• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.313-320
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• 2021

This study develops a demand and supply model and price model for Miryang sesame leaf cultivation and predicts the optimal production level to maximize total profit for Miryang sesame leaf farms. We used time series data from 1996 to 2017, which are related to Miryang sesame leaf cultivation. For the analysis, we estimated the demand function and average cost function, calculated the optimal production level and price, and derived the optimal profit. In addition, we predicted the optimal production level, price, total revenue, total cost, and profit until the year 2030 through scenario analysis. The results show that the optimal production level until the year 2030 is between 10 and 12.5 thousand tons, while the production volume was 7 thousand tons in 2017, and total profit for Miryang sesame leaf farms is estimated at 13.3 to 21.3 billion Korean won in 2030. The producer group needs to maintain the optimal production level to maximize total profit for farmers, as suggested in this study.

• Journal of Institute of Control, Robotics and Systems
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• v.17 no.4
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• pp.304-312
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• 2011

In an oligopolistic market, only a few firms account for most or all of total production, e.g., automobile, steel, and computer industries. For a dynamic oligopolistic market with two firms competing in quantities, we show that supervisory control theory of discrete event systems provides a novel approach to solve the dynamic oligopoly problem with the aim of maximizing the profits of both firms. Specifically, we show that the controllability, observability, and nonblocking property (which are the core concepts in supervisory control theory) are the necessary and sufficient conditions for two oligopolistic firms in disequilibrium to eventually reach equilibrium states of maximizing the profits of both firms.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.11
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• pp.1993-1999
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• 2011

Today, the power utilities is setting on the slow load growth and the aging of power equipment, and then could spend the efforts on the stability of system performance. Asset management may be defined as the process of maximizing corporate profit by maximizing performance and minimizing cost over the entire life cycle of power equipment. Therefore, asset management is great way to fulfill the economic investment and the stability of system performance. This paper presents the application of effective asset managem ent from an economic perspective. A proposed method is considering the life cycle analysis using life cycle cost methodology for hydro-generator during the total life cycle. The life cycle cost methodology include a way to calculating maintenance and operating costs. The proposed method will be expected to play an important role in investment decision making considering economic evaluation.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.1
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• pp.7-15
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• 2020

It is a general phenomenon for manufacturers to provide vertically differentiated product line for more profit through improved market coverage. For such manufacturers, the compatibility between vertically differentiated products is an important decision issue. Some manufacturers provide full compatibility between high and low version products, whereas some provide only downward compatibility for the purpose of recommending high version product. In this study, the two representative compatibility strategies, full or downward, between vertically differentiated products produced by a single manufacturer are analyzed, especially under network externality and in the viewpoint of profit maximization. To do this we used a market model which captures the basic essence of vertical differentiation and network externality. Based on the proposed market model, the profit maximizing solutions are derived and numerically analyzed. The results can be summarized as follows : (1) Regardless of compatibility strategy, under network externality, vertical differentiation is always advantageous in terms of profit. (2) The full compatibility strategy is shown to be the most advantageous in terms of profit. In addition, it is necessary to make quality difference between differentiated products as wide as possible to maximize profit. (3) To gradually drive low version product out of the market and shift the weight pendulum of market to high version product, it is shown that the downward compatibility strategy is essential. Unlike intuition, however, it is also shown that in order to drive low version product out of market, it is necessary to raise the quality of the low version product rather than to lower it.

• Proceedings of the Korea Technology Innovation Society Conference
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• 1999.05a
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• pp.117-149
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• 1999

This paper is to examine the effect of the receiver pays principle (RPP) on the calling price, social welfare and interconnection charge. A significant trouble with introducing this system in telecommunications pricing is the possibility that the receiving party may refuse to receive a call if the charge he has to bear is very high. We find the condition for no calls to be refused and show that the profit maximizing prices charged to the calling party and the receiving party must satisfy this condition. We demonstrate that the calling price under RPP must be lower than the price under the caller pays principle (CPP), that the profit of a firm will be increased under RPP, but that the consumer surplus will not necessarily be increased under RPP despite the lowered calling price. Also, we show that, if the demand function is linear, the reciprocal interconnection charge under RPP is higher than that under CPP.

