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REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
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Korean Management Science Review
Journal Basic Information
Journal DOI :
The Korean Operations and Management Science Society
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Volume & Issues
Volume 31, Issue 4 - Dec 2014
Volume 31, Issue 3 - Nov 2014
Volume 31, Issue 2 - Jul 2014
Volume 31, Issue 1 - Mar 2014
Selecting the target year
Process Choice and Firm Performance in the Recycling Industry: An Empirical Investigation of Plastic Recycling Firms in Korea
Lee, Younsuk ; Lee, Namkyung ; Shin, Hojung ;
Korean Management Science Review, volume 31, issue 1, 2014, Pages 1~15
DOI : 10.7737/KMSR.2014.31.1.001
As the scarcity of natural resources has become apparent, the recycling industry has emerged as a promising one for its growth potential. Yet, the recycling industry still remains undeveloped and inefficient for various reasons. In this study, we focus on firms' recycling processes to understand the current status of recycling firms' value creation activities. With respect to the adopted recycling processes, we empirically investigate the differences in firm characteristics and firm performance. We use the data from Keco (Korea Environment Cooperation) which annually conducts a survey of recycling firms in Korea. We exclusively consider the whole group of plastic recycling industry in order to control for a possible bias in firm performance, stemming from the heterogeneity in processing and recycling of materials other than plastics. We review the descriptive statistics from the sample firms and conduct a series of hierarchical regression analyses. The results show that most of the firms in this industry adopt physical transformation processes with a low-level technology. These firms with physical transformation processes are smaller in size and produce entry level items which do not secure higher margins. The results indicate that the recycling industry largely comprises low value added firms which lack economies of scale and resources for R&D. For the stable growth of the industry, recycling firms must create sustainable values through implementation of technology-driven processes and improvement in product quality. In addition, the government should help build a reliable reverse logistic network, lower the entry barriers, and provide necessary funding for the SMEs in the recycling industry.
A Study on the Valuation of Real Estate Using the Applies Real Option Model Considering Population Structure Changes
Gu, Seung Hwan ; Ping, Wang ; Jang, Seong Yong ;
Korean Management Science Review, volume 31, issue 1, 2014, Pages 17~26
DOI : 10.7737/KMSR.2014.31.1.017
This study presents a new real estate value analysis model considering the changes in the population structure. We propose a new model that takes advantage of the binomial option model one of the techniques of real options and considers the changes in the population structure. The real estate market price data of Seoul city from year 2001 to 2012 were extracted and the correlation analysis between real estate prices and changes in the population structure was performed. The result shows that they have positive correlation with one year time lag. The coefficient between the real estate prices and demographic changes was estimated using the OLS analysis and included in the traditional binomial option model to calculate the value of the property. It is assumed for the future price prediction that real estate invested in Seoul in January, 2013 will be sold within five years. Analysis result shows that the values of real estate in September of 2013 were predicted as 583.5 million won in the new model and as 582.4 million won in the traditional model. This reflects that the new model considering the change of population change gives better realistic performance than the traditional one.
Optimal Pricing Design Based on Preference Values of Purchasing Restrictions for Tour Products
Hwang, Myung Sun ; Kim, Su Young ; Yoon, Moon Gil ;
Korean Management Science Review, volume 31, issue 1, 2014, Pages 27~40
DOI : 10.7737/KMSR.2014.31.1.027
Tour products have been recognized as a perishable asset. For tour operation companies (TOCs), improving profitability is a core decision problem for their business. Since package tour products, typical products of TOCs, are perishable after the tour was departed, TOCs have been tried to increase their sales before the departure date with various marketing strategies including price discounts. The pricing problem for perishable assets have been studied in Revenue Management for a long time. However, it is hard to find a research on pricing decisions for tour products. In this paper, we focus on a pricing problem for tour products. In particular, we will consider the pricing scheme with customer preference values on purchasing conditions. With conjoint analysis, we can use the part-worth value as a preference value for each level of purchasing conditions. To construct various discount prices, we use an enumeration method and suggest a mathematical optimization model. With experimental analysis for a sample tour package, we will show that our pricing process is very helpful for designing customer-oriented pricing decision.
A Bottom-up Approach for Greenhouse Gas Emission Analysis of Korean Shipbuilding Industry
Paik, Chunhyun ; Kim, Hugon ; Kim, Young Jin ; Chung, Yongjoo ;
Korean Management Science Review, volume 31, issue 1, 2014, Pages 41~48
DOI : 10.7737/KMSR.2014.31.1.041
This study presents a bottom-up approach for analyzing greenhouse gas (GHG) emissions for the shipbuilding industry in Korea. The overall procedures for deriving GHG emissions from the Korean shipbuilding industry are presented. Based on the long-term forecast on energy demands of the Korean shipbuilding industry, reference energy system (RES) and energy balance (EB) for the shipbuilding process are derived for bottom-up modeling.
A Study on the Strategies of Hedging System Trading Using Single-Stock Futures
Kim, Sun Woong ; Choi, Heung Sik ; Kim, Nam-Hyun ;
Korean Management Science Review, volume 31, issue 1, 2014, Pages 49~61
DOI : 10.7737/KMSR.2014.31.1.049
We investigate the hedging effectiveness of incorporating single-stock futures into the corresponding stocks. Investing in only stocks frequently causes too much risk when market volatility suddenly rises. We found that single-stock futures help reduce the variance and risk levels of the corresponding stocks invested. We use daily prices of Korean stocks and their corresponding futures for the time period from December 2009 to August 2013 to test the hedging effect. We also use system trading technique that uses automatic trading program which also has several simulation functions. Moving average strategy, Stochastic's strategy, Larry William's %R strategy have been considered for hedging strategy of the futures. Hedging effectiveness of each strategy was analyzed by percent reduction in the variance between the hedged and the unhedged variance. The results clearly showed that examined hedging strategies reduce price volatility risk compared to unhedged portfolio.