• Title/Summary/Keyword: Elasticity of demand

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Sensitivity analysis for the retailer's pricing and lot-sizing policies on the length of credit period (신용 거래 기간이 소매상의 가격 및 주문정책에 미치는 민감도분석)

  • Seong-Whan Shinn
    • The Journal of the Convergence on Culture Technology
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    • v.9 no.6
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    • pp.257-262
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    • 2023
  • As part of their marketing policy, some suppliers allow retailers a period of credit in anticipation of increasing demand for the products they supply. The opportunity to defer payments on products through credit transactions has the effect of reducing retailers' inventory investment costs, and as a result, retailers determine selling prices in anticipation of increased demand from buyers. This study aims to analyze the inventory model that determines the retailer's selling price and EOQ(Economic Order Quantity) under the assumption that the buyer's demand is an exponentially decreasing function of the retailer's selling price in the credit transaction supply chain consisting of suppliers, retailers, and buyers. The products supplied for problem analysis include the case of deteriorating products that deteriorate over time, and the effect of the credit transaction period, the index of price elasticity and the degree of deterioration on the retailer's selling price and EOQ is analyzed.

An Efficient VM-Level Scaling Scheme in an IaaS Cloud Computing System: A Queueing Theory Approach

  • Lee, Doo Ho
    • International Journal of Contents
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    • v.13 no.2
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    • pp.29-34
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    • 2017
  • Cloud computing is becoming an effective and efficient way of computing resources and computing service integration. Through centralized management of resources and services, cloud computing delivers hosted services over the internet, such that access to shared hardware, software, applications, information, and all resources is elastically provided to the consumer on-demand. The main enabling technology for cloud computing is virtualization. Virtualization software creates a temporarily simulated or extended version of computing and network resources. The objectives of virtualization are as follows: first, to fully utilize the shared resources by applying partitioning and time-sharing; second, to centralize resource management; third, to enhance cloud data center agility and provide the required scalability and elasticity for on-demand capabilities; fourth, to improve testing and running software diagnostics on different operating platforms; and fifth, to improve the portability of applications and workload migration capabilities. One of the key features of cloud computing is elasticity. It enables users to create and remove virtual computing resources dynamically according to the changing demand, but it is not easy to make a decision regarding the right amount of resources. Indeed, proper provisioning of the resources to applications is an important issue in IaaS cloud computing. Most web applications encounter large and fluctuating task requests. In predictable situations, the resources can be provisioned in advance through capacity planning techniques. But in case of unplanned and spike requests, it would be desirable to automatically scale the resources, called auto-scaling, which adjusts the resources allocated to applications based on its need at any given time. This would free the user from the burden of deciding how many resources are necessary each time. In this work, we propose an analytical and efficient VM-level scaling scheme by modeling each VM in a data center as an M/M/1 processor sharing queue. Our proposed VM-level scaling scheme is validated via a numerical experiment.

Distributor's Lot-sizing and Pricing Policy with Ordering Cost inclusive of a Freight Cost under Trade Credit in a Two-stage Supply Chain

  • Shinn, Seong-Whan
    • International Journal of Advanced Culture Technology
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    • v.8 no.1
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    • pp.62-70
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    • 2020
  • As an effective means of price discrimination, some suppliers offer trade credit to the distributors in order to stimulate the demand for the product they produce. The availability of the delay in payments from the supplier enables discount of the distributor's selling price from a wider range of the price option in anticipation of increased customer's demand. Since the distributor's lot-size is affected by the demand for the customer, the distributor's lot-size and the selling price determination problem is interdependent and must be solved at the same time. Also, in many common business transactions, the distributor pays the shipping cost for the order and hence, the distributor's ordering cost consists of a fixed ordering cost and the shipping cost that depend on the order quantity. In this regard, we deal with the joint lot-size and price determination problem when the supplier allows delay in payments for an order of a product. The positive effects of credit transactions can be integrated into the EOQ (economic order quantity) model through the consideration of retailing situations, where the customer's demand is a function of the distributor's selling price. It is also assumed that the distributor's order cost consists of a fixed ordering cost and the variable shipping cost. We formulate the distributor's mathematical model from which the solution algorithm is derived based on properties of an optimal solution. A numerical example is presented to illustrate the algorithm developed.

Price and Distance Effects on Mexican Cross-Border Shopping:Implications for a Borderlands Economy

  • Arthur L. Silvers;Kim, Hak-Hoon
    • Journal of the Korean Regional Science Association
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    • v.12 no.2
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    • pp.59-68
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    • 1996
  • Common belief in border regions holds that Mexican cross-border shoppers play a larger role in the regional economic base than they do and that NAFTA will provide a bigger stimulus to the regional economy than it is likely. In the regional economy than it is likely. In the first case, price elasticities are implicitly underestimated as highly inelastic and in the latter case, overestimated as highly elastic. This paper provides empirical evidence on the effects of distance and real exchange rates as price proxies on both field survey and population-imputed estimates of cross-border shopping. After estimating both distance-based and real exchange rate-based estimates of price elasticities of Mexican shopper demand for U.S. border-region goods, implications are obtained concerning the relative importance for U.S. border-regon economies of more distant Mexican markets, and the likely impacts of NAFTA.