• Proceedings of the KIEE Conference
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• 2007.07a
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• pp.485-486
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• 2007

In the deregulated power market, suppliers, consumers and transmission companies try to maximize their profits by economical behaviors. In particular, generating companies like to sell more electricity for the revenue. Their situations will lead to various power system planning as optimal solutions for each supplier. In this paper, fundamental approaches of optimal power system planning under market positions of generating company are presented. The profit-maximizing approaches are modeled mathematically. By this analysis, each optimal planning is proved in risk of cost and monetary risk will be the economical signal for participants.

• Journal of the Korean Operations Research and Management Science Society
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• v.23 no.1
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• pp.97-107
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• 1998

This paper is concerned with a parallel system that sustains a time-independent load and consists of n components with exponential lifetimes. It is assumed that the total load is shared by the working components and the failures of components increase higher failure rates in the surviving components according to the relationship between the load and the fialure rates. The power rule model among several load-failure rate relationships is considered. We consider the system efficiency meausre as the expected profit earned by the system per unit time. The high load causes high gain but it also occurs frequent system failures. The expected profit per unit time is used as criterion to evaluate the system efficiency. The goal of system engineer is to determine the optimal load and redundant units maximizing the expected profit per unit time. First, the system reliability function is obtained and the optimization problem of the load-sharing parallel system is considered. Given the redundant units, the existence of the optimal load can be proved analytically and given the load, the optimal redundant units can be solved also analytically. The optimal load and redundant units are obtained simultaneously by numerical computation. Some numerical examples are studied.

• Journal of the Korea Safety Management & Science
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• v.16 no.3
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• pp.327-333
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• 2014

Changes in the business environment in which intense and sustained growth and survival must meet a variety of customer needs (Q, C, D) and business side of the enterprise for profit structure reformation is absolutely necessary for innovation activities. So far, management of innovation in method BPR, PI, OVA, 6 Sigma, Strategic Purchasing, PPM, SCM etc. are being introduced. However, they have a limit of partial optimization and improvement-oriented techniques. So this paper studied the TPI(Total Profit Innovation) application in order to derive empirical methodology to maximize profitability for the domestic S foundry factory. To this end, long-term gains through structural analysis and intensity analysis to ensure continued growth and profitability strategy are devised through management Innovation analysis. And improvement projects was presented to solve main issues of five categories(Inventory, Sales Mix, Cost, Quality Cost, Skill and Work-load) We will expect the office productivity improvement and financial performance improvement and then continually accumulate and review the results.

• Journal of Korean Institute of Industrial Engineers
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• v.20 no.3
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• pp.55-63
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• 1994

Optional two-part tariffs are in growing use in telecommunication services markets. This paper considers the problem of designing profit-maximizing optional two-part tariffs for heterogeneous user groups. It is shown that, at an optimum, one of usage charges among a set of optional two-part tariffs should be made equal to marginal cost. It is also shown that, if demand curves cross, then one of usage charges at the optimum can be below marginal cost. An example with linear demand functions is given to illustrate the important features of optimal two-part tariffs.

• Journal of the Korean Operations Research and Management Science Society
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• v.19 no.2
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• pp.45-56
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• 1994

This paper the profit maximizing order quantity model to the symmetric oligopoly consisting of sellers of a homogeneous product who compete with each other for the same potential buyers. Buyers are classified by type, each selecting an optimal purchase quantity in response to the nonlinear quantity discount pricing schedule given by the sellers. Symmetric equilibrium and the economic quantities that sellers must determine are analysed in a Cournot framework, which explicitly depend on the number of sellers. Economic implications are obtianed from the optimality conditions based on themarket share paraments which are used to characterize the competitior's marketing strategy.