• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.1
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• pp.38-45
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• 2018

In September 2016, the government decided to apply a REC 5.0 weighting to solar-battery ESS to increase the supply of renewable energy. In this paper, we calculated the optimal capacity of battery ESS which maximizes the revenue when solar is linked with battery ESS. In the case study, the optimal capacity was calculated by applying the conservative REC price, and we studied sensitivity analysis about battery price and real-time REC price.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.34 no.11B
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• pp.1191-1199
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• 2009

As the Internet service evolves from the best effort data service to a multimedia service such as a mix of voice, data and video, a need for the guarantee of the quality of service to network services became one of the hot issues for the network operators. On the other hand, the introduction of the multimedia services over the IP network requires a managed differentiated service that adopts a prioritized treatment of packets. This incurs a need for a differentiated pricing scheme for the packets that receive different level of quality of service. This work proposes an analytic framework about packet pricing scheme for these services, and investigate the effect of service differentiation to the packet price for each class. Via numerical experiment, we validate our argument and illustrate the implication of the work.

• Journal of the Korean Operations Research and Management Science Society
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• v.20 no.2
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• pp.95-107
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• 1995

This paper deals with the problem of determining optimal credit period and production lot size from the perspective of producer. We assume that a ratailer jointly determines the unit retail price and order size to maximize profit when he/she puechases a product for which the producer offers a trade credit. Two widely used demand functions are adopted for the study in which demands are decreasing function of the retail price. Mathematical models for producer-retailer system are developed and a solution procedure is presented which show how to achieve an optimal length of trade credit and production lot size for producer. The effect of production rate on the behavior of both producer and retailer is also investigated using an example.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.3
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• pp.322-328
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• 2007

Highly standardized products are suitable for automated purchasing using electronic commerce technology, where the price becomes the most important factor. Suppliers can change the prices dynamically based on the inventory level and market situation in order to maximize the sales and profit. In the virtual marketplace where multiple customers purchase multiple standardized products from multiple suppliers repetitively, customers can purchase the required amount of each item as a dynamic bidding by allocating purchase orders to the suppliers based on the current price. Customers need a method to quickly determine the optimal allocation of orders to the suppliers using the dynamically changing data to minimize the total cost. We present a LP model which minimizes the sum of the total price plus transportation cost for this problem. Simulation results using random data show meaningful reduction of the total cost.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.259-266
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• 2015

Among many energy resources, natural gas has recently received a remarkable amount of attention, particularly from the electrical generation industry. This is in part due to increasing shale gas production, providing an environment-friendly fossil fuel, and high risk of nuclear power. Because South Korea, the world's second largest LNG importing nation after Japan, has no international natural gas pipelines and relies on imports in the form of LNG, the natural gas has been traditionally procured by long term LNG contracts at relatively high price. Thus, there is a need of developing an Asian LNG trading hub, where LNG can be traded at more competitive spot prices. In a natural gas spot market, the amount of natural gas to be bought should be carefully determined considering a limited storage capacity and future pricing dynamics. In this work, the problem to find the optimal amount of natural gas in a spot market is formulated as a Markov decision process (MDP) in risk neutral environment and the optimal base stock policy which depends on a stage and price is established. Taking into account price and demand uncertainties, the basestock target levels are simply approximated from dynamic programming. The simulation results show that the basestock policy can be one of effective ways for procurement of LNG in a spot market.

• Journal of the Korean Operations Research and Management Science Society
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• v.14 no.1
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• pp.59-71
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• 1989

This practical paper puts existing optimal stopping rules for various asset selling situations into a coherent perspective, using simple non-measure theoretical terms. It also provides analytical or numerical solutions when the price offers are beta distributed.

• Environmental and Resource Economics Review
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• v.25 no.3
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• pp.351-376
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• 2016

This study examines optimal emission taxes and welfares in mixed duopoly markets where public and private firms produce differentiated goods and emit pollutions. Both comparing quantity and price competitions and comparing simultaneous and simultaneous games provides the followings findings: First, irrespective of competition modes between quantity and price competitions or simultaneous and sequential games, the optimal emission tax is always lower than marginal environmental damage. Second, emission tax under private leadership is the highest in quantity competition while that under public leadership is the highest in price competition. Third, environmental damage under Cournot and private leadership is worsened in quantity competition while that under public leadership is worsened in price competition. Finally, welfare under Bertrand and public leadership is improved in price competition while that under private leadership is improved in quantity competition.

• Proceedings of the IEEK Conference
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• 2008.06a
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• pp.163-164
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• 2008

In this paper, we study a dynamic price-based call admission control algorithm for communication networks. When a call arrives at the network, the network calculates the price for the call such that its expected revenue is maximized. The optimal price is dynamically adjusted based on some information of the call, and the congestion level of the network. If the call accept the price, it is admitted. Otherwise, it is rejected. Simulation results show that our dynamic pricing algorithm provides higher call admission ratio and lower price than the static algorithm [1][2], even though they provide almost the same revenue.

• Journal of the Korean Regional Science Association
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• v.14 no.2
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• pp.51-64
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• 1998

This paper investigates how the factor inputs of firms are affected by the expectation about land-price increase in the future. We develope a two-factor (land and labor) model, in which expectation about land-price increase plays a key role in determining the "optimal" input level of labor and land. Expecting capital gains from input of the land when land price increases, firms input land up to the point where the marginal productivity of land falls short of the marginal cost of purchasing the land, in order to maximize the "joint-profit". That is, firms have an incentive to use more land than they do when capital gains are not expected. We mean joint-profit by profit in the standard sense plus capital gains. Once the land is input "excessively", the productivity of labor increase and labor is also input more, since land and labor are assumed as complementary in production. This mechanism works in the opposite direction when land price decrease. This paper suggests that land price fluctuation is a major destabilizer of an economy.or destabilizer of an economy.

• Environmental and Resource Economics Review
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• v.27 no.4
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• pp.639-666
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• 2018

This paper analyses the investment options of groundwater development project under water price uncertainty. The optimal investment threshold price which trigger the investment are calibrated base on monopolistic real options model. Stochastic dynamic model is set to reflect the uncertainty of water price which follows the GBM (Geometric Brownian Motion) process. Our finding from non-cooperative investment decision model is that uncertainty of water price could deter the groundwater investment by considering the existence of option values. For policy markers, it is easy to manage 'charges for utilization of groundwater' rather than 'performance guarantee ratio' when managing groundwater investment with pricing policy. And it is necessary to make comprehensive and well-designed policies considering the characteristics of regional groundwater reservoir and groundwater developers.