• Title/Summary/Keyword: Cost Inefficiency

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Perceptual Study on Higher Level Digitilization Among Managers in the Logistics Industry

  • Beleya PRASHANTH;Raman ARASU;Degeras KARUNANITHY
    • Journal of Distribution Science
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    • v.22 no.1
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    • pp.25-36
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    • 2024
  • Purpose: The study attempts to explore the operational performance of the existing Malaysian logistics companies and the extent of their adoption of digitalization. The role of digitalization in enhancing the performance of companies in the logistics industry in Malaysia, for value creation, is the topic of study. Research design, data and methodology: A qualitative research method with a semi-structured interview approach was applied and judgmental sampling was used as the sampling technique to collect data. The research has chosen nine companies in the logistics industry in Peninsular Malaysia, with the interviews aimed at eleven members of top and middle-level management. Data analysis was performed using logical system techniques to examine and evaluate data, reorganizing feedback, comparing it with literature, and transforming it into structured, valuable information after interviews. Results: The study revealed mixed opinions on digitalization in logistics, despite its potential benefits such as improved operational efficiency, real-time information, and customer service. However, high costs may hinder financial performance and require revisions due to stakeholder involvement. Conclusions: The Malaysian logistics industry's adoption of digitalization is gaining traction, with most companies satisfied with their status. However, challenges like cost and inefficiency persist, prompting calls for government support to improve efficiency and reduce costs while ensuring sustainable transportation.

The Analysis of Efficiency and Productivity in the Korean and Japanese Railways: A Stochastic Cost Frontier Approach (확률적 비용변경 접근법을 이용한 한국과 일본 철도산업의 효율성과 생산성 분석)

  • Park, Jin-Gyeong;Kim, Seong-Su
    • Journal of Korean Society of Transportation
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    • v.25 no.6
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    • pp.141-157
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    • 2007
  • This paper evaluates the effects of privatization and deregulation on the firm-specific efficiency and total factor productivity (TFP) growth in the Korean and Japanese railways. Using a stochastic frontier approach and a generalized translog functional form, the paper specifies the equation system consisting of a multiproduct variable cost function and input share equations which is estimated with Zellner's iterative seemingly unrelated regression and the corrected least squares method. The Korean and Japanese railway firms are assumed to produce three outputs (Shinkansen passenger-kilometers, incumbent railway passenger-kilometers, ton-kilometers of freight) using three input factors (labor, fuel, maintenance and rolling stock). A monetary value of the ways and fixed installations held by the railroad firm is also included as a quasi-fixed input. The empirical results indicate that the average estimate of cost inefficiency is 2.57% for the total sample and on the average, JNR and JR Kyushu are found to be worst efficient while the most efficient railway firm in the sample is JR West. Also the cost efficiency levels of seven JRs have been improved after the reform and privatization of JNR. The findings also indicate that TFP growth of the privately-owned JRs are higher than those of the government-owned KNR and JNR. Three-island JRs and JR Freight have slightly higher TFP growth than Honshu JRs as well. Thus, the results suggest that managerial autonomy and increased competition via deregulation have improved efficiency and TFP growth.

Study on the Application of 3D-based BIM for School Facilities to Increase Cost Management Efficiency (교육시설물 공사비 관리 효율화를 위한 BIM 적용방안에 관한 연구)

  • Kwon, O-Bin;Son, Jae-Ho;Lee, Seung-Hyun
    • Journal of the Korea Institute of Building Construction
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    • v.10 no.6
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    • pp.49-60
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    • 2010
  • Cost Estimating allows each entity in a construction project to plan, distribute, and control its required construction cost for the project. However, existing 2D design based estimating has problems, such as inaccuracy and inefficiency caused by missing, duplicated, or erroneous calculations. In this situation, current estimations for school facilities have more difficulties in forecasting construction costs due to an inadequate work breakdown structure for BOQ (Bill of Quantity) and insufficient guidelines for Basis of Estimate. In this study, therefore, an effort was made to increase the efficiency of estimating for school facilities by applying a 3D modeling based BIM tool to quantity and cost estimates. In addition, this study suggested a reasonable work breakdown structure for BOQ that was appropriate when 3D modeling was applied, and verified it through a case study. The authors tried to provide a BIM-based estimating method for school facilities to obtain greater accuracy and efficiency by having more information in an earlier stage.

