Hwa-Joong Kim, Eun-Kyung Yu, Kwang-Tae Kim and Tae-Seung Kim
Dynamic lot sizing is the problem of determining the quantity and timing of ordering items while satisfying the demand over a finite planning horizon. This paper considers the…
Abstract
Dynamic lot sizing is the problem of determining the quantity and timing of ordering items while satisfying the demand over a finite planning horizon. This paper considers the problem with two practical considerations: minimum order size and lost sales. The minimum order size is the minimum amount of items that should be purchased and lost sales involve situations in which sales are lost because items are not on hand or when it becomes more economical to lose the sale rather than making the sale. The objective is to minimize the costs of ordering, item , inventory holding and lost sale over the planning horizon. To solve the problem, we suggest a heuristic algorithm by considering trade-offs between cost factors. Computational experiments on randomly generated test instances show that the algorithm quickly obtains near-optimal solutions.
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Hun-Koo Ha, Tae Seung Kim and Yong Jin Kim
This paper analyzes the logistics patterns of Korea to elaborate the strategies of Korean Free Economic Zones (FEZs) in relation to Northeast Asian logistics hubs. As the surface…
Abstract
This paper analyzes the logistics patterns of Korea to elaborate the strategies of Korean Free Economic Zones (FEZs) in relation to Northeast Asian logistics hubs. As the surface transportation of Korea, China and Japan, is cut off by geographical factors and by political border lines, this paper confines the analysis scope to air and maritime transportation.
From the analysis of air and maritime transportation in Northeast Asian region, this paper tries to understand the cargo flow from and to Korean airports and ports by region and by commodity types, and thereby, to identify the main counterpart regions of trade by commodity types and by modes. The policy implications for the development strategy of Korean FEZs (Incheon, Busan, and Gwangyang) are described from those analyses.
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Tae Seung Kim, Hun-Koo Ha and Jin Kook Lee
FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host…
Abstract
FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host country regardless of the state of the countries. This paper tries to provide an evidence of the effect of FDI in developing country. To do this, we relate industry level value-added to inward and outward FDI stocks in Korea in a production function framework. Especially we divide inward FDI into FDI on the Greenfield projects and FDI for M&A. The results show that the effect of inward FDI as a whole on productivity is not statistically significant, though we can presume that the direction is positive, whereas the effect of outward FDI is strongly negative, and is statistically significant. But the effects of inward FDI by the characteristics of FDI are not differentiated.
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This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of…
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This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors.
The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage.
The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.
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Jin-Kook Lee and Tae Seung Kim
As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have…
Abstract
As the wave of liberalization and deregulation have accelerated to relieve rigid controls over airline routes, capacity, and fare setting regimes, Low Cost Carriers (LCCs) have emerged especially in local aviation markets since the 1970s.
This paper has studied the effects of LCC's entry into the domestic aviation market which was pre-occupied by two major carriers, Korean Air (KAL) and Asiana Airlines. Through a simple model describing two situations, prior and post to LCC's entry, we analyzed changes and trends of each airline's output and profit based on the Cournot and two-stage Stackelberg game equilibrium.
In summary, our conclusion consists of five points: (1) Even though JIN Air's entry reduced KAL's respective output and profit, the more JIN Air produces, the higher the joint-profit of KAL and JIN Air is, (2) From the joint-profit aspect, increasing KAL's output to a level than JIN Air's is more profitable on the Gimpo-Jeju route, on the other hand, increasing JIN Air's output higher than KAL's is more profitable on the Jeju-Busan route, (3) Even though JIN Air's entry increase Asiana Airline's output, the more JIN Air produces, the less Asiana Airlines's profit is, (4) Total output in markets as well as total profits of firms will increase under certain conditions, (5) KAL and JIN Air tend to get caught in an unresolved conflict on level of LCC cost.
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Yau Weng Loh and Tae Seung Kim
In the single-cargo market, the ordinary market share analysis method has been the representative tool for revealed competitiveness analysis. This paper develops and employs an…
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In the single-cargo market, the ordinary market share analysis method has been the representative tool for revealed competitiveness analysis. This paper develops and employs an applied market share index called the additive market share (AMS). Data are collected from 8 major ports for the 2001-2013 period. In comparison to the results of an ordinary market share analysis, there has been some fluctuation of the role of the Port of Singapore as the regional hub port though it still maintain its position. There are substitutable relationships between Singapore and the Malaysian ports in Malacca Strait. In Malacca Strait, Port Klang still leads the market in spite of the construction of PTP.