• Title/Summary/Keyword: Cost strategy

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An Efficient Paging Strategy Based on Paging Agents of Base Stations in Cellular Mobile Networks

  • Suh, Bong-Sue;Choi, Jin-Seek;Choi, Song-In
    • ETRI Journal
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    • v.25 no.1
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    • pp.55-58
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    • 2003
  • We propose a new paging strategy to reduce paging cost by adding paging agents at base stations. When a mobile-terminated call occurs, the base stations look up the paging agents to determine if terminal paging is actually to be made. An analytical model based on a Markov chain is used to evaluate the performance of the proposed strategy. The numerical results show that the proposed strategy significantly reduces the paging cost compared with the simultaneous paging strategy.

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Aircraft fueling optimization model under a fueling cost differentiation (급유비용 차별하의 항공기 급유 최적화 모형)

  • Kim, Jun-Hyeok
    • Journal of Korean Society of Transportation
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    • v.27 no.3
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    • pp.103-109
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    • 2009
  • Aircraft fuel cost is the largest airline expenses in airlines who play a major role in air transportation system. Airlines have been making a great effort to save fuel as much as they can. Among these efforts, the systematic fueling strategy has been taken a growing attention since it is recognized as a very cost-effective fuel management strategy. The systematic fueling strategy is the fuel saving strategy in which extra amount of fuel is loaded to utilize the fueling cost differentiation among the cities where the aircraft operate. In this paper, the aircraft fueling optimization model is proposed. The proposed model is to calculate precise amount of loaded fuel to minimize overall fuel cost assuming that the aircraft routing for all aircrafts and fueling cost in all airports where the aircraft fly are given. Compared with heuristic fueling strategy, the result of the proposed model is promising. Therefore, it is expected that the proposed model plays a major role in fuel management strategy in airline operation.

Halal Orientation Strategy(HOS) Reinforces to Positive Results on Quality, Time, Cost Control and Flexibility among Halal Food Manufacturers in Malaysia Context

  • Talib, Zunirah Md;Kassim, Normalini Md;Zainuddin, Yuserrie
    • Asia-Pacific Journal of Business
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    • v.9 no.2
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    • pp.15-37
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    • 2018
  • The purpose of this paper was to explain on the conceptualisation of the Halal Orientation strategy (HOS) based on operation strategy perspective. The four variables constitute in HOS are staffing, materials, production process and storage together with transportation. By focusing on HOS, the manufacturers reinforce improvement in quality, cost control, time and flexibility of the production Halal food industry in Malaysia which is the performance objective of market competitiveness in Malaysia context. A self-administered questionnaire was designed and used to assess the significant of HOS that lead to improve quality, cost control, reduction in time and the flexibility among Halal food manufacturers in Malaysia. From a total of 443 Halal food manufacturers were involved in this study, only 137 respondents are usable for this research. The study showed significant results for the manufacturers to focus in Halal Orientation strategy (HOS) which have positive impacts on quality, cost control, time and flexibility. This research aimed to measure the HOS among food firms in Malaysia and to determine HOS in relation with the performance objective of operational outcomes.

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Downsizing and Price Increases in Response to Increasing Input Cost (제조비용 증가에 대한 대응 전략으로서 제품 크기 축소와 가격 인상의 비교 연구)

  • Kang, Yeong Seon;Kang, Hyunmo
    • 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.

Effects of Commonality Strategy in Product Line Design on Social Welfare (제품군 디자인에서 공통속성의 활용이 사회적 효용에 미치는 영향)

  • Kim, Kil-Sun
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.3
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    • pp.77-92
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    • 2008
  • Commonality strategy is a popular design practice in designing a product line as it enables the firm cost saving and simplification in design, manufacturing, and distribution processes. However the issue of commonality has been mostly analyzed from a profit maximizing firm's perspective and, to our knowledge, there is no literature that deals with the issue from a different perspective. in this paper, we consider the issue of commonality strategy from a social welfare maximization perspective, and argue that commonality strategy used in designing of public goods can bring certain benefits not just for a firm but also for consumers, i.e., for society as a whole. While we assume certain cost saving in production process due to economies of scale under commonality strategy, we conceptualize two different effects of commonality strategy, utility effect due to cost saving and weighted-averaging effect, and show how these two effects interplay to determine the design of common attribute and desirability of commonality strategy. We also discuss how the implementation of commonality strategy differs under different objectives of a product line designer : social welfare and firm's profit maximization.