A Study on the Frame Sensor Modeling Using Standard Interface (표준 인터페이스를 적용한 프레임 센서 모델링에 관한 연구)

  • Kwon, Wonsuk;Choi, Sunyong;Lee, Yongwoong
    • Korean Journal of Remote Sensing
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    • v.30 no.1
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    • pp.75-81
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    • 2014
  • Until recently, photogrammetric applications for processing the satellite images and remotely sensed data have been used in different structure of functions and interfaces for sensor modeling by each developer. Thus, a standardized utilization procedure was necessary to solve the problems, such as expandability, cost, inefficiency of sources which were resulted from different approaches. Therefore, National Geospatial Intelligence Agency (NGA) provided unified interfaces by developing Community Sensor Model (CSM) to sensor models in same way. In this study, we suggested the method of design and analyzed main functions needed modeling for the frame sensor using CSM Application Program Interface (API) provided by NGA. We also applied the designed structure to the modeling. The implemented CSM was verified by groundToImage and imageToGround. In the future, the active R&D is expected with using CSM due to the cost saving effect of software development and remarkable expandability of sensor.

Privilege Delegation Protocol Providing Delegation Traceability Using ID-based Cryptosystem in X.509 Proxy Certificate Environment (X.509 대리 인증서 환경에서 위임 추적 기능을 제공하는 ID 기반 암호 시스템 기반 권한 위임 프로토콜)

  • Lee, Youn-Ho;Kim, Byung-Ho
    • Journal of KIISE:Computer Systems and Theory
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    • v.35 no.9_10
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    • pp.441-451
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    • 2008
  • Currently, the X.509 proxy certificate is widely used to delegate an entity's right to another entity in the computational grid environment. However it has two drawbacks: the potential security threat caused by intraceability of a delegation chain and the inefficiency caused by an interactive communication between the right grantor and the right grantee on the delegation protocol. To address these problems for computational grids, we propose a new delegation protocol without additional cost. We use an ID-based key generation technique to generate a proxy private key which is a means to exercise the delegated signing right. By applying the ID-based key generation technique, the proposed protocol has the delegation traceability and the non-interactive delegation property. Since the right delegation occurs massively in the computational grid environment, our protocol can contribute the security enhancement by providing the delegation traceability and the efficiency enhancement by reducing the inter-domain communication cost.

Conflicts in Overlay Environments: Inefficient Equilibrium and Incentive Mechanism

  • Liao, Jianxin;Gong, Jun;Jiang, Shan;Li, Tonghong;Wang, Jingyu
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.10 no.5
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    • pp.2286-2309
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    • 2016
  • Overlay networks have been widely deployed upon the Internet by Service Providers (SPs) to provide improved network services. However, the interaction between each overlay and traffic engineering (TE) as well as the interaction among co-existing overlays may occur. In this paper, we adopt both non-cooperative and cooperative game theory to analyze these interactions, which are collectively called hybrid interaction. Firstly, we model a situation of the hybrid interaction as an n+1-player non-cooperative game, in which overlays and TE are of equal status, and prove the existence of Nash equilibrium (NE) for this game. Secondly, we model another situation of the hybrid interaction as a 1-leader-n-follower Stackelberg-Nash game, in which TE is the leader and co-existing overlays are followers, and prove that the cost at Stackelberg-Nash equilibrium (SNE) is at least as good as that at NE for TE. Thirdly, we propose a cooperative coalition mechanism based on Shapley value to overcome the inherent inefficiency of NE and SNE, in which players can improve their performance and form stable coalitions. Finally, we apply distinct genetic algorithms (GA) to calculate the values for NE, SNE and the assigned cost for each player in each coalition, respectively. Analytical results are confirmed by the simulation on complex network topologies.

A Study on The Internet Connectivity in The Philippines

  • Salac, Romeo Agan;Kim, Yun Seon
    • Asia Pacific Journal of Business Review
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    • v.1 no.1
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    • pp.67-88
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    • 2016
  • This study aims to help address concerns about the growing demand of wider bandwidth Internet connection in the Philippines. Using articles and research of international organizations and content from official websites of the Philippine government, this paper has carefully examined the slow Internet connectivity and the high cost that the end-users pay for it. This paper suggests that this inefficiency hampers the motivation of users to innovate in a way that could contribute to inclusive growth and the development of an inclusive information society. Through a comparison of the current global ICT situation with the current situation in the Philippines, this paper shows that the country's Internet infrastructure lags behind among those of contemporary developing countries in Asia, particularly in terms of Internet connectivity. In 2015, Thailand had an average Internet speed of 7.4 Mbps, Sri Lanka 7.4, and Malaysia 4.3. Meanwhile, the Philippines had a meager average Internet speed of 2.8 Mbps, placing the country at 104 among 160 countries, with developed countries in Asia such as South Korea (23.6 Mbps) and Singapore (12.9 Mbps) ranking 1 and 12, respectively. Findings show that the lack of competition in the Internet connectivity market, among other reasons, is at the root of the dilemma of slow and costly Internet connection. Assessing the accomplishments of the Republic of Korea and other broadband-leading countries has provided practical insights and recommendations that can promote competitiveness. Furthermore, related literature argues how ISP practices may affect Internet speed and cost. This study offers an approach in improving Internet connectivity in the Philippines by bridging the gap between the Internet infrastructure market and government policies.

