• Title/Summary/Keyword: profit models

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Dynamic Pricing for User Created Contents : Computer Modeling and Simulation (UCC의 동적 가격 결정 : 모델링과 시뮬레이션 이용)

  • Chung, Doo-Shik;Jo, Hyeon;Kim, Soung-Hie
    • The Journal of the Korea Contents Association
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    • v.12 no.6
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    • pp.56-67
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    • 2012
  • The User Created Contents (UCC) are traded actively on the on-line market. The current pricing policy on the UCC market is the fixed pricing, which is set by the seller once and price never changes again. However market demand and supply are changing hourly, so the studies about dynamic pricing to determine more properly have been carried out. This paper suggests dynamic pricing models for UCC by analyzing the customer's searching pattern. We propose 2 pricing models (trend change-based pricing model and relative pricing model), and experiment various status by controlling system and market variables. We demonstrated our model by computational modeling and simulation. The result of this research can be useful guidelines to increase the revenue and profit of the UCC Market.

Management Evaluation on the Regional Fisheries Cooperatives using Data Envelopment Analysis Model (DEA모형에 의한 지역수협의 경영평가)

  • Lee, Kang-Woo
    • The Journal of Fisheries Business Administration
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    • v.42 no.2
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    • pp.15-30
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    • 2011
  • This study is designed to measure the relative efficiency of regional fishery cooperatives based on Data Envelopment Analysis(DEA) methods. Selecting 40 regional fishery cooperatives in Busan as Decision Making Units (DMUs), the study uses their panel data from 2007 to 2008 to rank the relative efficiency of the DMUs. First, the efficiency score of the DMUs are calculated using CCR, SBM, and super-SMB model. Within the model, input variables are the number of employees and area of fishery cooperatives. Output variables are the amount of deposit money, loan and profit. Based on the efficiency scores calculated from super-SMB model, the efficiency ranking of the DMUs is determined. Second, the differences in average efficiency calculated from the three DEA models are tested using a pair-wise mean comparison test. The results based on the efficiency scores evaluated from super-SMB model show that seven out of the forty DMUs are efficient; among the efficient DMUs, the DMUs that can be benchmarked for inefficient DMUs through the frequency analysis of reference set being identified. Third, the differences in average efficiency of the three DEA models between 2007 and 2008 are tested using pair-wise mean comparison test and the study estimates the efficiency change of the DMUs between 2007 and 2008 using Malmquist productivity index(MPI). Finally, the paper suggests an improved composite DMU superior to the inefficient DMUs evaluated by Super-SBM model.

A Discount Policy for Perishable Items Sold from Two Shops (유통기한이 있는 제품의 할인정책에 관한 연구)

  • Lee, Ga-Ram;Oh, Yong-Hui;Hwang, Hark
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.2
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    • pp.137-151
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    • 2008
  • This paper deals with two shops dealing with single perishable product the fresh items are sold at a list price in the primary shop and the unsold items that have reached a certain allowed age are transferred to the secondary shop to be sold at a discounted price. It is assumed that the demand rates in two shops are Independent each other and can be expressed as a function of inventory level and price. With the objective of maximizing the profit under a Last-In-first-Out. (LIFO) issuing policy, we develop mathematical models for the following two cases : (1) opening primary shop only and (2) opening both primary shop and secondary shop. There are three decision variables, i.e., the reduced price in the secondary shop, the allowed age at the primary shop, and the order quantities at the primary shop. A solution procedure is developed based on tabu search and its validity is illustrated through a comparative study.

The application of operations research to airline schedule planning (항공 일정계획에 경영과학의 활용)

  • Kim, Jun-Hyeok;Kim, Yeo-Geun;Lee, Han-Beom
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2007.11a
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    • pp.27-37
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    • 2007
  • Many problems related to airline business belong to large-scale optimization problems, so that it is expected that the state-of-art optimization techniques are widely applied to making the airline operation effective and competitive. This paper introduces the concepts and mathematical models of various optimization problems in airline system. Airlines involve many activities that utilize airline resources such as aircrafts and crews to make profit. We view the airline activities in the planning and operational aspects. In the planning viewpoint, we discuss the flight schedule design problem that impacts on passenger demand directly. For aircraft and crews, we deal with fleet assignment, aircraft routing, crew pairing optimization, and crew assignment problem. In the operational viewpoint, we concern schedule recovery problems for aircrafts and crew using the method of reassigning available resources when airlines face with the unexpected situations.

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Efficient Operation Policy in a Closed-loop Tire Manufacturing System with EPR

  • Ko, Young-Dae;Hwang, Hark
    • Industrial Engineering and Management Systems
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    • v.8 no.3
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    • pp.162-170
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    • 2009
  • This paper deals with a closed-loop remanufacturing system with one manufacturer and one remanufacturer. The manufacturer sells new products bearing the 'Extended Producer Responsibility (EPR).' It is assumed that the manufacturer's collection rate of used products depends only on the buy-back cost, while that of the remanufacturer depends on the minimum allowed quality level of used products in addition to the buy-back cost. Through the development of mathematical models with the objective function of maximizing profit, we study an efficient operation policy of each party. The decision variables are the unit selling price of new products and remanufactured products, the unit buy-back cost of the used products of the manufacturer and remanufacturer, and the minimum allowed quality level. The validity of the model is examined through numerical examples and sensitivity analysis.

