• Title/Summary/Keyword: Decision Cost

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A Study on the Development of Life Cycle Cost Analysis Methodology in HVAC system for Decision Maker (의사 결정자를 위한 HVAC 시스템의 LCC 분석 방법론 개발에 관한 연구)

  • Jung, Soon-Sung
    • Journal of the Korean Solar Energy Society
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    • v.24 no.4
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    • pp.55-63
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    • 2004
  • The purpose of this study is to development of life cycle cost analysis methodology of HVAC system for decision maker. The results of this study are as follows; maintenance/management, equipment construction, planning/design, and demolition/sell phases (1) To develop the cost breakdown structure for LCC in HVAC system, this study apply the method of additional pertinent level, title, CBS number, block number and variable index. (2) LCC analysis order of HVAC system compose four phase. (3) Life cycle costing influence diagram can bring us to make the most efficient decision through a visual graphical diagram that is shown relationship among variables and that decision maker traces easily from life cycle cost analysis situation.

Web-Based Cost Planning Program for High-Rise Office Building (고층 사무소건축의 공사비계획을 위한 웹 기반 개산견적 프로그램)

  • Kim Ki-Hong;Park Chan-Sik;Chang Sun-Ho
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.2 s.24
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    • pp.69-79
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    • 2005
  • The Purpose of cost Planning at the early Phase of construction Projects is to provide the clients with the appropriate cost information during the design decision-making process. Therefore, the cost planning process is expected not only to predict projects' cost accurately but also closely to coordinate with the design decision-making activities. This paper proposes a new cost planning method for the effective and efficient directions relating a design decision-making process. Strategies for this method are i ) to utilize elemental cost breakdown system, and ii ) to apply probabilistic distribution theories. Based on these strategic direction, this paper proposed a probabilistic cost planning model for high-rise office building projects. The suggested model provides appropriate cost information to meet clients limited budget and various project' requirements during the design decision-making process. This study is based on probabilistic distribution variables theories and the range estimating technique. This study also develops a web-based software program in order to apply the proposed cost planning model effectively in high-rise of office building construction practices.

An Analysis of the Cost Structure of Railway Freight Industry in Korea (철도화물의 원가구조분석에 관한 연구)

  • Kwon Yong-Jang;Kim Hyun-Woong
    • Proceedings of the KSR Conference
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    • 2005.05a
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    • pp.1115-1124
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    • 2005
  • The usual distinction made in the literature is between decision facilitating and decision influencing. Because time only runs one way, both uses of cost information are problematic. In the first instance, a cost description (measurement or estimate) is provided to decision makers before a decision is made. Unfortunately, costs can only be measured after the fact. This means that cost analysts must estimate the costs of the alternatives under consideration. In some cases, measured cost is a reliable predictor of future costs; in other cases it is not. Regardless of its reliability, however, it is all we have or can have. Consequently, managers must be informed as to how their performance will be measured and how measured performance will affect outcomes they care about -- promotion, pay, esteem, etc. I will outline the basic approaches to cost measurement and then show how cost measures can be used to facilitate and to influence decisions of the railway industry.

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The Estimation Analysis Method of the Annual Operation Cost of Korean High-rise Condominiums

  • Ko, Eun Hyung;Choi, Jun Young
    • Architectural research
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    • v.7 no.1
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    • pp.11-18
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    • 2005
  • In today's building industry the emphasis has been geared more towards construction, thus building maintenance and life cycle have been neglected until now. A direct result of this neglect is the rapid aging of building, which leads to more cost-effective decision making methods for the prolongation of building life span. The following study is conducted in the area of Daegu and Seoul in order to develop the estimation analysis method of the annual operation cost of the Korean high-rise condominiums for the cost-effective decision making support through mathematical and statistical analyses including the present value and standardized measurement corrections. Based on the assumption that the life expectancy of the high rise condominium is 50 years, initial cost is ₩421,212/$m^2$, and a total sum of yearly operation cost during life expectancy is ₩2,154,499//$m^2$), yearly accumulated operation cost is shown as below: $AOC=0.7097t^4-38.803t^3+806.95t^2+11045t-496.52$ ($R^2=0.98$) (Here, AOC = Accumulated Operation Cost, t = given years)

A Decision Making Process for Improving Quality Cost : A Case Study of C&C Product Failure Cost (품질비용 개선을 위한 의사결정 프로세스 연구 : C&C 제품 실패비용 사례 분석)

  • Lee, Dong-Han;Chae, Hwa-Sung
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.33 no.2
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    • pp.162-169
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    • 2010
  • This paper analyzes the difference between theoretical cost of quality and real world cost. Examined are the theoretical cost structure of quality, it's measurement styles, a process based improvement strategy of quality cost, and possible adaptation of decision making concepts in enhancing the cost structure. This study will contribute to the literature in delineating an improvement process of quality cost by adjusting service policy.