A Study on Optimized Decision Model for Transfer Crane Operation in Container Terminal (컨테이너터미널 트랜스퍼 크레인의 배정 및 이동경로 최적화 모델)

  • Shin, Jeong-Hoon;Yu, Song-Jin;Chang, Myung-Hee
    • Journal of Navigation and Port Research
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    • v.32 no.6
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    • pp.465-471
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    • 2008
  • As the excessive competition between container terminals has been deepening, not only productivity, but also cost economic of the terminals has been raised. With regard to this, the competitiveness of the terminals is limited because of inefficiency operation of transfer crane(T/C) which needs large amount of energy consumption. Therefore, it is possible that the improvement in the T/C operation leads to saving cost for resources and energy as well as increasing the productivity of the terminals. This study provides 'the K-Means Clustering based Optimized Decision Model for Transfer Crane Operation', referring to 'RFID & RTLS based Port Logistics Initiative' of Ministry of Land, Transportation and Maritime Affairs and estimates the efficiency through simulating.

Is Reducing Free Allocation Always Desirable in Emissions Trading Schemes?: A Perspective on Marginal Inefficiencies (배출권거래제에서 무상할당 비율을 낮추는 것이 항상 바람직한가?: 한계 비효율성의 관점에서)

  • Pan Sang Kang;Jiwoong Lee
    • Environmental and Resource Economics Review
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    • v.33 no.2
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    • pp.179-201
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    • 2024
  • In introducing emissions trading schemes, many countries start with a high level of free allocation to reduce the sudden cost burden on companies and increase acceptance of the policy. The free allocation is then gradually reduced, considering the risks of carbon leakage. This aligns with the "polluter pays" principle and is often considered one of the elements of an advanced emissions trading scheme. In this context, this study uses a simple emissions trading market model to show that decreasing the free allocation rate may not be desirable if the emissions market is not perfectly competitive. In particular, by identifying the existence of a free allocation rate at which the cost inefficiency is minimized, this study demonstrates that having a low level of free allocation does not necessarily imply the improvement of the emissions trading scheme.

Impact of Complementary Private Health Insurance on Public Health Spending in Korea (실손형 민간의료보험의 도입이 국민건강보험 재정에 미치는 영향)

  • Huh, Soon-Im;Lee, Sang-Yi
    • Health Policy and Management
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    • v.17 no.2
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    • pp.1-17
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    • 2007
  • Limited coverage for health care services of National Health Insurance(NHI) in Korea has been ongoing policy issue but additional NHI financing through raising contribution or taxes in order to improve coverage faces substantial obstacles. Private health insurance(PHI) is often considered as an alternative financing source to improve coverage. Recent reform that attempted to stretch the role of PHI allowed life insurance companies to provide complementary PHI, indemnity plan which will pay for uncovered services by NHI and out-of-pocket spending for covered services. Although complementary PHI may relieve financial burden of patients, it may significantly raise NHI spending as well as total health expenditure since little out-of-pocket spending may increase utilization of health care. So far, there has not been enough discussion about concerns of potential adverse effect resulting from extended role of PHI. This study investigated potential increase of NHI spending followed by extension of complementary PHI through sensitivity analysis. The amount of NHI spending for services that would be covered by complementary PHI was calculated using 2005 NHI statistics and expected complementary PHI enrollment rate by age and sex. Expected utilization increases were obtained based on price elasticities$(-0.2{\sim}-0.5)$ from previous studies and expected coverage rate$(50{\sim}80%)$ of complementary PHI and then converted to monetary figures. Because coverage rate of complementary PHI has not been determined yet, we employed the sensitivity analysis using coverage rate of $50{\sim}80%$. Findings demonstrate that additional spending for health care services is expected to be $426{\sim}1,702$ billion won, corresponding amount payed by NHI $298{\sim}1,192$ billion won. In conclusion, since complementary PHI may raise NHI spending significantly, there should be an agreement whether this additional cost would be accountable and acceptable in our society. Potential inefficiency resulting from extended role of complementary PHI should be considered since public and private financing do not operate in isolation and there should be more discussion on proper role of PHI in Korea.