• Title/Summary/Keyword: fixed and variable costs

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A Heterogeneous VRP to Minimize the Transportation Costs Using Genetic Algorithm (유전자 알고리듬을 이용한 운행비용 최소화 다용량 차량경로문제)

  • Ym, Mu-Kyun;Jeon, Geon-Wook
    • IE interfaces
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    • v.20 no.2
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    • pp.103-111
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    • 2007
  • A heterogeneous VRP which considers various capacities, fixed and variable costs was suggested in this study. The transportation cost for vehicle is composed of its fixed and variable costs incurred proportionately to the travel distance. The main objective is to minimize the total sum of transportation costs. A mathematical programming model was suggested for this purpose and it gives an optimal solution by using OPL-STUDIO (ILOG CPLEX). A genetic algorithm which considers improvement of an initial solution, new fitness function with weighted cost and distance rates, and flexible mutation rate for escaping local solution was also suggested. The suggested algorithm was compared with the results of a tabu search and sweeping method by Taillard and Lee, respectively. The suggested algorithm gives better solutions rather than existing algorithms.

A Study on the Principle of Rationalization in Fisheries Management (어업경영합리화의 원리에 대한 고찰)

  • 공용식
    • The Journal of Fisheries Business Administration
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    • v.14 no.1
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    • pp.1-18
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    • 1983
  • This study has examined the principle of rationalization as a guiding principle in fisheries management. Generally speaking, the guiding principle of business management is the principle of profitability which is oriented to the profit maximization, but it has been insisted by Dr, Mohri that the principle of profitability should be translated into the maximization of ratio of added value on gross capital, According to Dr. Durcker, added value (contributed value) can be used to analyze productivity only if the allocation of costs which together make up the figures is economically meaningful. Therefore, the rationalization of fisheries management can be measured as a result of economic allocation of costs, The analysis of economic allocation of costs divides into macro-allocation of costs and micro-allocation of costs. In fisheries management, the former makes use of the analysis of break-even point, and the latter analyzes the efficiency of individual cost respectively and the state of division of costs which allocate into above-the-line expenses of lay system and management's burden expenses. In macro-allocation of costs, it is advisable that fixed costs be converted into variable costs. This is characteristically possible in fisheries management, because wages belong to variable costs in fisheries management while they are regarde as fixed cost in the other industires. Because we could find that all costs would belong to above-the-line expenses, in micro-allocation analysis, the very costs which are directly related to fisherman's poduction activity should be classified into above-the-line expenses, and the other costs into management's burden expenses. This is a central problem in the rationalization of fisheries management.

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A sutyd on Production Scheduling and Capacity Requirements in Discrete Demand, Fixed Production Quantity System (이산수요, 고정량 생산시스템의 생산일정과 소요용량에 관한 연구)

  • 김만수;강석호
    • Journal of the Korean Operations Research and Management Science Society
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    • v.13 no.2
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    • pp.59-65
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    • 1988
  • This paper discusses the problem of coordinating aggregate planning and production schedules, minimizing the combined set-up inventory and capacity costs. In this study, by using the relation of fixed production quantity and the number of set-up we develop a heuristirc procedure of solving the discrete demand, fixed production quantity, variable capacity problem. First, we obtain the trade-off between set-up cost and capacity cost, then search the point minimizing the combined inventory and capacity costs.

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An Empirical Study on the Cost Behavior in Coastal Fishery (연안어선어업 피해율 산정을 위한 원가행태에 관한 실증연구)

  • Kim, Woo-Soo;Kim, Kil-Yong
    • The Journal of Fisheries Business Administration
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    • v.42 no.3
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    • pp.1-13
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    • 2011
  • It is necessary to set up a standard of estimation for annual unit price of sale and cost, damage rate for calculating compensation against fishery damage objectively. Two items on the unit price and cost have regulations but the damage rate has not, so it may occurred some problems such as reasonability and balance because the estimation should be handling by an appraiser's knowledge and experience. This study has analyzed using Regression model and searched variable costs and fixed costs about each items appraisers to operate in the present. It is compare profit damage index is calculated by an estimated model and an appraised example. This analysis showed highly 23-30% estimated model more than appraised example. It means the overestimation for fishery damage. This difference has caused by limited data, lack of sample, much difference in the standard deviation, and has not classified each kind of business and weight of coastal fishery, the overestimation more than what expected. This study has analyzed that the applied rate of fixed and variable cost in relation to the compensation in the cost of coastal fishery is very valuable.

A Study on the Safety Stock (안전재고에 관한 연구)

  • 박병기;정종식
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.10 no.16
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    • pp.143-147
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    • 1987
  • Safety stocks constitute one of the major means of dealing with the uncertainties associated with variation in demand and lead time. Adeguate safety facilitate production activities and help to assure customers if good service on the other hand, carrying safety storks ties up working capital on goods that sit idle. The major problem of safety stocks management thus of consists of trying to achieve an optimal balance between the other carrying cost and the costs of stock shortage. Therefore, this study aims to find safety stock level of the fixed reorder quantity system and the fixed reorder cycle system of minimizing total cost when both demand and lead time are variable. (The distribution of demand and lead time is a mere assumption that follows the normal distribution) The results can be summarized as follows. i) Safety factor on the safety stock is determined by carrying cost and the costs of stock shortage: An optimal safety stick=the costs of stork shortage($C_s$) (the carrying cost($C_h$)+the costs of stock storage($C_s$). ii) The safety stock level of the fixed reorder quantity system is ($a{\;}_p\sqrt{L}{\sigma}$) under uncertainties. iii) The safety stock level of the fixed reorder cycle system is ($a{\;}_p\sqrt{R+L{\sigma}}$) under uncertain demand and constant lead time. ($a{\;}_p\sqrt{L{\sigma}_d{\;^2+{\mu}^2L{\sigma}^2}$) under demand and lead time uncertainties.

