• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.4
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• pp.61-68
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• 2019

Currently many companies are interested in reduction of the carbon emissions associated with their supply chain activities such as transportation and operations. Operational decisions, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Cap-and-trade regulation, sometimes called emissions trading, is a market-based tool to limit greenhouse gas emissions. Under cap-and-trade regulation, emission credits are allocated to the firms and the firms trades emissions under cap-and-trade schemes. In this paper, we propose a single-manufacturer single-buyer two-echelon supply chain problem under the cap-and-trade mechanism incorporating the carbon emissions caused by transportation and warehousing activities where a single manufacturer produces a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time (JIT) Purchasing. An integrated multi-product lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Also, an iterative heuristic algorithm is developed to derive the common order interval, the number of intervals for each product and the number of shipments between the buyer and the manufacturer during the common interval. A numerical example is given to illustrate the savings in reduction of total cost and carbon emissions by the inventory model incorporating cap-and-trade mechanism compared to the classical inventory model. The proposed inventory model could be useful for the practical solution of two-echelon supply chain inventory problem under cap-and-trade mechanism.

• Particle and aerosol research
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• v.15 no.4
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• pp.159-171
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• 2019

The cap-and-trade system against the air pollutants in the Seoul Metropolitan Area (SMA), Korea has been implemented since 2008 and will be implemented other areas in Korea on 2020. In this study, to identify the outcome and effectiveness of the cap-and-trade system in the SMA, (1) the rate of change for NOx and SOx emissions, (2) differences between the real emission and allocated amount, and (3) the status of trading are reviewed. It was found that the NOx and SOx emissions from the sources under the cap-and-trade system decreased in the SMA but the reduction was mainly due to the reduction of fuel usage not related to the system. It was found that the average percentage of annual emission in the SMA to the allocated amount between 2008 and 2018 was 66.9% for NOx and 69.3% for SOx, respectively. It suggests that there was over allocation of the emission amounts. The average trading prices in the SMA were 0.193 $/kg for NOx and 0.128 $/kg for SOx, far lower than those in RECLAIM, 131.942 $/kg and 81.677 $/kg, respectively. It was suggested that (1) the cap system for NOx and SOx emissions should be implemented only for the area with high emission ratio from large point sources, (2) the trade system is not suitable for the effective implementation of the cap system, and (3) Korean government should not allow over allocation in order to ensure sound market function without delaying the introduction of technology.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.1
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• pp.158-166
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• 2019

In pursuing carbon emission reduction efforts, companies have focused for the most part on reducing emissions due to the more efficient equipment and facilities. However they overlook a significant source of carbon emissions, one that is driven by operational policies. Currently companies are looking for solutions to reduce carbon emissions associated with their operations. Operational adjustments, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Also, Cap-and-Trade mechanism is generally accepted as on of the most effective market-based mechanism to reduce carbon emissions. In this paper, we investigate a supply chain with single manufacturer and multiple retailers multi-product inventory model under the cap-and-trade system incorporating the carbon emissions caused by transportation and warehousing activities. Also, we provide an iterative solution algorithm and derive the common order interval and the number of intervals for each product. We show by numerical example that the inventory model incorporating cap & trade mechanism can reduce total cost and carbon emissions compared to the classical inventory model. Using the numerical examples, we also investigates different carbon price on the performance of the inventory model.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.243-252
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• 2015

This paper considers a supply chain consisting of a manufacturer under the cap-and-trade emissions regulation and a permit supplier. We study joint production quantity and investment in reducing permit production cost decisions for centralized and decentralized supply chains. We formulate two supply chain contracts with aims to coordinate the decentralized supply chain; wholesale price contract and cost-sharing contract. Under the cost-sharing contract, the manufacturer shares a part of the investment in reducing permit production cost and then is allowed to purchase emission permit at a lower price. We analytically find that the proposed cost-sharing contract with reasonable parameters can coordinate the supply chain whereas the wholesale price contract is not desirable to achieve the system-wide profit. Numerical example is followed to support the analysis.

• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.1
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• pp.21-33
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• 2015

This paper develops an analytic model for minimizing the cost of distributing items by truck from one supplier to many customers under Milk run logistics strategy. The model derives formulas for not only inventory and transportation costs but also costs associated with carbon emission trading scheme. In addition, monetary investment for reducing carbon emissions is considered. We analyze how to determine optimal shipment size and carbon emission reduction investment. The purpose of this work is to evaluate the effects of carbon emission trading scheme on the Milk run logistics strategy in terms of how much to reduce carbon emissions and/or inventory and transportation costs. We analytically show that it is possible to reduce carbon emissions while reducing inventory and transportation costs by introducing cap-and-trade carbon emission trading scheme under certain conditions.

