• Title/Summary/Keyword: Economic Production Quantity

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An Analysis of Contribution Rates of Irrigation Water and Investment for Farmland Base Development Project to Rice Production (농업용수(農業用水)와 농업생산기반조성사업투자(農業生産基盤造成事業投資)의 미곡생산기여도(米穀生産寄與度) 분석(分析))

  • Lim, Jae-Hwan
    • Korean Journal of Agricultural Science
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    • v.31 no.2
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    • pp.135-148
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    • 2004
  • Rice is not only main food but also key farm income source of Korean farmers. In spite of the above facts, rice productivity was decreased on account of drought in every 2 or 3 years interval owing to the vulnerability of irrigation facilities throughout Korea in the past decades. As an context of the first five year economic development plan, all weather farming programme including 4 big river basin comprehensive development projects and large and medium sized irrigation water development projects were carried out successfully. Therefore the area of irrigated paddy were increased from 58% in 1970 to 76.2% in 1999. In the past decades, the Government had invested heavy financial funds to develop irrigation water but as an factor share analysis, the contribution rates of irrigation water and investment for farmland base development project have not been identified yet in national agricultural economic level. It is very scarce to find out the papers concerned to macro-economic factor share analysis or contribution rates of water and investment cost to rice production value in Korea considering the production function of the quantity of irrigation water and investment cost as independent variables. Accordingly this paper covered and aimed at identifying (1) derivation of rice production function with the time serial data from 1965 to 1999 and the contribution rates of irrigation water and total investment cost for farmland base development project. The analytical model of the contribution rates was adapted the famous Cobb-Douglass production function. According to the model analysis, the contribution rate of irrigation water to rice production in Korea was shown 37.8% which was equivalent to 0.28 of the production elasticity of water. The contribution rate of farmland base development project cost was revealed 22% and direct production cost of rice was contributed 60% in the growth of rice production and farm mechanization costs contributed to 18% of it respectively. The two contribution rates comparing with the direct production cost were small but without irrigation water and farmland base development, application of high-pay off inputs and farm mechanization might be impossible. Considering the food security and to cope with the frequent drought, rice farming and investment for the irrigation water development should be continued even in WTO system.

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Optimal Design of Batch-Storage Network (회분식 공정-저장조 그물망 구조의 최적설계)

  • 이경범;이의수
    • Journal of Institute of Control, Robotics and Systems
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    • v.4 no.6
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    • pp.802-810
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    • 1998
  • The purpose of this study is to find the analytic solution of determining the optimal capacity of processes and storages to meet the product demand. Recent trend to reduce product delivery time and to provide high quality product to customer requires the increasing capacity of storage facilities. However, the cost of constructing and operating storage facilities is becoming substantial because of increasing land value, environmental and safety concern. Therefore, reasonable decision making about the capacity of processes and storages is important subject for industries. The industrial solution for this subject is to use the classical economic lot sizing method, EOQ(Economic Order Quantity) model, trimmed with practical experience but the unrealistic assumption of EOQ model is not suitable for the chemical plant design with highly interlinked processes and storages. This study, a first systematic attempt for this subject, clearly overcomes the limitation of classical lot sizing method. The superstructure of the plant consists of the network of serially and/or parallelly interlinked processes and storages. A novel production and inventory analysis method, PSW(Periodic Square Wave) model, is applied. The objective function of optimization is minimizing the total cost composed of setup and inventory holding cost. The advantage of PSW model comes from the fact that the model provide a set of simple analytic solution in spite of realistic description of material flow between process and storage. The resulting simple analytic solution can greatly enhance the proper and quick investment decision for the preliminary plant design confronting diverse economic situation.

