Purpose - Recent issues such as vessel enlargement, strengthening of environmental regulations, and port smartization are expected to increase costs and intensify competition in the port industry. In the new normal era, when external growth has reached its limit, the efficient operation of ports is becoming indispensable for achieving sustainable growth. This study aims to identify the determinants of inefficiency by examining the cost structure and efficiency of container terminals in Korea and furthermore propose the political implications to derive the maximization of efficiency. Design/methodology - This study estimates the cost function of container terminal operators and identifies the efficiency of container terminals using stochastic cost frontier (SCF) in the first stage. In the second step, the SCF results are compared with the data envelopment analysis (DEA). Last, this paper proposes efficiency determinants on container terminal operation to establish appropriate strategies. Out of the 29 container terminal operators in South Korea, 13 operators participated in the survey. The translog cost function was estimated utilizing a total of 116 observations collected over the 2007-2017 period. Findings - Empirical analysis shows that economies of scale exist in Korea's container ports, which provides a rationale for the government's policy to establish the global terminal operator by integrating small terminal operators to enhance competitiveness. In addition, as a result of the determinants analysis, container throughput, weight of direct employment costs, and labour cost share have positive effects on improving cost efficiency, while inefficiency increases as the length of quay increases. More specifically, cost efficiency improves as the proportion of direct employment costs to outsourcing service costs increases. Originality/value - This study contributes to analyzing the inefficiency factors of container terminals through efficiency analysis with respect to a cost function. In addition, this study proposes the practical and political implications, such as establishing a long-term manpower pool, the application of the hybrid liner terminal system, and the construction of a statistical data system, to improve the cost inefficiency of terminal operators.
The importance of the life cycle cost analysis for construction projects of bridge has been recognized over the last decades. Accordingly, theoretical models, guidelines, and supporting softwares have been developed for the life cycle cost analysis of bridges. However, it is difficult to predict life cycle cost considering uncertainties precisely. This paper presents methodology for optimal design of substructure for a steel box bridge. Total life cycle cost for the service life is calculated as sum of initial cost, damage cost considering uncertainty, maintenance cost, repair and rehabilitation cost. The optimization method is applied to design of a bridge substructure with minimal cost, in which the objective function is set to life cycle cost and constraints are formulated on the basis of Korean Bridge Design Specification. Initial cost is calculated based on standard costs of the Korea Construction Price Index and damage cost on the damage probabilities to consider the uncertainty of load and resistance. An advanced first-order second moment method is used as a practical tool for reliability analysis using damage probability. Maintenance cost and cycle is determined by a stochastic method and user cost includes traffic operation costs and time delay costs.
As the functions and roles of public libraries expand, it is time for qualitative growth. In order to improve the quality of public libraries, it is important to plan actual construction costs through systematic feasibility study. Therefore, the purpose of this study is to present the guideline of construction costs considering the size and regional characteristics according to the status role of the new public libraries. The construction costs are based on actual data. The results of the study are as follows. First, we derived the analysis framework according to the size and regional characteristics. The status role of the public libraries was considered theoretically. The size was classified according to status role of the public libraries. Regional characteristics were classified through literature review. Through this, an analysis framework was derived according to size and region. Second, the actual data on construction costs of the new public libraries were examined and analyzed. Basic factors, size, area, and construction costs were analyzed for 285 libraries nationwide that opened from 2010 to 2016. The data of 129 newly opened public libraries were classified. To present construction costs depending on price fluctuation, construction cost index was analyzed as of September 2016. Third, a guideline of construction costs for new public libraries was suggested. The construction cost per $1m^2$ of building area was analyzed. By multiplying 116.70(p), the construction cost index, the construction cost per $1m^2$ of total building area was calculated to be 2,472,350 won. When applying the research result, construction costs can be gained by adding construction cost index of the month.
