• Environmental Engineering Research
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• v.24 no.1
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• pp.63-73
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• 2019

This study suggests a method for calculating the benefits of water pipe renewal based on an estimate of the water supply suspension risk. The proposed method based on five benefit items is more direct and specific than other benefit estimation methods. In addition, a methodology evaluating the economics of pipe renewal based on pipe failure rate is proposed for estimating the optimal renewal point from an economic perspective. By estimating the optimal renewal period based on a yearly benefit cost ratio per pipe in a case study area, it was possible to draft an optimal renewal plan for the subject region from an economic perspective. Compared with other methodologies, a reasonable optimal renewal period was derived from an economic point of view. The result of this study may be used to develop future water pipe renewal plans. Moreover, the proposed methodologies and results derived from this study can be applied to asset management plans.

• Journal of the Korean Operations Research and Management Science Society
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• v.22 no.2
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• pp.125-137
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• 1997

We are concerned with the packing policy determines the optimal packing of products with variable sizes to minimize the penalty costs for idle space and product spliting. Optimal packing problem is closely related to the optimal packet/record sizing problem in that randomly generated data stream with variable bytes are divided into a unit of packet/record for transmitting or storing. Assuming the product size and the production period are independently determined by renewal process, we can approximate the renewal process and formulate the optimization problem that minimize the expected packing cost for a production period. The problem is divided into two cases according to whether a product is allowed to split or not. Computational results for various distributions will be given to verify the approximation procedure and the resulting optimization problem.

• Journal of Korean Society of Water and Wastewater
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• v.31 no.2
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• pp.149-159
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• 2017

It is considered necessary to renewal a considerable number of water supply facilities in Korea because they began to be intensively buried in the period of rapid economic growth. Accordingly, local water providers are required to take measures against this situation, but they have currently been caught in a vicious circle of the lack of budget spent in renewing water supply facilities because county-based small-scale local water supply cannot afford to cover annual expenditures with their revenues from water rates. Therefore, this study developed an optimal renewal planning model capable of achieving a balance of financial revenue and expenditure in local water supply using nonlinear programming and furthermore of minimizing the total cost incurred during the analysis. To this end, this study selected the water supply area located in County Y as a research area to build the financial revenue and expenditure and used Solver function provided by Microsoft Excel to use nonlinear programming. As a result, this study developed an optimal renewal planning model minimizing incurred costs in consideration of 6 items in the financial revenue and expenditure. The optimal renewal plan was modeled according to the available annual budget. As a result, this study proposed SICD, a scenario to minimize total costs from the perspective of water suppliers, and SITS, a scenario to minimize the increase in water rates from the perspective of consumers. It can be said that the method proposed in this study is the core of the optimal financial and renewal plans as a final stage of asset management for water supply facilities. Therefore, it is considered possible for local water providers to use the method proposed in this study according to circumstances for the asset management of water supply facilities.

• Journal of the Korea Society for Simulation
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• v.12 no.3
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• pp.31-40
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• 2003

This paper studies an optimal policy for a certain class of (s, S) inventory control systems, where the demands are characterized by the renewal arrival process. To minimize the average cost over a simulation period, we apply a stochastic optimization algorithm which uses the gradients of parameters, s and S. We obtain the gradients of objective function with respect to ordering amount S and reorder point s via a combined perturbation method. This method uses the infinitesimal perturbation analysis and the smoothed perturbation analysis alternatively according to occurrences of ordering event changes. The optimal estimates of s and S from our simulation results are quite accurate. We consider that this may be due to the estimated gradients of little noise from the regenerative system simulation, and their effect on search procedure when we apply the stochastic optimization algorithm. The directions for future study stemming from this research pertain to extension to the more general inventory system with regard to demand distribution, backlogging policy, lead time, and inter-arrival times of demands. Another direction involves the efficiency of stochastic optimization algorithm related to searching procedure for an improving point of (s, S).

