• KDI Journal of Economic Policy
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• v.28 no.1
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• pp.117-144
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• 2006

This study is to analyze the existence of the real buffer effect that reflects the effect of beginning-of-period inventory stocks effect on the demand for fixed investment, and the financial buffer effect indicates the substitution effect between end-of-period inventory stock and the source of financing for fixed investment. I use panel data of 361 Korean listed non-financial firms during 1990-2003. After the crisis, it also observed whether the relationship between inventory stocks and fixed investment has altered or not. I review the theoretical connection between inventory stock and fixed investment through the paper by Bo(2004) and estimate the investment model by the method of GMM-SYS. The results show negative relation between end-of-period inventory stock and fixed investment in the whole period and each period classified, also it confirms that the relation between fixed investment and end-of-period investment is significantly negative. It can be interpreted through two aspects that firms not only use inventory stock as a buffer in response to unexpectedly high demand, but also utilize inventory stock as a source of financing for fixed investment. The results imply that firm's decision-making is much correlated with production-and-inventory stock adjustment, decision-making about fixed investment, and decision-making about financial affairs.

• Journal of Institute of Control, Robotics and Systems
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• v.11 no.11
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• pp.956-962
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• 2005

This paper presents an integrated analysis of production and financing decisions. We assume that a cash storage unit is installed to manage the cash flows related with production activities such as raw material procurement, process operating setup, Inventory holding cost and finished product sales. Temporarily financial investments are allowed for more profit. The production plant is modeled by the Batch-Storage Network with Recycle Streams in Yi and Reklaitis (2003). The objective function of the optimization is minimizing the opportunity costs of annualized capital investment and cash/material inventory while maximizing stockholder's benefit. No depletion of all the material and cash storage units is major constraints of the optimization. A novel production and inventory analysis formulation, the PSW(Periodic Square Wave) model, provides useful expressions for the upper/lower bounds and average level of the cash and material inventory holdups. The expressions for the Kuhn-Tucker conditions of the optimization problem can be reduced to two subproblems and analytical lot sizing equations under a mild assumption about the cash flow pattern of stockholder's dividend. The first subproblem is a separable concave minimization network flow problem whose solution yields the average material flow rates through the networks. The second subproblem determines the decisions about financial Investment. Finally, production and financial transaction lot sizes and startup times can be determined by analytical expressions as far as the average flow rates are calculated. The optimal production lot and storage sizes considering financial factors are smaller than those without such consideration. An illustrative example is presented to demonstrate the results obtainable using this approach.

• Journal of Biosystems Engineering
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• v.22 no.4
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• pp.439-450
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• 1997

Most of Korean feed mill has a pregrind system which was suitable for the processing of less number of ingredients and finished products, and good for the mash type feed product. But industries has been changed in production volume and cost, and also from mash to further processed products such as pelleted and extruded. Therefore, Korea feed industries now should change the process, especially the grinding system from the current pregrind to other grind system, but this change will cost a lot of investment and also loosing current grinding system, and should have production shut down during the construction period. To solve these problems, combined grinding system based on a new model mill has been developed. The combined grind system is combination of pregrind and postgrind system, which has the advantages of those two grind systems, and also which can allow to utilize existing pregrind system continuously without any production interruption due to new postgrind system construction. This newly developed model has been applied to the feed mill expansion project of `B`feed company in 1994, and it was very successful application and showed excellent results as we intended. The new model mill, combined grind system applied can save fixed asset investment because old pregrind system can be used as is, and also can reduce production cost and improve product quality. And the possibility of critical production shut down can be much lowered. Within this new grinding model development, multi-screen combination system has been developed for the better grinding texture quality and safer operation. This new model mill with combined grind system will be applied by most feed manufacturing plant and may enhance their production competitiveness, and the further study and development should be continued.

• Journal of Distribution Science
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• v.18 no.9
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• pp.31-43
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• 2020

Purpose: This study examined a comprehensive model for assessing the success probability of electric vehicle (EV) commercialization in the Korean market. The study identified three risks associated with successful commercialization which were technology, social, policy, environmental, and consumer risk. Research design, methodology: The assessment of the riskiness was represented by a Bayes belief network, where the probability of success at each stage is conditioned on the outcome of the preceding stage. Probability of success in each stage is either dependent on input (i.e., investment) or external factors (i.e., air quality). Initial input stages were defined as the levels of investment in product R&D, battery technology, production facilities and battery charging facilities. Results: Reasonable levels of investment were obtained by expert opinion from industry experts. Also, a survey was carried out with 78 experts consisting of automaker engineers, managers working at EV parts manufacturers, and automobile industry researchers in government think tanks to obtain the conditional probability distributions. Conclusion: The output of the model was the likelihood of success - expressed as the probability of market acceptance - that depended on the various input values. A model is a useful tool for understanding the EV industry as a whole and explaining the likely ramifications of different investment levels.

• Journal of Digital Convergence
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• v.9 no.1
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• pp.107-114
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• 2011

In order to have the highest level of a certain society's technology be evaluated as digital contents technology the value concept of such technology's social utilization must be established while active investment on the technology takes place and makes it the subject of social capitalization. This study wishes to discuss the strategies and methods of establishing and managing IP holding company which requires business activation with digital contents technology at its base, research ways of vitalizing IP holding company to expand social utility values of contents technology, suggest necessary systemic improvements and investment activation methods, management structure, and governance structure by investigating ways to stimulate the industrialization of contents technology through the establishment and management of this IP holding company, and finally come up with a realistic measure to establish and manage a IP holding company. Strategies on commercialization of digital contents technology and acceleration of technology development, as well as activation of venture business set-ups will be analyzed and suggested based on such suggestions while IP holding company's digital contents technology investment activation model will be established to produce means to realize discovering superior contents companies and activation of investment, and activating high quality contents production for the global market.

