• Journal of Korean Society for Quality Management
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• v.30 no.2
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• pp.99-117
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• 2002

Variable sampling interval(VSI) and variable sample size(VSS) control charts vary the sampling rate for the next sample depending on the current chart statistic. This paper develops EWMA charts with the VSI and VSS features, and investigates the effectiveness of these charts in context of an economic model. The economic properties of these charts are evaluated by using Markov chain methods. The model contains cost parameters which allow the specification of the costs associated with sampling, false alarms, and operating off target. This economic model can be used to quantify the cost saving that can be obtained by using control charts with the VSI and VSS features instead of with the fixed sampling rate(FSR) feature, and can also be used to gain insight into the way that control charts with the VSI and VSS features should be designed to achieve optimal economic performance. The economic performance of X charts with the VSI and VSS features is also considered.

• Journal of Family Resource Management and Policy Review
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• v.20 no.3
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• pp.1-23
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• 2016

This study analyzes the effects of caring for grandchildren on Korean grandparents' health, using the Korean Longitudinal Study of Aging from 2006 to 2012. We investigate how caregiving is provided and analyze the effects of caregiving on grandparents' physical health, mental health, and health-related behaviors. As elderly people's health is generally frail, it is unclear whether the provision of childcare affects their health negatively. We control for the endogeneity of caregiving by an individual fixed effect (FE) model and instrumental variable-fixed effect (FE-IV) models. Using these models, we determine the endogeneity of caregiving and show that the significant effects of caregiving on health disappear as we control for endogeneity in the FE and FE-IV models. Even after controlling for endogeneity, we find that caregiving increases the probability of feeling pain as well as the number of different types of pain. Furthermore, caregiving increases the probability of restrictions on daily activities because of pain. On the other hand, caregiving reduces the symptoms of depression. In relation to health-related behaviors, caregiving reduces the probability of physical exercise and regular meals. Our results imply that although caregiving has a positive effect on mental health, the increase in physical pain and in non-healthy behaviors may lead to a deterioration of the caregiver's long-term health, which in turn may increase the medical costs of the elderly. Potential policy alternatives are discussed in the paper.

• Environmental and Resource Economics Review
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• v.14 no.4
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• pp.893-921
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• 2005

In this study, we try to find out the effect of private companies' environmental protection activities on the labor demand of companies in Korea manufacturing industries with empirical practice from 1992 to 2002. One of the main difficulties in this empirical work is to identify the effect of environmental protection activities on the labor demand, because the effect can be mixed with the effect of traditional production technologies on the labor demand. We follow the suggestion of Morgenstern et al. (2002) to identify the effect but which is not enough because of endogeneity between the production technology improvement and pollution reduction. So we propose a Fixed-effect Instrumental Variable estimation method as an estimation strategy. The estimation results support the positive relationship between the labor demand increase and the increase in pollution abatement costs. Therefore, we can conclude that the environmental protection activites of Korea manufacturing industries from 1992 to 2002 can help job creation without making a big burden for business activities when we consider the share of pollution abatement costs among total production costs is around 1% during that time.

• Management Science and Financial Engineering
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• v.19 no.2
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• pp.19-29
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• 2013

Refuse collection network design, one of major decision problems in reverse logistics, is the problem of locating collection points and allocating refuses at demand points to the opened collection points. As an extension of the previous models, we consider capacity and maximum allowable distance constraints at each collection point. In particular, the maximum allowable distance constraint is additionally considered to avoid the impractical solutions in which collection points are located too closely. Also, the additional distance constraint represents the physical distance limit between collection and demand points. The objective is to minimize the sum of fixed costs to open collection points and variable costs to transport refuses from demand to collection points. After formulating the problem as an integer programming model, we suggest an optimal branch and bound algorithm that generates all feasible solutions by a simultaneous location and allocation method and curtails the dominated ones using the lower bounds developed using the relaxation technique. Also, due to the limited applications of the optimal algorithm, we suggest two heuristics. To test the performances of the algorithms, computational experiments were done on a number of test instances, and the results are reported.

• Journal of Korean Institute of Industrial Engineers
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• v.35 no.2
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• pp.150-159
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• 2009

The heterogeneous fleet vehicle routing problem(HVRP) is a variant of the classical vehicle routing problem in which customers are served by a heterogeneous fleet of vehicles with various capacities, fixed costs and variable costs. We propose a new conceptual HVRPCR(HVRP with customer restriction) model including additional customer restrictions in HVRP. In this paper, we develop hybrid particle swarm optimization(HPSO) algorithm with 2-opt and node exchange technique for HVRP. The solution representation is a n-dimensional particle for HVRP with N customers. The decoding method for this representation starts with the transformation of particle into a priority list of customer to enter route and limit of vehicle to serve each customer. The vehicle routes are then constructed based on the customer priority list and limit of vehicle to serve. The proposed algorithm is tested using 8 benchmark problems and it consistently produces high-quality solutions, including new best solutions. The numerical results show that the proposed algorithm is robust and efficient.

