• Journal of Global Scholars of Marketing Science
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• v.19 no.1
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• pp.37-46
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• 2009

The Census Bureau of the Department of Commerce announced in May 2008 that U.S. retail e-commerce sales for 2006 reached $ 107 billion, up from $ 87 billion in 2005 - an increase of 22 percent. From 2001 to 2006, retail e-sales increased at an average annual growth rate of 25.4 percent. The explosive growth of E-Commerce has caused profound changes in marketing channel relationships and structures in many industries. Despite the great potential implications for both academicians and practitioners, there still exists a great deal of uncertainty about the impact of the Internet channel introduction on distribution channel management. The purpose of this study is to investigate how the ownership of the new Internet channel affects the existing channel members and consumers. To explore the above research questions, this study conducts well-controlled mathematical experiments to isolate the impact of the Internet channel by comparing before and after the Internet channel entry. The model consists of a monopolist manufacturer selling its product through a channel system including one independent physical store before the entry of an Internet store. The addition of the Internet store to this channel system results in a mixed channel comprised of two different types of channels. The new Internet store can be launched by the independent physical store such as Bestbuy. In this case, the physical retailer coordinates the two types of stores to maximize the joint profits from the two stores. The Internet store also can be introduced by an independent Internet retailer such as Amazon. In this case, a retail level competition occurs between the two types of stores. Although the manufacturer sells only one product, consumers view each product-outlet pair as a unique offering. Thus, the introduction of the Internet channel provides two product offerings for consumers. The channel structures analyzed in this study are illustrated in Fig.1. It is assumed that the manufacturer plays as a Stackelberg leader maximizing its own profits with the foresight of the independent retailer's optimal responses as typically assumed in previous analytical channel studies. As a Stackelberg follower, the independent physical retailer or independent Internet retailer maximizes its own profits, conditional on the manufacturer's wholesale price. The price competition between two the independent retailers is assumed to be a Bertrand Nash game. For simplicity, the marginal cost is set at zero, as typically assumed in this type of study. In order to explore the research questions above, this study develops a game theoretic model that possesses the following three key characteristics. First, the model explicitly captures the fact that an Internet channel and a physical store exist in two independent dimensions (one in physical space and the other in cyber space). This enables this model to demonstrate that the effect of adding an Internet store is different from that of adding another physical store. Second, the model reflects the fact that consumers are heterogeneous in their preferences for using a physical store and for using an Internet channel. Third, the model captures the vertical strategic interactions between an upstream manufacturer and a downstream retailer, making it possible to analyze the channel structure issues discussed in this paper. Although numerous previous models capture this vertical dimension of marketing channels, none simultaneously incorporates the three characteristics reflected in this model. The analysis results are summarized in Table 1. When the new Internet channel is introduced by the existing physical retailer and the retailer coordinates both types of stores to maximize the joint profits from the both stores, retail prices increase due to a combination of the coordination of the retail prices and the wider market coverage. The quantity sold does not significantly increase despite the wider market coverage, because the excessively high retail prices alleviate the market coverage effect to a degree. Interestingly, the coordinated total retail profits are lower than the combined retail profits of two competing independent retailers. This implies that when a physical retailer opens an Internet channel, the retailers could be better off managing the two channels separately rather than coordinating them, unless they have the foresight of the manufacturer's pricing behavior. It is also found that the introduction of an Internet channel affects the power balance of the channel. The retail competition is strong when an independent Internet store joins a channel with an independent physical retailer. This implies that each retailer in this structure has weak channel power. Due to intense retail competition, the manufacturer uses its channel power to increase its wholesale price to extract more profits from the total channel profit. However, the retailers cannot increase retail prices accordingly because of the intense retail level competition, leading to lower channel power. In this case, consumer welfare increases due to the wider market coverage and lower retail prices caused by the retail competition. The model employed for this study is not designed to capture all the characteristics of the Internet channel. The theoretical model in this study can also be applied for any stores that are not geographically constrained such as TV home shopping or catalog sales via mail. The reasons the model in this study is names as "Internet" are as follows: first, the most representative example of the stores that are not geographically constrained is the Internet. Second, catalog sales usually determine the target markets using the pre-specified mailing lists. In this aspect, the model used in this study is closer to the Internet than catalog sales. However, it would be a desirable future research direction to mathematically and theoretically distinguish the core differences among the stores that are not geographically constrained. The model is simplified by a set of assumptions to obtain mathematical traceability. First, this study assumes the price is the only strategic tool for competition. In the real world, however, various marketing variables can be used for competition. Therefore, a more realistic model can be designed if a model incorporates other various marketing variables such as service levels or operation costs. Second, this study assumes the market with one monopoly manufacturer. Therefore, the results from this study should be carefully interpreted considering this limitation. Future research could extend this limitation by introducing manufacturer level competition. Finally, some of the results are drawn from the assumption that the monopoly manufacturer is the Stackelberg leader. Although this is a standard assumption among game theoretic studies of this kind, we could gain deeper understanding and generalize our findings beyond this assumption if the model is analyzed by different game rules.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.7
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• pp.168-175
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• 2020

