Production Of Services Research Articles

Nowcasting economic activity with mobility data

We develop high-frequency indices to measure sales in service industries and production in the manufacturing sector using GPS mobility data from mobile applications. First, by utilizing the point of interest data, we develop indicators to capture sales in amusement parks, shopping centers, and food services. Second, we construct indicators for nowcasting production based on the foot traffic in factory areas that are identified by using the Economic Census and mobility patterns. We find that the mobility data allow us to nowcast sales in the service sectors and have the potential to be used to nowcast the production in labor-intensive industries.

Output index is important to the measurement of public service productivity

Output index is important to the measurement of public service productivity

On the economics of co-opting in energy sector

The purpose of the work is to formulate the main provisions of the co-opting economy and detail them using the case method in the field of energy. Elizabeth Watkins and David Stark from Columbia University (USA) put forward the concept of Möbius organizational forms. Unlike traditional forms in business, Möbius forms do not Make, Buy or Cooperate, they Co-opt assets that do not belong to them. In 2019, the author of this work proposed the term "paraphernalia", which reflects the essence of the theory, but the name is more suitable for the Global Informality Project online encyclopedia, in which it was published. The co-opting economics is a social science about the production, distribution, exchange and consumption of goods and services with non-violent, but non-cooperative appropriation of assets belonging to others to satisfy one's own needs. The original formula of the co-opting economy is: money-commodity-money with a dash and an additional commodity (good) received for free, which is produced with the help of assets belonging to other owners. Theoretical studies were carried out using the case method. The effect of the co-opting economy is demonstrated on the example of the Sukha Balka mine (Kryvyi Rih). The mine has shafts hoists. In the process of moving loads, hoist generate electricity that is recovered and fed back into the network. The author introduces the conditional category "Mechanics", whose asset is mine hoist, and the category "Energeticians", whose asset is power distribution networks. The additional energy resource received by the Mechanics flows through the network to the Energeticians and becomes their property. There is a co-optation of assets that do not belong to Energeticians, with the receipt of a product that they use to meet their own needs. Such a virtual power plant does not belong to any energy company, but helps it to overcome the shortage of electricity during times of maximum load. Here, too, energy companies adhere to the economy of co-optation, because the generating assets they use are not their property. By adopting legislative acts on the introduction of the active consumer category, the state indirectly contributes to the development of the co-optation economy.

Inovasi Produk Untuk Meningkatkan Omzet Penjualan Pada Usaha Mikro Kue Tradisional “ Puji Lestari “ Di Menur Pumpungan Surabaya

Since the implementation of the ASEAN Economic Community (AEC) at the end of 2015, it should encourage all economic actors, including SMEs and Micro Enterprises, to improve themselves in order to improve the quality of production of both goods and services. If this is not done, then Indonesia will be an "soft" market for other ASEAN countries because Indonesia has the largest population (population size) in ASEAN, namely no less than 270 million people. SMEs and Micro Enterprises, which are the embodiment of people's economic democracy, will be very hard hit if the heavy flow of goods and services from various ASEAN countries invades the Indonesian market. Realizing this, strengthening (empowering) SMEs and Micro Enterprises is a necessity and necessity to be able to find a national identity that has comparative advantage and competitive advantage. This activity begins with identifying existing problems and then finding a method for solving them. The method used is by providing training and mentoring. The results that have been achieved are the ability of the Traditional Cake business to optimize its sales by using local raw materials. In this way, the Traditional Cake Micro Business "Puji Letari" can improve its capabilities in the field of production and business management. These outcomes are an indication of increased business empowerment.

A Gamified Platform to Encourage Sustainable Behaviours

Abstract. The production, use, and disposal of goods and services require the use of natural resources, resulting in waste and environmental pollution. A growing number of people are embracing more sustainable lifestyles in alignment with the 3Rs (Reducing, Reusing, and Recycling) to counter these effects, but many remain uninformed of their options, or lack the motivation to adopt these practices. The work described in this paper addresses these issues through the development of the Sustainable App, a mobile application incorporating techniques of persuasion and gamification which offers its users eco-friendly alternatives to several types of daily activities, made available via an interactive map. The app employs diverse strategies to improve engagement, including a pet-nurturing game-like feature that responds to user actions related to sustainable transport choices, sustainable retail, and recycling. Additionally, the complete platform associated with the app also delivers Just-In-Time (JIT) messages concerning nearby sustainable choices based on location and time. Upon evaluation of the platform, positive user experience and overall good feedback were noted. Experts also weighed in on the application’s evaluation, offering valuable insights to refine future iterations.

Market segmentation using predictive technology and shared-service contracts

‘Shared-service contracts’ provided by Original Equipment Manufacturers (OEMs) are a standard feature of capital-intensive, long-life products. In such contracts, OEMs assume a predetermined portion of the products’ long-term failure opportunity costs by conducting routine and breakdown maintenance tasks for their customers. Recently, OEMs have been utilizing predictive technology to improve service productivity. It enables OEMs to reduce failure opportunity costs mentioned while using the data generated to develop products at lower costs. We extend the adverse selection framework to model the market segmentation of products offered with shared-service contracts and predictive technology. Our model includes: (i) the cost of product development and operation, (ii) the failure opportunity cost driven by long-term product failures, (iii) the cost of designing product reliability, and (iv) the cost of incorporating predictive technology, which reduces the first two cost components. Here, the OEM targets a basic and a premium offering at their respective customer types. We find that using predictive technology improves the quality and price of OEM products, thereby increasing their profitability. However, predictive technology enables the OEM to design a product line with lower reliability. In addition, the OEM is more likely to choose a ‘premium-only’ strategy when predictive technology is present.

