• Journal of Korean Society for Quality Management
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• v.40 no.1
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• pp.39-48
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• 2012

An early detection system for warranty issues periodically collects customers' claim data and automatically reports alarms about emerging issues based on statistical algorithms. It helps companies to reduce an issue definition time and save the handling cost of warranty claims. This paper provides an evaluation framework to validate the economic effect of an early detection system project. For this purpose, we present economical index of a project with explicit formulas such as ROI(return on investment), PP(payback period), NPV(net present value), PI(profitability index) and IRR(internal rate of return) and analyze the sensitivities of the index according to the variation of project input parameters. The proposed analysis framework is expected to be used for evaluating economic values of various system integration projects.

• Proceedings of the KSR Conference
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• 2003.10b
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• pp.40-45
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• 2003

Korea selected to introduce high-speed railway system from advanced countries in order to accumulate railway technologies and develop exiting domestic logistics system. After many twists and turns, we adopted to introduce France's high-speed railway called 'TGV'. Despite many difficulties along with trials and errors, it is expected that Korean high-speed railway will be brilliantly launched in April 2004, although it has been commissioned for multi-discipline tests. It is forecast that the opening of high-speed railway will bring us the epoch-making development of logistics system. However, what if there are really some problems in the operation of high-speed railway? We cannot consider and highlight only the positive aspects of our own high-speed railway. In terms of many challenging aspects we would face in the future, there would be some matters we must consider and point out in this opportunity. In this regard, the direction for developing high-speed railway stations requires the harmony between profitability and public benefits, which must involve compatibility with other traffice systems and practical policies to secure competitive edges.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.2 no.2
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• pp.53-62
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• 1979

A widely accepted indicator of a project's economic potential is the internal rate of return (IRR). The primary objective of feasibility analysis for any project is to measure the economic potential for the project, normally defined as the expected return on capital investment. The analysis should be designed to determine whether a project is technically and economically sound, and under what conditions. Therefore, there are factors other than economic potential that must be taken into account in the reasonable composition of an investment program. These kinds of factors can be given proper consideration in project selection after the economic feasibility of alternative projects has been determined. The primary reason for having to choose among different projects is that capital resources are scare : the investment budget is limited. The case project, casting facilities investment project, treated in this paper were selected for their value in illustrating the methods of feasibility analysis. This case project an actual potential project and is analyzed on the basis of the best available data for the specific conditions for that project.

• Journal of the Regional Association of Architectural Institute of Korea
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• v.20 no.6
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• pp.105-112
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• 2018

The purpose of this study is to develop an application that supports a user in the maintenance of small photovoltaic device. To this end, this study analyzed the maintenance status, related regulations and existing application contents in Korea. According to the analysis results, most users did not maintain device for themselves. In addition, the maintenance market has not been activated due to its low profitability. Regulations on the maintenance of photovoltaic device prescribed by the KESCO and Japanese counterpart were analyzed to establish the standards for photovoltaic device inspection, and an application was developed based on the existing applications and research results. In order to evaluate the completeness and satisfaction of the developed application, it surveyed 52 users and 22 experts. The survey results showed that the completeness was calculated to be 90 points, and the level of satisfaction was 93 points on a 100-point scale. Therefore, it is expected that the maintenance application developed in this study will be useful for users to maintain the photovoltaic device.

• KDI Journal of Economic Policy
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• v.42 no.4
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• pp.117-138
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• 2020

Few studies have specifically focused on the uncertainty of demand forecasting despite the fact that uncertainty is the one of greatest risks for governments and private partners in PPP projects. This study presents a methodology for finding robust contract conditions considering uncertainty in travel demand forecasting in a PPP project. Through a case study of an urban railway PPP project in Korea, this study uncovered the risk of excessive government payments to private partners due to the uncertainty in contracted forecast ridership levels. The results allow the suggestion that robust contract conditions could reduce the expected total level of government payments and lower user fees while maintaining profitability of the project. This study offers a framework that assists contract negotiators and gives them more information regarding financial risks and vulnerabilities and helps them to quantify the likelihood of these vulnerabilities coming into play during PPP projects.

