• Title/Summary/Keyword: expected profit

Search Result 333, Processing Time 0.029 seconds

A Study on Application of Real Option for Strategic Response to Uncertainty in Hotel Development Project (호텔개발사업의 불확실성에 전략적으로 대응하기 위한 실물옵션 적용 연구)

  • Kwon, Tae-In;Lee, Sang-Hyo;Kim, Jae-Jun
    • Journal of The Korean Digital Architecture Interior Association
    • /
    • v.10 no.2
    • /
    • pp.5-12
    • /
    • 2010
  • Unlike housing development project that can ensure profit by selling built units, a hotel development depends on long-term business operation to be profitable due to characteristics of service industry. The expected cash flow has substantial uncertainty depending on room occupancy rate and room charge. Thus, even after construction is complete, business risk tends to rise. It is necessary to ensure strategic response to uncertainty in future value of a hotel. The objective of the study is to explore strategic measures to deal with risk and uncertain future value in hotel development project by adopting abandonment option, which is a type of real options. The case in analysis had sevenyears of project period: Two years for construction, and five years for operation; a plan was made to sell the hotel after five years' of operation. For the research purpose, option value ofrecoverable investment amount was estimated, and value of abandonment option was KRW 124.921 billion. When abandonment option is applied, the project value was deemed to be KRW 120.592 billion. Generally, the amount of loss is enormous when a real estate project like a hotel development fails, and therefore, application of option is expected to be an effective measure to leverage uncertainty of a project.

Understanding the Adoption of T-Commerce in Telecommunications-Broadcasting Convergence Environment (통신 방송 융합 환경에서의 T-Commerce 수용 모델에 관한 연구)

  • Ahn, JoongHo;Kim, Eunjin;Park, Chulwoo
    • Knowledge Management Research
    • /
    • v.10 no.2
    • /
    • pp.15-33
    • /
    • 2009
  • Telecommunications-broadcasting convergence in the domain of IT is a representative phenomenon that is expected to provide the saturated existing markets with a new source of profit. Especially, T-Commerce combines familiarity of TV and immediacy of the Internet which are expected to cover all the users familiar with each media and expand the existing commercial transactions. Telecommunications-broadcasting convergence in Korea, however, is focusing on technical and regulatory aspects so that research on the real users is not up to the mark yet. This is the most fundamental problem in hampering growth in the corresponding service and market. Thus, we are proposing an adoption model on T-Commerce to rapidly expand the convergence service through understanding the potential users. Perceived utilitarian and hedonic values, perceived interactivity, media substitution and personal innovativeness have been examined as the factors influencing the users' intention to adopt a new convergence service. As a result of empirical analysis, it is verified that perceived utilitarian and hedonic values and personal innovativeness directly influenced the users' intention to adopt whereas perceived interactivity had indirect affect on them. T-Commerce service providers should not only emphasize on the benefit that the older media could not provide the users with, but also provide them with more pleasure and entertaining experience during the course of satisfying the users' needs to distinguish T-Commerce from the other existing media.

  • PDF

A Study on Establishing Operation Mathematical Model for Optimum Capacity Estimation of the ESS Applications for each in the Nationwide Perspective (국가적 관점에서 용도별 ESS 적정용량 산정을 위한 운전수리모델 수립에 대한 연구)

  • Kim, Jung-Hoon;Youn, Seok-Min
    • The Transactions of The Korean Institute of Electrical Engineers
    • /
    • v.65 no.6
    • /
    • pp.969-978
    • /
    • 2016
  • Around the world are increasing the demand for ESS. Currently, the domestic is expected to benefit by operating ESS. In the domestic, it is expected to benefit from operations of the installed ESS because of the introduction of ESS less capacity. However ESS capacity to the maximum profit occurs is unknown. ESS is different from the charge-discharge characteristics and the reserve to replace, depending on the application. Therefore, it should be established in accordance with the ESS optimal capacity according to the purpose used because it can maximize the quality and efficiency of the electric energy. To the ESS optimal capacity estimation by the purpose used, It should compare the investment cost caused by ESS facility installation and operation cost caused by operating ESS. In this paper, the operation mathematical model for estimating marginal operation costs established. In operation mathematical model, operating cost is considered fuel cost and no-load cost start-up cost. Because no-load cost and start-up cost are not related to cost and power plant output, there are expressed an integer variable costs as a step function.