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.28 no.4
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• pp.191-201
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• 2016

A stochastic process has been used to develop a condition-based model for preventive maintenance of armor units of rubble-mound breakwaters that can make a decision the optimal interval at which some repair actions should be performed under the perfect maintenance. The proposed cost model in this paper based on renewal reward process can take account of the interest rate, also consider the unplanned maintenance cost which has been treated like a constant in the previous studies to be a time-dependent random variable. A function for the unplanned maintenance cost has been mathematically proposed so that the cumulative damage, serviceability limit and importance of structure can be taken into account, by which a age-based maintenance can be extended to a condition-based maintenance straightforwardly. The coefficients involved in the function can also be properly estimated using a method expressed in this paper. Two stochastic processes, Wiener process and gamma process have been applied to armor stones of rubble-mound breakwaters. By evaluating the expected total cost rate as a function of time for various serviceability limits, interest rates and importances of structure, the optimal period of preventive maintenance can easily determined through the minimization of the expected total cost rate. For a fixed serviceability limit, it shows that the optimal period has been delayed while the interest rate increases, so that the expected total cost rate has become lower. In addition, the gamma process tends to estimate the optimal period more conservatively than the Wiener process. Finally, it is found that the more crucial the level of importance of structure becomes, the more often preventive maintenances should be carried out.

• Journal of the military operations research society of Korea
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• v.3 no.1
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• pp.109-114
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• 1977

There are some factors which cause the profits from the production to be decreased or increased. They are, for example, the rise in efficiency of production facilities resulting from the development of the scientific technique, the changes of purchase price of those, and the drop in efficiency of those owing to there long-term operation. In this connection, an manager can get the highest profit by deciding the proper time of new facilities replacement for those in operation or in being planned, which leads to good management planning of his manufactaring business for a given period or a long time. Main purpose of this is the study of how we decide the optimal time or facilities replacement in order to maximize the total profits for a given period by considering them as continous function as to the time in the case where a machineng is set. The results are following: 1. The definition of profit function is in duced in consideration of the breakdowns caused from continous operation of the machinery. 2. The necessary conditions are obtained for the optimal time of replacement and find out the methods of its solution. 3. Comparing between the 'Short cut' method and method in this paper, we obtained that our method is more realistic.

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.28 no.2
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• pp.63-72
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• 2016

An expected-discounted cost model based on RRP(Renewal Reward Process), referred to as a stochastic decision model, has been developed to estimate the optimal period of in-depth inspection which is one of critical issues in the life-cycle maintenance management of harbor structures such as rubble-mound breakwaters. A mathematical model, which is a function of the probability distribution of the service-life, has been formulated by simultaneously adopting PIM(Periodic Inspection and Maintenance) and CBIM(Condition-Based Inspection and Maintenance) policies so as to resolve limitations of other models, also all the costs in the model associated with monitoring and repair have been discounted with time. From both an analytical solution derived in this paper under the condition in which a failure rate function is a constant and the sensitivity analyses for the variety of different distribution functions and conditions, it has been confirmed that the present solution is more versatile than the existing solution suggested in a very simplified setting. Additionally, even in that case which the probability distribution of the service-life is estimated through the stochastic process, the present model is of course also well suited to interpret the nonlinearity of deterioration process. In particular, a MCS(Monte-Carlo Simulation)-based sample path method has been used to evaluate the parameters of a damage intensity function in stochastic process. Finally, the present stochastic decision model can satisfactorily be applied to armor units of rubble mound breakwaters. The optimal periods of in-depth inspection of rubble-mound breakwaters can be determined by minimizing the expected total cost rate with respect to the behavioral feature of damage process, the level of serviceability limit, and the consequence of that structure.

• Journal of Korean Society for Quality Management
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• v.28 no.3
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• pp.53-58
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• 2000

In many cases, it is more practical and economical to repair a system than to replace the whole system or to perform a complete overhaul when it fails. The age replacement policy with minimal repair at failure is considered. The system is replaced every time its age reaches at $T_0$. For each intervening failure only minimal repair is done. The minimal repair times in a renewal period are increasing in the sense that the minimal repair times constitute a strictly increasing geometric process. The long-run expected cost rate Is obtained and the properties of the existence and the uniqueness of the optimal policy minimizing the long-run expected cost rate are derived.

• Journal of Korean Society of Water and Wastewater
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• v.32 no.1
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• pp.37-45
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• 2018

This study develops a model to estimate the economic life of the large-diameter water supply pipeline in Korea by supplementing existing methods used to perform similar calculations. To evaluate the developed methodology, the model was applied to the actual target area with the conveyance pipe in P waterworks. The application yielded an economic life computation of 39.7 years, considering the cost of damages, maintenance, and renewal of the pipeline. Based on a sensitivity analysis of the derived results, the most important factor influencing the economic life expectancy was the predicted failure rate. The methodology for estimating the economic life of the water supply pipeline proposed in this study is one of the core processes of basic waterworks facility management planning. Therefore, the methods and results proposed in this study may be applied to asset management planning for water service providers.