• Journal of Information Technology Services
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• v.15 no.1
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• pp.227-243
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• 2016

In order to maximize profitability by optimizing the entire supply chain process, enterprises have made efforts to apply IT technologies such as POS, MES, and TMS. In addition, academic societies have also made efforts to verify the effects of IT technology introduction through various researches. However, until now, there is almost no research that analyzes the relationship between the IoT, a new IT technology, and the SCM. To study the effect of IoT technology on SCM, this study conducted professional Delphi surveys for three times. Through this method, this study analyzed changes that will be caused by the IoT technology, the priority area in IoT introduction, and the expected difficulty in IoT introduction on SCM. As a result of the Delphi surveys and analyses, it was expected that when IoT technology is introduced, the level of SCM's IT use and partnership will increase. However, the effect of the increased performance of the supply chain, which includes inventory management and quality control, will become weaker. The reason is that the development of operation and management skills, as well as the improvement of IT technology, are also important elements for the performance improvement of the supply chain. As for the priority area in IoT introduction, it was expected that the effect will be greater when IoT is introduced in customer service, transportation, and delivery areas. As difficulties in IoT technology introduction, such as the shortage of IoT platform development personnel, standardization, integration with the existing system, securing professional manpower, expenses, data management, and operation, were derived, it has thus become necessary for us to exert greater efforts in order to come up with solutions.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.20 no.5
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• pp.157-171
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• 2021

As smartphones spread and ICT technologies develop, taxi services have changed from hovering to platform-based calls and reservations. This has improved the mobility and accessibility of taxi users but caused problems, such as digital observing (no-responses to calls) for either short-distance services or services during the peak-demand periods. Digital Observing means ignoring and not accepting calls when they occur, which require improvement. Therefore, this study aims to derive measures to mitigate discrepancies in taxi supply and demand by adjusting the expected revenue of each taxi service using reinforcement learning based on the Taxi operation data. The results confirmed that the average complete response rate to calls would increase from 50.29% to 54.24% when incentives are applied, and an improvement of 5.86% can be achieved in short-distance sections of less than 5,000 won incentives. It is expected that the improvement will increase profitability for drivers, reduce the waiting time for passengers, and improve satisfaction with taxi services overall.

• Journal of Distribution Science
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• v.15 no.12
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• pp.95-102
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• 2017

Purpose - This study aims to develop diagnostic indices for managerial performance of agro-food distribution corporations. In particular, weights of diagnostic indices were estimated using the AHP method. Management diagnosis on agro-food distribution corporations is expected to increase their competitiveness in the domestic market as well as in international markets. Research design, data, and methodology - It develops weights or importance of the diagnostic indices based upon the survey of 21 experts in food distribution management. The survey was carried out using e-mail. Management diagnostic indices were developed based upon four BSC(Balanced Scorecard) perspectives of finance, learning/growth/leadership, customer, and internal process/technology. Results - Diagnostic indices on financial perspective consist on profitability, productivity, growth, stability and activity. Learning and leadership perspective indices consist of management will, CEO leadership, level of learning, innovation, and level of management information system. Customer perspective indices are branding, customer and channel management and internal process/technology indices consist of fourteen sub-indices representing technologies, efficiency, and dynamics. It was estimated that the weight of financial perspective index was 0.3, internal process/technology perspective index 0.248, customer category index 0.247, and learning, growth and leadership perspective index 0.205. This study also estimates weights of sub-indices for managerial diagnosis by four different perspectives. Estimated weight of profitability (0.085) is the greatest among financial perspective indices, followed by stability (0.072), growth (0.053), productivity (0.051), and activity (0.038). While estimated weights of leadership, capability, and information indices are 0.100, 0.061, and 0.044 respectively, weights of marketing, customer management, and quality and service indices are 0.104, 0.093, and 0.051, respectively. Among internal process/technology perspective, estimated weights of efficiency, technology, and innovation indices are 0.106, 0.088, and 0.054, respectively. Conclusions - The diagnostic indices for managerial performance of agro-food distribution corporations would be utilized by agro-food distribution corporations themselves, extension service institutions, and consultants. It is also expected that central and local governments use diagnostic indices developed in this study for the purpose of evaluating the effects of governmental support programs for agro-food distribution corporations. Futhermore researchers and consultants would modify diagnostic indices developed in this study, reflecting characteristics and situation of types of agro-food distribution corporations.