(r, Q) Policy for Operation of a Multipurpose Facility (단일 범용설비 운영을 위한 (r, Q) 정책)

  • ;Oh, Geun-Tae
    • Journal of the Korean Operations Research and Management Science Society
    • /
    • v.17 no.3
    • /
    • pp.27-46
    • /
    • 1992
  • This paper considers an (r, Q) policy for operation of a multipurpose facility. It is assumed that whenever the inventory level falls below r, the model starts to produce the fixed amount of Q. The facility can be utilized for extra production during idle periods, that is, when the inventory level is still greater than r right after a main production operation is terminated or an extra production operation is finished. But, whenever the facility is in operation for an extra production, the operation can not be terminated for the main production even though the inventory level falls below r. In the model, the demand for the product is assumed to arrive according to a compound Poisson process and the processing time required to produce a product is assumed to follow an arbitary distribution. Similarly, the orders for the extra production is assumed to accur in a Poisson process are the extra production processing time is assumed to follow an arbitrary distribution. It is further assumed that unsatisfied demands are backordered and the expected comulative amount of demands is less than that of production during each production period. Under a cost structure which includes a setup/ production cost, a linear holding cost, a linear backorder cost, a linear extra production lost sale cost, and a linear extra production profit, an expression for the expected cost per unit time for a given (r, Q) policy is obtained, and using a convex property of the cost function, a procedure to find the optimal (r, Q) policy is presented.

  • PDF

Comparison of Cut Meat Yield from Two Different Breeds of Broilers in Korea

  • Lee, Hyun-Jung;Lee, Se-Hyung;Yang, Chang-Ho;Lee, Jae-Cheong;Jo, Cheo-Run
    • Korean Journal of Poultry Science
    • /
    • v.39 no.3
    • /
    • pp.163-166
    • /
    • 2012
  • This study was carried out to compare the cut meat yields of Cobb and Avian and their profits at productive aspect. Two different breeds, Cobb (34,086,758 birds) and Avian (4,087,600 birds) produced from January 2009 to August 2009 were used. The whole chickens were divided into cut meats including tenderloins, breast fillets, whole wings, boneless thighs, and drumsticks. The growth performance and cut meat yield of Cobb and Avian were measured to investigate possible profit difference. Cobb was superior in the aspect of production performance to Avian with significant differences in survival rate and slaughtering age. As the weight gained, the yields of Cobb increased in breast fillets and boneless thighs as well as lean meat percentage. Significantly higher yield (%) of breast fillets was produced by Cobb at size 14 when compared with Avian. However, there was no significant difference in expected market prices for both cut meat and whole chicken meat between the two breeds in all sizes.

Congestion Detection for QoS-enabled Wireless Networks and its Potential Applications

  • Ramneek, Ramneek;Hosein, Patrick;Choi, Wonjun;Seok, Woojin
    • Journal of Communications and Networks
    • /
    • v.18 no.3
    • /
    • pp.513-522
    • /
    • 2016
  • We propose a mechanism for monitoring load in quality of service (QoS)-enabled wireless networks and show how it can be used for network management as well as for dynamic pricing. Mobile network traffic, especially video, has grown exponentially over the last few years and it is anticipated that this trend will continue into the future. Driving factors include the availability of new affordable, smart devices, such as smart-phones and tablets, together with the expectation of high quality user experience for video as one would obtain at home. Although new technologies such as long term evolution (LTE) are expected to help satisfy this demand, the fact is that several other mechanisms will be needed to manage overload and congestion in the network. Therefore, the efficient management of the expected huge data traffic demands is critical if operators are to maintain acceptable service quality while making a profit. In the current work, we address this issue by first investigating how the network load can be accurately monitored and then we show how this load metric can then be used to provide creative pricing plans. In addition, we describe its applications to features like traffic offloading and user satisfaction tracking.

