• Management Science and Financial Engineering
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• v.15 no.1
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• pp.1-31
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• 2009

This paper considers the value of warehousing contract under probabilistic demands. We consider a supply chain consisting of a supplier, a retailer and its third-party warehousing partner who provides the warehousing service to the retailer through an outsourcing contract. A typical contract is specified by initial space commitment and modification schedule. The retailer decides the order quantity for the supplier and space commitment for the outsourcing contract. Since there is close relationship between order quantity and space commitment to minimize the total cost including ordering cost, inventory carrying cost, shortage cost, and warehousing cost, we develop an analytical model under probabilistic demands, where the retailer can determine the optimal order size and space commitment level jointly. We found the closed-form optimum for a single-period case and the optimal conditions for a two-period case. To evaluate the value of contract flexibility for the two-period case, we compared the total cost under two policies; one with modification, under which the base commitment can be changed at the start of each period and the other without modification. From results of our numerical analysis, we showed that the modification policy is more cost-effective as the variability of demand increases.

• Journal of Korean Society of Transportation
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• v.25 no.3
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• pp.137-144
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• 2007

This study involves an analytical approach to determine transit dispatching schedules (headways) Determining a time schedule is an important process in transit system planning. In general, the transit headway should be shorter during the peak hour than at non-peak hours for demand-responsive service. It allows passengers to minimize their waiting time under inelastic, fixed demand conditions. The transit headway should be longer as operating costs increase, and shorter as demand and waiting time increase. Optimal headway depends on the amount of ridership. and each individual vehicle dispatching time depends on the distribution of the ridership. This study provides a theoretical foundation for the dispatching scheme consistent with common sense. Previous research suggested a dispatching scheme with even headway. However, according to this research, that is valid for a specific case when the demand pattern is uniform. This study is a general analysis expanding that previous research. This study suggests an easy method to set a time table without a complex and difficult calculation. Further. if the time axis is changed to the space axis instead, this study could be expanded to address the spacing problems of some facilities such as roads. stations, routes and others.

• Environmental and Resource Economics Review
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• v.25 no.1
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• pp.113-140
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• 2016

Achieving the two goals of providing stable remuneration and promoting market based incentive for generation capacity with only one kind of capacity price is a difficult proposition. This paper suggests a market design in which two different kinds of capacity prices are used to achieve these goals. It maintains the current capacity price that is determined administratively based on the fixed cost of the gas-turbine generator. A second capacity price is added that covers generators with higher fixed costs and lower fuel costs such as combined-cycle gas turbine, coal-powered, and nuclear generators. This second capacity price is conditional on a lower energy price ceiling and determined by the interaction of the market supply and a demand schedule derived from the optimal fuel mixed principle.

• Journal of the Korea Institute of Building Construction
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• v.8 no.5
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• pp.67-73
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• 2008

Recent trends in construction towards larger scale and taller buildings are causing problems by ineffective existing management approach in construction industry have emerged. Delivering necessary materials and mobilizing the human resources and equipment In a timely manner to keep labor on schedule have become a critical issue to be addressed. In particular, many specialty contractors carrying out multiple projects have been experiencing difficulties mobilizing the manpower on time and in right places due to poor communication at each stage of labor supply, resulting in waste of valuable resources. Hence, it's imperative for the specialty contractors to obtain specific information on labor demand so as to set up a communication and labor management system to ensure the right human resources will be mobilized in the right place at the right time. The study therefore is aimed at developing an optimal human resources management system for specialty contractors performing multiple projects. To that end, the study is focused on rebar and concrete work. The outcome of the study is expected to help allocate the right human resources to the right place in a timely fashion, thereby achieving an effective workflow at construction sites.

• Journal of Korean Society of Transportation
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• v.31 no.2
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• pp.80-89
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• 2013

The purpose of this research is to optimize the line planning of the intercity passenger railway. In this study, the line planning problem has been formulated into a mixed integer programming by minimizing both user costs (passenger's total travel time) and operator costs (operation, maintenance and vehicle costs) with multiple train types. As a solution algorithm, the branch-and-bound method is used to solve this problem. The change of travel demand, train speed and the number of schedules have been tested through sensitivity analysis. The optimal stop-schedules and frequency as well as system split with respect to each train type have been found in the case study of Kyoung-bu railway line in Korea. The model and results of this research are useful to make a decision for railway operation strategy, to analyze the efficiency of new railway systems and to evaluate the social costs of users and operators.

• Journal of Korean Society of Transportation
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• v.27 no.1
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• pp.143-155
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• 2009

A dynamic traffic assignment (DTA) has recently been implemented in many practical projects. The core of dynamic model is the inclusion of time scale. If excluding the time dimension from a DTA model, the framework of a DTA model is similar to that of static model. Similar to static model, with given exogenous travel demand, a DTA model loads vehicles on the network and finds an optimal solution satisfying a pre-defined route choice rule. In most DTA models, the departure pattern of given travel demand is predefined and assumed as a fixed pattern, although the departure pattern of driver is changeable depending on a network traffic condition. Especially, for morning peak commute where most drivers have their preferred arrival time, the departure time, therefore, should be modeled as an endogenous variable. In this paper, the authors point out some shortcomings of current DTA model and propose an alternative approach which could overcome the shortcomings of current DTA model. The authors substitute a traditional definition for time-dependent OD table by a new definition in which the time-dependent OD table is defined as arrival time-based one. In addition, the authors develop a new DTA model which is capable of finding an equilibrium departure pattern without the use of schedule delay functions. Three types of objective function for a new DTA framework are proposed, and the solution algorithms for the three objective functions are also explained.

• The Korean Journal of Applied Statistics
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• v.26 no.1
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• pp.151-162
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• 2013

Due to a growing demand for the second-hand product, especially for the expensive one, the warranty and maintenance policies for such products have been studied to improve the product reliability of late. In this paper we study a periodic maintenance model for the second-hand product which is purchased by the customer at the age of $x$. When purchased, the dealer provides a warranty of a fixed length during which the product is maintained periodically to reduce the failure rate of the product and thus, to improve the reliability after each maintenance is served. If a failure occurs between two successive maintenances, only minimal repair is conducted. As for the warranty policy, we adopt free non-renewing repair action on each failure, in addition to the periodic maintenance service during the warranty period. Thus, under the given warranty policy, all the maintenance and repair costs incurred during the warranty period are charged to the dealer. For the proposed periodic maintenance scheme, we formulate a cost model to evaluate the expected total cost charged to the dealer during the warranty period and derive an optimal upgrade level of the failure rate at each maintenance to minimize the expected total warranty cost from the perspective of the dealer. We also present numerical results for an optimal upgrade level based on the proposed methods.