Logistics Information System's Implementation Strategy of Global Company for Effective Logistics Cost Management : Focus on Case Study of 'A' Electronic Company (물류비의 효율적 관리를 위한 글로벌 기업의 물류정보시스템 구축 전략 : 'A'전자 구축사례를 중심으로)

  • Lee, Jong-Hwa;Goh, Hyun-Woo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.31 no.1
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    • pp.132-141
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    • 2008
  • This research was conducted in order to present the strategies of implementing the logistics information system for effective logistics cost management with the case study of a leading global company. The strategy for effective logistics information system can be derived from the 3 different viewpoints, Firstly the effective global logistics management can be insured by means of the efforts of the reinforced total organization. Secondly from the process-oriented perspective, we should recognize the logistics process as the core factor of the competitive strategy and innovate the logistics process itself for the logistics cost reduction. Finally, the logistics cost will be effectively managed through establishing its logistics information strategy which maximizes the utilization of the information technologies. The case study of 'A' electronics company shows that its logistics management system provides the company with various visibilities about its logistics cost and the direct and indirect benefits over billions of wons per year as well. Therefore we can conclude that the research model provided in this research is validated. This study presents the concrete implementation strategies of the logistics information system and verifies the validity of the strategies by means of the case study of a leading company.

The Operation Characteristics and Cost Analysis of an Ice Thermal Storage System (빙축열 냉방시스템의 운전특성 및 비용 분석)

  • Ahn Young Hwan;Kang Byung Ha;Kim Suk Hyun;Lee Dae Young
    • Korean Journal of Air-Conditioning and Refrigeration Engineering
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    • v.17 no.2
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    • pp.156-164
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    • 2005
  • A comparative analysis of an ice storage system has been performed on the operation cost for the four control strategies, i.e., chiller priority and chiller downstream, chiller priority and chiller upstream, storage priority and chiller upstream, storage priority and chiller downstream. Main components of the ice storage system are an ice-on-coil storage tank and a screw compressor chiller. With the simulation program, the operation cost has been evaluated from the economics of an ice storage system. It is found that the operation cost of the ice storage system is strongly dependent on the control strategy, i.e., chiller priority or storage priority, but less affected by the arrangement method, i.e., chiller upstream or chiller downstream. In case of the maximum load day, the control strategy with chiller priority and chiller upstream is supposed to obtain the reduction of operation cost. However, it is found that the control strategy with storage priority and chiller downstream is the best economical operation for most summer seasons except the maximum load day.

A study on the effect of ERP Construction strategy and IT Consulting Service Quality on Performance (ERP 구축 전략과 IT컨설팅 서비스품질이 도입 성과에 미치는 영향)

  • Ha, Tae-Yong;You, Yen-Yoo
    • Journal of the Korea Convergence Society
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    • v.9 no.9
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    • pp.217-228
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    • 2018
  • It is aimed at providing a guide for effective ERP implementation strategy in view of the need for differentiation and cost advantage strategy from competitors in introducing ERP centered on SMEs. The results show that differentiation and cost superiority and service quality are dependent on the introduction performance and mediating effect. First, the differentiation or cost advantage strategy supports the previous research results in financial performance. However, in the differentiation strategies, only the non-financial aspects were noted. Second, the differentiation and cost advantage strategy were analyzed to have financial performance only in the assurance of service quality factor and the remaining service quality was not significant in the introduction performance. Third, the mediating effect of consulting service quality was analyzed in terms of differentiation or cost advantage Did not do it. In conclusion, system construction is different from financial perspective in terms of construction strategy. In service quality factor, it affects the confidence that supplier provides, knowledge and confidence, and ability to give faith.

A Cost-efficient IPTV Strategy of Replica Placement for $3^{rd}$ Party Content Service

  • Diaz, Maria Elizabeth Aldana;Shin, Young-Rok;Huh, Eui-Nam
    • Proceedings of the Korean Information Science Society Conference
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    • 2011.06a
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    • pp.391-394
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    • 2011
  • 3rd party content service is a consumer-based wide selection of contents in which IPTV provider believes will enhance the service considerably extending the variety of contents to finally provide a personalized service. Therefore, the combination of 3rd party content services and the IPTV infrastructure creates a good revenue opportunity but they need to be created. IPTV offers to create personalized channels to distribute 3rd party content service. However, the cost of $3^{rd}$ party content delivery is high when the service is provided from a faraway server. IPTV provider requires an effective strategy of replica placement to minimize the cost without a tradeoff on the performance. We propose a cluster-based strategy of replica placement to find the right balance between cost and performance. The results demonstrate the achievement of an outstanding delivery time and low cost.

Strategy of Inventory and Inspect of small-to-medium-sized Enterprises which are getting Orders from Large Enterprises using JIT(just in time) System (JIT형의 기업에 납품하는 중소기업의 재고 및 검사 전략)

  • Ree, Sang-Bok;Ahn, Hae-Il;Kim, Kuk
    • IE interfaces
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    • v.13 no.4
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    • pp.584-590
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    • 2000
  • In this paper, we analyze the inventory and inspect cost of small-to-medium-sized enterprises which are getting orders from large enterprises using JIT(just in time) system. So far, we have not found the good inventory and inspect cost formula for the small-to-medium-sized enterprises. In this paper, we first survey the inventory and inspect strategy and cost formula of the small-to-medium-sized enterprises in this country. We are trying to mathematical modelling of several cases depending on the inventory and inspect strategy of large enterprises. We suggest inventory and inspect several cost formula by using the method minimizing the total cost of the small-to-medium-sized enterprises. We also give some numerical examples for your understanding.

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