• Journal of the Korea Institute of Building Construction
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• v.4 no.2
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• pp.73-80
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• 2004

The purpose of this study was to look up the proper inventory management system in construction industry. it is important for construction company to improve competitiveness and to reduce construction cost. Lot-sizing techniques were applied to rebar procurement in apartment project. The results of this study were as follows; the method of Groff's marginal cost showed the best performance of other techniques and the method of Norman showed a similar result.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.624-626
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• 2003

Transmission pricing is one of important issues related to competitive electricity markets since rational pricing scheme ensures a fair competition between this market participants. Transmission pricing scheme is classified briefly into marginal cost pricing and embedded cost pricing. In economic efficiency, marginal cost pricing is more adequate for competitive electricity market. However, this pricing scheme requires revenue reconciliation since it cannot ensure full recovery of Transco's revenue requirements. This paper presents a new revenue reconciliation to maximize social welfare. For this analysis, this paper provides the results applied by various revenue reconciliation methodologies.

• KDI Journal of Economic Policy
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• v.44 no.1
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• pp.77-98
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• 2022

This paper empirically verifies that the types of capital adjustment costs serve as an important mechanism in relation to investment decision-making after confirming that the investment dispersion of Korean firms is pro-cyclical and can affect business cycles. Specifically, it is found through empirical methods using corporate financial data that capital adjustment costs generally assumed to take a quadratic form in macroeconomics are asymmetric and irreversible in the Korean economy. In particular, capital adjustment costs are empirically proven to cause investment dispersion to expand given that the substitution effect of the marginal value to the marginal cost for one unit of investment in the inter-temporal investment decision is affected by that cost with regard to the resale of owned equipment assets, as opposed to new investments in equipment assets. We ultimately show, albeit indirectly, that investment dispersion can affect business cycles as capital adjustment costs influences investment decisions. What is implied is that the capital adjustment cost is not merely an exogenously deep parameter that fits the dynamics of business cycles in a macroeconomic model but could instead be a policy variable that can be endogenized through government policies.

• The Korean Journal of Air & Space Law and Policy
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• v.17
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• pp.29-54
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• 2003

The objectives of this study are to develop more practical and efficient model concerned with airport charge, especially with aircraft landing charge. This study utilizes average pricing and marginal pricing theory as well as cost accounting theory. The average pricing method is useful to make total costs recovery possible in uncongested situation where the marginal costs are too low to recover the total costs of service. The utilization of cost accounting theory with marginal cost pricing theory would improve the practical applicability of the model. In addition, it is necessary to apply cost accounting information in order to estimate more exact cost for the service of landing and take-off of each aircraft type.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.15-24
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• 2019

Fair Allocation of profits or costs arising from joint participation by multiple individuals or entities with different purposes is essential for their continuing involvement and for their dissatisfaction reduction. In this research, fair allocation of the profits of forming a grand coalition in Three-Echelon Supply Chain (TESC) game that is composed of manufacturer, distributor and retailer, is studied. In particular, the solutions of the proportional method of profit, the proportional method of marginal profit, and Shapley value based on cooperative game theory are proved to be in the desirable characteristics of the core. The proportional method of profit and the proportional method of marginal profit are often used because of their ease of application. These methods distribute total profit in proportion to profits or marginal profits of each game participant. In addition, Shapley value can be defined as the average marginal profit when one game player is added at a time. Even though the calculation of the average of all possible marginal profits is not simple, Shapley value are often used as a useful method. Experiments have shown that the solution of the incremental method, which calculates the marginal cost of adding game players in the order of manufacturers, distributors and retailers, does not exist in the core.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.50 no.7
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• pp.333-339
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• 2001

The transmission networks are not perfect conductors and a percentage of the power generated is therefore lost before it reaches the loads. This network loss effects to the cost of suppling power to consumers, and must be considered if the most efficient dispatch and location of generators and loads is to be achieved. In this paper, we propose an approximate calculation of marginal loss factors to analyze characteristics of transmission loss of KEPCO power system. These static marginal loss factors are approximately calculated based on the KEPCO's expected summer peak load data of year 2000.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.6
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• pp.284-289
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• 2002

The transmission networks do not consist of perfect conductors and a percentage of the power generated is therefore lost before it reaches the loads. Since this network loss contributes to the cost of suppling power to consumers, it must be considered that the most efficient dispatch and location of generators and loads are to be achieved. In this paper, marginal loss factors are calculated for 12 load levels that represent the impact of marginal network losses on nodal prices at the transmission network connection points at which generators are located. Based on comparison analysis of marginal loss factors on 12 load levels, we found the MLF characteristics in KOREA.

• Journal of Korean Society of Water and Wastewater
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• v.10 no.3
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• pp.100-114
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• 1996

Besides insufficient water, water contamination confronts us with 'water crises' of both quantity and quality. However, the daily water consumption per capita of Korea is greater than that of other developed countries. Because of the current low water price, which is lower than a half of production cost, not only does it become difficult to cope promptly with rapidly increasing water demand and water contamination, but it also causes waste of water. We should, therefore, switch over from supply side management-oriented policy to demand side management-oriented policy through a raise of the water rate. This study carries out a cost analysis based on fair return method which is the principle of water pricing in Korea, and it estimates, through equilibrium analysis, long run marginal cost(LRMC), which satisfies allocative efficiency and reflects true social cost to additional one-unit water supply. Based on the results, this study proposes that the estimated LRMC is the optimal price level in water pricing, which is the most important of the demand side management policies. In the end, water conservation effect, price pervasive effect, and social welfare effect are analyzed.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.65 no.6
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• pp.979-986
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• 2016

At present, electric power industry around the world are being gradually changed to a new paradigm, such as electrical energy storage system, the wireless power transmission. Demand for ESS, the core technology of the new paradigm, has been growing worldwide. However, it is essential to estimate the optimal capacity of ESS facilities for frequency regulation because the benefit would be saturated in accordance with the investment moment and the increase of total invested capacity of ESS facilities. Hence, in this paper, the annual optimal mathematical investment model is proposed to estimate the optimal capacity and to establish investment plan of ESS facility for frequency regulation. The optimal mathematical investment model is newly established for each season, because the construction period is short and the operation effect for the load by seasons is different unlike previous the mathematical investment model. Additionally, the marginal operating cost is found by new mathematical operation model considering no-load cost and start-up cost as step functions improving the previous mathematical operation model. ESS optimal capacity is established by use value in use iterative methods. In this case, ESS facilities cost is used in terms of the value of the beginning of the year.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.617-641
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• 2014

Korean electricity market is a Cost-Based Pool (CBP) designed to minimize electricity production cost through cost by providing cost reduction incentives to generators. Generation companies have shown diverse efforts to reduce costs in CBP market such as procuring low-price fuels, installing high efficiency gas turbine and constructing power plants near the heavy-load site. Recently, as a way to improve CBP market, a proposal to exclude no-load cost from System Marginal Price (SMP) and to compensate generators ex post was suggested to Korea Power Exchange. This study analyzes the impact of excluding no-load cost from SMP on the cost reduction incentive of generators. We found that excluding no-load cost from SMP enhances the likelihood of decreasing the cost reduction incentives of LNG combined-cycle generators lying on the price-setting range.