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REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
> Journal Vol & Issue
Korean Management Science Review
Journal Basic Information
Journal DOI :
The Korean Operations and Management Science Society
Editor in Chief :
Volume & Issues
Volume 30, Issue 3 - Nov 2013
Volume 30, Issue 2 - Jul 2013
Volume 30, Issue 1 - Mar 2013
Selecting the target year
Simulation Experimental Analysis on a Seat Inventory Control Problem for Sequential Multiple Flights with Customer Choice Behavior
Park, Changkyu ; Seo, Junyong ; Hong, Yunsook ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 1~14
DOI : 10.7737/KMSR.2013.30.1.001
We conduct the future studies suggested by Park and Seo . They considered a seat inventory control problem in which flights depart sequentially during a similar time-interval and passengers purchase available seats depending on individual customer choice behavior. Customer choice behavior can lead to one among a horizontal shift, a diversion-up, and a booking loss when a desired fare class is unavailable. We investigate how seat availability calculation method, booking limit control mechanism, seat inventory capacity, number of booking class, type of seat demand influence on revenues in an airline industry through thorough computer simulation experiments.
A Study on Single Machine Scheduling with a Rate-Modifying Activity and Time-Dependent Deterioration After the Activity
Kim, Byung Soo ; Joo, Cheol Min ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 15~24
DOI : 10.7737/KMSR.2013.30.1.015
We consider the single machine scheduling problem with a rate-modifying activity and time-dependent deterioration after the activity. The class of scheduling problems with rate-modifying activities and the class of scheduling problems with time-dependent processing times have been studied independently. However, the integration of these classes is motivated by human operators of tasks who has fatigue while carrying out the operation of a series of tasks. This situation is also applicable to machines that experience performance degradation over time due to mal-position or mal-alignment of jobs, abrasion of tools, and scraps of operations, etc. In this study, the integration of the two classes of scheduling problems is considered. We present a mathematical model to determine job-sequence and a position of a rate-modifying activity for the integration problem. Since the model is difficult to solve as the size of real problem being very large, we propose genetic algorithms. The performance of the algorithms are compared with optimal solutions with various problems.
Analysis of Textile Supply Chain Network with ODM-OEM Hybrid Production System in FTA Environment
Byun, Taesang ; Oh, Jisoo ; Jeong, Bongju ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 25~41
DOI : 10.7737/KMSR.2013.30.1.025
This paper presents a supply chain framework with the ODM (Original Design Manufacturing)-OEM (Original Equipment Manufacturing) hybrid production of textile industry in FTA (Free Trade Agreements) environments between Korea and other countries. The proposed supply chain framework with ODM-OEM hybrid production is a unique supply chain that has both domestic production with non-tariff advantages in FTA environment and oversea production with low labor costs. To investigate the validity of the proposed supply chain, we first construct its strategic profit model and supply chain planning and then show that each member of supply chain network-yarn manufacturer, fabric manufacturer, and apparel manufacturer-can maximize their own profits without conflicts among the members. The efficiency of the ODM-OEM hybrid production system is analytically verified in comparison with the general OEM and ODM production model using profit models. Comprehensive numerical examples are provided to illustrate the advantages of the proposed system.
Trading Using Trend Reversal Pattern Recognition in the Korea Stock Market
Kwon, Soonchang ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 43~58
DOI : 10.7737/KMSR.2013.30.1.043
Although analysis of charts, which used in stock trading by distinguishing standardized patterns in the movements of stock prices, is simple and easy to use, there can be problems stemming from specific patterns being distinguished as a result of the subjective perspectives of analysts. In accordance with such problems, through the method of template pattern matching, 4 trend reversal patterns were designed and the fitness of the patterns were quantitatively measured. In cases when a stock is purchased when the template pattern fitness value is within a certain range and held for at least 20-days, the average return ratio was analyzed to be higher-with the difference being statistically significant-than the average return ratio attained from trading a stock according to the same method per the Efficient Market Hypothesis. From the results of stock trades of 2 domestic corporations to which the values of the 4 patterns had been applied based on the 4 strategies, it was possible to ascertain differences in the strategy- and pattern-dependent return ratios. Through this study, along with presenting the exceptions for the Efficient Market Hypothesis in stock trading, the fitness level of quantitative chart patterns was measured and the theoretical basis for application of such fitness level was proposed.