Recently, the number of cases of purchasing food online has been increased, especially in the open market. Therefore, we examined the characteristics of status quo bias and switching costs in the open market. Also, in this study, the causal relationship between the characteristics of status quo bias and switching costs, switching costs and switching intention in the open market was investigated. The analysis result consists of four parts as follows. First, in the open market, rational decision making, which belongs to the characteristics of status quo bias, was found to have a positive (+) effect on time switching cost among switching costs, but did not have a positive (+) effect on economic and psychological switching cost. Second, cognitive misperceptions was consistent with the assumption that it have a positive (+) effect on all of the economic, time, and psychological switching cost, which are switching costs in the open market. Third, psychological commitment was found to have a positive (+) effect on economic and time switching cost among switching costs, but did not have a positive (+) effect on psychological switching cost. Fourth, psychological switching cost, which belongs to switching costs in the open market, was found to have a negative (-) effect like the hypothesis set in switching intention. However, it was found that economic and time switching cost did not have a negative (-) effect on switching intention. This study subdivided the switching costs into three dimensions and compared the degree of influence on the switching intention, and the degree of influence was different for each dimension. Therefore, it was found that when switching from the existing open market to the new open market, it is not possible to simply judge that the switching costs directly has a negative (-) effect on the switching intention or does not.
As the importance of logistics is increasing, Enterprises try to design the supply chain(SC) network to minimize the total costs considering inventory holding cost, transportation cost and apply the efficient strategies of supply chain based on SC network. Despite of this efforts, Calculating the logistics costs without reflecting the real components of logistics like the packaging cost, transportation related cost, storage cost, loading & unloading cost, and distribution costs, the companies has many limitation to calculate the logistics cost of real enterprise. For overcoming such problem, this paper is aimed at establishing SC strategies which can be an efficient alternative for a decision making on supply chain, based on existing reference and current logistics networks of 'L' company in Korea. Also, we analyze the interaction effects between strategies as well as install the optimal SC network reflecting concrete logistics components from the viewpoint of total logistics costs using the simulation and statistic methods. we expect that analysis results of this paper would be applied various industries and be utilized to the efficient tools for the decision making by planing and execution of the logistics budget from enterprises.
Background: The subcutaneous formulation of biologic disease-modifying antirheumatic drugs (DMARDs) was preferred due to favored self-administration and would be an economical treatment option for patients with rheumatoid arthritis. This study was to compare the economic impact of biologic DMARDs administered by subcutaneous injection in patients with rheumatoid arthritis who had inadequate response to conventional DMARDs. Methods: The cost-minimization analysis was conducted to estimate the lifetime health care costs of treatment sequences with subcutaneous biologic DMARDs as first-line therapy from a health care system perspective. The Markov model was developed to represent the transitions through treatment sequences based on American College of Rheumatology response rate and discontinuation rate. The health care costs comprised the cost of medications, administration, dispensing, outpatient visits, test/diagnostic examination, palliative therapy and treatment of serious infection. All costs were expressed in 2016 Korean Won (KRW) and discounted at 5%. Results: The mean lifetime health care cost per patient was lowest in the etanercept sequence, which was estimated at KRW 63,441,679. The incremental costs of the treatment sequence started with adalimumab, golimumab, abatacept, and tocilizumab were KRW 7,985,730, KRW 4,064,669, KRW 2,869,947, and KRW 4,282,833, respectively, relative to etanercept sequence. These differences in costs mainly were attributable to medication costs. One-way and probabilistic sensitivity analyses confirmed that etanercept represented the option with the lowest cost compared with comparators. Conclusion: This study found that etanercept is likely a cost-saving treatment option among subcutaneous biologic DMARDs in patients with rheumatoid arthritis.
Cost-benefit analysis was investigated to propose the analysis method of the effect of investment and the optimum investment level of safety management cost for preventing gas accident in the B governor station. From five classifications of safety management costs consisting of cost items with similar characters and potential accident costs calculated by risk assessments(FMEA/HAZOP), we found that the order of the benefit(the reduction cost of the potential accident cost) was the instrument increase and repair cost > the safety checking and inspection cost > the labor and training cost > the safety equipment and corresponding cost > the research and development cost. As the benefit was increased with increasing the investment cost, the effect of investment was increased with decreasing the Investment cost. As a result, the optimum safety management cost was estimated and the investment level was analyzed by the model of optimum investment level.
