• Journal of the military operations research society of Korea
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• v.6 no.1
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• pp.79-92
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• 1980

In cost-only incentive contract the emphasis is the attainment of efficient and effective cost control. In contrast multiple incentives contract correlates contractor's profit motives with the generalized government objective function, the decision variables of which are performance or quality (technical progress), time or schedule (timely development and delivery) and the cost (efficient and effective cost control) Under multiple incentive structure, it is essential to formulate the trade-off curves between cost and performance, which are called iso-fee curves. Trade-off curves depict the combination of cost and performance achievement for which the contractor will be rewarded with the same fee. The basic function of trade-off curves is to show he the contractor will be motivated by incentive arragement to trade off or sacrifice the achievement in one incentive element for the acnievment in another.

• International Commerce and Information Review
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• v.14 no.2
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• pp.473-495
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• 2012

e-Trade should be activated for cost saving and efficient management of trade as it provides bases to actively respond to changes in markets through quick clearance of export and import. It also has tangible and intangible effects in providing services to customers through real-time sharing of information and can help enhance external competition and images through cost saving and efficient management of traders. Therefore, the study suggests that e-trade platforms to construct global trade systems should be executed to maximize economic ripple effects in terms of trade documents and cost, and paradigms of the past trade should be changed into new systems and presents future countermeasures to enhance its ripple effects.

• International Journal of Advanced Culture Technology
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• v.9 no.3
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• pp.271-276
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• 2021

In this paper we analyze the effect of the credit period on inventory policy under trade credit with ordering cost including a fixed cost and freight cost, where the freight cost has a quantity discount. For marketing purposes, some supplier offers credit period to his buyer to stimulate the demand for the product he produces. The delay in payments during the credit period has the effect of reducing the buyer's capital opportunity cost. It is also assumed that the buyer pays the freight cost for the order and hence, the ordering cost consists of a fixed ordering cost and a variable freight cost which depends on the order quantity. As a result, the possibilities of trade credit and discounts on freight costs are expected to play an important role in the buyer's inventory policy. Based on the economic order quantity inventory model, we analyze how the buyer can determine the optimal inventory policy and we examine the effect of the length of credit period on the buyer's inventory policy.

• The Korean Journal of Community Living Science
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• v.23 no.3
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• pp.291-305
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• 2012

The purpose of this study was to explore the consumer responses such as willingness to pay premium and purchasing cost for fair trade coffee as an ethical product while considering the treatment effect of consumer knowledge. First, the levels of consumer knowledge, willingness to pay premium and purchasing cost were presented. Then, the influencing factors on willingness to pay premium and purchasing cost of fair trade coffee were analyzed by applying the treatment effect model. From the results, first, the level of willingness to pay premium was high and consumers having purchasing experience of fair trade coffee spent 9,923 won at once, while less than half of the consumers knew the fair trade coffee. Second, consumer knowledge, ethical judgement, perception of price value, education level and pocket money significantly influenced to willingness to pay premium, while consumer knowledge, information evaluation, importance of fair trade criteria and level of education significantly influenced to purchasing cost for fair trade coffee. Especially, consumer knowledge of fair trade coffee was an important influencing factor for willingness to pay premium and purchasing cost indirectly as well as directly. Thus, this study might provide some useful information for consumers to choose the ethical behavior and the related companies to create effective promoting strategies for ethical products.

• Journal of applied mathematics & informatics
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• v.10 no.1_2
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• pp.131-143
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• 2002

In this paper hi-criterion quadratic fractional generalized solid transportation problem is studied. An algorithm is developed to obtain the time-cost trade-off pairs and hence identifies the optimum trade-off pairs giving the equal priority to both time and cost. A numerical example is illustrated to support the algorithm.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.69
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• pp.121-132
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• 2001

South and North Korea have many questions pending .Inter-Korea trade is the best actual problem among question pending. The biggest problem of inter-Korea trade in logistics cost. The logistics cost of inter-Korea is the highest position in the middle of foreign trade. We present that the cost reduction is possible by inter-Korea logistics standardization. This paper also shows logistics standardization strategy of South and North Korea.

• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.243-252
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• 2015

This paper considers a supply chain consisting of a manufacturer under the cap-and-trade emissions regulation and a permit supplier. We study joint production quantity and investment in reducing permit production cost decisions for centralized and decentralized supply chains. We formulate two supply chain contracts with aims to coordinate the decentralized supply chain; wholesale price contract and cost-sharing contract. Under the cost-sharing contract, the manufacturer shares a part of the investment in reducing permit production cost and then is allowed to purchase emission permit at a lower price. We analytically find that the proposed cost-sharing contract with reasonable parameters can coordinate the supply chain whereas the wholesale price contract is not desirable to achieve the system-wide profit. Numerical example is followed to support the analysis.

• Korea Trade Review
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• v.45 no.3
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• pp.119-132
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• 2020

In this paper we explore the two analyses to know the urbanization effect on trade. First, the granger causality test to examine the relationship between trade and urbanization. The Granger causality test is a statistical hypothesis test for determining whether one time series is useful for forecasting another. The results indicated that the existence of a bidirectional causality running from trade to urbanization when six lags were applied. When eight lags were applied, we found unidirectional causality running from urbanization to trade. Second, gravity models were used to investigate the urbanization effect on trade. The production cost and specification are affected by the economies of scale, and the economies of scale increased as the greater geographically agglomeration. However, the gravity model to explain the bilateral trade flows ignores the urbanization variables. Therefore we added the urbanization variable represented as the geographically agglomeration into gravity model. The results show that the degree of urbanization of both countries has statistically positive effect on trade (export and import) and the bigger coefficients of trade partner's urbanization. The reason is that the trade share of industrial supplies, intermediate goods and capital goods is much higher than finished consumer goods. The urbanization is more important the improved the efficiency of production than demand market.

• Journal of Korea Trade
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• v.23 no.8
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• pp.27-44
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• 2019

Purpose - The purpose of this paper is to develop a tractable general-equilibrium model of examining the impact of human resource management on intra-industry trade. Commonly, managers of Korean firms are promoted internally. It necessitates a study of human resource management and its impact on an industrial equilibrium. Design/methodology - This paper relies on theoretical analysis. We build a model in firms are hierarchical; an entrepreneur, managers, and workers. All individuals have heterogeneous managerial talents, which are the main source of managerial quality. Firms search talents for prospect managers, and eventually delegate them to supervise workers. The searching incurs a sunk cost. Findings - Our finding is as follows. Country 1, relatively abundant of managerial talents, can gain more from trade than Country 2, relatively scarce of managerial talents. This is because the higher searching cost leads to the lower survival rate of firms in Country 2. Implicatively, good jobs are destroyed, and aggregate income falls in Country 2. Originality/value - According to our study, relative abundance of managerial talents affects distribution of firm size and determines trade gain. This study can contribute to the literature of organization management and trade.

• Korea Trade Review
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• v.46 no.2
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• pp.107-119
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• 2021

Using a trade policy, government can shift profits from foreign firms to domestic firms. This paper will reexamine how asymmetric information can affect the equivalence of tariff and quota in a duopoly, where one domestic firm competes with one foreign firm. It can happen that the domestic firm has informational advantage against the government. Within this framework, the domestic firm has private information about own marginal cost as well as the foreign firm's. The domestic firm would exploit the advantage to draw a favorable policy from the government. When the government is misled, social welfare would decline. This paper will guide how the government can extract information from the domestic firm by offering a menu of tariff or quota. Previous studies showed that quota demands information more than tariff. With the principle of revealed information, the domestic firm chooses tariff (quota) if the marginal cost of foreign firm is low (high). The quota level will be high (low) if the marginal cost of domestic firm is high (low). To prevent misrepresentation, the domestic firm should be charged when quota is implemented. When the quota level is low, the domestic firm is charged additionally. This paper can contribute to the literature of trade policy and information.