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Development of turnout on concrete track using Fast clip (Fast clip을 적용한 콘크리트궤도용 분기기 개발)

  • Hwang, Kwang-Ha;Ryou, Ki-Tae;Park, Chun-Bok;Park, Kwang-Ryoun;Yun, Byung-Hyun
    • Proceedings of the KSR Conference
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    • 2011.05a
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    • pp.1002-1008
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    • 2011
  • Turnout is a mechanical installation enabling railway trains to be guided from one track to another at a railway junction. there are classified variously according to rail type, sleeper type, fastening system, track type. Construction of concrete track are on the increase recently to secure the safety of track structure as well as to reduce the maintenance cost. SFC fastening system used the plain track a lot and for those reasons, The fast clip turnout demand growing to improving efficiency of the maintenance cost by unification of fastening clip on whole line. in this study is about development of the fastening system for new turnout using fast clip. this fastening system assembled elasticity pad underneath a base plate. its can change stiffness how to adjust contact surface area of elasticity pad Developed fastening system have passed test according to rule of KRS-TR0014-09R (rail fastening system) and Performance Certification by KR.

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Estimating the Consumer Surplus of the Mobile Telecommunication Services (국내 이동통신 서비스의 소비자 잉여 추정)

  • Jo, Seong-Han;Baek, Tae-Yeong;Eom, Myeong-Yong
    • Journal of Technology Innovation
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    • v.13 no.1
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    • pp.295-315
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    • 2005
  • The mobile telecommunication service industry plays major role of the realization to the perfect information society in the 21st century and has a great influence in society and culture. The government has enticed the mobile company to keep up to make the mobile service fee low. In this situation, this paper estimates consumer surplus and price elasticity with on-line survey data from the consumer of mobile service. The total estimated consumer surplus of the market is reached to 6.43trillion won. The consumer surplus from SKT is estimated to 4.98trillion won and 1.66trillion won and 0.67trillion won was made by KTF and LGT respectively. The result also shows that consumer surplus is expected to be increased by the increase of the mobile service demand and the sales.

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Demand Behavior for Housing Characteristics According to Individual Household's Characteristics- Application of product Characteristic Approach- (개별 가계특성에 따른 주택특성에 대한 수요행태 - 상품특성접근법의 적용-)

  • 이혜선;김용희
    • Journal of Families and Better Life
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    • v.5 no.2
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    • pp.65-82
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    • 1987
  • Product characteristic approach and hedonic method were explained and applied to demand behavior of housing for 360 households sampled from four districts of Seoul. Th major findings are: 1) Housing prices are determined by housing characteristics, i.e., basic structure, interior space, interior quality, and neighborhood quality. 2) as income increase , the demand for basic structure, interior space, interior of quality, and neighbor hood quality increases. As compared to the counties that have advanced housing financial systems, income elasticity form housing characteristics was low. 3) householder's educational level has insignificant effects on the demand for neighborhood quality. 4) the housing need of family is different to a family life cycle. In the first stage, the increase of income enhances the demand for basic structure. interior space, and interior quality, but inversed with neighborhood quality. In the second and third stages, the demand for basic structure, interior space, and interior quality increases as the income increases. 5) It is predicted that the larger the family size, the more housing space is required. But in the low-income group, an increase in family size results in a decrease in the demand for interior space because expenses for food and education are indispensable ones. In the middle -income group the demand for interior space, interior quality increases as the family size increases, In the high-income group, the larger the family size the more interior quality is demanded. As mentioned above, the demand for housing is derived form characteristics and the demand behavior far housing characteristics is varied with individual household's characteristics. Therefore, the fact that different housing needs according to various income groups should be considered in housing policy.

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Estimating Elasticities of Car Travel Demand Using Pseudo-Panel Data (가상패널자료를 이용한 승용차 통행수요 탄력성 추정 연구)

  • Han, Sang-Yong;Lee, Jai-Min;Kim, Tae-Seung
    • Journal of Korean Society of Transportation
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    • v.30 no.2
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    • pp.7-20
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    • 2012
  • The objective of this paper is to construct pseudo-panel data set and estimate price and income elasticities of car travel demand, using 1995-2007 household income and expenditure survey data, in order to provide quantitative information for analyzing related policy effects in the transport sector. We categorized household survey data into 14 cohorts based on the birth year of the household head. As the result, a total of 133 pseudo-panel data sets was created for estimating price and income elasticities of car travel demand. Especially, price and income elasticities of car travel demand were separately estimated both short-term and long-term. We analyzed the panel model considering fixed effect within cohorts, using explanatory variables such as previous year's fuel consumption, real household income after tax, education level of the household head, the number of children under five, and the share of household type averaged by cohorts. As results, the short-term and long-term price elasticities of car travel demand were calculated as 0.2974-0.4280 and 0.4087-0.6275, respectively. Similarly, the short-term and long-term income elasticities were calculated as 0.3364-0.6281 and 0.7098, respectively.

