such manufacturers, the compatibility between vertically differentiated products is an important decision issue. Some manufacturers provide full compatibility between high and low version products, whereas some provide only downward compatibility for the purpose of recommending high version product. In this study, the two representative compatibility strategies, full or downward, between vertically differentiated products produced by a single manufacturer are analyzed, especially under network externality and in the viewpoint of profit maximization. To do this we used a market model which captures the basic essence of vertical differentiation and network externality. Based on the proposed market model, the profit maximizing solutions are derived and numerically analyzed. The results can be summarized as follows : (1) Regardless of compatibility strategy, under network externality, vertical differentiation is always advantageous in terms of profit. (2) The full compatibility strategy is shown to be the most advantageous in terms of profit. In addition, it is necessary to make quality difference between differentiated products as wide as possible to maximize profit. (3) To gradually drive low version product out of the market and shift the weight pendulum of market to high version product, it is shown that the downward compatibility strategy is essential. Unlike intuition, however, it is also shown that in order to drive low version product out of market, it is necessary to raise the quality of the low version product rather than to lower it.

• Journal of the Korea Safety Management & Science
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• v.8 no.3
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• pp.125-141
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• 2006

If do not become whole optimization because enterprise's individual enterprise internal determinate improvement effort is associated with activity in enterprise SCM, competitive power can not but be extremely limited the result. Therefore, to spur in hidden cost's discovery and logistics' optimization is actuality. In this paper, as long as it is by logistics cost except empty driving if reverse logistics happens in distribution channel progressing, logistics reverse logistics' hidden cost through model that do minimization profit of logistics to look for plan that can do maximization try. Finally, is based on dual of distribution cost and profit of logistics and reverse logistics and achieves Pull, optimal system modeling that use Push system and gropes method of effective logistics cost.

• Journal of the Korean Society for Railway
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• v.8 no.6 s.31
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• pp.602-609
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• 2005

In this paper, we consider the train-fleet assignment problem to determine fleet assignment and seat allocation synchronously. An integer programming model of the problem and a decomposition-based solution approach are developed to handle short-term period deterministic orgin-destination demands. The primary objective used in the developed model is to maximize the total number of passengers transported during peak load periods, such as Chuseok national holiday period. Thus, in developing the model we choose to profit-pursuing system. We also show how the proposed model can be readily modified to incorporate profit-maximization. Using the empirical data sets provided by a Korean railroad company, we have tested the proposed solution approach and carried out various comparison analyses by varying traffic demand patterns and train schedules. The computational experiments reveal that the proposed solutions approach produces high quality solutions in reasonable computation time.