The Effects of Correct Implementation of Six Sigma Practices on Customer Focus Performance, Quality Performance and Business Performance
Yoon, Jae-Hong ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 59~72
DOI : 10.7737/KMSR.2013.30.1.059
This research has seven factors such as top management leadership, belt system operation, implementation of systematic methods, adequate project performance measurement, customer focus performance, quality performance and business performance. Those are critical to correct implementation of Six Sigma. I set seven hypotheses which represented the relationships among the seven factors, gathered questionnaires and analyzed the data. Top management leadership affected positively the adequate project performance measurement and the belt system operation, The belt system operation affected the implementation of systematic methods positively and it also affected the adequate project performance measurement. It affected positively the customer focus performance, the quality performance and the business performance, respectively.
Development and Evaluation of an Investment Algorithm Based on Markowitz's Portfolio Selection Model : Case Studies of the U.S. and the Hong Kong Stock Markets
Choi, Jaeho ; Jung, Jongbin ; Kim, Seongmoon ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 73~89
DOI : 10.7737/KMSR.2013.30.1.073
This paper develops an investment algorithm based on Markowitz's Portfolio Selection Theory, using historical stock return data, and empirically evaluates the performance of the proposed algorithm in the U.S. and the Hong Kong stock markets. The proposed investment algorithm is empirically tested with the 30 constituents of Dow Jones Industrial Average in the U.S. stock market, and the 30 constituents of Hang Seng Index in the Hong Kong stock market. During the 6-year investment period, starting on the first trading day of 2006 and ending on the last trading day of 2011, growth rates of 12.63% and 23.25% were observed for Dow Jones Industrial Average and Hang Seng Index, respectively, while the proposed investment algorithm achieved substantially higher cumulative returns of 35.7% in the U.S. stock market, and 150.62% in the Hong Kong stock market. When compared in terms of Sharpe ratio, Dow Jones Industrial Average and Hang Seng Index achieved 0.075 and 0.155 each, while the proposed investment algorithm showed superior performance, achieving 0.363 and 1.074 in the U.S. and Hong Kong stock markets, respectively. Further, performance in the U.S. stock market is shown to be less sensitive to an investor's risk preference, while aggressive performance goals are shown to achieve relatively higher performance in the Hong Kong stock market. In conclusion, this paper empirically demonstrates that an investment based on a mathematical model using objective historical stock return data for constructing optimal portfolios achieves outstanding performance, in terms of both cumulative returns and Sharpe ratios.
The Fluctuation Patterns of Conjunctivitis Cases Caused by Asian Dust Storm (ADS) : Focused on the ADS Density and the Accuracy of ADS Forecast
Lee, Ki-Kwang ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 91~102
DOI : 10.7737/KMSR.2013.30.1.091
This study has an aim to analyze the effects of ADS on conjunctivitis patients among the residents of Seoul, Korea, between 2005 and 2008. For this purpose, the number of medical services provided to conjunctivitis patients on the days of windblown dust storms and the days without any windblown dust storms were analyzed by conducting paired t-test. The interactive effects of the ADS density and the accuracy of ADS forecast on the fluctuation of conjunctivitis cases were also investigated. The results showed that, even with an accurate forecast issued 24 hours prior to the event, the average number of medical services provided for conjunctivitis was higher on the index days than the comparison days. On the other hand, in cases of failure to provide an accurate forecast 24 hours prior to the ADS event, the number of conjunctivitis attacks reported was statistically significantly higher on the index days for 3~5 days after the occurrence of a dust storm in relation to the comparison days. We also found that the rate of increase in asthma treatments on the index days with low level of
concentration rather than high
level was more significant for all lag days. This study provides evidence that ADS events are significantly associated with conjunctivitis symptoms and the failure to forecast ADS events with low
level might aggravate conjunctivitis disease.
Towards Measuring Competitiveness : A Management of Technology Approach
Lee, Pom-Jin ; Cho, Keun-Tae ; Hong, Soon W. ; Cho, Yong-Gon ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 103~124
DOI : 10.7737/KMSR.2013.30.1.103
This study aims to develop a framework to measure MOT competitiveness of enterprises while proposing a concept called management of technology competitiveness (MOTC). The framework of MOTC based on both resource-based view and competence-based view is consisted of technology competitiveness and management competitiveness. A variety of metrics to measure MOTC are extracted through substantial literature review. As technology competitiveness metric, this study examines R&D investment, R&D workforce, R&D facilities, intellectual property assets, and utilization of information and communication technology; as metric of management competitiveness, leadership competitiveness, maturity of the R&D systems, collaboration and partnership, learning and innovation, and commercialization are considered. We then confirm and derive the multi-dimensions of MOTC through its reliability and validity analysis. The study is expected to provide useful guidelines and references for enterprises' self-evaluation of technology and management competitiveness that is equally applicable to small, medium, and large enterprises that must compete in the global marketplace.
