• Journal of Korean Society for Quality Management
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• v.51 no.4
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• pp.481-496
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• 2023

Purpose: The main theme of this study is to derive a profit curve by a cubic cost function for nonlinear CVP analysis. According to the analytical approach to derive a nonlinear profit function in this study, it is possible with only the existing cost structure to calculate the profit maximization and downtime point sales unlike the classical CVP analysis. Furthermore, the profit curve by the mathematical model of this study could serve as a tool to quantify the qualitative evaluation of each stage of the industry life cycle. Methods: This study followed the mathematical approach from the cubic cost function model of microeconomics, and using real data of the Bank of Korea Results: The nonlinear profit function suggested by this study is as follows; ${\pi}(x)=-a\left(x-\frac{f}{1-v}\right)^3+(1-v)x-k$ where $a=\frac{1}{3}v\left(\frac{(1-v)}{f}\right)^2,k=f-a\left(1-\frac{f}{1-v \right)^3$ Conclusion: The process and results of this study would be able to contribute not only in practice of nonlinear CVP analysis required in the management accounting or financial management, but also in cost theory of microeconomics. Also, since the life cycle of all industries in Korea was verified to the growth or mature stage, decision makers should pay careful attention to determining life cycle stages and consider the profit curve by the average variable cost ratio over multi periods.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.12
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• pp.638-646
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• 2002

This paper presents an efficient algorithm for evaluating the Profit and revenue of generating units in a competitive electricity market based on the probabilistic production costing technique. The accurate evaluation of the profit and revenue of generating units for long-term perspectives is one of the most important issues in a competitive electricity market environment. For efficient calculation of the profit and revenue of generating units under the equivalent load duration curve(ELDC), a new approach to figure out the marginal plants and the corresponding market clearing prices during a time period in a probabilistic manner is developed. The mathematical formulation and illustrative application of the suggested method is presented.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.5 no.6
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• pp.69-78
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• 1982

Traditional CVP (Cost-Volume-Profit) analysis employs linear cost and revenue functions within some specified time period and range of operations. Therefore CVP analysis is assumption of constant labor productivity. The use of linear cost functions implicity assumes, among other things, that firm's labor force is either a homogenous group or a collection homogenous subgroups in a constant mix, and that total production changes in a linear fashion through appropriate increase or decrease of seemingly interchangeable labor unit. But productivity rates in many firms are known to change with additional manufacturing experience in employee skill. Learning curve is intended to subsume the effects of all these resources of productivity. This learning phenomenon is quantifiable in the form of a learning curve, or manufacturing progress function. The purpose d this study is to show how alternative assumptions regarding a firm's labor force may be utilize by integrating conventional CVP analysis with learning curve theory, Explicit consideration of the effect of learning should substantially enrich CVP analysis and improve its use as a tool for planning and control of industry.

• Journal of the Korean Institute of Navigation
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• v.5 no.2
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• pp.89-98
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• 1981

Presently, there are some means of voyage estimations such as Hire base, Charter base, and Anticpated income and expenditure statement of voyage. The former two are the means of estimation for profit of a ship's voyage per a deadweight tonnage adn a month, and it is well used in the case of chartered ships. But it is somewhat meaningless for the shpowner who runs his ships for himself. The latter means for estimation is mainly used in western shipping, and do not set forth simpler way of comparing profit with another voyage or with another ship's employing in other route. And this paper has yielded an index of ship's voyage profit evaluation by building a model of ship's voyage evaluation formula, and the index may be used in evaluation of the new investigation of shipping as well as setting out a shiop in a voyage. The model has yielded a break even curve which may be used for deciding the amount of demurrage and the period of ship's port time for a specific voyage contraction.

• Journal of Distribution Science
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• v.20 no.5
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• pp.119-127
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• 2022

Purpose: The purpose of this study is to analyze the Cost-Effectiveness Analysis (CEA) of wholesale and retail brokerage businesses in Korea. And give managerial implications and contribute to academics. Research design, data and methodology: This research empirically analyzes the relationship between expenses and business performance. As for business performance, this research considered two financial performances; sales and profit. As for antecedent variables, this research measured three cost investment expenses; human resource management (HRM), marketing (MKT) and corporate social responsibility (CSR). This research used frequency analysis, correlation analysis, stepwise regression analysis and curve estimation analysis. Results: The result shows that HRM and CSR positive significant influence on sales yet marketing negatively significant influence on sales. And for profit, HRM and CSR give a positive significant influence. However, marketing's influence was not significant. According to curve estimation analysis, the relation between individual cost and performance, best functional relation was all quadratic functions. Some results show ∩ shape and others show shape. Conclusions: Based on this study result, implications for practical management to Wholesale and Retail Brokerage companies in Korea. And the contribution to academics is expected. Also, based on the limitation of this study, future research is suggested.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.30 no.2
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• pp.89-98
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• 2007