Evaluation of Quantity Discounts for Buyer's Stocking Risk

  • Shin, Ho-Jung;Benton, W.C.;Park, Soo-Hoon
    • Management Science and Financial Engineering
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    • v.16 no.3
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    • pp.21-47
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    • 2010
  • Quantity discounts provide a practical foundation for supply chain inventory policies, improving the supplier's profit and reducing the buyer's inventory cost simultaneously. Traditional quantity-discount research, which deals with inventory coordination between a buyer and a supplier, is extended to a stationary stochastic environment. This research shows that the magnitude of the optimal discounts scheduled by the deterministic quantity discount models may not be large enough to cover the buyer's additional inventory stocking risks under uncertain conditions. As a result, the buyer's total inventory cost may often increase rather than decrease. In contrast, the proposed model allows the supplier to identify the discount level, which shares the buyer's amplified risk associated with temporary overstocking and ensures that both buyer and supplier benefit economically. The performance of the proposed model was tested in the continuous review environments via numerical experiments. The experimental results support the proposed method as a feasible alternative in coordinating inventory decisions under stochastic demand.

Predicting Audit Reports Using Meta-Heuristic Algorithms

  • Valipour, Hashem;Salehi, Fatemeh;Bahrami, Mostafa
    • Journal of Distribution Science
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    • v.11 no.6
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    • pp.13-19
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    • 2013
  • Purpose - This study aims to predict the audit reports of listed companies on the Tehran Stock Exchange by using meta-heuristic algorithms. Research design, data, methodology - This applied research aims to predict auditors reports' using meta-heuristic methods (i.e., neural networks, the ANFIS, and a genetic algorithm). The sample includes all firms listed on the Tehran Stock Exchange. The research covers the seven years between 2005 and 2011. Results - The results show that the ANFIS model using fuzzy clustering and a least-squares back propagation algorithm has the best performance among the tested models, with an error rate of 4% for incorrect predictions and 96% for correct predictions. Conclusion - A decision tree was used with ten independent variables and one dependent variable the less important variables were removed, leaving only those variables with the greatest effect on auditor opinion (i.e., net-profit-to-sales ratio, current ratio, quick ratio, inventory turnover, collection period, and debt coverage ratio).

Effects of Limited Capacity on Screening Procedures Using a Surrogate Variable (대용특성을 활용한 스크리닝 검사에서 제한된 생산용량의 효과분석)

  • Choi, Ik-Jun;Hong, Sung-Hoon
    • Journal of Korean Society for Quality Management
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    • v.36 no.4
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    • pp.77-86
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    • 2008
  • Due to the rapid growth in automated testing and manufacturing systems, screening inspection becomes very attractive. In this paper, we investigate the effects of limited capacity on screening inspection using a surrogate variable. The model is developed under the assumption that the reprocessed and nonreprocessed items are produced by the same manufacturing process and therefore their quality characteristics are independently and identically distributed. Profit models are constructed which involve four price/cost components; selling price, cost incurred by imperfect quality, reprocessing and quality inspection costs. Methods of finding the optimal screening limits are presented, and a numerical example is given. Sensitivity analyses are also performed to study the effect of a process standard deviation on this model.

An Effective Management and Activation Plan of e-Commerce (전자상거래의 효율적 관리와 활성화 방안)

  • 김명호
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.7 no.6
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    • pp.1252-1268
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    • 2003
  • There is a big change in Electronic Commerce. With little or no profit projected for the foreseeable future with the dotcom companies, Internet venture capitalists are looking for new business models. They are now turning to B to B Electronic Commerce. It is expected that B to B Electronic Commerce will be more active than B to C in the very near future. In the future B to B Electronic Commerce will move to include collaborative Electronic Commerce which includes product development, engineering, material procurement, and management. Even though the solution to this multidimensioal and complicated process may take some time, a total solution to this will dramatically change the landscape of Electronic Commerce. Thus the various corporations must work together to find the total solution that will build this infrastructure.

A Study on Certified Management Bodies for Rural Convergence Industry Promotion in Jeonnam Province (전남 농촌융복합산업 활성화를 위한 인증경영체 육성방안)

  • Song, Kyung-Hwan;Lee, Sang-Ho;Jang, Duck-Kee
    • Korean Journal of Organic Agriculture
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    • v.27 no.2
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    • pp.133-146
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    • 2019
  • This study analyze the certified management bodies for rural convergence industry promotion in Jeonnam province. The main results are as follows. Firstly, both certified management bodies and committee members are positive about the prospects of the 6th industry, and they also agree on the need for 6th Industrial accreditation system. Secondly, The 6th industry affects "creation of value added" and "linked to regional agriculture." In other words, we can see that the 6th industry can contribute to creating new values and linking regional agriculture. Finally, in order to foster certified management bodies for the 6th industry, the management bodies put joint promotion, marketing and sales support on a priority basis, and was interested in supporting commercialization, such as on-site coaching, while the expert committee put priority on fostering the search for profit models, placing importance on supporting commercialization such as customized coaching.