Recently, there has been an increasing need to expand the supply of renewable energy as a solution to greenhouse gas emissions. Therefore, as a measure to promote domestic renewable energy investment and gradual expansion, this study analyzed the investment value of renewable energy projects utilizing the unoccupied spaces of public enterprise's facilities and presented a strategic decision-making framework to support efficient national land development and government measures. The NPV was estimated to be 286 million won if the expansion of the facility was not considered, but it is reasonable to postpone the expansion decision because the value of -130 million won was calculated if the expansion was considered. On the other hand, the real-option value was estimated to be 444 million won, taking SMP uncertainty, expansion, and abandonment options into account, and an additional value of 288 million won was calculated from an analysis of the expansion project using the existing NPV analysis.

• The Journal of Information Technology
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• v.3 no.2
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• pp.73-85
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• 2000

The efficient algorithms are suggested in this study for solving the multicommodity network flow problems applied to Communications Systems. These problems are typical NP-complete optimization problems that require integer solution and in which the computational complexity increases numerically in appropriate with the problem size. Although the suggested algorithms are not absolutely optimal, they are developed for computationally efficient and produce near-optimal and primal integral solutions. We supplement the traditional Lagrangian method with a price-directive decomposition. It proceeded as follows. First, A primal heuristic from which good initial feasible solutions can be obtained is developed. Second, the dual is initialized using marginal values from the primal heuristic. Generally, the Lagrangian optimization is conducted from a naive dual solution which is set as ${\lambda}=0$. The dual optimization converged very slowly because these values have sort of gaps from the optimum. Better dual solutions improve the primal solution, and better primal bounds improve the step size used by the dual optimization. Third, a limitation that the Lagrangian decomposition approach has Is dealt with. Because this method is dual based, the solution need not converge to the optimal solution in the multicommodity network problem. So as to adjust relaxed solution to a feasible one, we made efficient re-allocation heuristic. In addition, the computational performances of various versions of the developed algorithms are compared and evaluated. First, commercial LP software, LINGO 4.0 extended version for LINDO system is utilized for the purpose of implementation that is robust and efficient. Tested problem sets are generated randomly Numerical results on randomly generated examples demonstrate that our algorithm is near-optimal (< 2% from the optimum) and has a quite computational efficiency.

• Journal of Biosystems Engineering
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• v.3 no.2
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• pp.22-33
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• 1978

To maintain the self-sufficiency of food production , it is required to improved the productivity and increase the effective utilization of land in the double cropping areas using improved cultivation technology. The following reasons encourage this cours of action because the overlapping rice harvest and barely seeding seasons complete for labour, the lower price of barley makes it financially less attractive to grow and these two facts together are responsible for a decrease in barley being planted in certain more seasonably marginal double cropping areas. Fro these reasons, it is desirable to carry out tests to improve the current cultivation techniques . In this interest , the following studies were carried out in the experimental field located at Banweol-myeon, Whasung-jkun, Gyeonggi-do from October 1977 to July 1978 in order to establish the mechanical method of barley cultivation using the power tiller. The summarized results are as follows. 1. The work performance in the seeding operation using the rotary barley seeder was 68 minutes per 10 ares which compares favourably with 408 min/10a using the conventional method. This is only one sixth of the time required by th conventional method. The operating costs using the rotary barley seeder was 1, 463 won per 10 areas as against 3, 486 Won per 10 ares for the conventional method, showing a saving of about 50% in comparison with the conventional method. 2. In the manure spreading operation, the work performance was 25 min/10a for the manure spreading machine , compared to 1089 min/10a for the manual operations. This is about one fourth of the time required by the conventional method, The operating costs were 810 Won/10a for the machine and 857 Won/10a for the manual labour. This cost shows little advantage by the machine over the manual labor costs. The conventional method of manure spreading will continue pending decision which will develope and improve the machine.3. Work performance in the rolling operation using the barley rolIer was 30 min/lOa which compares favourably with 135 min/10a using conventional method. This was one fourth of the time required by the conventional method. The operating costs were 514 Won/103. for the machine and 1, 003 Won/lOa for manual labour. In the weed control operation, the work performance and operating costs were 45min/lOa, 1, 399won/10a for the herbcide application using the power sprayer, 1, 149min/10a 8, 541won/lOa for the conventional method respectively. This is 26 times higher efficiency in comparison to the conventional method. 4. In the harvesting operation using the reaper binder and tiller attachment, the work performance was 60min/lOa and represents a cost of 2, 039won/10a. The con\ulcornerventional method took 640min/10a at a cost of 4, 757won/lOa. The reaper binder showns a saving of one tenth over the conventional method. The automatic thresher is already recommended for the current situations, and is now being used. 5. From a comparison of the results of the above trials, the serial cultivation system using the attachment for the power tiller such as the rotary barley seeder is now to be recommended for the current barley cultivation system. It is also recommend from these results that the mechanized technology now available must be used to improve and maintain the increase in barley production. It is seen th1t this is the only course now avaihble to solve the peak seasonal requirements of labour needed for l11rvesting and seeding between rice and barley cultivation.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.115-134
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• 1991

