• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.3
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• pp.56-63
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• 2016

For air express service providers offering various express delivery services such as overnight delivery and next-business day delivery services, establishing quickly cargo loading plans is one of important issues owing to the characteristics of air express business, i.e., a short amount of time is available to complete all cargo loading operations before flight departure after receiving air express containers, pallets and bulks. On the other hand, one of major concerns in the air cargo loading planning is to make a plan that insures the stability of an aircraft to avoid take-off, flight, and landing accidents. To this end, this paper considers an air cargo loading planning problem, which is the problem of determining locations in the aircraft cargo space where air containers, pallets and bulks to be loaded while insuring the aircraft stability, motivated from DHL and Air Hong Kong. The objective of the problem is to maximize the total revenue gained from loading air express containers, pallets and bulks. To solve the problem, this paper suggests a simulated annealing algorithm to overcome impracticality of the integer programming model developed by a previous study requiring excessive computation time. The results of computational experiments show that the heuristic algorithm is a viable tool for establishing express cargo loading plans as giving robust and good solutions in a short amount of computation time. Scenario analyses are performed to investigate the effect of the current activities of air express carriers on the revenue change and to draw practical implications for air express service providers.

• Korean Management Science Review
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• v.34 no.3
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• pp.43-60
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• 2017

This study empirically examined the differences in degrees of product or process innovations according to the activation forms of all knowledge management (KM) processes (i.e., socialization, internalization, externalization, and combination), which are influenced by the usage patterns of management control systems (MCS)(i.e., interactive and diagnostic usage patterns). We empirically investigated and identified the links among usage patterns of MCS, the activation forms of KM processes, and the kinds of innovation promoted. Under high competitive conditions, it was found that the interactive usage of MCS is relatively more preferred and enhanced. However, when environmental uncertainty is high, it was shown that the diagnostic use of MCS is more emphasized. Thus, it is evident that the use patterns of MCS are determined by environmental conditions. From the results of this study, it was suggested that under high interactive use of MCS, the activation of socialization and internalization is more enhanced than the facilitation of externalization. It was also observed that when both interactive and diagnostic usage of MCS are high, KM processes are more activated and strengthened. The results indicated that under high activation of KM processes, product innovation as well as process innovation are more frequently occurred. Finally, the results of this study suggested that according to the levels of innovation openness, major innovations are more frequently occurred and promoted than minor innovations.

• Korean Management Science Review
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• v.34 no.3
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• pp.61-77
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• 2017

This study investigates the effect of consumer involvement in the relationship between customer satisfaction and loyalty (which is measured as consumers' repurchase and WOM intentions). Previous research has presented inconsistent implications on the role of consumer involvement in the relationship. Some researchers have presented the empirical results showing that consumer involvement moderates the relationship, whereas others have done the empirical results implying that the consumer involvement does not moderates. In sum, the previous empirical studies have provided the inconsistent empirical results that consumer involvement may be a moderator or a non-moderator in the relationship between customer satisfaction and loyalty. Thus, we start this research with two research questions: "Does consumer involvement has a moderation effect on the relationship between-customer satisfaction and loyalty across various service industries?" and "Can the moderation effect of consumer involvement be detected differently depending on the statistical methods used to probe the moderation effect?" A questionnaire survey was conducted in the context of four service categories: eight service firms for fast food, four firms for family restaurant, four firms for movie theater and four firms for Bakery. Hierarchical regression analyses (moderated regression analyses) and chi-square difference tests were used to identify the role of consumer involvement in the relationship between customer satisfaction and loyalty. The empirical results show that there does not exist the difference in the moderation effects of consumer involvement identified by the two statistical methods (i.e., hierarchical regression analyses vs. chi-square difference tests), however, that there exists the difference in the identified moderation effects of consumer across service categories. In the final section, we summarize the implications and re-interpret the empirical results provided in the previous studies.