In this paper the economic value of weather forecasts is valuated for profit-oriented enterprise decision-making situations. Value is estimated in terms of monetary profits (or benefits) resulted from the forecast user's decision under the specific payoff structure, which is represented by a profit/loss ratio model combined with a decision function and a value score (VS). The forecast user determines a business-related decision based on the probabilistic forecast, the user's subjective reliability of the forecasts, and the payoff structure specific to the user's business environment. The VS curve for a meteorological forecast is specified by a function of the various profit/loss ratios, providing the scaled economic value relative to the value of a perfect forecast. The proposed valuation method based on the profit/loss ratio model and the VS is adapted for hypothetical sets of forecasts and verified for site-specific probability of precipitation forecast of 12 hour and 24 hour-lead time, which is generated from Korea meteorological administration (KMA). The application results show that forecast information with shorter lead time can provide the decision-makers with great benefits and there are ranges of profit/loss ratios in which high subjective reliability of the given forecast is preferred.

• Journal of Information Technology Applications and Management
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• v.11 no.3
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• pp.23-33
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• 2004

Internet bid systems have been widely used recently. In those systems, the bid price is provided by the seller. When the bid price is set too high compared with the normal price, the successful bid rate can be decreased. Otherwise, when it is set too low based on inaccurate information, it can result in a successful bid with no profit at all. To resolve this problem, we propose an agent that automatically generates bid prices for sellers based on various costing methods such as the high-low point method, the scatter diagram method, and the learning curve method. Through performance experiments, we have found that the number of successful bids with appropriate profit can be increased using the bid pricing agent. Among the costing methods, the learning curve method has shown the best performance. Also, we discuss about how to design and implement the bid pricing agent.

• Journal of Information Technology Services
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• v.11 no.3
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• pp.89-101
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• 2012

The study investigated if IT investment in Korean financial markets for the past 18 years has grown following the s-curve pattern based on Nolan's growth model in order to find the correlation between IT investment and management performance in the financial industry. According to the research finding it can be said that the overall financial markets maintain s-curve pattern, and IT investment is related to management performance, particularly increase in total assets and net profit. However, each sector has defining features of growth patterns. The banking industry has grown similarly to the s-curve, and the insurance industry also shows the s-curve but it looks more like linear pattern. In terms of securities industry, its growth patterns can hardly be considered s-curve due to the irregular changes. his research outcome illustrates the analysis of IT growth patterns in the financial industry and thus, it is expected to be a useful reference when deciding the appropriate time for IT investment in the financial industry.

• Journal of the Korean Society for Precision Engineering
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• v.20 no.9
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• pp.188-196
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• 2003

In order to increase competitiveness and to gain economic benefit, companies ask more and more how to recycle their products in a efficient way. So far, to answer this question, companies are not sufficiently supported by suitable methods specially in the area of disassembly process planning. For this reason, we develop in collaboration with an industrial partner a new method for generating an optimal disassembly sequence. In the presented paper this method will be described in detail by considering the exiting assembly information, disassembly method and disassembly depth. PLM (Profit-Loss Margin) curve that is used to determine disassembly depth consists of profit value, disassembly cost and disassembly effect. Using assessment parameters, generated alternative disassembly sequences are evaluated and optimal disassembly sequence is proposed. This method is applied to generate the optimal disassembly sequence of Door Trim as an example.

• International Journal of Precision Engineering and Manufacturing
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• v.6 no.1
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• pp.42-50
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• 2005

In order to increase competitiveness and to gain economic benefit, companies ask more and more how to recycle their products in an efficient way. So far, to answer this question, companies are not sufficiently supported by suitable methods specially in the area of disassembly process planning. For this reason, we develop in collaboration with an industrial partner a new method for generating an optimal disassembly sequence. In this paper this method will be described in detail by considering the exiting assembly information, disassembly method and disassembly depth. PLM(Profit-Loss Margin) curve that is used to determine disassembly depth consists of profit value, disassembly cost and disassembly effect. Using assessment parameters, generated alternative disassembly sequences are evaluated and an optimal disassembly sequence is proposed. This method is applied to generate the optimal disassembly sequence of Door Trim as an example.