A Study on Requirement Calculation of MRE Using Wargame Simulation Result
Lee, Ki Taek ; Choi, Yun Ho ; Song, Kyu Hyun ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 125~137
DOI : 10.7737/KMSR.2013.30.1.125
The U.S. Army is capable and ready to deploy full-spectrum armed forces anywhere in the world as we have seen in Iraq and Afghanistan. This commitment is within the realm of logistics support that the readiness to support MRE(Meal Ready to Eat), according to the environment where the operation is on going. ROKA(Republic Of Korea Army) proceeds with the program to develop and reserve various MRE under the assumption of distinctive warfare operating environment. This study investigates to determine the amount of MRE consumption within various operating environment and details are as follows. First we ponder the concept of MRE and identified problems of the existing program. Second we also establish feeding rations by the types of MRE that is the base for calculation. Third we introduce MRE consumption algorithm and formula. Fourth and last we have applied our model to the program and analyzed the results. The present state of the estimation didn't reflect various warfare operating environment. Therefore we simulates theater wargame model to determine the consumption under various warfare operating environment. The result of this study is anticipated to contribute largely to the force enhancement as it mirrors of every circumstances of operating environment.
Analysis on the Replacement Cost of Nuclear Energy Using a Stochastic Programming Model
Chung, Jaewoo ; Min, Daiki ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 139~148
DOI : 10.7737/KMSR.2013.30.1.139
A nuclear energy has been one of the most important sources to securely supply electricity in South Korea. Its weight in the national electricity supply has kept increasing since the first nuclear reactor was built in 1978. The country relies on the nuclear approximately 31.4% in 2012 and it is expected to increase to 48.5% in 2024 based on the long-term electricity supply plan announced by the Korean government. However, Fukushima disaster due to 9.0 magnitude earthquake followed by the tsunami has raised deep concerns on the security of the nuclear power plants. The policy makers of the country are much interested in analyzing the cost structure of the power supply in the case that the nuclear is diminished from the current supply portion. This research uses a stochastic model that aims to evaluate the long-term power supply plan and provides an extensive cost analysis on the changes of the nuclear power supply. To evaluate a power supply plan, the research develops a few plausible energy mix scenarios by changing the installed capacities of energy sources from the long-term electricity supply plan. The analyses show that the nuclear is still the most attractive energy source since its fuel cost is very much stable compared to the other sources. Also the results demonstrate that a large amount of financial expenditure is additionally required every year if Koreans agree on the reduction of nuclear to increase national security against a nuclear disaster.
The Relationships among E-commerce, BSC, Inter-organizational Information Flow and Supply-Chain Performance
Choe, Jong-Min ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 149~165
DOI : 10.7737/KMSR.2013.30.1.149
This study empirically investigated the changes of performance evaluation systems under the environment of supply-chain e-commerce. The objectives of e-commerce include obtaining financial profit, internal innovation through processes integration, learning with information flow, and customer satisfaction through quick response. These objectives are generally consistent with the four evaluation measures of balanced scorecard(BSC). This study, first, demonstrated that perceived environmental uncertainty(PEU) has a significant effect on the adoptions of e-commerce and BSC, and severe competition positively influences the use of e-commerce. With cluster analysis and subgroup analysis, we also showed that under the high adoption levels of e-commerce, the high utilization of BSC can improve the supply-chain performance of a firm. In addition, it was found that the use of e-commerce indirectly and significantly affects supply-chain performance through inter-organizational information flow, and the supply-chain performance of a firm leads to the improvement of organizational performance.
Optimal Asset Allocation with Minimum Performance and Inflation Risk
Lim, Byung Hwa ;
Korean Management Science Review, volume 30, issue 1, 2013, Pages 167~181
DOI : 10.7737/KMSR.2013.30.1.167
We investigate the dynamic asset allocation problem under inflation risk when the wealth of an investor is constrained with minimum requirements. To capture the investor's risk preference, the CRRA utility function is considered and he maximizes his expected utility at predetermined date of the refund by participation in the financial market. The financial market is supposed to consist of three kinds of financial instruments which are a risk free asset, a risky asset, and an index bond. The role of an index bond is managing inflation risk represented by price process. The optimal wealth and the optimal asset allocation are derived explicitly by using the method to get the European call option pricing formula. From the numerical results, it is confirmed that the investments on index bond is high when the investor's wealth level is low. However, as his wealth increases, the investments on index bond decreases and he invests on risky asset more. Furthermore, the minimum wealth constraint induces lower investment on risky asset but the effect of the constraints is reduced as the wealth level increases.