• The Journal of the Korea Contents Association
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• v.14 no.5
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• pp.309-321
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• 2014

Existing research indicates that job design influences not only a worker's psychological well-being but also the individual and organizational performance. This study has been motivated by the need to provide useful implications for increasing the efficiency of business operations. The purpose of this research is to investigate the relationships between job characteristics and performance factors in the domestic financial industry. The conceptual framework has been developed based on Hackman & Oldham's job characteristics model and the related literature. We conducted a survey of employees in the domestic financial firms to test the conceptual model and hypotheses, and analyzed the data using the structured equation modeling method. The results of the empirical analysis indicate that the variety and autonomy of a job positively affect corporate innovation, confidence, and job satisfaction and that corporate innovation and job satisfaction positively influence job commitment. This research designed to examine the relationship between job characteristics and organizational performance will make a contribution to the improvement of business efficiency in our society.

• Korean Management Science Review
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• v.32 no.1
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• pp.83-100
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• 2015

We analyze a duopoly competition when two firms face input cost increases. The objective of this study is to determine the firms' optimal strategy between a price increase and downsizing under conditions of a spatially differentiated market and consumers' diminishing utility on the product size. We develop a theoretical model of two competing firms offering homogenous products using the standard Hotelling model to determine how firms' optimal strategies change when facing input cost increases. In this paper, there are two types of duopoly competitions: symmetric and asymmetric. In the symmetric case, the two firms have the same marginal cost and are producing and selling identical products. In the asymmetric case, the two firms have different marginal costs. The results show that the optimal strategy decision depends on the size of the input cost increase and the cost differences between the two firms. We find that when two firms are asymmetric (i.e., they have different marginal costs), the two firms might choose asymmetric pairs of strategies in equilibrium under certain conditions. When the cost differences between the two firms are sufficiently large and the cost increase is sufficiently small, the cost leader chooses price increase, and the cost-disadvantaged firm chooses downsizing in equilibrium. This asymmetric strategy reduces price competition between two firms, and consumers are better off. When the cost differences between the two firms are sufficiently large, downsizing is the dominant strategy for the cost-disadvantaged firm. The cost-disadvantaged firm finds it more profitable to reduce the product size than to increase its price to reduce price competition, because consumers prefer downsizing to price increases. This paper might be a good starting point for further analytical research in this area.

• Korean Management Science Review
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• v.32 no.4
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• pp.109-133
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• 2015

This paper considers the allocation and engagement scheduling of air defense missiles by using MIP (mixed integer programming). Specifically, it focuses on developing a realistic MIP model for a real battle situation where multiple enemy missiles are headed toward valuable defended assets and there exist multiple air defense missiles to counteract the threats. In addition to the conventional objective such as the minimization of surviving target value, the maximization of total intercept altitude is introduced as a new objective. The intercept altitude of incoming missiles is important in order to minimize damages from debris of the intercepted missiles and moreover it can be critical if the enemy warhead contains an atomic or chemical bomb. The concept of so called the time window is used to model the engagement situation and a continuous time is assumed for flying times of the both missiles. Lastly, the model is extended to simulate the situation where the guidance radar, which guides a defense missile to its target, has the maximum guidance capacity. The initial mathematical model developed contains several non-linear constraints and a non-linear objective function. Hence, the linearization of those terms is performed before it is solved by a commercially available software. Then to thoroughly examine the MIP model, the model is empirically evaluated with several test problems. Specifically, the models with different objective functions are compared and several battle scenarios are generated to evaluate performance of the models including the extended one. The results indicate that the new model consistently presents better and more realistic results than the compared models.

