• Journal of the Korean Operations Research and Management Science Society
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• v.29 no.4
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• pp.61-72
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• 2004

In this paper, we design sampling inspections and service capacities simultaneously for multi-products. Particularly, we extend Kim(2003) by introducing the fixed cost of providing services. We show that, due to the fixed cost considered, the cost function of a product is no longer linear or convex in terms of the level of service provision, and the total inspection is prefered to the small level of service capacity which results in high burden of the fixed cost. And we develop a simple framework to deal with this joint design problem for a product. Also we consider the problem of allocating the given number of the total service capacities among products. A dynamic programming algorithm is developed to determine the optimal allocation which minimizes the overall total cost of the system and the optimal allocation can be obtained with the considerably smaller computations than the total number of possible allocations. The results can be used to support planning decisions and to aid the joint design of inspections and service capacities for products.

• 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.

• Journal of Ocean Engineering and Technology
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• v.35 no.5
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• pp.382-392
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• 2021

In recent years, floating offshore wind turbines have attracted more attention as a new renewable energy resource while bottom-fixed offshore wind turbines reach their limit of water depth. Various projects have been proposed with the rapid increase in installed floating wind power capacity, but the economic aspect remains as a biggest issue. To figure out sensible approaches for saving costs, a comparison analysis of the levelized cost of electricity (LCOE) between floating and bottom-fixed offshore wind turbines was carried out. The LCOE was reviewed from a social perspective and a cost breakdown and a literature review analysis were used to itemize the costs into its various components in each level of power plant and system integration. The results show that the highest proportion in capital expenditure of a floating offshore wind turbine results in the substructure part, which is the main difference from a bottom-fixed wind turbine. A floating offshore wind turbine was found to have several advantages over a bottom-fixed wind turbine. Although a similarity in operation and maintenance cost structure is revealed, a floating wind turbine still has the benefit of being able to be maintained at a seaport. After emphasizing the cost-reduction advantages of a floating wind turbine, its LCOE outlook is provided to give a brief overview in the following years. Finally, some estimated cost drivers, such as economics of scale, wind turbine rating, a floater with mooring system, and grid connection cost, are outlined as proposals for floating wind LCOE reduction.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.6 no.8
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• pp.81-91
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• 1983

In this study the methods of the overhead standard setting and the overhead variance analysis, which raise problems especially in business practice in case that small businesses introduce the standard cost accounting system, were examined by hypothetical examples. As the result of this study small businesses are advised to take the following in setting the overhead cost. (1) To divide the mixed cost into variable overhead and fixed overhead, it is desirable to take Beast square method. (2) In setting the overhead standard, it is desirable to fake the flexible budget system and to make a budget by the inspection method, after dividing the overhead into variable overhead and fixed overhead. (3) After dividing the overhead variance into variable overhead variance and fixed overhead variance, it is desirable to analyze them as follows. (A) Variable overhead variance is analyzed into spending variance and efficiency variance. (B) Fixed overhead valiance is analyzed into budget variance and denominator variance.

• Korean Journal of Construction Engineering and Management
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• v.16 no.2
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• pp.46-53
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• 2015

Electrical construction cost index is composed of the cost of albor and material. The producer price index is used to the cost of material. The Bank of Korea restructured the formation method and the basic period of the producer price index in 2013. Because fixed-weighted method can't faithfully reflect industrial structure changes. The weighted value and price index of fixed-weighted method is fixed on the basicp eriod. Electrical construction cost index is changed from fixed-weighted method to chain-weighted method in september 2014, because of these on the need. But the change of organization in formation method changes the weighted value. So there is the need of analysis about the statistical continuity of electrical construction cost index. This study is focused on the time series analysis between fixed-weighted and chain-weighted electrical construction cost index. We uses unit root test, cointegration test, regression analysis of long and short term equation, fitness for the estimation of static forecast as time series analysis. We verify that chain-weighted electrical construction cost index can be replaced to fixed-weighted construction cost index accounting analyses result. So users of it recognize that chain-weighted electrical construction cost index has statistical continuity.

• Nuclear Engineering and Technology
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• v.48 no.3
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• pp.733-743
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• 2016

The purpose of this study is to present a rational depreciation method for a pyroprocess cost calculation. Toward this end, the so-called advanced decelerated depreciation method (ADDM) was developed that complements the limitations of the existing depreciation methods such as the straight-line method and fixed percentage of declining-balance method. ADDM was used to show the trend of the direct material cost and direct labor cost compared to the straight-line or fixed percentage of the declining-balance methods that are often used today. As a result, it was demonstrated that the depreciation cost of the ADDM, which assumed a pyroprocess facility's life period to be 40 years with a deceleration rate of 5%, takes up 4.14% and 27.74% of the pyroprocess unit cost ($781/kg heavy metal) in the $1^{st}$ and final years, respectively. In other words, it was found that the ADDM can cost the pyroprocess facility's capital investment rationally every year. Finally, ADDM's validity was verified by confirming that the sum of the depreciation cost by year, and the sum of the purchasing cost of the building and equipment, are the same.

• 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.

• The KIPS Transactions:PartD
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• v.14D no.6
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• pp.641-648
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• 2007

To develop a dynamic system project in which the requirement changes frequently, it's impossible to finish the development within a fixed-cost due to additional budget occurring in need of requirement creep. To manage the successive project within a fixed-cost, it's better to manage the ratio of necessarily changed size of project and necessary optional requirement. According to Bhagwat, it is occurred in the construction phase. Also, he stated that the software development cost, construction phase cost and requirement cost are equal and it was wrong explanation in the ratio of requirement creep and optional requirement. This paper assumes the requirement creep to be happening in the phase of elaboration and construction. In addition, some differences were supposed to happen between software development cost, construction phase cost, and requirement creep cost. As a result, the reality was preferred rather than the ratio of optional requirement and the ratio of requirement creep.

• International Journal of Advanced Culture Technology
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• v.9 no.3
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• pp.271-276
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• 2021

In this paper we analyze the effect of the credit period on inventory policy under trade credit with ordering cost including a fixed cost and freight cost, where the freight cost has a quantity discount. For marketing purposes, some supplier offers credit period to his buyer to stimulate the demand for the product he produces. The delay in payments during the credit period has the effect of reducing the buyer's capital opportunity cost. It is also assumed that the buyer pays the freight cost for the order and hence, the ordering cost consists of a fixed ordering cost and a variable freight cost which depends on the order quantity. As a result, the possibilities of trade credit and discounts on freight costs are expected to play an important role in the buyer's inventory policy. Based on the economic order quantity inventory model, we analyze how the buyer can determine the optimal inventory policy and we examine the effect of the length of credit period on the buyer's inventory policy.

• Journal of Korean Society for Quality Management
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• v.14 no.2
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• pp.28-32
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• 1986

This paper studies a new replacement policy in case that average repair cost rate increases linearly in proportion to time t. At the moment when the repair cost rate reaches or exceeds a fixed level, the component is replaced. This policy is compared with the economic lifetime policy. Advantages of this model according to the increment of replacement cost is shown in numerical example.