• Journal of Applied Reliability
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• v.12 no.3
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• pp.225-238
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• 2012

In this paper determined is the quantity of repairable concurrent spare parts(CSP) of a new equipment system to maximize the operational availability under budget constraint and cannibalization allowed. When a part fails, the part is replaced and the failed part is repaired for later use while cannibalization is allowed. The failure of a part is assumed to follow a Poisson process and the availability in CSP is defined. The solution procedure consists of two parts. Firstly, a mathematical model is developed under the assumption that the failure rate is constant during the CSP period and cannibalization is not allowed. Secondly, proposed is a simulation search procedure which improves the heuristic solution to the near optimal solution in a reasonable amount of time under the assumption that the cannibalization is allowed.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.4
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• pp.126-132
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• 2012

This paper deals with a centralized warehouse problem with multi-item and capacity constraint. The objective of this paper is to decide the number and location of centralized warehouses and determineorder quantity (Q), reorder point (r) of each centralized warehouse to minimize holding, setup, penalty, and transportation costs. Each centralized warehouse uses continuous review inventory policy and its budget is limited. A SA (Simulated Annealing) approach is developed and its performance is tested by using some computational experiments.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.2
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• pp.40-46
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• 2015

The modular assembly system can make it possible for the variety of products to be assembled in a short lead time. In this system, necessary components are assembled to optional components tailor to customers' orders. Budget for inventory investments composed of inventory and purchasing costs are practically limited and the purchasing cost is often paid when an order is arrived. Service cost is assumed to be proportional to service level and it is included in budget constraint. We develop a heuristic procedure to find a good solution for a continuous review inventory system of the modular assembly system with a budget constraint. A regression analysis using a quadratic function based on the exponential function is applied to the cumulative density function of a normal distribution. With the regression result, an efficient heuristics is proposed by using an approximation for some complex functions that are composed of exponential functions only. A simple problem is introduced to illustrate the proposed heuristics.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.741-750
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• 2021

The budget deficit is closely related to expansionary fiscal policy as a fiscal instrument to encourage economic growth. This study aims to apply optimal control theory in the Keynesian macroeconomic model for the economy, so that optimal growth can be found. Macroeconomic variables include GDP, consumption, investment, exports, imports, and budget deficit as control variables. This study uses secondary data in the form of time series, the time period 1990 to 2018. Performing optimal control will result in optimal fiscal policy. The optimal determination is done through simulation, for the period 2019-2023. The discrete optimal control problem is to minimize the objective function in the form of a quadratic function against the deviation of the state variable and control variable from the target value and the optimal value. Meanwhile, the constraint is Keynes' macroeconomic model. The results showed that the optimal value of macroeconomic variables has a deviation from the target values consisting of: consumption, investment, exports, imports, GDP, and budget deficit. The largest deviation from the average during the simulation occurs in GDP, followed by investment, exports, and the budget deficit. Meanwhile, the lowest average deviation is found in imports.

• Journal of the military operations research society of Korea
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• v.23 no.1
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• pp.63-75
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• 1997

This study is concerned with a few models for optimal requirement level of CSP by improving and adjusting the existing models to determine CSP items and quantity as follows. First, by building a model with a objective function of the operating level and constrains of budget, quantity and items of CSP are simultaneously determined. Second, we removed some steps to improve initial solution by using a constraint of usable budget level. Third, we demonstrated a model to be applied with real operating situation by combining two models of Lee(1994) and above. Lastly, by assuming a failure probability distribution is a binomial distribution, the better solution can be obtained. Some facts with necessity of policy improvement were raised as follows: (1) necessity of improvement of the CSP acquisition system, (2) in case of the same kind, permission of diversion in order to execute budget effectively, (3) getting accurate failure rate.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.30 no.1
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• pp.82-88
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• 2007

This paper considers a topological optimization of a computer network design with a cost constraint. The objective is to find the topological layout of links, at maximal reliability, under the constraint that the network cost is less or equal than a given level of budget. This problem is known to be NP-hard. To efficiently solve the problem, a genetic approach is proposed. Two illustrative examples are used to explain and test the proposed approach. Experimental results show evidence that the proposed approach performs more efficiently for finding a good solution or near optimal solution in comparison with a simulated annealing method.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.4
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• pp.31-37
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• 2013

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

• East Asian Economic Review
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• v.21 no.4
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• pp.385-432
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• 2017

This paper investigates how firm age, size and ownership are related with job creation and destruction, and how these patterns differ across transition and non-transition economies. The analysis finds that age is inversely related with gross job creation and net job creation in the two samples. This finding is consistent with the theory of the learning effect. The relationship between age and job destruction is indifferent in non-transition economies. On the contrary, old firms in transition economies destroy more jobs than young ones. The paper further establishes an inverse relationship between size and gross job creation in the two groups. However, there is divergence between the two samples; small firms in non-transition economies also exhibit a higher gross job destruction rate. Consequently large firms have a higher net job creation rate. In transition economies, small and large firms exhibit similar rates of job destruction. But small firms retain a higher net job creation rate. A more intriguing finding is that state owned firms do not underperform domestic private ones. This means these countries may be using soft budget constraint which allows state owned firms to overstaff. Finally, crowding out of SMEs by foreign owned firms is not evident in transition economies.

• The Journal of Society for e-Business Studies
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• v.18 no.4
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• pp.327-338
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• 2013

Effective and efficient selection of IT projects is crucial for company's competitiveness. The selection of IT projects usually involves consideration of budget constraints but existing IT project selection models often neglect budget constraints. This paper presents an IT project selection model which considers budget constraints. AHP(Analytic Hierarchy Process) and Knapsack problem model have been combined to develop the proposed model, AHP-K model, where AHP is used to estimate weights of selection criteria and, then, a knapsack problem model is utilized to optimize selection of IT project while meeting the budget constraints. In this paper, a case study is provided to validate the effectiveness of the proposed AHP-K model. It has been shown that the proposed AHP-K model is better than the AHP model in terms of total utility of projects and investment efficiency.

• Korean Management Science Review
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• v.27 no.2
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• pp.31-44
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• 2010

It is very important to forecast demand and determine the optimal procurement quantities of spare parts. The Army has been forecasting demand not with actual usage of spare parts but with request quantities. However, the Army could not purchase all of forecasted demand quantities due to budget limit. Thus, the procurement quantities depend on the item managers' intuition and their meetings. The system currently used contains many problems. This study suggests a new determination procedure; 1) forecasting demand method based on actual usage, 2) determining procurement method through LP model with budge and other constraints. The newly determined quantities of spare parts is verified in the simulation model, that represents the real operational and maintenance situation to measure the operational availability. The result shows that the new forecasting method with actual usage improves the operational availability. Also, the procurement determination with LP improves the operational availability as well.