• Korean Management Science Review
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• v.32 no.4
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• pp.57-67
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• 2015

It is a familiar Wall Street adage that "It takes volume to make prices move." Numerous researches have found the positive correlation between trading volume and price changes. Recent studies have documented that informed traders have strong influences on stock market prices through their trading with distinctive information power. Ever since 1992 capital market liberalization in Korea, it is said that foreign investors make consistent profits with their superior information and analytical skills. This study aims at whether we can make a profitable trading strategy by using the foreign investors' trading information. We analyse the relation between the KOSPI index returns and the foreign investors trading volume using GARCH models and VAR models. This study suggests the profitable trading strategies based on the documented relation between the foreign investors' trading volume and KOSPI index returns. We simulate the trading system with the real stock market data. The data include the daily KOSPI index returns and foreign investors' trading volume for 2001~2013. We estimate the GARCH and VAR models using 2001~2011 data and simulate the suggested trading system with the remaining out-of-sample data. Empirical results are as follows. First, we found the significant positive relation between the KOSPI index returns and contemporaneous foreign investors' trading volume. Second, we also found the positive relation between the KOSPI index returns and lagged foreign investors' trading volume. But the relation showed no statistical significance. Third, our suggested trading system showed better trading performance than B&H strategy, especially trading system 2. Our results provide good information for uninformed traders in the Korean stock market.

• Korean Management Science Review
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• v.31 no.2
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• pp.49-63
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• 2014

With the huge concerns on the inefficiency of public enterprises, particularly a significant amount of debt, an increasing number of studies have been carried out to analyze the levels of inefficiency and investigate the causes of that inefficiency. However, very limited range of analytical methodologies have been used in the efficiency analysis and moreover, the effects of external factors have been little addressed. This study explores the efficiency of urban railway corporations in Korea by utilizing a method of stochastic frontier analysis (SFA). In particular, the potential effects of external factors including residential and floating populations of a station were statistically analyzed. A total of seven Korean urban railway corporations were selected to compare each other in terms of operational efficiency. The results present three important findings. First, the Cobb-Douglas model was found to be more valid for SFA compared to the Translog model. Second, the efficiencies of urban railway corporations in Seoul and Busan are relatively high whereas those of Daejeon and Gwangju are very low in efficiency in the area of sales revenue. In an aspect of number of transport of passengers, Gwangju Metro also showed the lowest efficiency. Third, the external factors are significantly associated with the efficiency, indicating that the efficiencies of Daejeon Metro and Gwangju Metro would increase while the efficiency of Seoul Metro would decreases when the external variables are excluded in the efficiency analysis. The results provide several meaningful implications for managers of the urban railway corporations as well as policy makers who are attempting to resolve the inefficiency problems of public enterprises.

• Journal of Advanced Navigation Technology
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• v.21 no.2
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• pp.206-211
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• 2017

Recently computing devices by connecting to a network, grid computing, the next generation of digital neural networks that provide maximum service will connect all of the computer such as a PC or server, PDA into one giant network makes the virtual machine. Therefore, we propose the grid computing implementation model to be applied to meteorological business field as follows. First, grid computing will be used for tasks such as the development of numerical models below the mid-scale or test operations, and the final backup of the weather supercomputer. Second, the resources that will constitute grid computing are limited to business PCs and Linux servers operated by the central government considering operational efficiency. Third, the network is restricted to the LAN section, which suggests the implementation of high performance computing.

• The Journal of Society for e-Business Studies
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• v.17 no.4
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• pp.1-16
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• 2012

Shieh and Wang [10] recently proposed an efficient mutual authentication scheme that combined the cost-effectiveness of operations of Lee et al. [6]. scheme and the security and key agreement of Chen and Yeh scheme. Shieh and Wang [10] scheme, however, does not satisfy the security requirements against a third party (the man-in the middle, attacker) that have to be considered in remote user authentication scheme using password-based smart cards. Shieh and Wang weaknesses are the inappropriateness that it cannot verify the forged message in 3-way handshaking mutual authentication, and the vulnerability that the system (server) secret key can easily be exposed. This paper investigates the problems of Shieh and Wang scheme in the verification procedure of the forged messages intercepted by the eavesdrop. An enhanced two-way remote user authentication scheme is proposed that is safe and strong against multiple attacks by adding the ability to perform integrity check on the server and proposed scheme is not expose user password information and the system's confidential information.