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REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
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Journal of the Korean Operations Research and Management Science Society
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Journal DOI :
The Korean Operations and Management Science Society
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Volume & Issues
Volume 38, Issue 4 - Dec 2013
Volume 38, Issue 3 - Sep 2013
Volume 38, Issue 2 - Jun 2013
Volume 38, Issue 1 - Mar 2013
Selecting the target year
A Study on the Storage Reliability Determination Model for One-shot System
Kim, Dong-Kyu ; Kang, Wun-Seok ; Kang, Sung-Jin ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 1~13
DOI : 10.7737/JKORMS.2013.38.1.001
Some systems such as missiles and ammunitions are used only one time in combat or emergency situation. Predicting correct storage reliability is very important for those systems which are inspected periodically. Many researches have been done for predicting the storage reliability using generally exponential or Weibull failure distribution. However, recent studies show the hazard functions follow various types of failure distributions. So in this paper, we proposed a generalized model that measures the storage reliability regardless of type of failure distributions. And this model reflects inspection error and failures that might be occurred during periodical check and within storage term as well.
Employees' Preferences on Various Types of Matching Grants
Lee, Yeong-Ran ; Park, Sang-June ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 15~27
DOI : 10.7737/JKORMS.2013.38.1.015
Because consumers tend to have negative opinion about a company that neglects social issues like poverty or pollution while it focuses on its own profit, a lot of companies have invested their resources in Corporate Social Responsibility(CSR). CSR has merits of image improving and profit gaining, on the other hand, it has also many shortcomings. First, the cost of CSR may become a heavy financial burden. Specifically, CSR tends to be implemented by a company's unilateral backup, and then this may impose a heavy burden on the company. Second, one cannot expect effects of CSR in a short-term. Because of these shortcomings, the unilateral CSR has gone into alteration of the type of CSR since 1980's. Instead of unilaterality, Cause-Related Marketing(CRM) began to be used for mutual profits among company, consumers, and society. That is, CRM has become to be spotlighted as a new type of CSR. It focuses on partnership between a company and consumers based on cause and mutual profit pursuing through this partnership. So, many contemporary companies prefer CRM activities that derive their positive corporate image, that increase their sales, and that reduce their financial cost. The IBM Matching Grants Program, which is the largest of the IBM-Employee partnership programs, is a typical CRM. This program enables employees and retirees to increase the value of their donations to educational institutions, hospitals, hospices, nursing homes, and cultural & environmental organizations with a matching gift from IBM. Hundreds of educational institutions and thousands of nonprofit organizations have benefited from the contributions by IBM. There might be various types of matching grants. For example, an employee might choose a lump-sum expense or partitioning a lump-sum into a series of small ongoing expenses for his (or her) donation, and a firm might match the employee's total contribution with a lump-sum expense or might match the employee's total contribution with a series of small ongoing expenses. However, it is not easy to find an academic research on which type of matching grant is preferred by employees. This paper shows that an employee prefers the type of matching grants that consists of a lump-sum expense for his (or her) contribution and a series of small ongoing expenses for a firm's contribution [or the type of matching grants that consists of a series of small ongoing expenses for an employee's contribution and a lump-sum expense for a firm's contribution] to the other types of matching grants.
Feedback Order and Problem-Solving Experience in Competitive Problem-Solving : An Empirical Analysis of Online Innovation Contests
Mun, Hee Jin ; Chung, Yerim ; Park, Kyung Min ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 29~44
DOI : 10.7737/JKORMS.2013.38.1.029
This study suggests that as receiving feedback is moved back, the effectiveness of problem-solving increases. Utilizing data from innovation contests in which a number of problem solvers compete with each other, we answer questions such as whether the order of receiving first feedback affects problem-solving effectiveness and how problem-solving experience moderates the relationship between the first feedback order and problem-solving effectiveness. Empirical results based on data collected from Kaggle, an online platform for innovation contests, showed that the order that contest participants receive the first feedback increases problem-solving effectiveness. Furthermore, the more prior experience of contest participants accentuates the suggested relationship between the order of receiving the first feedback and problem-solving effectiveness.
Constrained NLS Method for Long-term Forecasting with Short-term Demand Data of a New Product
Hong, Jungsik ; Koo, Hoonyoung ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 45~59
DOI : 10.7737/JKORMS.2013.38.1.045
A long-term forecasting method for a new product in early stage of diffusion is proposed. The method includes a constrained non-linear least square estimation with the logistic diffusion model. The constraints would be critical market informations such as market potential, peak point, and take-off. Findings on 20 cases having almost full life cycle are that (i) combining any market information improves the forecasting accuracy, (ii) market potential is the most stable information, and (iii) peak point and take-off information have negative effect in case of overestimation.