The role of pension plans in the macroeconomy has been a subject of much interest for some years. It has come to be recognized that pension plans may alter basic macroeconomic behavior patterns. The net effects on both savings and labor supply are thus matters for speculation. The aim of the present paper is to provide quantitative results which may be helpful in attaching orders of magnitude to some of the possible effects. We are not concerned with the providing empirical evidence relating to actual behavior, but rather with deriving the macroeconomic implications for a alternative possibilities. The pension plan interacts with the economy and the population in a number of ways. Demographic variables may thus affect both the economic burden of a national pension plan and the ability of the economy to sustain the burden. The tax transfer process associated with the pension plan may have implications for national patterns of saving and consumption. The existence of a pension plan may have implications also for the size of the labor force, inasmuch as labor force participation rates may be affected. Changes in technology and the associated changes in average productivity levels bear directly on the size of the national income, and hence on the pension contribution base. The vehicle for the analysis is a hypothetical but broadly realistic simulation model of an economic- demographic system into which is inserted a national pension plan. All income, expenditure, and related aggregates are in real terms. The economy is basically neoclassical; full employment is assumed, output is generated by a Cobb-Douglas production process, and factors receive their marginal products. The model was designed for use in computer simulation experiments. The simulation results suggest a number of general conclusions. These may be summarized as follows; - The introduction of a national pension plan (funded system) tends to increase the rate of economic growth until cost exceeds revenue. - A scheme with full wage indexing is more expensive than one in which pensions are merely price indexed. - The rate of technical progress is not a critical element in determining the economic burden of the pension scheme. - Raising the rate of benefits affects its economic burden, and raising the age of eligibility may decrease the burden substantially. - The level of fertility is an element in determining the long-run burden. A sustained low fertility rate increases the proportion of the aged in total population and increases the burden of the pension plan. High fertility has inverse effects.

• KOREAN JOURNAL OF CROP SCIENCE
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• v.59 no.4
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• pp.483-491
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• 2014

Double cropping system including paddy field soybean is widely adopted nationwide, due to rise in market price and its higher income than paddy field rice. Sowing date of soybean as a second crop is being delayed depending on first crop's growth period and harvesting time. Due to the increased temperature in October and delayed first frost date, soybean could be harvested without frost damage even in late-plating. Therefore, selection of soybean cultivar which is appropriate for this environment is very important. The effect of sowing date and genotype of soybean on growth and yield was investigated for three planting dates (June 20, July 5, and July 20) with ten cultivars developed for soy-pate production, to figure out plant development and yield pattern in delayed planting. As planting date is delayed, plant height and pod number was decreased and this pattern was more clearly detected in mid-late maturity cultivars. Hundred-seed weight did not show significant changes even in late planting, due to compensations between yield components. Yield reduction of July 20 in contrast to that of June 20 showed that Nampung (9.6%) showed the least yield decline. Maximum yield was achieved from Daepung, Taekwang, and Uram among other soybean cultivars in late planting. Shortening of growth period was strongly detected in reproductive stage while length of vegetative stage was regularly maintained in both early and mid-late maturity cultivars.