• International Journal of Advanced Culture Technology
• /
• v.8 no.1
• /
• pp.62-70
• /
• 2020

As an effective means of price discrimination, some suppliers offer trade credit to the distributors in order to stimulate the demand for the product they produce. The availability of the delay in payments from the supplier enables discount of the distributor's selling price from a wider range of the price option in anticipation of increased customer's demand. Since the distributor's lot-size is affected by the demand for the customer, the distributor's lot-size and the selling price determination problem is interdependent and must be solved at the same time. Also, in many common business transactions, the distributor pays the shipping cost for the order and hence, the distributor's ordering cost consists of a fixed ordering cost and the shipping cost that depend on the order quantity. In this regard, we deal with the joint lot-size and price determination problem when the supplier allows delay in payments for an order of a product. The positive effects of credit transactions can be integrated into the EOQ (economic order quantity) model through the consideration of retailing situations, where the customer's demand is a function of the distributor's selling price. It is also assumed that the distributor's order cost consists of a fixed ordering cost and the variable shipping cost. We formulate the distributor's mathematical model from which the solution algorithm is derived based on properties of an optimal solution. A numerical example is presented to illustrate the algorithm developed.

• Industrial Engineering and Management Systems
• /
• v.8 no.1
• /
• pp.1-13
• /
• 2009

This paper presents a coordinated planning model of price-dependent demand for a single-manufacturer and a single-retailer. The demand is assumed to be normally distributed, with its mean being price dependent. The manufacturer and retailer coordinate with each other to jointly and simultaneously determine the retail selling price and the retailer order quantity to maximize the joint expected total profit. This model is then compared to a 'returns' policy model where manufacturer buys back unsold items from the retailers. It is shown that the optimal total profit is higher for coordinated planning model than that for the returns policy model, in which the retail price is set by the retailer. A compensation or profit sharing scheme is then suggested and it is shown that the coordinated model with profit sharing yields a 'win-win' situation. Numerical results are presented to illustrate the profit patterns for both linear and nonlinear demand functions. The coordinated planning model, in addition, has a lower optimal price than for a returns policy model, which would result in higher sales, thus expanding the markets for the whole supply chain.

• Journal of Energy Engineering
• /
• v.23 no.2
• /
• pp.74-82
• /
• 2014

The government is planning to expand the bio-gas supply as a method for mitigating greenhouse gas emissions to deal with climate change. By means of a policy instrument, the government is considering an introduction of the Renewable Fuel Standard (RFS) whose targets include bio-gas. This paper attempts to look into the economic effects of expanding the bio-gas supply by applying an input-output (I-O) analysis using a 2011 I-O table. The bio-gas supply sector consists of liquefied petroleum gas supply sector and city gas supply sector, based on the tenets of introducing the RFS. The production-inducing effect, value-added creation effect, and employment-inducing effect of the bio-gas sector are analyzed. The supply shortage effect and the price pervasive effect are also investigated. The results show that the production or investment of 1.0 won in the bio-gas supply sector induces the production of 1.0539 won and the value-added of 0.1998 won in the national economy. Moreover, the production or investment of 1.0 billion won, supply shortage of 1.0 won, and a price increase of 10.0% in the bio-gas supply sector touch off the employment of 0.5279 person, 1.6229 won, and an increase in overall price level by 0.0183%, respectively.

• Industrial Engineering and Management Systems
• /
• v.13 no.3
• /
• pp.304-318
• /
• 2014

It is necessary for a retailer to improve responsiveness to uncertain customer demand in product sales. In order to solve this problem, this paper discusses an optimal operation for a 2-stage-ordering-production system consisting of a retailer and a manufacturer. First, based on the demand information estimated at first order time $t_1$, the retailer determines the optimal initial order quantity $Q^*_1$, the optimal advertising cost $a^*_1$ and the optimal retail price $p^*_1$ of a single product at $t_1$, and then the manufacturer produces $Q^*_1$. Next, the retailer updates the demand information at second order time $t_2$. If the retailer finds that $Q^*_1$ dissatisfies the demand indicated by the demand information updated at $t_2$, the retailer determines the optimal second order quantity $Q^*_2$ under $Q^*_1$ and adjusts optimally the advertising cost and the retail price to $a^*_2$ and $p^*_2$ at $t_2$. Here, decision-making approaches for two situations are made-a decentralized supply chain (DSC) whose objective is to maximize the retailer's profit and an integrated supply chain (ISC) whose objective is to maximize the whole system's profit. In the numerical analysis, the results of the optimal decisions under DSC are compared with those under ISC. In addition, supply chain coordination is discussed to adjust the unit wholesale price at each order time as Nash Bargaining solutions.

• Proceedings of the KIEE Conference
• /
• 2000.07a
• /
• pp.379-381
• /
• 2000

In the new electric industry, many of generators and consumers exist in competitive market and electric price is determined by the response of suppliers and consumers. Power supply and consumption make change the electric price and social welfare depends on the elasticity that indicates sensitivity to changes of price related on the electric demand or supply. If elasticity is changed, social welfare that represents the sum of producers and customers surplus will be changed together. This paper investigates the change of the social welfare depending on the elasticity, and presents the propriety of competitive electric market.