• Journal of Aerospace System Engineering
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• v.12 no.2
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• pp.66-75
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• 2018

In this paper, a lightweight design of the spar cap of 2MW wind turbine blade was carried out using the ply reduction ratio (PRR) and CFRP with a trade-off study. The spar cap is one of the most critical factor in determining the mechanical performance of the blade. Tsai-Wu and Puck fracture theory were used to determine the fracture. As a result, the CFRP composite material could be lighter in terms of weight by about 30% than GFRP composite material under the same conditions. Based on the analytical results, we derive the optimal value of the laminate thickness of the composite material and present the structural performance improvement and the lightweight design result.

• Journal of Ship and Ocean Technology
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• v.12 no.4
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• pp.20-31
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• 2008

Development of rudder gap flow blocking device for lift augmentation and cavitation suppression is presented. In order to verify the performance of this device, cavitation visualization and surface pressure measurements were carried out in a cavitation tunnel. Numerical simulations were conducted using a computational fluid dynamics code for more rigorous verification. The new rudder system is equipped with cam devices, which effectively close the gap between the horn/pintle and movable wing parts. The experimental and computational results show that the proposed rudder system is superior to the conventional rudder systems in terms of the lift augmentation and cavitation suppression.

• Journal of Environmental Policy
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• v.8 no.4
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• pp.95-124
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• 2009

This study aims to introduce greenhouse gas emission trading in Korea as a highly cost-effective mechanism for controlling emissions. The Basic Act on Low-Carbon Green Growth will cover methods of emissions allocation, national inventory, and trading systems (i.e. emissions trading platforms, national registry,and clearing and settlement platforms). The Korean emission scheme will be based on the Korean Climate Change Act proposed by the National Assembly and Government with a cap-and-trade scheme. The national allowances will be allocated by the hybrid system. To establish the national inventory, TRADEMARKS (Telemetering System) and emissions factors are effective for greenhouse gas emissions measurement. It will likewise be effective for the national registry to be implemented via a Korean Integrated Registry, the emissions trading platform via the KRX (Korean Exchange), and the clearing and settlement platform via the KSD (Korean Securities Depository). In other words, the KRX will manage product development and marketing for Korean Carbon Financial Instruments (including commodities, futures, and options contracts) listed and admitted to trading on the KRX. All emissions trades will be standardized and cleared by the KSD.

• Journal of Korean Society for Atmospheric Environment
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• v.22 no.6
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• pp.912-921
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• 2006

This study examines greenhouse gas reduction potentials in cement manufacturing industry of Korea. An energy system model in the MARKAL (MARKet ALlocation) modeling framework was used in order to identify appropriate energy technologies and to quantify their possible implications In terms of greenhouse gas reduction. The model is characterized as mathematical tool for the long term energy system analysis provides an useful informations on technical assessment. Four scenarios are developed that covers the ti me span from 2000 to 2020. Being technology as a fundamental driving factor of the evolution of energy systems, it is essential to study the basic mechanisms of technological change and its role in developing more efficient, productive and clean energy systems. For this reasons, the learning curves on technologies for greenhouse gas reduction is specially considered. The analysis in this study shows that it is not easy to mitigate greenhouse gas with low cost in cement manufacturing industry under the current cap and trade method of Kyoto protocol.

• Proceedings of the KIEE Conference
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• 2011.07a
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• pp.598-599
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• 2011

Cap and Trade 제도 하에서 발전사업자는 탄소배출권 가격의 불확실성이라는 새로운 위험에 노출이 된다. 따라서 발전사업자가 전일 셀프스케쥴링을 실시함에 있어 전력 가격의 불확실성 뿐 아니라 탄소배출권 가격의 불확실성 또한 고려할 필요가 있다. 이에 본 논문에서는 전력 가격과 탄소 배출권 가격의 불확실성을 모두 고려한 발전사업자의 전일 셀프스케쥴링 문제를 고려하였다. 탄소배출권 시장의 거래상당 부분이 발전사업자에 의해 이루어지므로 전력 가격과 탄소 배출권 가격의 상관관계를 고려하여 셀프스케쥴링 문제를 정식화 하였다. 셀프스케쥴링의 결과로 나온 발전사업자의 기대수익과 기대수익의 변동성은 발전사업자의 위험회피정도에 따라 달라짐을 확인할 수 있었다.