Objectives : To evaluate the cost and proportion of complementary and alternative medicines (CAM) in the total healthcare costs among the elderly in the last 6 months of life. Methods : The care-giving families of 301 persons older than 65 years, who died between July 1st and December 31st of 2001, and were also registered in Self-Employed Health Insurance Programs in Seoul, were interviewed. Results : The cost of CAM was 1.09 million Won, which as a proportion of the total healthcare cost was 38.1%. The elderly aged between 65 and 69 year-old, male, living with their spouse, Buddhist and having cancers had higher CAM costs in an ANOVA and simple regression analysis. After controlling of various factors, age was the only significant factor associated with the cost of CAM. The elderly above 80 years old, female, bereaved and Buddhist had higher proportional CAM costs, and the elderly having cancers or cardiovascular diseases had lower proportional CAM costs in an ANOVA and simple regression analysis. After adjusting for various factors, the elderly above 85 years old, female and Buddhist had higher proportional CAM costs, and the elderly having cancers had lower proportional CAM costs. Conclusion : The very old and Buddhist, and/or the ill with no clear diagnosis, may depend more on CAM. Further research will be needed on the meaning and impact of CAM and their costs to public health and the total healthcare system.
This study has examined the principle of rationalization as a guiding principle in fisheries management. Generally speaking, the guiding principle of business management is the principle of profitability which is oriented to the profit maximization, but it has been insisted by Dr, Mohri that the principle of profitability should be translated into the maximization of ratio of added value on gross capital, According to Dr. Durcker, added value (contributed value) can be used to analyze productivity only if the allocation of costs which together make up the figures is economically meaningful. Therefore, the rationalization of fisheries management can be measured as a result of economic allocation of costs, The analysis of economic allocation of costs divides into macro-allocation of costs and micro-allocation of costs. In fisheries management, the former makes use of the analysis of break-even point, and the latter analyzes the efficiency of individual cost respectively and the state of division of costs which allocate into above-the-line expenses of lay system and management's burden expenses. In macro-allocation of costs, it is advisable that fixed costs be converted into variable costs. This is characteristically possible in fisheries management, because wages belong to variable costs in fisheries management while they are regarde as fixed cost in the other industires. Because we could find that all costs would belong to above-the-line expenses, in micro-allocation analysis, the very costs which are directly related to fisherman's poduction activity should be classified into above-the-line expenses, and the other costs into management's burden expenses. This is a central problem in the rationalization of fisheries management.
Objective : To evaluate the relative benefits and the costs associated with the introduction of the new pharmaceutical provision called 'Mandatory Prescription System' which separates the role of physicians from that of pharmacists with respect to the prescription and dispensation of from the perspective of consumers (i.e., patients). Methods : The costs of the system were measured by considering both direct and indirect costs. Direct costs included additional payments for ambulatory care and dispensing fees that occurred under the new system. indirect costs consisted of transportation expenses and costs related to time spent for physician consultation, waiting for the prescriptions to be filled, and extra traveling. Benefits identified in this study were the reduction of drug misuse and overuse, and the overall decrease in drug consumption among the Korean population. Sensitivity analysis was peformed for the inclusion of benefits for outpatients of hospitals, price elasticity, and increased fees for established patients. Results : The net benefit was estimated to be about minus 1,862 billion won and the benefit-cost ratio was 0.478. This indicates that the costs of 'Mandatory Prescription' outweigh its benefits, relative to the previous system. The sensitivity analysis results for all the variables considered in this study consistently showed the benefit-cost ratio to be less than 1. Conclusion : The results of this study suggest that implementing Mandatory Prescription System in Korea might be inefficient from the consumer's perspective. The results of this study do not coincide with the results of previous studies, presumably because of the differences in study design and in which items of costs and benefits were considered.
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