• Korean Journal of Organic Agriculture
• /
• v.25 no.1
• /
• pp.37-52
• /
• 2017

Three varieties of green pepper - Chungyang pepper, Cucumber-taste pepper and Nokgwang pepper - are competing with one another in consumption due to the overlapping shipment period. The objective of this study is to analyze the influence of monthly variations of shipment quantities on the wholesale market prices. A Linear Approximated Inverse Almost Ideal Demand System (LA/IAIDS) is employed with monthly data set of three different varieties of green pepper consumption. The results show that if there is an excess supply in the market, the rate of the price decline is larger for forcing culture Chungyang pepper than other pepper varieties. On the contrary, change in supply of cucumber-taste pepper and Nokgwang pepper has little effect on the price of Chungyang pepper. The results of this study can be utilized as a basic information for enhancing the farm income and promoting agricultural policies related to the establishment of self-help funds by Chungyang pepper producer groups in Gyeongnam region.

• Proceedings of the Korean Institute of Interior Design Conference
• /
• 2003.05a
• /
• pp.74-77
• /
• 2003

After the Enforcement of Price Deregulation of Apartment, Apartment house get down to originality goods, The Housing Market have reorganized the nucleus by a user, have demanding the development for discriminative unit plan. The purpose of this study is that before and after the Price Decontrol of Apartment take part a variety of unit plan, search for transformation factor and analyze into the tendency of the distinction plan of Housing Goods. Before and after the Price Decontrol of Apartment, Apartment unit have analyzed from 85 $m^2$ till 152 $m^2$ private area; ten corporations of civil construction' unit in Seoul and The national capital region supply apartment, will supply apartment. For selected examples, first, unit plan is normalized from the ratio of front to side wall, bay, a Room' organization and a kind of Room, number, and for examples of unit plan of apartment, the examples were analyzed with respect to change of a Room' organization and the number of a room and the ratio of front wall to side wall for item investigated. Finally, I search out course of transformation tendency of an apartment unit plan after Enforcement of Price Deregulation and analyzed a factor. The results of the study are follows, after Enforcement of Price Deregulation, unit plan of apartment lead to change lay out, to secure each family's privacy, to secure feeling for open hearted, tendency of flexibility.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
• /
• 2014.10a
• /
• pp.75-78
• /
• 2014

Discussion of the validity of the software price has been constantly followed in it. For interests friendly relations between the supply provider and consumers, suitable pricing logic is required to convince each other in the market. However, in reality, not only there is no exact calculation standard of the factors that determine the price still, and also lack understanding of the factors. The fact is that by this, each supply company has a software pricing by different criteria, so consumers keep questioning It's a reasonable price. In this paper, it is intended to analyze a variety of factors that influence to the software price and base on this determine a reasonable price formula model of software packages.

• Journal of Energy Engineering
• /
• v.23 no.2
• /
• pp.83-92
• /
• 2014

This paper attempts to conduct a comparative analysis on the economic effects of integrated-energy and manufactured gas supply sectors. To this end, an input-output (I-O) analysis is applied using most recently published 2011 I-O table. In particular, the two sectors are specified as exogeneous to identify the economic effects on own and other sectors. Production-inducing effect, value-added creation effect, and employment-inducing effect are quantified based on demand-driven model. Supply shortage effect and price pervasive effect are analyzed employing supply-driven model and Leontief price model, respectively. The results show that production-inducing effect, value-added creation effect, and employment-inducing effect of integrated-energy and manufactured gas supply sectors are estimated to be 1.5461 vs. 1.0297, 0.4759 vs. 0.1941, and 2.2885 vs. 0.4053 respectively. Price pervasive effects of the 10% increase in integrated-energy and manufactured gas supply sectors are computed to be 0.0127% and 0.1585%, respectively. This information can be utilized in forecasting the economic effects of introducing integrated-energy or manufactured gas as a heating source and the impacts of a rise in price of integrated-energy or manufactured gas on price level of other sectors.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.15 no.10
• /
• pp.6084-6091
• /
• 2014

This paper presents the GJR GARCH model (Glosten et. al, 1993) to analyze the influences of volume volatilities on price volatilities in the fishery market. For the analysis, this study used the monthly price and volume data of aquacultural flatfish in Jeju. As a result, empirical analysis suggested volatility clustering. The persistency parameter(${\lambda}$) was estimated to be approximately 1 in aquacultural flatfish. The results showed that there is a significant negative relationship between the conditional variance of supply and that of price for aquacultural flatfish. This means that the general law of supply is valid. Finally, the empirical analysis was that an asymmetric coefficient (${\gamma}$) of GJR GARCH model was negative (-). This means that the higher volatility of volume leads to lower price volatility. That is, it is useful to make government policies that can adjust the volume (stockpiling, stabilizing supply and demand).