• Journal of Korean Society for Quality Management
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• v.22 no.1
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• pp.214-218
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• 1994

An inventory supplies stock continuously at a constant rate. A deliveryman arrives according to a Poisson process. If the level of the inventory, when he arrives, exceeds a threshold, no action is taken, otherwise a delivery is made by a random amount. Costs are assigned to each visit of the deliveryman, to each delivery, to the inventory being empty and to the stock being kept. It is shown that there exists a unique arrival rate of the deliveryman which minimizes the average cost per unit time over an infinite horizon.

• Korean Management Science Review
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• v.32 no.4
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• pp.19-28
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• 2015

This study presents a mathematical programming model to develop production planning in the manufacturing processes for photovoltaic silicon ingots and wafers. The model is formulated as a linear programming model that maximizes total growth margin, which is composed of production cost, inventory cost, shortage cost, and sales profit while considering the constraints associated with the production environments of photovoltaic materials. In order to demonstrate the utility of the model for production planning, we run operations for a planning horizon of a year for a case study. When the primary results of this mathematical programming are compared with the historical records, the model could have resulted in the considerable increase of the total growth margin by effectively reducing inventory cost if a decision maker had employed the model as a decision support system with perfect information for sales demand.

• Journal of Korean Institute of Industrial Engineers
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• v.10 no.2
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• pp.17-27
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• 1984

This paper is concerned with a branched pipe network system which transports some fluids or gas from multiple sources to multiple demand nodes. A nonlinear programming model is proposed for determining junction locations simultaneously with selection of pipe sizes and pump capacities such that the capital and operating costs of the system are minimized over a given planning horizon. To solve the model, a hierarchical decomposition method is developed with the junction location being the primary variable. With some values fixed for the primary, the other decision variables are found by linear programming. Then, using the postoptimality analysis of LP, junction locations are adjusted. We repeat this process until an optimum is approached. A simple example of designing a water distribution network is solved to illustrate the optimization procedure developed.

• Korean System Dynamics Review
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• v.7 no.2
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• pp.5-20
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• 2006

In the advent of ubiquitous information technology (u-IT) as a new emerging horizon of information society, inflated expectations regarding u-IT are growing very fast and higher than those made in the past, which would perhaps result in serious bust after boom and incur tremendous amount of social costs. This paper thus investigates a dynamic mechanism underlying the coevolution between information technology and society by applying systems thinking, particularly, with a focus on the typical phenomenon, 'hype curve' which shows how new technologies initially grow too fast for their own good, crashing from a peak of inflated expectations into a trough of disillusionment before stabilizing on a plateau of productivity. Three basic questions are explored to answer by investigating the mechanisms underlying the 'boom-bust' phenomenon: First, why hype curve appears in the process of technology and society coevolution. Second, how to enhance the stabilization level. Third, when is the right time for the policy intervention.

• Journal of Korean Institute of Industrial Engineers
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• v.19 no.4
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• pp.97-104
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• 1993

This paper deals with the design problem of a man-on-board(MOB) storage and retrieval warehousing system which is suitable for storing items of small size and light weight. It is assumed that the operator carries out a sequence of retrieving(or storing) operations traveling on a specially designed truck. Considering the operating characteristics of the man-on-board system, an optimal design model is developed in which the investment and maintenance costs of the system are minimized over a time horizon satisfying a set of constructional restrictions. The model is formulated as a nonlinear integer program and a search algorithm is proposed to find an optimum solution.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.9
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• pp.521-528
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• 2004

The demise of the native franchise markets and the emergence of competitive markets in electricity generation service is substantially altering the way that operation and planning activity is conducted and is making it increasingly difficult for market participants such as generation firms to prospect the future electricity markets. Traditional generation expansion planning (GEP) problems which centrally determine the least-cost capacity addition plan that meets forecasted demand within pre-specified reliability criteria over a planning horizon (typically 10 to 20 years) is becoming no more valid in competitive market environments. Therefore, it requires to develop a new methodology for generation investments, which is applicable to the changed electric industry business environments and is able to address the post-privatization situation where individual generation firms seek to maximize their return on generation investments against uncertain market revenues. This paper formulates a new generation expansion planning problem and solve it in a market-oriented manner.

• Korean Management Science Review
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• v.20 no.2
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• pp.33-43
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• 2003

In this paper we applied dynamic programming to determining work schedule type. In dynamic programming formulation, each day during a planning horizon represents a stage for which a decision is made. The alternatives are given by work schedule types that combine regular time, overtime, additional shift, and so on. In this case, their associated return function is labor cost. The state is defined as the amount of work time allocated to stage 1, stage 2,…, and current stage. A case study for a real manufacturing company was performed to apply dynamic programming to scheduling daily work hours during a week. The case study showed that total cost of our solution derived from dynamic programming decreased by about 6％ as compared with the solution obtained from the previous method.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.11a
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• pp.307-337
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• 2001

In this paper, we propose the valuation frame of the IT(Information Technology) ventures using ROV(Real Options Valuation) model. Generally, ROV can comprises the traditional valuation method such as DCF(Discounted Cash Flow), which can measure only the tangible value of a firm from the expected future earnings, in that ROV can additionally measure the intangible value such as the strategic value of a firm in the uncertain environment. We set up the hypothetic IT venture future investment plan and assume that there are a growth option and a switching option consequently along the investment time horizon, which are caused by each characteristics of ventures and IT technologies, especially modularity. In the case that there are several embedded real options in the firm's investment plan in a row, we should apply the compound option pricing model as a real option valuation model in order to consider the value interaction between real options. In an addition, we present the results of optimal investment timing analysis using real options approach and compare them. with those of the original assumed investment timing.

• IE interfaces
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• v.16 no.2
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• pp.174-184
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• 2003

This paper addresses a fleet operation planning problem for a static freight container transportation system in which all the transportation requirements are predetermined at the beginning of a planning horizon. In the transportation system under consideration, a number of loaded containers are to be moved between container storage yards. An optimal fleet planning model is used to determine the minimum number of vehicles required. Based on the results from the optimal model, a tabu-search based algorithm is presented to perform a given transportation requirements with the least number of vehicles. The performance of the new procedure is evaluated through some experiments in comparison with two existing methods, and the it is found that our procedure produces good-quality solutions.

• Journal of the Korean Operations Research and Management Science Society
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• v.5 no.1
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• pp.39-51
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• 1980

This paper deals with the problem of determining the capacity expansion timing and sizes of conduits and feeder cables for a given cable network configuration of a single exchange ares, which minimizes the present worth of total costs. The planning horizon is infinite and the demand of line pairs at each cabinet is assumed to be determininstically growing. As a solution method, the heuristic branch-and-bound algorithm of Freidenfelds and Mclaughlin is elaborated by adding details and some minor modifications, which generates a good near-optimal solution with far less computation than would otherwise be possible. We also develop a computer program, which is shown to be effective and efficient through the test run of an illustrative example.