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Bioeconomic Management Policy for Fisheries Resources (생물경제학적 어업자원 관리정책에 관한 연구)

  • PYO, Hee-Dong;KWON, Suk-jae
    • Journal of Fisheries and Marine Sciences Education
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    • v.16 no.1
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    • pp.84-98
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    • 2004
  • Due to a publicly owned resources, the overexploitation of the fisheries resources can result in externalities in the form of reduced future levels of yield. These problems can be theoretically improved through effective management of the fishery. The paper illustrates maximum sustainable yield(MSY), maximum economic yield(MEY) and F0.1 level of fishing mortality as the concept of optimal yield, and it theoretically shows that MSY is more appropriate for the optimal yield than MEY where prices increase even though MEY achieves the maximization of economic rent in a fishery assuming constant prices. And the paper presents several fisheries management tools and policies such as input controls, output controls and taxes. As the traditional approach to fishery management, input controls involve restrictions on the physical inputs into the production process(e.g. capital, time or technology) and output controls involve limits on the quantity of fish that can be landed. To introduce user cost into the harvest decisions of rent-seeking fishers, taxation, as a bioeconomic management policy of the fisheries, directly addresses the problems associated with the resource being unpriced. As most fisheries management plans, however, have increasing fisher income as an objective, taxes have not been introduced into any fisheries management policies despite their theoretical attraction.

A study of production Management application status, analysis and set up reasonable production management System model for Small-medium industry Company in Korea (국내 중소광공업의 생산관리 적용 실태분석과 그 적정 모델설정에 관한 연구)

  • 신용백;김원중;김광섭
    • Journal of the Korean Professional Engineers Association
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    • v.14 no.2
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    • pp.52-61
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    • 1981
  • In Korea Small-medium Companies Constitutes 96.5% of all of the mining and manufacturing industries, about 35.7% of the total production of value added business, an average of 35% of the actual export of industrial goods and 47.6% of employment since present at the end of 1979. Now then Small-medium Industry Companies organization style constitutes 78.6% of a form of private company and 81.2% of the total on an small scale under 50 persons inregular employee. Specially, the trouble of business management of the mining and manufacturing Companies in Korea are constituted average 28.3% of production management ill the worst trouble of business management from 1973 to 1979 and small-medium industry Companies are the same of about more than 30% of production management in the trouble of business management. In this cases, the status of production management is effected by small-medium industry companies are the style of non-system and non-organization, but then 13parts in production management operations have the many trouble problems. In this circumstances a change for the better of production management operations in small medium industry companies are suggested the application effects and achievement points of production management, it is suggested a kind of variety and a small quantity, production management system of small-medium industry Company. And then Industrial Engineering technics is applied systematic route and the company grow more than better its physical condition for the improve productivity applied system approach for production management. There for the chapter 4-5 of this paper treats of a rational production management system approach, it make a emphatic major point of high level of economic growth of small medium Industry enterprise.

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A Batch Sizing Model at a Bottleneck Machine in Production Systems (생산라인의 병목공정에서 배치크기 결정 모형)

  • Koo, Pyung-Hoi;Koh, Shie-Gheun
    • Journal of Korean Institute of Industrial Engineers
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    • v.33 no.2
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    • pp.246-253
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    • 2007
  • All of the machines in a production line can be classified into bottleneck and non-bottleneck machines. A bottleneck is a resource whose capacity limits the throughput of the whole production facility. This paper addresses a batch sizing problem at the bottleneck machine. Traditionally, most batch sizing decisions have been made based on the EOQ (economic order quantity) model where setup and inventory costs are considered while throughput rate is assumed to be given. However, since batch size affects the capacity of the bottleneck machine, the throughput rate may not be constant. As the batch size increases, the frequency of the setup decreases. The saved setup time can be transferred to processing time, which results in higher throughput. But, the larger batch size may also result in longer lead time and larger WIP inventory level. This paper presents an alternative method to determine batch size at the bottleneck machine in a manufacturing line. A linear search algorithm is introduced to find optimal throughput rate and batch size at the same time. Numerical examples are provided to see how the proposed method works and to investigate the effects of some parameters.

