• Title/Summary/Keyword: market cost approach

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A Benefit-Cost Analysis on the DSM Programs (DSM 프로그램의 비용효과 분석)

  • 오영진;김발호;박종배
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.52 no.9
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    • pp.535-541
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    • 2003
  • Demand Side Management (DSM) activities have been designed to encourage customers to modify their patterns of electricity consumption including the timing and level of electricity demand. The role of DSM has been more and more important in the point of social energy utilization on the limited resources. The objectives of DSM are generally related to load reductions and generation cost savings. This paper presents an approach to B/C analysis to evaluate the impact of DSM programs especially on the strategic conservation and the load management programs. The proposed approach embedding the existing B/C analyses is applicable to the new electricity market. Case studies show the B/C ratio and the avoided cost due to the impact of DSM programs.

A Study on Evaluation Methodology of Intangible Assets (무형자산 평가 기법에 관한 연구)

  • Hwang, Young-Seob;Leem, Young-Moon
    • Proceedings of the Safety Management and Science Conference
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    • 2008.04a
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    • pp.47-51
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    • 2008
  • Recently, the development of technology has been rapidly proceeding with information technology in various fields. Due to their abstract properties, proper evaluation of intangible assets is very difficult compared to evaluation of tangible assets. Intangible assets are knowledge, technology, and design etc. In general there are two approaches to evaluate the intangible assets such as qualitative and quantitative approach. The qualitative approach contains scoring approach, profile approach, checklist approach, and quantitative approach. Quantitative approach contains cost approach, market approach, income approach, and real-option approach. As an initial step for evaluation of safe work environments, this study compares and analyzes evaluation methods of intangible assets.

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A Study on The Implementation Procedures and Limitations of Quality Cost System (품질비용(品質費用)시스템의 구축절차(構築節次)와 한계(限界)에 관한 소고(小考))

  • Yoo, Han-Joo;Kim, Dal-Gon
    • Journal of Korean Society for Quality Management
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    • v.22 no.4
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    • pp.132-151
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    • 1994
  • Quality is a critical competitive factor in today's environment because of the impact of quality on market share, productivity and costs. Especially in Korean companies, the importance of quality is heightened as they are losing price competitiveness compared to the new industrialized countries. The traditional approach to quality improvement has been focused on workers. The primary means to achieving acceptable outgoing quality has been to inspect quality by adding more inspectors and inspection stations. This is an example of quality cost that can be reduced through the preventive actions against bad quality. Quality cost is best viewed as a measure of costs specifically associated with the achievement or nonachievement of product/service quality required by customers. This paper examines the concept of quality cost, provides guidance to implementing a quality cost system, and identifies the limitations of quality cost information. These limitations are the target for future research for an efficient and effective implementation of quality cost system.

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Development of System Dynamics model for Electric Power Plant Construction in a Competitive Market (경쟁체제 하에서의 발전소 건설 시스템 다이내믹스 모델 개발)

  • 안남성
    • Korean System Dynamics Review
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    • v.2 no.2
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    • pp.25-40
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    • 2001
  • This paper describes the forecast of power plant construction in a competitive korean electricity market. In Korea, KEPCO (Korea Electric Power Corporation, fully controlled by government) was responsible for from the production of the electricity to the sale of electricity to customer. However, the generation part is separated from KEPCO and six generation companies were established for whole sale competition from April 1st, 2001. The generation companies consist of five fossil power companies and one nuclear power company in Korea at present time. Fossil power companies are scheduled to be sold to private companies including foreign investors. Nuclear power company is owned and controlled by government. The competition in generation market will start from 2003. ISO (Independence System Operator will purchase the electricity from the power exchange market. The market price is determined by the SMP(System Marginal Price) which is decided by the balance between demand and supply of electricity in power exchange market. Under this uncertain circumstance, the energy policy planners such as government are interested to the construction of the power plant in the future. These interests are accelerated due to the recent shortage of electricity supply in California. In the competitive market, investors are no longer interested in the investment for the capital intensive, long lead time generating technologies such as nuclear and coal plants. Large unclear and coal plants were no longer the top choices. Instead, investors in the competitive market are interested in smaller, more efficient, cheaper, cleaner technologies such as CCGT(Combined Cycle Gas Turbine). Electricity is treated as commodity in the competitive market. The investors behavior in the commodity market shows that the new investment decision is made when the market price exceeds the sum of capital cost and variable cost of the new facility and the existing facility utilization depends on the marginal cost of the facility. This investors behavior can be applied to the new investments for the power plant. Under these postulations, there is the potential for power plant construction to appear in waves causing alternating periods of over and under supply of electricity like commodity production or real estate production. A computer model was developed to sturdy the possibility that construction will appear in waves of boom and bust in Korean electricity market. This model was constructed using System Dynamics method pioneered by Forrester(MIT, 1961) and explained in recent text by Sternman (Business Dynamics, MIT, 2000) and the recent work by Andrew Ford(Energy Policy, 1999). This model was designed based on the Energy Policy results(Ford, 1999) with parameters for loads and resources in Korea. This Korea Market Model was developed and tested in a small scale project to demonstrate the usefulness of the System Dynamics approach. Korea electricity market is isolated and not allowed to import electricity from outsides. In this model, the base load such as unclear and large coal power plant are assumed to be user specified investment and only CCGT is selected for new investment by investors in the market. This model may be used to learn if government investment in new unclear plants could compensate for the unstable actions of private developers. This model can be used to test the policy focused on the role of unclear investments over time. This model also can be used to test whether the future power plant construction can meet the government targets for the mix of generating resources and to test whether to maintain stable price in the spot market.