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Cost Behavior of Private University Hospital in Korea (사립대학병원의 원가행태)

  • Choi, Hwang-Gyu;Hwang, In-Kyoung
    • Korea Journal of Hospital Management
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    • v.11 no.3
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    • pp.73-93
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    • 2006
  • This study aims at providing necessary informations for management decision-making to the hospital manager, such as ratios of fixed and variable cost to total operating expense, and variable cost ratio to operating revenues, and determinant factors affecting cost behavior. A study model and related hypotheses were established, data were collected from 41 private university hospitals for the 6years from 1998 to 2003, and regression analyses were performed to test the hypotheses. The results of the analyses and conclusions are as follows; First, labor cost and administration cost within the same number of beds have not only fixed quality of the cost, but variable quality of that. Also, the ratio of the variable costs to operating revenue of the metropolitan was estimated 76.9% and that of other area hospitals was 80.1%. Second, the major factors affecting the increase rate of the operating expense were the increase rates of the number of inpatients, the number of employee, and the number of hospital operating bed. This result implies that maintaining a optimal hospital bed size and efficient operation of the beds are important strategic factors of hospital management.

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Fixed Charge Transportation Problem and Its Uncertain Programming Model

  • Sheng, Yuhong;Yao, Kai
    • Industrial Engineering and Management Systems
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    • v.11 no.2
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    • pp.183-187
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    • 2012
  • In this paper, we study the fixed charge transportation problem with uncertain variables. The fixed charge transportation problem has two kinds of costs: direct cost and fixed charge. The direct cost is the cost associated with each source-destination pair, and the fixed charge occurs when the transportation activity takes place in the corresponding source-destination pair. The uncertain fixed charge transportation problem is modeled on the basis of uncertainty theory. According to inverse uncertainty distribution, the model can be transformed into a deterministic form. Finally, in order to solve the uncertain fixed charge transportation problem, a numerical example is given to show the application of the model and algorithm.

An Economic Design of Constant Stress Accelerated Life Tests (일정스트레스 가속수명시험의 경제적 설계)

  • 윤원영;반한석
    • Journal of the Korean Operations Research and Management Science Society
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    • v.19 no.1
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    • pp.145-152
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    • 1994
  • This paper deals with an economic design of acelerated life test under constant stresses where failure times are exponentially distributed. In this case the optimization criterion is the information amount per unit cost. Fisher's information matrix of exponential distribution's parameters and expected cost considering fixed and variable costs are obtained. The decision variable is the censoring time in the model. In the 2-level constant stress case, it is proved that the optimal solution exists and is unique under some condition. Numerical examples are also included.

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A Study on Optimal Configuration Method of Hybrid ESS using Lead-acid and Lithium-ion Batteries for Supply of Variation Loads (변동부하 공급을 위한 하이브리드 ESS의 연축전지와 리튬이온전지의 최적구성방안에 관한 연구)

  • Rho, Dea-seok;Choi, Seong-sik;Lee, Hu-dong;Chang, Byunh-hoon;Kim, Su-yeol
    • KEPCO Journal on Electric Power and Energy
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    • v.2 no.1
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    • pp.49-54
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    • 2016
  • The large scaled lead-acid battery is widely used for efficient operation of the photovoltaic system in many islands. However, lithium-ion battery is now being introduced to mitigate the fluctuation of wind power and to replace lead-acid battery. Therefore, hybrid ESS (Energy Storage system) that combines lithium-ion battery with lead-acid battery is being required because lithium-ion battery is costly in present stage. Under this circumstance, this paper presents the optimal algorithm to create composition rate of hybrid ESS by considering fixed and variable costs in order to maximize advantage of each battery. With minimization of total cost including fixed and variable costs, the optimal composition rate can be calculated based on the various scenarios such as load variation, life cycle and cost trend. From simulation results, it is confirmed that the proposed algorithms are an effective tool to produce a optimal composition rate.

A Study on Estimation Method for Optimal Composition Rate of Hybrid ESS Using Lead-acid and Lithium-ion Batteries (연축전지와 리튬이온전지용 하이브리드 ESS의 최적구성방안에 관한 연구)

  • Park, Soo-Young;Ryu, Sang-Won;Park, Jae-Bum;Kim, Byung-Ki;Kim, Mi-Young;Rho, Dae-Seok
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.65 no.6
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    • pp.962-968
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    • 2016
  • The large scaled lead-acid battery is widely used for efficient operation of the photovoltaic system in many islands. However, lithium-ion battery is now being introduced to mitigate the fluctuation of wind power and to replace lead-acid battery. Therefore, hybrid ESS(Energy Storage system) that combines lithium-ion battery with lead-acid battery is being required because lithium-ion battery is costly in present stage. Under this circumstance, this paper presents the optimal algorithm to create composition rate of hybrid ESS by considering fixed and variable costs in order to maximize advantage of each battery. With minimization of total cost including fixed and variable costs, the optimal composition rate can be calculated based on the various scenarios such as load variation, life cycle and cost trend. From simulation results, it is confirmed that the proposed algorithms are an effective tool to produce a optimal composition rate.