Analysis of Tourism Demand Elasticities by Travel Time Distance in Korea (국민국내관광객의 이동시간거리에 대한 수요탄력성 분석)

  • Kwon, J. Younghyun;Kim, Euijune
    • Journal of the Korean Regional Science Association
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    • v.31 no.1
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    • pp.65-81
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    • 2015
  • The purpose of this study is to analyze the tourism demand elasticity of travel time distance on domestic destinations in Korea. Piecewise Linear Regression Model was applied to estimate the elasticities based on the Korea National Tourism Survey. It is found that the tourism demand elasticities by tourist distances decrease by 0.005% if time distance increase by 1 minute. In the first section, the most nearest distance is less than 11.6 minutes from the origin, elasticities increases by 0.206% of tourism demand, whereas in second section (from 11.7 to 75.1 minutes) and third section (more than 75.2 minutes) it decreases by 0.106% and 0.021%, respectively. The third section with sharply rising distance decay rate can be interpreted as the Effective Tourism Exclusion Zone of domestic tourists in Korea. Additionally, the more tourism demand is appeared at the younger age group than older age group, single travellers than group travellers, and people in Metropolitan Areas than in smaller cities.

A Study on Marketing of Cultured Laver Products (양식해태의 유통에 관한 조사 연구)

  • 유충열
    • The Journal of Fisheries Business Administration
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    • v.4 no.1_2
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    • pp.19-57
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    • 1973
  • Laver io one of the most necessary and seasonal items in Korean food from oldtimes. Laver is lagely eaten in dried form, and its supply depends entirely upon culture weeds. The history of laver culture in Korea about sixty or seventy years is older than in Japan. Significance of laver culture is divided into two aspects, one is food supply in the nation, and the other is export to other countries. Houses engaged in laver culture are about foully thousands, and laver production in 1972 is estimated as 1, 3 bitten sheets. (1 sheet is a dried laver of 20 cm sq, in the shape of paper) Especcially meaning of layer production is the concentration of labour input, and systematic management of labour. From around 1920, the method of laver culture was introduced by Japanese Imperialism for mono culture in shallow seas, and mass products of laver is provided to Japan market, DOMESTIC MARKET Fundamental consume function calculates at below, $D_{(68_71)}$=16354 $Y^{0.471}$ $P^{-1.0662}$ where D is total layer demand, Y income variable, P price variable. It means income elasticity is 476. in the whole country, and price elasticity is 1, 07. But generally income elasticity is higher in urban area than in rural area, as shown at 1, 3 in Seoul city. Expence of laver in house expenditure is mutually correlated with another expence, See Table 12 about the relative function. See Table 14 and 16 about the relation between the gathering and the changes of price in auction, wholesale and retail price support system is for two effects, one of which is constraint of the upper price, the other is rise of the lower price. Before the system control, the equation in three year average calculated as below, $Y_{b}$ =18, 907.7455+15435.9364 t (r=0.89) where the origin t=0 is the November and the units are month. Post the system control, $Y_{p}$ =30, 047.9636+1, 631.1721t (r=0.97) therefore, this system has an effect only on the rise of lower price, Average annual margins of laver products at four market levels according to the consumer spent is below. EXPORTING MARKET Japanese demand function of laver products is, Log D=5, 289+1, 108 Log Y-1, 395 Log P (r=0.987) where D is Japanese laver demand, Y income variable, P price variable. according to which income elasticity is 1. 1 and price elasticity is 1.4. Laver production in 1970 tile highest record till then, is estimated as six billion sheets. But the recent improvement of laver culture techniques, the production of seeds and freezing storage of seeds has been stabilized. Futher new culture farms have been developed by means of break- water fences or by floating culture method. These improvements have been backed up with increased demand of laver products. Import quantity and price of Korean laver products are restrained by three organizations, that is producer, distributor and consumer. This relationship calculated by regression equation shows that import is influenced only producer organization, at the sacrifice of consumer profit. For increase to export of laver products, we urgently require to open foreign trade of laver products for Japanese consumer, .and Japan has political responsibility to solve Korean laver structure. But with long run timeseries, as regards Japanese production and import quantity, importing function shows increasing trend as below, 250 million sheets <3, 947.1674+0.005 $L_{g}$ >) 600 million sheets where $L_{q}$ is relative production quantity of laver in Japan. (unit; 100 thousand sheets) Our Export effort should be put on the highly processed products whithin the restraind quote.ote.

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