• International Journal of Advanced Culture Technology
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• v.9 no.3
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• pp.271-276
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• 2021

In this paper we analyze the effect of the credit period on inventory policy under trade credit with ordering cost including a fixed cost and freight cost, where the freight cost has a quantity discount. For marketing purposes, some supplier offers credit period to his buyer to stimulate the demand for the product he produces. The delay in payments during the credit period has the effect of reducing the buyer's capital opportunity cost. It is also assumed that the buyer pays the freight cost for the order and hence, the ordering cost consists of a fixed ordering cost and a variable freight cost which depends on the order quantity. As a result, the possibilities of trade credit and discounts on freight costs are expected to play an important role in the buyer's inventory policy. Based on the economic order quantity inventory model, we analyze how the buyer can determine the optimal inventory policy and we examine the effect of the length of credit period on the buyer's inventory policy.

• Journal of Korean Society for Quality Management
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• v.19 no.1
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• pp.103-114
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• 1991

This article is concerned with cost analysis in warranty policy. The warranty cost can be different according to warranty rate and warranty renewal policy. In this paper the stepdown warranty policy is analyzed. Assuming the nonrepairable item, manufacturer's cost is calculated in stepdown warranty policy and free replacement, pro-rata, hybrid policy. Numerical examples are given over Weibull time-to-failure distribution.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.12 no.20
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• pp.39-45
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• 1989

This article is concerned with cost analysis in product warranty policy. The warranty cost can be different according to warranty rate and warranty renewal policy. In this paper the stepdown warranty is used. The warranty renewal policy is considered when the warranty is received upon free replacement period as item failing. Assuming the non repairable item as one item is sold, investigated manufacturer's cost in stepdown warranty policy. Also manufacturer's cost is calculated in the free replacement. pro-rata. hybrid policy. Numerical example is given over Weibull time to failure distribution, comparing stepdown warranty policy with free replacement, pro-rata, hybrid one in the manufacturer's point of view. The sensitivity analysis of warranty cost according to the number of warranty period step is included.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.6 no.8
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• pp.93-103
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• 1983

In this paper, we study an optimal service policy of the M/M/2/K queueing system with two types of customers. The incurred costs consist of waiting cost, service cost and incurred costs consist of waiting cost, service cut and changeover cost. The changeover cost occurs when a server who assigned to serve a particular type of customers reassigned to the other types of customers. Two servers serve two types of customers who arrive to the two separate queues. The two types of customers differ in respect of their arrival rate, service rate, waiting cost, and service cost. The servers require a policy, for determining when they should change their service type, which minimizes the long run expected total cost. The policy is obtained by a Markov decision process model that consists of a finite number of states and actions. In order to find the optimal service policy, we define states and actions of the system, compute onestep transition probabilities, and apply to the successive approximations algorithm.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.11 no.17
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• pp.55-65
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• 1988

This article suggests the costs analysis of resumer's view under the stepdown warranty is renewd whenever a failure occurs in the warranty period. And the general warranty policy is showed such as free replacement policy prorata warranty policy, hybrid warranty policy. In this respect case, the cost of consumer is also calculated. In order to study the cost analysis of consumer. "RENEWAL THEORY" is introduced and the cost of consumer is calculated.alculated.

• IE interfaces
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• v.20 no.3
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• pp.353-362
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• 2007

This paper proposed the calculation method of the avoided cost for natural gas and district heating DSM programs. And the proposed method is applied to real DSM programs. The avoided cost for natural gas consists of commodity avoided cost, supply equipment avoided cost, storage equipment avoided cost, and electric power avoided cost. In case of the district heating, avoided cost consists of heat generation equipment avoided cost, heat energy avoided cost, environment avoided cost, and electric power avoided cost. This method can be used to evaluate the benefit of DSM programs quantitatively in cost. Therefore, this method can contribute to make the cost-effectiveness evaluation system and to operate the DSM programs for natural gas and district heating effectively.

• Journal of Applied Reliability
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• v.6 no.2
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• pp.151-161
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• 2006

This article is concerned with cost analysis model in periodic maintenance policy. The repair policy is differently applied according as unit importance during an item being used and unit restoration during an item being failed. So in this paper the repair policy with minimal repair is considered as follow : as the occurrence of failure between minimal repair and periodic interval time, unit is replaced by a spare unit until the periodic maintenance time arrived. Then total expected cost per unit time is calculated according to scale parameter of failure distribution in a view of customer's. The total expected costs are included repair and usage cost : operating, fixed, minimal repair, periodic maintenance and spare unit cost. Numerical example is shown in which failure time of item has Erlang distribution.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.5
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• pp.511-520
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• 2015

Inventory, cost, and the level of service are three interrelated key metrics that most supply chain organizations are striving to optimize. One way to achieve this goal is to create a simulation model to conduct sensitivity analysis and optimization on several different supply chain policies that can be implemented in actual operation. In this paper, a case of Xerox global supply chain modeling and analysis to assess several "what if" scenarios for the consumable policy safety stock is presented. The simulation model, combined with analytical cost model and optimization module, is used to optimize the policy safety stock level to achieve the lowest total value chain cost. It was shown quantitatively that the policy safety stock can be reduced, but it is offset by the inbound premium transportation cost to expedite supplies in shortage, and the outbound premium transportation cost to send supplies to customers via express shipment, requiring fine balance.

• Journal of Korean Society for Quality Management
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• v.14 no.2
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• pp.28-32
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• 1986

This paper studies a new replacement policy in case that average repair cost rate increases linearly in proportion to time t. At the moment when the repair cost rate reaches or exceeds a fixed level, the component is replaced. This policy is compared with the economic lifetime policy. Advantages of this model according to the increment of replacement cost is shown in numerical example.

• Health Policy and Management
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• v.3 no.1
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• pp.25-52
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• 1993

Variation in the utilization of medical services is a very important issue in cost containment and quality assurance of health care. Practice variation directly affects health care expenditure especially in fee-for-service system, which is the payment system of health insurance in Korea. In addition to cost issue it is generally accepted that variations in medical practice and the cost of inpatient care suggest the possibility of inappropriate quality of care. This study is to closely examine the patterne and degrees of variation in cost structure of inpatient care among types of hospital and individual hospitals in some tracer diseases, and also to inquire into the service items which contribute much to the variation of total medical care cost. Foru common diseases, i.e. Cesarean Section, appendectomy, cataract extraction and pediatric pneumonia, were selected as tracer diseases. In most tracer diseases there were statistically significant differences in total medical care cost among hospitals in same type of hospital as well as among types of hospital(p<0.01). When total medical care cost were subdivided into the types of service, cost of medication and diagnostic examination varied the most prominenly. When the cost of medication were subdivided again, cost of parenteral antibiotics showed the most prominent variation. Of total medical care cost, medication was most contributory to the variation of total medical care cost(58.1~82.3%), and cost of antibiotics was most contributory to the variation of medication cost(63.9~92.2%). The results of study implicated that reducing the variation of medication may plays a significant role in containing the cost of inpatient care. In order to sort out the factors affecting practice variations including drug prescription pattes further researches are required.