• Industry Promotion Research
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• v.5 no.3
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• pp.45-51
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• 2020

This study analyzed the influence of investment and fostering support on gross regional product by utilizing big data using multiple regression analysis. Gross regional product (GRDP) is an index that intensively contains the production scale, expenditure level, income level, and industrial structure of each region, and is an important data used for regional economic analysis and national policy establishment. In order to properly carry out the country's major national tasks, it is necessary to accurately grasp the regional economy, and as a result, interest in regional gross domestic product is rapidly increasing. In particular, foreign investment has a significant impact on the economy of the host country, and many empirical analyzes are being conducted. In this study, correlation analysis and multiple regression analysis were conducted to examine the influence of foreign investment and domestic development support on gross regional product, and as a result, it was concluded that investment and support as a whole had a positive effect on gross regional product.

• Journal of the Korean Society of Clothing and Textiles
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• v.28 no.910
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• pp.1341-1350
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• 2004

With the advent of the globalization trend of the industry, the enterprises in the fashion industry around the world have witnessed a surge in exports and foreign direct investment (FDI). Many fashion enterprises in each country, along with the multi-national enterprises, have engaged in global outsourcing of the production process in order to increase their global competitiveness, and have attempted to expand their commercial presence in the world market by entering into other foreign markets. Such market entry attempts have lead to the increase of FDI and trade by the fashion enterprises. This study attempts to examine the interactive relation between FDI and export/import of fashion products in different fashion industries both worldwide and in Korea. First, we will look into the relation between export/imports and FDI of each regional fashion industry, then expand the study to the relation between those two factors found in the fashion industry of Korea in general, and finally, to the relation between the two factors in the fashion industry of countries that are the major export nations of fashion goods into Korea. The data which this study is based on were collected from the International Trade Statistics Yearbook Vol. II (UN, 1991-2002, New York: UN), UNCTAD Handbook of Statistics (UN, 1996-2001, Vienna: UN), UNCTAD database, the archives of the Korea Federation of Textile Industry and the archives of the Export-Import Bank of Korea. The methods of analysis used in this study were correlation, regression, and descriptive statistics of the data. The result of this study showed that each fashion industry of different regions was subject to a diversity of effects. For one, the fashion industry in Korea showed a significant correlation between outbound investment and both export and import. On the other hand, the apparel industry in Korea showed a significant correlation between outbound investment and imports, but no such correlation between outbound investment and exports.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.20 no.43
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• pp.393-408
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• 1997

In the early 1990s, as Korean automobile industry has made rapid progress due to favorable trend in domestic demand and steady increase of export it is very important to analyze the extents of competitiveness and the trends of change in the field of production. In this dissertation, the current situation of our competitiveness and its changes in the field of production are synthetically reviewed through examining productivity and quality, that is output, as well as other overall factors related in the process of production. And this analysis reassures that first of all, our prior tasks lie in the quality and volume of production, and we should develope competitiveness through multilateral innovation of management Now in order to meet these prior tasks, we must secure our own technology design and ability for innovaton ; enlarge overseas local production technical tie-up with leading companies and develop M&A for globalization ; improve price competitiveness, construct cooperation of labor and capital, and improve the structure of finance for innovation of management saving the cost ; establish the new method of production for the preparation of increasing overseas investment in near future.

• Journal of Korea Trade
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• v.23 no.4
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• pp.115-130
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• 2019

Purpose - This paper examines the impact of labor market regulations on FDI and the production of foreign firms. Design/methodology - We use an index of employment protection along with data on the FDI and production of foreign affiliates that are provided by the OECD. Findings - The empirical results show that strict employment protection discourages both the production and initial entry of foreign firms, with its impact on production being larger than that on the initial entry decision. The result is robust to various specifications in which instrumental variable estimations are used by applying a unionization rate and a severance pay for redundancy dismissal as instruments, respectively. Therefore, policymakers should not limit their focus to tax incentives, cash grants, and relaxation of market regulations, but they should also extend their attention to labor market deregulation and decreasing non-wage cost to attract more foreign firms into their countries. Originality/value - This paper attempts to answer the question on the impact of employment protection rules on the foreign firm's decisions regarding production as well as initial entry.

• Journal of Veterinary Clinics
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• v.19 no.1
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• pp.43-48
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• 2002

This study was performed to investigate the effects of recombinant BST formulation treatment on the milk yield, milk components, mastitis, and general cow health condition when the formulations of retinyl palmitate, cholecalciferol and rBST were administered after the peak period of milk production. The milk yields of treatment groups (Group I, II, III and IV) were increased from 21.5% to 29.0% than that of control group. There was significant difference in milk production between treatment group II, IV and control group (P<0.05). However, there was no significant difference in milk production between treatment group I, III and control group (P<0.05). And the addition of retinyl palmitate and cholecalciferol into rBST formulation did not increase the milk yield. The milk of treatment groups with sustained-release rBST did not show significant difference in milk components (milk fat, protein, lactose, and solid not fat). However, there were minor changes, primarily in fat content of milk, during the first few weeks of rBST administration. There was no incidence of clinical mastitis between rBST treatment groups and control group. Addition of high and medium concentration of retinyl palmitate and cholecalciferol into sustained-release rBST formulation was efficient in reduction of somatic cell count in milk. There was great energy deficit in all treatment groups compared with control group during the early study period. Thus, the body condition score of all treatment groups showed lower value than control group. No evidences of metabolic health problems, such as ketosis, milk fever, and downer cow were observed. Incidence of general lameness did not appear on all treatment groups during 140 days of this study.