An Approximation Algorithm for 2-batch Consolidation with Small Items
Myung, Young-Soo ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 61~67
DOI : 10.7737/JKORMS.2013.38.1.061
We consider a problem of grouping orders for batch processing that arises in production systems where customer orders are processed in batches. This problem can be viewed as a variant of bin packing problem where items can be split and a pair of items can be placed in a bin when the items are compatible with each other. In this paper, we consider a special case that at most two different items can be placed in a single bin and the size of every item is at most the size of a bin.
The Effect of Customer Participation Behavior on Brand Loyalty via B2C Microblogging
Park, Jongpil ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 69~87
DOI : 10.7737/JKORMS.2013.38.1.069
Recently a large number of people have been using social networking and microblogging services such as Facebook and Twitter. These mediums play a pivotal communication channel in a business-to-customer (B2C) relationship. Given its importance in today's business, companies have invested in the strategic application of social network services to reach out to customers. This study provides a blueprint for mechanisms for successful execution of social network services in the context of developing an effective B2C relationship, such as customer participation behavior. The S-O-R(Stimulus-Organism-Response) framework lays out the foundation for developing our research model and provides a structured view for understanding customer participation behavior on brand loyalty. For the methodology, this study employed a mixed-method approach. Additionally, in order to provide empirical evidences, a total of 121 respondents have completed the survey. All the data were compiled and analyzed through structural equation modeling and were implemented in partial least square (PLS). To sum up, this study presented theoretical and practical implications by providing the effect of customer participation behavior on brand loyalty through B2C microblogging.
The Key Determinants of Customer Satisfaction in Finance Industry
Chun, Sung Yong ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 89~101
DOI : 10.7737/JKORMS.2013.38.1.089
With the growing importance of the financial industry, financial service companies need to better understand the behavior of consumers and develop effective marketing strategies accordingly. This study examines the key determinants in the satisfaction of financial services customers. According to the study, "satisfaction with branches," "product profitability," "corporate stability," "convenience" and "relational benefits" have an impact on the satisfaction levels. In particular, "branch satisfaction" was a vital factor for bank-centered customers, while "product diversity" was a key for securities-centered customers. This study will hopefully benefit not only financial companies, but also regulators and authorities in the finance industry.
The Effects of Reward Card Types and Regulatory Focus on Transaction Coupling and Sunk Cost Perception
Choe, Seon-Gyeong ; Kahn, Hyungsik ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 103~121
DOI : 10.7737/JKORMS.2013.38.1.103
Since American Airlines's mileage program emerged in market, loyalty programs have gained popularity. Many companies have generated many kinds of reward cards in order to induce precious consumers. As a result, reward cards are very important in consumer goods market and become diversified. In spite of its importance, little is known about how these cards influence consumer's perception. The prior research has not focused on reward card types and psychological variables. Accordingly this research intends to investigate psychological variables such as transaction coupling and sunk cost perception. According to the theory of regulatory focus, promotion focus consumers would point to gain-nongain frame work, but prevention focus consumers would point to loss-nonloss frame work. The paper proved the effect of reward card types and regulatory focus on transaction coupling and sunk cost perception. Based on the results from 2(type of card : visible vs invisible)
2(regulatory focus: promotion vs prevention) between-subjects factorial design experiments, we found that consumer's transaction coupling and sunk cost perception of visible reward card are better recognized than invisible reward card. In addition, the results show that there is a significant interaction effect between the type of reward card and regulatory focus. Specifically promotion focused consumers tend to reveal better perception than prevention focused consumers in use of invisible cards. However, prevention focused consumers tend to show better perception than promotion focused consumers in use of visible cards. These findings will contribute to significant academic development and practically useful help to marketing managers.
Developing the Purchase Conversion Model of the Keyword Advertising Based on the Individual Search
Lee, Dong Il ; Kim, Hyun Gyo ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 123~138
DOI : 10.7737/JKORMS.2013.38.1.123
Keyword advertising has been used as a promotion tool rather than the advertising itself to online retailers. This is because the online retailer expects the direct sales increase when they deploy the keyword sponsorship. In practice, many online sellers rely on keyword advertising to promote their sales in short term with limited budget. Most of the previous researches use direct revenue factors as dependent variables such as CTR (click through rate) and CVI (conversion per impression) in their researches on the keyword advertising[14, 16, 22, 25, 31, 32]. Previous studies were, however, conducted in the context of aggregate-level due to the limitations on the data availability. These researches cannot evaluate the performance of keyword advertising in the individual level. To overcome these limitations, our research focuses on conversion of keyword advertising in individual-level. Also, we consider manageable factors as independent variables in terms of online retailers (the costs of keyword by implementation methods and meanings of keyword). In our study we developed the keyword advertising conversion model in the individual-level. With our model, we can make some theoretical findings and managerial implications. Practically, in the case of a fixed cost plan, an increase of the number of clicks is revealed as an effective way. However, higher average CPC is not significantly effective in increasing probability of purchase conversion. When this type (fixed cost plan) of implementation could not generate a lot of clicks, it cannot significantly increase the probability of purchase choice. Theoretically, we consider the promotional attributes which influence consumer purchase behavior and conduct individuals-level research based on the actual data. Limitations and future direction of the study are discussed.