• KDI Journal of Economic Policy
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• v.12 no.2
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• pp.95-120
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• 1990

The underpricing of new shares of a firm that are offered to the public for the first time (initial offerings) is well known and has puzzled financial economists for a long time since it seems at odds with the optimal behavior of the owners of issuing firms. Past attempts by financial economists to explain this phenomenon have not been successful in the sense that the explanations given by them are either inconsistent with the equilibrium theory or implausible. Approaches by such authors as Welch or Allen and Faulhaber are no exceptions. In this paper, we develop a signalling model of capital investment to explain the underpricing phenomenon and also analyze the efficiency of investment. The model focuses on the information asymmetry between the owners of issuing firms and general investors. We consider a firm that has been owned and operated by a single owner and that has a profitable project but has no capital to develop it. The profit from the project depends on the capital invested in the project as well as a profitability parameter. The model also assumes that the financial market is represented by a single investor who maximizes the expected wealth. The owner has superior information as to the value of the firm to investors in the sense that it knows the true value of the parameter while investors have only a probability distribution about the parameter. The owner offers the representative investor a fraction of the ownership of the firm in return for a certain amount of investment in the firm. This offer condition is equivalent to the usual offer condition consisting of the number of issues to sell and the unit price of a share. Thus, the model is a signalling game. Using Kreps' criterion as the solution concept, we obtained an essentially unique separating equilibrium offer condition. Analysis of this separating equilibrium shows that the owner of the firm with high profitability chooses an offer condition that raises an amount of capital that is short of the amount that maximizes the potential profit from the project. It also reveals that the fraction of the ownership of the firm that the representative investor receives from the owner of the highly profitable firm in return for its investment has a value that exceeds the investment. In other words, the initial offering in the model is underpriced when the profitability of the firm is high. The source of underpricing and underinvestment is the signalling activity by the owner of the highly profitable firm who attempts to convince investors that his firm has a highly profitable project by choosing an offer condition that cannot be imitated by the owner of a firm with low profitability. Thus, we obtained two main results. First, underpricing is a result of a signalling activity by the owner of a firm with high profitability when there exists information asymmetry between the owner of the issuing firm and investors. Second, such information asymmetry also leads to underinvestment in a highly profitable project. Those results clearly show the underpricing entails underinvestment and that information asymmetry leads to a social cost as well as a private cost. The above results are quite general in the sense that they are based upon a neoclassical profit function and full rationality of economic agents. We believe that the results of this paper can be used as a basis for further research on the capital investment process. For instance, one can view the results of this paper as a subgame equilibrium in a larger game in which a firm chooses among diverse ways to raise capital. In addition, the method used in this paper can be used in analyzing a wide range of problems arising from information asymmetry that the Korean financial market faces.

• 한국신재생에너지학회:학술대회논문집
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• 2005.06a
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• pp.482-486
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• 2005

Total forest growing stock and growing stock per ha in Korea are $470\times10^6m^3\;and\;73m^3$, respectively. Those figures mean that forest growing stock was increased 4.7 times more during last 30 years. The annual production of forest biomass comes from forest tending executed by Korea Forest Service was estimated about $1.07\times10^6m^3$ M/T, which was equivalent to $0.45\%$ of total imported crude oil of Korea at 2002. The production is expected to increase and reach up to $1.9\times10^6 M/T$ till 2008. The analysis of economic feasibility showed that the production cost of wood chip(134,786Won/T) was about 30,389 Won/T higher than heat value of wood chip, 104,397 Won/T estimated from that of kerosene. For the promotion of forest bioenergy utilization, more efforts need to be given for the education and public relations to induce publicity a willingness-to-pay for the environment friendly fuels under the good understanding for the use of bioenergy. In addition, we need to provide a community-based biomass utilization program by region to allocate the role of each participant and to increase the profitability of bioenergy.