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Efficiency Assessment of Bank Branches: An Analysis Process Using DEA Model and Case Analysis (은행 지점의 효율성 평가: DEA 모형을 이용한 분석 절차 및 사례 분석)

  • 윤석진;서우종;정재우
    • Journal of the Korean Operations Research and Management Science Society
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    • v.26 no.3
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    • pp.39-52
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    • 2001
  • Recently, the assessment of a bank efficiency focusing on its branches has been conceived as important in developing a competitive strategy. DEA (Data Envelopment Analysis) model can be employed as an effective analysis model for such an assessment. Therefore, this paper proposes an analysis process using DEA model to conduct an efficiency assessment of bank branches. The proposed process includes a segmentation of branches considering their competitive environment and strategy for target market : this approach can help to develop effective strategies for each group of branches. The proposed DEA model can analyze efficiency in terms of not only cost but also marketing. Finally, a real case is analyzed, demonstrating the effectiveness of the proposed model and process.

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Evaluating Reverse Logistics Networks with Centralized Centers : Hybrid Genetic Algorithm Approach (집중형센터를 가진 역물류네트워크 평가 : 혼합형 유전알고리즘 접근법)

  • Yun, YoungSu
    • Journal of Intelligence and Information Systems
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    • v.19 no.4
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    • pp.55-79
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    • 2013
  • In this paper, we propose a hybrid genetic algorithm (HGA) approach to effectively solve the reverse logistics network with centralized centers (RLNCC). For the proposed HGA approach, genetic algorithm (GA) is used as a main algorithm. For implementing GA, a new bit-string representation scheme using 0 and 1 values is suggested, which can easily make initial population of GA. As genetic operators, the elitist strategy in enlarged sampling space developed by Gen and Chang (1997), a new two-point crossover operator, and a new random mutation operator are used for selection, crossover and mutation, respectively. For hybrid concept of GA, an iterative hill climbing method (IHCM) developed by Michalewicz (1994) is inserted into HGA search loop. The IHCM is one of local search techniques and precisely explores the space converged by GA search. The RLNCC is composed of collection centers, remanufacturing centers, redistribution centers, and secondary markets in reverse logistics networks. Of the centers and secondary markets, only one collection center, remanufacturing center, redistribution center, and secondary market should be opened in reverse logistics networks. Some assumptions are considered for effectively implementing the RLNCC The RLNCC is represented by a mixed integer programming (MIP) model using indexes, parameters and decision variables. The objective function of the MIP model is to minimize the total cost which is consisted of transportation cost, fixed cost, and handling cost. The transportation cost is obtained by transporting the returned products between each centers and secondary markets. The fixed cost is calculated by opening or closing decision at each center and secondary markets. That is, if there are three collection centers (the opening costs of collection center 1 2, and 3 are 10.5, 12.1, 8.9, respectively), and the collection center 1 is opened and the remainders are all closed, then the fixed cost is 10.5. The handling cost means the cost of treating the products returned from customers at each center and secondary markets which are opened at each RLNCC stage. The RLNCC is solved by the proposed HGA approach. In numerical experiment, the proposed HGA and a conventional competing approach is compared with each other using various measures of performance. For the conventional competing approach, the GA approach by Yun (2013) is used. The GA approach has not any local search technique such as the IHCM proposed the HGA approach. As measures of performance, CPU time, optimal solution, and optimal setting are used. Two types of the RLNCC with different numbers of customers, collection centers, remanufacturing centers, redistribution centers and secondary markets are presented for comparing the performances of the HGA and GA approaches. The MIP models using the two types of the RLNCC are programmed by Visual Basic Version 6.0, and the computer implementing environment is the IBM compatible PC with 3.06Ghz CPU speed and 1GB RAM on Windows XP. The parameters used in the HGA and GA approaches are that the total number of generations is 10,000, population size 20, crossover rate 0.5, mutation rate 0.1, and the search range for the IHCM is 2.0. Total 20 iterations are made for eliminating the randomness of the searches of the HGA and GA approaches. With performance comparisons, network representations by opening/closing decision, and convergence processes using two types of the RLNCCs, the experimental result shows that the HGA has significantly better performance in terms of the optimal solution than the GA, though the GA is slightly quicker than the HGA in terms of the CPU time. Finally, it has been proved that the proposed HGA approach is more efficient than conventional GA approach in two types of the RLNCC since the former has a GA search process as well as a local search process for additional search scheme, while the latter has a GA search process alone. For a future study, much more large-sized RLNCCs will be tested for robustness of our approach.