A Study on the Multi-Criteria Decision Making for Effect Analysis and Decision Making of Weapon System (무기체계의 효과분석과 의사결정을 위한 다기준분석 방법론의 연구)

  • Lim, Sung-Hoon;Cho, Ki-Hong;Park, Seung
    • Journal of the Korea Institute of Military Science and Technology
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    • v.12 no.5
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    • pp.557-562
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    • 2009
  • Weapon system currently considers the research about effect analysis including cost effectiveness methodology for a budget management and an achievement of the military strategy goal. So that, this study considers the theoretical background, strength and weakness of several Multi-Criteria Decision Making, and an effect analysis of weapon system. And AHP(Analytic Hierarchy Process) is selected for the best effect analysis methodology of weapon system. Therefore, we applied AHP to the case study of the new generation Multiple Launcher Rocket System, performing the analysis of cost effectiveness methodology. Using AHP and cost effectiveness methodology, we propose the actual and proper decision making result.

An AHP Procedure for Selecting the Best Facility under Uncertain Cost Attributes (비용추정이 불확실한 상황하에서 AHP을 이용한 최적설비 선정방법)

  • Kim, Seong-Jip;Park, Hong-Seok
    • Journal of Korean Society for Quality Management
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    • v.22 no.3
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    • pp.66-84
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    • 1994
  • The investment to advanced manufacturing techniques is essential to reinforcement of furture competitiveness. To make a decision for selecting an appropriate manufacturing facility is very important ; it is, however, rather difficult to get a precise evaluation through conventional cost analysis methods. The supreme decision-maker does not only take into consideration tangible cost attributes in decision-making ; he also takes into account such intangible attributes as strategic ones. This study combines Analytic Hierarchy Process and Simulation in order to graph the variations of weighted indices of alternatives for effective decision making when cost attributes are uncertain. A numerical example is illustrated to explain the basic mechanics of the proposed decision procedure.

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Cost Stickiness and Investment Efficiency

  • OH, Hyun-Min
    • The Journal of Industrial Distribution & Business
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    • v.13 no.1
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    • pp.11-21
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    • 2022
  • Purpose: This study predicted cost asymmetry as a determinant of investment efficiency, and empirically analyzed the relationship between cost stickiness and investment efficiency. Research design, data and methodology: Using a sample of 4,382 Korean firm-year observations over 2011-2017 period, I examined the relationship between cost stickiness and investment efficiency. Asymmetrical cost behavior is measured as model of Homburg and Nasev (2008) and model of Park, Koo, and Pae (2012). Investment efficiency is measured as Chen, Hope, Li, and Wang (2011)'s model. Results: Firms with cost stickiness are less efficient in their investment than firms with non-cost stickiness. In other words, cost stickiness is an empirical result that supports the previous research on cost decision-making from perspective of managers pursuing private benefits due to information asymmetry. Conclusions: By showing that the manager's decision-making on the cost behavior affects the investment efficiency corresponding to capital management, the implications for the mechanism for efficient capital management are provided. Through the empirical results, it was shown that the cost stickiness is a product of opportunistic cost decision-making due to information asymmetry, and it is to present evidence that expands the meaning of the causes of asymmetric cost behavior.

A Decision-making Strategy to Maximize the Information Value of Weather Forecasts in a Customer Relationship Management (CRM) Problem of the Leisure Industry (레저산업의 고객관계관리 문제에서 기상예보의 정보가치를 최대화시키는 의사결정전략 분석)

  • Lee, Joong-Woo;Lee, Ki-Kwang
    • Korean Management Science Review
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    • v.27 no.1
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    • pp.33-43
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    • 2010
  • This paper presents a method for the estimation and analysis of the economic value of weather forecasts for CRM decision-making problems in the leisure industry. Value is calculated in terms of the customer's satisfaction returned from the user's decision under the specific payoff structure, which is itself represented by a customer's satisfaction ratio model. The decision is assessed by a modified cost-loss model to consider the customer's satisfaction instead of the loss or cost. Site-specific probability and deterministic forecasts, each of which is provided in Korea and China, are applied to generate and analyze the optimal decisions. The application results demonstrate that probability forecasts have greater value than deterministic forecasts, provided that the users can locate the optimal decision threshold. This paper also presents the optimal decision strategy for specific customers with a variety of satisfaction patterns.

Ordering Model of Fingerlings in Aquaculture Farm (치어 주문모형에 관한 연구)

  • Eh, Youn-Yang;Song, Dong-Hyo
    • The Journal of Fisheries Business Administration
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    • v.48 no.3
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    • pp.47-59
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    • 2017
  • Fish mortality is the most important success factor in aquaculture management. To order fingerlings considering the effect of mortality is a important problem in aquaculture farm. This study is aimed to decision the number and size of fry in aquaculture farm. This study build the mathematical model that finds the value of decision variable to minimize total cost that sums up the fingerling purchasing cost, aquaculture farm operating cost and feeding cost under mortality constraint. The proposed mathematical model involve biological and economical variables: (1) number of fingerlings (2) fish growth rate (3) mortality (4) price of a fry (5) feeding cost, and (6) possible order period. Numerical simulation model presented here in. The objective of numerical simulation is to provide for decision makers to analyse and comprehend the proposed model. When extensive biological and cost data become available, the proposed model can be widely applied to yield more accurate results.