Technical Development of Environment Control Complex of Micro-climatic Factors for Oyster Mushroom Cultivated in Protected Environment (복합 환경제어형 새송이 버섯 시설재배의 기술개발)

  • Suh, Won-Myung;Yoon, Yong-Cheol;Kim, Woong-Gyu
    • Proceedings of the Korean Society of Agricultural Engineers Conference
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    • 2002.10a
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    • pp.121-124
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    • 2002
  • King Oyster(Pleurotus eryngii) is one of the most promising mushrooms produced on the domestic farms. The quality as well as quantity of King oyster is sensitively affected by micro climate factors such as temperature, relative humidity, $CO_2$ concentration, and light intensity. To safely produce high-quality King oysters year round, it is required that the environmental factors be carefully controlled by well designed structures equipped with various facilities and control systems. In this study, we are focusing on carrying out growing experiment to find out reasonable range of each environmental factor together with economic and safe structures influencing on the optimal productivity of king oyster mushroom. The optimal productivity will be evaluated by considering the quality and quantity of mushroom production, energy requirements, facility construction and management cost, etc.

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An Integrated Production and Inventory Model in a Single-Vendor Multi-Buyer Supply Chain (단일 공급자 다수 구매자 공급체인에서 통합 생산 및 재고 모형)

  • Chang, Suk Hwa
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.3
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    • pp.117-126
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    • 2015
  • This paper is to analyze an integrated production and inventory model in a single-vendor multi-buyer supply chain. The vendor is defined as the manufacturer and the buyers as the retailers. The product that the manufacturer produces is supplied to the retailers with constant periodic time interval. The production rate of the manufacturer is constant for the time. The demand of the retailers is constant for the time. The cycle time of the vendor is defined as the elapsed time from the start of the production to the start of the next production, while the cycle times of the buyer as the elapsed time between the adjacent supply times from the vendor to the buyer. The cycle times of the vendor and the buyers that minimizes the total cost in a supply chain are analyzed. The cost factors are the production setup cost and the inventory holding cost of the manufacturer, the ordering cost and the inventory holding cost of the retailers. The cycle time of the vendor is investigated through the cycle time that satisfies economic production quantity with the production setup cost and the inventory holding cost of the manufacturer. An integrated production and inventory model is formulated, and an algorithm is developed. An numerical example is presented to explain the algorithm. The solution of the algorithm for the numerical examples is compared with that of genetic algorithm. Numerical example shows that the vendor and the buyers can save cost by integrated decision making.

Material Intensity of Korea's Steel and Iron, Using MIPS Methodology (MIPS를 이용한 국내 철강의 물질집중도(Material Intensity) 연구)

  • Kim, Yu-Jeong;Heo, Eunn-Yeong;Kim, Seong-Yong
    • Economic and Environmental Geology
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    • v.41 no.5
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    • pp.497-507
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    • 2008
  • This study identified and quantified the hidden flows for steel and iron production in Korea using MIPS (Material Input per Service) methodology. In order to estimate the input orientated impact on the environment caused by the manufacture or services of a product, MIPS indicates the quantity of resources used for this product or service. In 2005, 71 million tons of raw materials were used to produce $17.6 million of added value and 4.8 thousand tons of finished steel. The amount of natural resources extracted from natural environments for the purpose of steel production was 245 million tons of TMR(Total Material Requirement), 1524 million tons of water, and 34 million tons of air. The material intensities for steel production by natural inputs (raw materials and energy) was 4.3 ton/ton of TMR, 28 ton/ton of water, and 0.5 ton/ton of air.

Sustainable Development Plan for Domestic Forest Aggregate Development according to Transport Distance (운반거리에 따른 국내 산림골재 개발의 지속 개발 방안)

  • Lee, Dong-Kil;Lee, Jin-Young
    • Economic and Environmental Geology
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    • v.54 no.5
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    • pp.495-503
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    • 2021
  • Aggregate is a major natural resource used in SOC construction, such as housing, roads, ports, etc., and is a fundamental material for national construction. Although aggregates account for only about 4% of the construction cost, aggregates occupy about 80% of the construction volume and are essential factors that determine the quantity and quality of buildings. For river, underwater, riverbed, sea, and land aggregates, it is difficult to rapidly increase the production of aggregates when there is difficulty in supply and demand due to environmental problems and limited resources during production, whereas forest aggregates are relatively easy to increase production. Forest aggregates are considered promising as alternative aggregate resources in the future when reducing other aggregates due to their abundance of natural resources, and are an effective aggregate source that can flexibly respond to aggregate demand in accordance with well-organized plans and policies. This study proposed the plan for activating the development of forest aggregates in the case of long and short transport distances, which is a factor that has a great influence on the development, and measures for the current difficulties in forest aggregate development