Generation Investment Model Development and Behavior Analysis using System Dynamics Approach (System Dynamics에 의한 발전설비투자 모델개발 및 행태 분석)

  • Kim, Hyun-Shil;Yoon, Yong-Beum
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.56 no.10
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    • pp.1731-1737
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    • 2007
  • The Korea electricity wholesale market is operated under the cost-based-pool system and the government regulation to the new generation capacities in order to insure the resource adequacy. The goal of government's regulation is the electricity market stability by attracting proper generation investment while keeping the reliability of system. Generation companies must mandatory observe that government plan by now. But if the restructuring is to be complete, generation companies should not bear any obligation to invest unless their profitability is guaranteed. Namely the investors' behavior will be affected by the market prices. In this paper, the system dynamics model for Korea wholesale electricity market to examine whether competitive market can help to stabilize is developed and analyzes the investors behavior. The simulation results show that market controlled by government will be operated stable without resulting in price spike but there is no lower price because of maintaining the reasonable reserve margin. However, if the competition is introduced and the new investment is determined by the investor's decision without government intervention, the benefits from lower wholesale price are expected. Nevertheless, the volatility in the wholesale market increases, which increases the investment risks.

An Approach To Alloctating Transmission System Reliabity Cost (송전계통의 신뢰도 비용 산정 방안에 대한 연구)

  • Chung, Koo-Hyung;Shin, Young-Kyun;Kim, Bal-Ho H.;Im, Sung-Hwang
    • Proceedings of the KIEE Conference
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    • 2001.07a
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    • pp.515-517
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    • 2001
  • The efficient and rational transmission rate system is one of the crucial factors in creation of fair and competitive electricity market. Transmission charge can be largely categorized into the line usage charge, system reliability maintenance charge, access charge and others. Therefore, transmission rate structure should be able to reflect these cost components reasonably. This Paper suggests an approach that could be used for the reasonable calcuation of transmission reliability costs with reflection of line sensitivity and line outage rate.

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Design of a System Layout for Reconfigurable Manufacturing System with Theory of Constraints (제약이론을 활용한 재구성가능 생산시스템의 레이아웃 설계)

  • Kurniadi, Kezia Amanda;Ryu, Kwangyeol
    • Korean Journal of Computational Design and Engineering
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    • v.22 no.2
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    • pp.129-140
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    • 2017
  • This paper presents a systematic approach for design of timely and proper layouts of a manufacturing system facilitating reconfigurability, referred to as a reconfigurable manufacturing system. A proper methodology for design of a system layout is required for reconfiguration planning - adding or removing machines for supplying the exact capacity needed to fulfill market demands, as well as minimizing the cost of adding new machines. In this paper, theory of constraints is used to make reconfiguration manufacturing systems more cost-effective and efficiency. The proposed approach is validated by using a real industrial case. This paper suggests that the proposed study should be performed concurrently with the design of a new manufacturing system.

A Study on Methodology for Considering Risk in Power Transactions in Futures Market (선물 시공에서의 전력거래 위험 고려 방법론 연구)

  • Park, Jong-Bae;Joung, Man-Ho;Kim, Bal-Ho;Kim, Jin-Ho
    • Proceedings of the KIEE Conference
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    • 2000.07a
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    • pp.400-402
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    • 2000
  • This paper presents a game theoretic approach for power transactions analysis in a competitive market. The considered competitive power market is regarded as PooICo model, and the participating players are restricted by only two generating entities for simplicity in this paper. The analysis is performed on the basis of marginal cost based relations of bidding price and bidding generations. That is, we assume that the bidding price of each player is determined by the marginal cost when the bidding generation is pre-determined. This paper models the power transaction as a two player game and analyzes by applying the Nash eauilibrium idea. The generalized game model for power transactions covering constant-sum(especially zero-sum), and nonconstant-sum game is developed in this paper. Also, the analysis for each game model are performed in the case studies. Here, we have defined the payoff of each player as the weighted sum of both player's profits.

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