• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.3
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• pp.13-26
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• 1992

Set-up reduction is an important aspect of the Japanese Just-In-Time (JIT) and Zero Inventory (ZI) concepts. In this paper, we first analyze the effects of set-up cost reduction on tatal inventory, average lot size and forecast horizon in the dynamic lot size model. We also examine the various effects of set-up cost reduction in the EOQ model and explain why many Japanese firms try to cut set-up cost and/or set-up time greatly.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.45-55
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• 2022

Purpose: Consumers' experience of functional attributes is remembered, and the experience lowers the cost of consumers' input from their point of view and reduces uncertainty. It also plays an important role in consumers' positive emotions and responses. Accordingly, if information search costs are reduced in terms of the costs perceived by consumers about restaurants, a strategy differentiated from other companies can be established. Therefore, this study investigated the effect of functional congruence of restaurant stores on information search cost reduction, positive/negative emotions, and loyalty. Research Design, Data, and Methodology: This study investigated functional congruence, information search cost reduction, and positive/negative emotions. The structural relationship between loyalty was analyzed. To verify this, a research hypothesis was established based on previous studies and a research model was constructed. The questionnaire items were modified and used according to the current study, based on previous studies. The data were collected using the questionnaire method from 187 people who had dining out experience. Frequency analysis was performed to confirm demographic characteristics. Reliability, convergent validity, and discriminant validity of the collected data were verified. The research model was analyzed with a structural equation modeling (SmartPLS 4). Results: The findings show that functional congruence had significant positive effects on information search cost reduction and positive emotion, but no significant effect on negative emotion. Information search cost reduction had significant positive effects on positive emotion/negative emotion but did not significantly affect loyalty. Lastly, both positive and negative emotions had significant positive effects on loyalty. Conclusion: Based on transaction cost theory, this study found how functional congruence and information search cost reduction influence consumers' emotions. The functional attributes of restaurants were perceived by customers as information, thus uncertainty was decreased. Finally, appropriate management strategies and implications of functional congruence and information search cost in the restaurant were suggested.

• IE interfaces
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• v.13 no.2
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• pp.217-224
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• 2000

This paper analyzes the effects of setup cost reduction in a dynamic lot-sizing model for a single-facility multi-product problem. In the model, demands for each product are known, no backlogging is allowed, and a single resource is employed. Also, setup cost is defined as a function of capital expenditure to invest in setup cost reduction. Furthermore, in each production period the facility (or plant) produces many products, each representing a fixed part of the involved production activity (or input resource quantity). In this paper, the structure of the optimal solution is characterized and an efficient algorithm is proposed for simultaneously determining the optimal lot size with reduced setup cost and the optimal investment in setup cost reduction. Also, the proposed algorithm is illustrated by a numerical example with a linear and an exponential setup reduction functions.

• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.66-68
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• 2005

In Korea power system, the transfer capability of transmission line is limited by the voltage stability and it is difficult to construct new iron tower due to incremental interest for environmental problem and construction costs. Recently, HTS cable could be one of the countermeasures to solve the transfer limit because of it is transported to large power with compact size However, the characteristic of HTS cable have a various problem. This paper presents the effects of congestion cost reduction by the application of HTS (High-Temperature Superconducting) cable. In this paper, the transmission ability before and after application of HTS cable are examined in a viewpoint for voltage stability. therefore, the effects of congestion cost reduction by HTS cable.

• Journal of the Korea Safety Management & Science
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• v.14 no.4
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• pp.193-203
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• 2012

In the limitless competition era of the 21st century, cost reduction is being highlighted as one of survival strategies of businesses. The first item for cost reduction of businesses is logistical costs. The most keenly required thing for this is to remove unnecessary elements, and the best way to realize it to cut down processes using automatic facilities. Packing container in logistics is like a facility. This study is intended to analyze reduction of costs, improvement of business process and reduction of working force through standardization of standardization, and logistics effects through improvement of environmental images in enterprises.

• Proceedings of the KSR Conference
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• 2000.05a
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• pp.63-70
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• 2000

Light Rail is highlighted for its construction cost and operation ＆ maintenance cost in Korea. However, lack of analysis on driverless operation effect causes many disputes. In this paper, using latest driverless operation cost data. analysed cost reduction effect of it, with comparing present KNR's metropolitan subway signal system. It showed there is enough economic appropriateness B/C 1.241 on interest rate 6%, 1.076 on 8% and 0.943 on 10%, though it couldn't include passenger travel time value.

• Journal of Fisheries and Marine Sciences Education
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• v.27 no.3
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• pp.821-832
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• 2015

The aims of this study are to estimate the optimal vessel reduction scales and these direct economic effects of coastal and offshore fisheries in the Republic of Korea. To estimate respectively optimal fishing efforts of individual fishery by species in coastal and offshore fisheries, we adopted appropriate fishing power of each species published by National Fisheries Research and Development Institute and also considered biological and socio-economic factors such as the bycatch rate, the profit rate, the efficiency of resource use, the average age of fishing vessel, the intention of vessel reduction, and the annual changes in vessels by other factors. The direct economic effects of the optimal vessel reduction in coastal and offshore fisheries based on maximum sustainable yield and 2/3 maximum sustainable yield was calculated by a cost-benefit analysis. This study showed that optimal reduction numbers of vessels engaged in coastal and offshore fisheries were 4,431 and 374 vessels and the direct economic effects in coastal and offshore fisheries were about 371.7 and 569.4 billion won and these NPV and BCR were 111.7 billion won and 1.65 and 342.6 billion won and 4.97 respectively.