A Study on Developing a VKOSPI Forecasting Model via GARCH Class Models for Intelligent Volatility Trading Systems (지능형 변동성트레이딩시스템개발을 위한 GARCH 모형을 통한 VKOSPI 예측모형 개발에 관한 연구)

  • Kim, Sun-Woong
    • Journal of Intelligence and Information Systems
    • /
    • v.16 no.2
    • /
    • pp.19-32
    • /
    • 2010
  • Volatility plays a central role in both academic and practical applications, especially in pricing financial derivative products and trading volatility strategies. This study presents a novel mechanism based on generalized autoregressive conditional heteroskedasticity (GARCH) models that is able to enhance the performance of intelligent volatility trading systems by predicting Korean stock market volatility more accurately. In particular, we embedded the concept of the volatility asymmetry documented widely in the literature into our model. The newly developed Korean stock market volatility index of KOSPI 200, VKOSPI, is used as a volatility proxy. It is the price of a linear portfolio of the KOSPI 200 index options and measures the effect of the expectations of dealers and option traders on stock market volatility for 30 calendar days. The KOSPI 200 index options market started in 1997 and has become the most actively traded market in the world. Its trading volume is more than 10 million contracts a day and records the highest of all the stock index option markets. Therefore, analyzing the VKOSPI has great importance in understanding volatility inherent in option prices and can afford some trading ideas for futures and option dealers. Use of the VKOSPI as volatility proxy avoids statistical estimation problems associated with other measures of volatility since the VKOSPI is model-free expected volatility of market participants calculated directly from the transacted option prices. This study estimates the symmetric and asymmetric GARCH models for the KOSPI 200 index from January 2003 to December 2006 by the maximum likelihood procedure. Asymmetric GARCH models include GJR-GARCH model of Glosten, Jagannathan and Runke, exponential GARCH model of Nelson and power autoregressive conditional heteroskedasticity (ARCH) of Ding, Granger and Engle. Symmetric GARCH model indicates basic GARCH (1, 1). Tomorrow's forecasted value and change direction of stock market volatility are obtained by recursive GARCH specifications from January 2007 to December 2009 and are compared with the VKOSPI. Empirical results indicate that negative unanticipated returns increase volatility more than positive return shocks of equal magnitude decrease volatility, indicating the existence of volatility asymmetry in the Korean stock market. The point value and change direction of tomorrow VKOSPI are estimated and forecasted by GARCH models. Volatility trading system is developed using the forecasted change direction of the VKOSPI, that is, if tomorrow VKOSPI is expected to rise, a long straddle or strangle position is established. A short straddle or strangle position is taken if VKOSPI is expected to fall tomorrow. Total profit is calculated as the cumulative sum of the VKOSPI percentage change. If forecasted direction is correct, the absolute value of the VKOSPI percentage changes is added to trading profit. It is subtracted from the trading profit if forecasted direction is not correct. For the in-sample period, the power ARCH model best fits in a statistical metric, Mean Squared Prediction Error (MSPE), and the exponential GARCH model shows the highest Mean Correct Prediction (MCP). The power ARCH model best fits also for the out-of-sample period and provides the highest probability for the VKOSPI change direction tomorrow. Generally, the power ARCH model shows the best fit for the VKOSPI. All the GARCH models provide trading profits for volatility trading system and the exponential GARCH model shows the best performance, annual profit of 197.56%, during the in-sample period. The GARCH models present trading profits during the out-of-sample period except for the exponential GARCH model. During the out-of-sample period, the power ARCH model shows the largest annual trading profit of 38%. The volatility clustering and asymmetry found in this research are the reflection of volatility non-linearity. This further suggests that combining the asymmetric GARCH models and artificial neural networks can significantly enhance the performance of the suggested volatility trading system, since artificial neural networks have been shown to effectively model nonlinear relationships.

A Study on the Problem and Improvement of CRM in Financial Institutions (금융기관의 CRM문제점과 개선방안에 관한연구)