Economic Analysis of Rice Production by Seed Broadcasting -In the Case of Daeho Large Scale Tidal and Development Area- (수도 직파재배의 경제성분석 -대단위 대호간척농지를 중심으로-)

  • Lim, Jae Hwan;Ryu, Yong Hee
    • Korean Journal of Agricultural Science
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    • v.23 no.2
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    • pp.301-322
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    • 1996
  • This study is first aimed at identifying the possibility of labour saving and production cost decreasing in rice production with respect to seed broad casting technology. Comparison of labour inputs and production costs of rice in-between USA and Korea and recommendation of policy guidelines for the continous rice cultivation are the second objective of this study. Under the WTO system, rice enterprice is the most vulnerable crop in the sense of labour productivity and price competitiveness in the international market. How to adapt labour saving technology and how to decrease production costs are the most imminent problems to be solved in rice production. To achieve the objectives, survey on nine rice enterprice farms were made in Daeho tidal farmland with respect to the size of farm, labour inputs, productivity, farm mechanization and farm land base development. The existing data on labour saving technology by seed broadcasting which had surveyed by Rural Development Administration were collected to compare the surveyed data from Daeho tidal farm land The study results and policy recommendation are summarized as follows; 1. Labour requirements per 10a for rice enterprise farms with seed broadcasting and with transplanting were estimated 11.4 and 18.5hours respectively. 'This above labour inputs were equivalent to 1/3-1/5 of the national average labour inputs of 53.6 hours which were included transplanting and harvesting by machinery. Considering the labour requirement of 1.7 hours per 10a for the USA rice production, Korea rice culture has possibility to decrease labour demand upto USA level of labour inputs. 2. Production cost of rice in Korea were estimated US$4,181 per ha which were higher than that of USA by 3.00 times and production costs per ton were shown as US$313 for USA rice and US$1,018 for Korean rice. 3. Land productivity of rice per 10a in America was reached to 4,325kg and the counterpart of Korea was about 4,181kg in recent year. In the sense of land productivity, both yields of rice were comparable. 4. The price of japonica type rice similar to Korean traditional rice in international market in 1994 was f.o.b US$466 per ton which was equivalent to import parity price of US$830 per ton in domestic market. The price of rice purchased by Korean G't and received by farmers were amounted to US$ 2,013 and US$ 1,663 respectively in the same year. Domestic prices mentioned above were higher than the import parity price as US$830 by 2.0-2.4 times. 5. American rice production competitive to Korean rice was equivalent to 17,012 thousand tons, 1.28% of the world production of rice in 1991 and consumption of rice in America was amounted to 2,633 thousand tons. Exportable quantity of USA rice were estimated as 4,379 thousand tons of which 52.3%, 2,300 thousand tons, were exported indeed in the same year. 6. The quantity of Korean rice produced in 1991 was estimated 1.00% of the world production. The world amount of rice exported in 1991 was reached to 2.45% of the world production of which 34.2% was occupied by USA The remaining quantities of world exported rice were dominated by Tiland, Pakistan and Vietnam where produced indica variety. 7. Under the given technology, labour inputs per 10a for rice production could be possible to save by 70% of the national average labour requirement of 53.6 hours through implmenting complete farm mechanization with land consolidation and on-farm development and improvement of fanning practices like seedbroad casting txchnology etc. On the other hand, prduction costs of rice could be decreased by 10% rather than 49% as target indicated in the Rural Development Counter Measures of Korean Government in 1994 owing to increasing farm mechanization cost and interest on land service with high price. Accordingly production cost of rice per kg could be decreased only by 10% of the 1994 production cost. 8. Rice policy of Korean government in the future should take into account the labour saving technology to solve labour shortage in rural area and to enhance off-farm incomes by creating job opportunities in agro-industrial zones and special production area. On account of the staple food and main energy source for people's health, rice production even encountered vulnerable economic settings should be continued without price distortion policies and discouraging farmer's intention to cultivate rice by importing institutionally the direct income subsidy system.

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