• Journal of The Korean Society of Agricultural Engineers
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• v.57 no.2
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• pp.75-83
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• 2015

This study was aimed to estimate the total application cost and utilization of Turf grass VFS application through the field experiment. The experimental plots were constructed in an upland field of Iksan city within the Saemangeum watershed. Turf grass was transplanted at the down-slope edge of the pollution source area in each of the treated plots. Three rainfall events were monitored during the experiment period, and the rainfall-runoff relationships and NPS pollution reduction effects of the VFS systems were assessed. As results, the reduction ratio of runoff volume ranged 14.1~64.0 %, while the NPS pollution reduction ratio ranged 9.8~73.9 % for SS, 24.0~84.2 % for T-N, 31.6~80.9 % for T-P respectively. The total cost of VFS application was estimated by considering purchase cost of Turf grass sods and construction and maintenance costs of VFS system as well as the loss caused by giving up crop cultivation for the area needed to construct the VFS. The total cost of the VFS was estimated to be approximately \3,379,000/ha/year for the first year of application, and this cost could be decreased to \1,899,000/ha/year from the second year as the construction cost of VFS could no longer need to be counted afterwards. Apart from the NPS pollution reduction effects, the possible utilization of VFS was examined by detaching Turf grass within 40 % of VFS area for sale during spring time when the VFS systems fully covered. The benefit of selling the detached Turf grass sods was estimated as \1,260,000/ha/year, and also found that the VFS area successfully recovered by the time of the summer period. This benefit could attract farmers to adopt the VFS technique to manage agricultural NPS pollution.

• Health Policy and Management
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• v.9 no.3
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• pp.70-94
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• 1999

This paper was performed for a cost-effectiveness analysis of pharmacologic treatment of hypercholesterolemia. Agents modeled were cholestyramine, gemfibrozil. bezafibrate, lovastatin, pravastatin, simvastatin. Pharmacologic effectiveness was estimated by regression from reported clinical trials. Pharmacologic effects were expressed as the percent change of blood cholesterol level. Cost estimates included patients' travel expenses and time loss as well as resource consumption in the health care sector. Bezafibrate was the most efficient agent for reducing total cholesterol levels, having an cost over 1 year of ￦31.400 per percent reduction in total cholesterol. Simvastatin (10mg/d) was also efficient(￦33,100 per percent reduction). Chole styramine(8g/d) was least efficient at ￦90,200. For low-density lipoprotein cholesterol. simvastatin(10mg/d) was most efficient, at ￦23,200 per percent reduction, followed by lovastatin(20mg/d) at ￦28,000. Gemfibrozil was least efficient at ￦77,800 per percent reduction. For high-density lipoprotein cholesterol. bezafibrate(400mg/d) was most efficient at ￦39,300 per percent increase of high-density lipoprotein cholesterol. Cholestyramine was least efficient at ￦514,700. Analyses combining low-density lipoprotein cholesterol and high-density cholesterol effects suggest that bezafibrate(600mg/d) and simvastatin (10mg/d) were most efficient for reducing cardiovascular risk. The cost-effectiveness analysis results show that both simvastatin and bezafibrate could be efficient treatment. Simvastatin provide more effective treatment at higher cost, whereas bezafibrate is more cost-effective, as it may be less effective, at lower cost. Therefore, clinicians should choose reasonable treatment according to the patient's needs This pharmacoeconimc analysis will provide a guideline for efficient pharmacologic treatment and also be reference data for pricing new drugs.

• Asian Journal of Atmospheric Environment
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• v.5 no.4
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• pp.228-236
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• 2011

Since most Green House Gases (GHGs) and air pollutants are generated from the same sources, it will be cost-effective to develop a GHGs reduction plan in combination with simultaneous removal of air pollutants. However, effects on air pollutants reduction according to implementing any GHG abatement plans have been rarely studied. Reflecting simultaneous removal of air pollutants along with the GHGs emission reduction, this study investigated relative cost effectiveness among GHGs reduction action plans in Busan Metropolitan City. We employed the Data Envelopment Analysis (DEA), a methodology that evaluates relative efficiency of decision-making units (DMUs) producing multiple outputs with multiple inputs, for the investigation. Assigning each GHGs reduction action plan to a DMU, implementation cost of each GHGs reduction action plan to an input, and reduction potential of GHGs and air pollutants by each GHGs reduction action plan to an output, we calculated efficiency scores for each GHGs reduction action plan. When the simultaneous removal of air pollutants with the GHGs reduction were considered, green house supply-insulation improvement and intelligent transportation system (ITS) projects had high efficiency scores for cost-positive action plans. For cost-negative action plans, green start network formation and running, and daily car use control program had high efficiency scores. When only the GHGs reduction was considered, project priority orders based on efficiency scores were somewhat different from those when both the removal of air pollutants and GHGs reduction were considered at the same time. The expected action plan priority difference is attributed to great difference of air pollutants reduction potential according to types of energy sources to be reduced.