• Journal of Korean Institute of Industrial Engineers
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• v.12 no.2
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• pp.21-31
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• 1986

Consider a capacitated facility location problem in which the demands of customers are all equal and so are the capacities of facilities. Under the restriction that each customer's uniform demand be met by exactly one facility, the objective is to select a set of facilities to open, and to assign customer's demand to them so as to minimize the total cost which includes fixed costs of opening facilities as well as variable assignment costs. The problem is modelled as a pure zero-one program which may be viewed as a variant of well-known capacitated facility location problems. The purpose of this study is to develop efficient computational procedures for solving the pure zero-one facility location problems. Due to the special structure of our zero-one location problem with uniform demand, it can be converted to a location problem with the unimodular property. A Lagrangean relaxation algorithm is developed to solve the location problem. The algorithm is made efficient by employing a device which exploits the special structure of a surrogate constraint. The efficiency of the algorithm is analyzed through computational experiments with some test problems.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.53-64
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• 2020

We provide one of the first investigation on the impact of the degree of total leverage to the dividend policy of bank. We use a large sample of US bank holding companies from 2000:Q1 to 2017:Q4 to shed light our research question. Our empirical analysis provides consistent evidence that banks with high degree of total leverage (i.e. banks with a relatively high fixed-to-variables costs) are less likely to pay dividends, and they spend a lower fraction of incomes to pay back shareholders, suggesting a higher conservatism in dividend policy of banks subject to high degree of total leverage. The evidence remains unchanged with alternative econometric approaches, alternative measures of dividend policy and degree of total leverage. We further document that this higher conservatism is strengthened for a sample of banks with low franchise value during the financial crises. Our result suggests that the conservatism in dividend policy of banks with high degree of total leverage seems to be related to the precautionary motives aimed at preserving corporate resources under financial distress. Our study contributes to the literature of cost structure and dividend policy by pointing out that the impacts of the degree of fixed-to-variable expenses to dividend policy are extended to the case of banks.

• Journal of Power System Engineering
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• v.9 no.2
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• pp.106-111
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• 2005

After many casualties of conventional bulk carriers in recent years, a double hull bulk carrier was proposed to enhance the structural safety of a side shell and a transverse bulkhead. In this paper, two alternative structural designs of a double hull bulk carrier were carried out based on the Lloyd's rule. One has the double sided hull with longitudinal stiffeners and the other has that with a girder. The final structural design was examined in comparison with an existing single hull bulk carrier from the viewpoints of cargo hold capacity and the increases of weight and construction cost. Generally, the construction cost of a ship consists of the costs of material, labor and overhead cost. But, in this study, the relative construction cost concept was introduced to compare the economical validity more precisely. In this concept, fixed overhead cost is excluded in the assessment of construction cost, and only the variable overhead cost is added up to labor cost. As the result of this study, a double hull bulk carrier can be constructed within 1% increase of weight and construction cost.

• Journal of Korean Institute of Industrial Engineers
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• v.21 no.3
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• pp.299-311
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• 1995

Conventional discounted cash flow techniques fail to capture the risk associated with investments. This paper proposes an annual cash flow model that considers risk, cost structure and inventory liquidation in the evaluation of investment alternatives. The risk differential of investments is included using the capital asset pricing model while the stochastic version of the cost-volume-profit approach is used to consider inventory liquidation and cost structure. Tradeoffs between fixed and variable costs have been investigated, and portrayed using iso-cash flow curves. The proposed cash flow model has been developed, in particular, to enable an accurate evaluation of advanced manufacturing systems.

• Journal of Korean Institute of Industrial Engineers
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• v.10 no.2
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• pp.17-27
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• 1984

This paper is concerned with a branched pipe network system which transports some fluids or gas from multiple sources to multiple demand nodes. A nonlinear programming model is proposed for determining junction locations simultaneously with selection of pipe sizes and pump capacities such that the capital and operating costs of the system are minimized over a given planning horizon. To solve the model, a hierarchical decomposition method is developed with the junction location being the primary variable. With some values fixed for the primary, the other decision variables are found by linear programming. Then, using the postoptimality analysis of LP, junction locations are adjusted. We repeat this process until an optimum is approached. A simple example of designing a water distribution network is solved to illustrate the optimization procedure developed.