Tuning the Architecture of Neural Networks for Multi-Class Classification
Jeong, Chulwoo ; Min, Jae H. ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 139~152
DOI : 10.7737/JKORMS.2013.38.1.139
The purpose of this study is to claim the validity of tuning the architecture of neural network models for multi-class classification. A neural network model for multi-class classification is basically constructed by building a series of neural network models for binary classification. Building a neural network model, we are required to set the values of parameters such as number of hidden nodes and weight decay parameter in advance, which draws special attention as the performance of the model can be quite different by the values of the parameters. For better performance of the model, it is absolutely necessary to have a prior process of tuning the parameters every time the neural network model is built. Nonetheless, previous studies have not mentioned the necessity of the tuning process or proved its validity. In this study, we claim that we should tune the parameters every time we build the neural network model for multi-class classification. Through empirical analysis using wine data, we show that the performance of the model with the tuned parameters is superior to those of untuned models.
A Study on the Impact of Weather on Sales and Optimal Budget Allocation of Weather Marketing
Chu, Kyounghee ; Kim, Soyeon ; Choi, Changhui ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 153~181
DOI : 10.7737/JKORMS.2013.38.1.153
Weather is an influential factor to sales of companies. There have been growing attempts with which companies apply weather to developing their strategic marketing plans. By executing weather marketing activities, companies minimize risks (or negative impacts) of weather to their business and increase sales revenues. In spite of managerial importance of weather management, there are scarce empirical studies that comprehensively investigate its impact and present an efficient method that optimally allocates marketing budget. Our research was conducted in two parts. In the first part, we investigated influences of weather on sales based on real-world daily sales data. We specifically focused on the contextual factors that were less focused in the weather related research. In the second part, we propose an optimization model that can be utilized to efficiently allocate weather marketing budget across various regions (or branches) and show how it can be applied to real industry cases. The results of our study are as follow. Study 1 investigated the impact of weather on sales using store sales data of a family restaurant company and an outdoor fashion company. Results represented that the impacts of weather are context-dependent. The impact of weather on store sales varies across their regional and location characteristics when it rains. Based on the results derived from Study 1, Study 2 proposes a method on how optimally companies allocate their weather marketing budgets across each region.
Customer's Point Accumulation and Redemption Behavior Revisited : Focusing on the Moderating Effects of Usage Level
Kim, Ji Yoon ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 183~199
DOI : 10.7737/JKORMS.2013.38.1.183
This study investigates customers' different behavior in accumulating and redeeming points and focuses on the moderating effect of usage level. We measure the hedonic accumulation and redemption ratio and usage level using loyalty program transaction data and link them to the survey data of loyalty and satisfaction. By doing so, we examine the effects of hedonic accumulation and redemption ratio on a consumer's loyalty intention and his or her satisfaction and the moderating effect of usage level. The result shows that there is a significant positive effect of hedonic accumulation and redemption ratio on customer loyalty and the mediating role of satisfaction on customer loyalty in both stages. And accumulation and redemption most importantly, we find an interaction effect of usage level on outlet type in point redemption stage while no effect in accumulation stage. That is if customers accumulate and redeem points at a hedonic outlets in both stages, it will give him a feeling of satisfaction and finally it will enhance the loyalty toward the focal loyalty program. And light buyers' loyalty increase more than those of heavy buyers when they redeem points in hedonic outlet. Our findings will help marketing managers of loyalty program to apply the effective segmentation strategy to the reward program which affects the customer's satisfaction and loyalty.
An Approximation of the Cumulant Generating Functions of Diffusion Models and the Pseudo-likelihood Estimation Method
Lee, Yoon-Dong ; Lee, Eun-Kyung ;
Journal of the Korean Operations Research and Management Science Society, volume 38, issue 1, 2013, Pages 201~216
DOI : 10.7737/JKORMS.2013.38.1.201
Diffusion is a basic mathematical tool for modern financial engineering. The theory of the estimation methods for diffusion models is an important topic of the financial engineering. Many researches have been tried to apply the likelihood estimation method for estimating diffusion models. However, the likelihood estimation method for diffusion is complicated and needs much amount of computing. In this paper we develop the estimation methods which are simple enough to be compared to the Euler approximation method, and efficient enough statistically to be compared to the likelihood estimation method. We devise pseudo-likelihood and propose the maximum pseudo-likelihood estimation methods. The pseudo-likelihoods are obtained by approximating the transition density with normal distributions. The means and the variances of the distributions are obtained from the delta expansion suggested by Lee, Song and Lee (2012). We compare the newly suggested estimators with other existing estimators by simulation study. From the simulation study we find the maximum pseudo-likelihood estimator has very similar properties with the maximum likelihood estimator. Also the maximum pseudo-likelihood estimator is easy to apply to general diffusion models, and can be obtained by simple numerical steps.