• Korean Management Science Review
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• v.33 no.4
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• pp.77-89
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• 2016

Due to recent proliferation of the mobile shopping channels, customers increasingly tend to purchase using online channel while experiencing physical products in offline shops. This phenomenon requires traditional offline retailers to consider integrating online channels. In this study, we propose strategic options for the traditional offline retailers regarding the online channel integration, and provide corresponding decision models to maximize the expected profits. We also investigate how the strategic options vary with the product characteristics, by categorizing the products based on inventory cost, demand uncertainty, and fitness to the online channels. By analyzing numerical examples we illustrate how the best online channel integration strategy should be differentiated depending on the product categories.

• Journal of Korean Institute of Industrial Engineers
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• v.30 no.4
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• pp.328-337
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• 2004

Tool costs can comprise a significant part of the total operating costs of Flexible Manufacturing Systems. We address the problem of determining the optimal processing times of individual operations and routing mix in FMSs with multiple routes for each part type in order to minimize tool cost, subject to meeting a throughput constraint for each part type. The problem is formulated as a nonlinear program superimposed on a closed queueing network of the FMSs under consideration. Numerical examples reveal the potential of our approach for significant saving in tool costs.

• Industrial Engineering and Management Systems
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• v.7 no.3
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• pp.204-213
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• 2008

Companies that produce capital goods need to schedule the production of products that have complex product structures with components that require many operations on different machines. A feasible schedule must satisfy operation and assembly precedence constraints. It is also important to avoid deadlock situations. In this paper a Genetic Algorithm (GA) has been developed that includes a new repair process that rectifies infeasible schedules that are produced during the evolution process. The algorithm was designed to minimise the combination of earliness and tardiness penalties and took into account finite capacity constraints. Three different sized problems were obtained from a collaborating capital goods company. A design of experimental approach was used to systematically identify that the best genetic operators and GA parameters for each size of problem.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.10 no.1
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• pp.18-37
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• 2016

Cloud computing is an upcoming technology and emerging concept in the field of information technologies. Companies have begun to invest in cloud computing with the expectation that it will improve their business performances, operations, and processes. However, many companies are not so much aware of the cloud computing, so they can hesitate to adopt this new technology. The aims of the study are analyzing factors affecting the adoption of cloud computing and applying structural equation modeling technique to analyze the important dimensions of the adoption. Concordantly, previous studies are examined and expert interviews are arranged. Based on both our literature review and expert interviews, a model is proposed to measure the adoption of cloud computing. It is obvious that there are scarce researches about cloud computing adoption in the literature. Thus, the originality of the paper lies on that it proposes a research model for cloud computing adoption and it investigates various dimensions of cloud computing adoption in detail.

• Korean Management Science Review
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• v.10 no.2
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• pp.93-110
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• 1993

Since the manufacturing machines containing information processing capacity by development of ME technology are developed and distributed from the advanced nations, manufacturing automation with manufacturing method which keeps flexibility and productivity is supplied broadly. An introduction of manufacturing automation technology is necessary to solve difficult domestic industry environment due to international competitiveness weakness of products. The aim of this is to search for the successful factors of the manufacturing business which uses too much technology of manufacturing automation and to observe the difference of the successful factors which influence to introduction performance according to the introduction type of automation technology and the strategic type through the empirical analysis.

• Management Science and Financial Engineering
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• v.11 no.2
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• pp.61-84
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• 2005

This paper considers a special case of the two-dimensional bin-packing problem for identical items. The objective of this work is to maximize the space utilization. The main contribution of the paper is to suggest a new heuristic algorithm keeping in view the existing complexity of racking system for the footwear boxes in the compartments of different sizes for a warehouse. The results show that a significant improvement can be obtained. An economic choice of compartments is also estimated using the criteria for maximizing space utilization. A non-linear mathematical model was presented based on the constraints of racking dynamics.

• Management Science and Financial Engineering
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• v.3 no.2
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• pp.45-70
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• 1997

The objectives of this study are to suggest and empirically prove the relationship model for investigating influence factors on the use of EDP audit techniques, and to identify moderating effects of the task types of EDP audit on the relationships between the influence factors and the use of EDP audit techniques. The results of the empirical test suggested that there are significant (positive or negative) correlations between the use of some EDP audit techniques and the influence factors, such as audit education, auditor's familiarity and age, and effectiveness of the technique, etc. The significant differences in the use of EDP audit techniques were empirically proved in the ratio of audit fees and the audit structure. It was also proved that the relationships between the use of techniques and the influence factors are different according to the task types of EDP audit. This study proposed the technique and the auditor related implications of these findings for the successful fulfilment of EDP audit.

• Management Science and Financial Engineering
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• v.3 no.1
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• pp.57-74
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• 1997

An EOQ-like inventory model for a manufacturing process is studied. The system is assumed to deteriorate during the production process. The results are either the production of a number of defective items, or the breakdown of the production machine. The optimal production lot size is derived. The model is extended to the case in which the probabilities of making defective items and machine breakdowns are a function of both the quantity (amount) and quality (performance) of the consumed setup cost (including the preventive maintenance cost). We further assume that the setup performance can be improved by investing in the performance improvement program. Hence, the same or a better setup outcome can be achieved with a lower setup cost. We then investigate the optimal setup cost and investment policy simultaneously, thereby achieving a better process quality and setup cost reduction concurrently.

• Management Science and Financial Engineering
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• v.10 no.2
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• pp.53-71
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• 2004

In this study, a mathematical model that shows the optimal payout policy is developed. The model is new and unique in the sense that not only continuous-time framework is used, but also both partial differential equation (PDE) and real-option approach are utilized in the derivation of optimal payouts for the first time. In the model building, non-linear demand curve for dividend payouts in the competitive capital markets is assumed. From the sensitivity analysis using traditional comparative static analysis, some useful managerial implications which are consistent with famous previous studies are derived under realistic conditions. All results in this study, however, are valid under the assumption that the opportunity costs follow geometric Brownian motion, which is widely used in economic science and finance literature.

• Korean Management Science Review
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• v.29 no.1
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• pp.1-14
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• 2012

The goal of the multi-reservoir operation planning is to provide an optimal release plan that maximize the reservoir storage and hydropower generation while minimizing the spillages. However, the reservoir operation is difficult due to the uncertainty associated with inflows. In order to consider the uncertain inflows in the reservoir operating problem, we present a Stochastic Dynamic Programming (SDP) model based on the markov decision process (MDP). The objective of the model is to maximize the expected value of the system performance that is the weighted sum of all expected objective values. With the SDP model, multi-reservoir operating rule can be derived, and it also generates the steady state probabilities of reservoir storage and inflow as output. We applied the model to the Geum-river basin in Korea and could generate a multi-reservoir monthly operating plan that can consider the uncertainty of inflow.