  • Lee, Sang-Youn;Oh, Sung-Taek;Kim, Moon-Jung
    • The Journal of Industrial Distribution & Business
    • /
    • v.1 no.1
    • /
    • pp.33-41
    • /
    • 2010
  • In the age of globalization, effective and efficient corporate management is becoming more important as domestic and international business circumstances changes. In the middle of endless changes in business circumstances, fast reaction to customers and market, and offering customized goods and service became essential. In this respect, CRM designed to utilize customer information scientifically and systematically, has become an essential system and marketing strategy to enhance corporate competitiveness. CRM has placed the importance of customers in the front of marketing and has focused every process and business minds on customers. Recent change in the market and the trend of establishing and introducing CRM system has lead us to concentrate on the introduction of CRM in the financial institutions. This study searched for several views about CRM in academic and industrial papers. Through theoretical approach on CRM, the background of the introduction of CRM, the purpose of CRM, the characteristic and application of CRM, and the expected effect of CRM will be discussed. This study is focused on financial institutions where CRM is widely used. And through documents about examples of the introduction of CRM, the status of the establishment of domestic CRM and the necessity and trend of CRM will be discussed. Also the problem of CRM in the financial institutions and the improvement of CRM in domestic banks will be analyzed. When discussing CRM in the financial area, customers are the main source of corporate profit and through relationship management with the customers enhancing loyalty and maximizing profit can be obtained. Especially in CRM in financial institutions, maintaining existing customers makes higher profit ratio, so repurchasing and cross selling becomes important for obtaining lifetime value of existing customers who contribute to most of the profit of corporations. As a result, CRM should be completely customer oriented. CRM in financial institutions is not merely marketing work, but organizational competence which is made up of standardized work process through total process integration inside the corporation. Corporations which plan to introduce CRM should analyze the characteristics and conditions of corporations and establish purpose and strategy of CRM. And they need long term view to find out the factors which best fit for the introduction of CRM. To enable this, strategy composed of daily marketing activity and CRM concept is necessary. Also continued improvement through drill and training for operating organization should be followed to maintain CRM well. And corporate culture must settle customer as the center of corporate value. The race for introducing and improving CRM has already begun. CRM should not be regarded as a choice. It should be accepted as something essential. In this reality financial institutions should solve subdivision problem of customers and necessity of customers with the mind of 'customer's profit is my profit'. Customer focused management should not be emphasized only by words. Efforts like viewing from the customer's point must be nurtured to provide methods to help customers. That is, we should not just follow what is done in foreign countries. We should solve the problem of our customers according to the situation of our country, our industry, our corporation. Then we can gain the trust of customers, and the value derived from the customers will become the background of CRM which will lead the corporation to success.

  • PDF

The Economic Aspect of Gas Hydrate Development (경제성 측면에서의 가스하이드레이트 개발 가치)

  • Kim, Hwa-Young;Lee, Dong-Jun;Heo, Eun-Nyeong
    • New & Renewable Energy
    • /
    • v.4 no.2
    • /
    • pp.61-67
    • /
    • 2008
  • The price to import natural gas continues to rise, as well as the rate of its domestic consumption. This research examined the economic feasibility of domestically developing and producing gas hydrate to substitute imported natural gas. Today, the industry still lacks the technology to commercially produce gas hydrate. However, if the gas hydrate is able to be commercially produced domestically and replace imported natural gas, the annual economic benefit for the Republic of Korea would be 211 - 833 USD/ton. Gas hydrate is rated as a high value investment by the gas industry since the potential annual profit can reach over 150USD/ton. The commercial value of gas hydrate development will increase as long as the natural gas market continues to expand and its consumption increase remains steady. With further development of technology, one can anticipate an even higher expected return on the investment.

  • PDF

A Design Problem of a System Working at Both Primary Service and Secondary Service (주서비스와 보조서비스를 갖는 시스템 설계)

  • Kim, Sung-Chul
    • Korean Management Science Review
    • /
    • v.28 no.3
    • /
    • pp.15-29
    • /
    • 2011
  • In this paper, we consider a system working at both primary service and secondary service. A server can switch between the primary service and the secondary service or it can be assigned to secondary service as a dedicated server. A service policy is characterized by the number of servers dedicated to the secondary service and a rule for switching the remaining servers between two services. The primary service system is modelled as a Markovian queueing system and the throughput is a function of the number of servers, buffer capacity, and service policy. And the secondary service system has a service level requirement strategically determined to perform the service assigned. There is a revenue obtained from throughput and costs due to servers and buffers. We study the problem of simultaneously determining the optimal total number of servers, buffers, and service policy to maximize profit of the system subject to both an expected customer waiting time constraint of the primary service and a service level constraint of the secondary service and develop an algorithm which can be successfully applied with the small number of computations.