Konsep Industrialisasi, Transformasi Struktural

This research explores the concepts of industrialization and structural transformation, two phenomena that are interrelated and have a crucial role in the economic development of a country. Industrialization is the process by which a country or region shifts its economy from an agricultural to an industrial basis, involving increased production of goods and services through the introduction of new technologies and increased production capacity. Structural transformation, on the other hand, refers to fundamental changes in the structure of the economy, involving a shift from the primary sector (agriculture) to the secondary (industry) and tertiary (services) sectors. This study highlights how industrialization drives structural transformation by creating new jobs, increasing productivity, and changing consumption patterns and income distribution. This research also discusses factors that influence these two processes, including government policy, foreign investment, and technological innovation. Through analysis of various cases of countries that have successfully carried out industrialization and structural transformation, this research provides insight into effective strategies that can be implemented by developing countries to achieve sustainable and inclusive economic growth.

Optimal carrying capacity in rural tourism: Crowding, quality deterioration, and productive inefficiency

This paper introduces a novel framework for characterizing destination overcrowding in rural tourism using a production approach. We build upon destination life cycle, carrying capacity, and consumer preference theories to characterize optimal levels of overnight stays in the presence of disutility from crowding. Using panel data for rural tourism in Spanish provinces, we model crowding non-linearly as a demand shifter within a service production function. To deal with plausible endogeneity, we use a control function approach within a Stochastic Frontier regression. Consistent with our theoretical predictions, we show there is a non-linear concave relationship between overnight stays and crowding. We calculate optimal carrying capacity levels (turning points) for each province and illustrate which regions are exhibiting negative externalities from overcrowding.

Analisis Struktur Kinerja dan Konsep Keunggulan Komparatif Industri

Industry is a crucial sector in a country's economy because it contributes significantly to economic growth, job creation and social welfare. This article aims to analyze the structure of industrial performance and the concept of comparative advantage in Indonesia. The industry performance structure is evaluated based on allocative efficiency, technical efficiency, inflation effects, equality, technological progress, product quality, employment opportunities and profits. The concept of comparative advantage explains that a country gains advantages by specializing in the production and export of goods or services that have relatively lower production costs compared to other countries. This analysis focuses on various factors that influence industry performance, such as the number and size of companies, level of product differentiation, market entry and exit barriers, government policies, macroeconomic conditions, technological developments, and globalization. By implementing comparative advantage strategies, such as production efficiency, developing workforce skills, and improving infrastructure, it is hoped that it can increase the competitiveness of Indonesian industry in the global market. This article provides strategic recommendations to improve the performance and competitiveness of Indonesian industry, including the importance of specialization, increased market access, and industrial collaboration.

The relationship between the Debt-to-GDP ratio and the GDP in developed (US, Japan), developing countries (of Asia and Europe) and African sub-saharan countries with emphasis on Indian scenario: A comparative study

There is no simple relationship between debt and growth […]. There are many factors that matter for a country’s growth and debt performance. Moreover, there is no single threshold for debt ratios that can delineate the “bad” from the “good”. (International Monetary Fund, 2012, p. 9)Gross Domestic Product (GDP) is often used as an indicator of the size of the economy and the debt-to-GDP ratio works as an indicator of the financial leverage for an economy. A low ratio points that an economy’s goods and services production is adequate to pay off its debts without letting further debts be incurred. The borrowing pattern of a nation and the election to opt to incur further debt depends on economic and geopolitical considerations which include recession, war, interest rates etc. On the other hand, a high ratio would imply that the economy is not producing sufficiently to pay off its debts. Just like any bank would be interested in providing a bigger amount of loan only when an individual makes more money; likewise, in an economy’s scenario, investors would be more interested in taking on a country’s debt if it could produce more. And if at any time investors happen to worry about the repayment, and then they start to ask for higher interest rate returns to secure themselves against the risk of default. This way, it increases the cost of debt and the economy might fall into the trap of debt crisis.This paper investigates the impact of India's public debt on its economic growth through an econometric analysis using data from the Reserve Bank of India, the International Monetary Funds, and the World Development Indicators for the period 1989-2014. The data is regressed in basic time series analysis taking into account the different variables that influence economic growth. The regression results show an inverted U-shape relationship between the public debt to GDP and its square. The results illustrate the theoretical findings of Reinhart and Rogoff's (2010) changing relationship between real GDP growth and government debt based on a debt threshold.

Managing Hybrid Manufacturing/Remanufacturing Inventory Systems With Random Production Capacities

In this article, we consider hybrid manufacturing/remanufacturing inventory systems that produce a single product to satisfy demands over a finite planning horizon. In each period, the firm receives random demand and returns of end-of-life products. A serviceable product can be manufactured from ample raw materials or remanufactured from a returned product. The two operations possess random dedicated capacities. The firm’s objective is to minimize the expected total discounted cost over the planning horizon. We partially characterize the firm’s optimal inventory policy when the two capacities are positively dependent and completely characterize it when only one capacity is random. When there is ample manufacturing capacity, we connect the model with an auxiliary dual-sourcing inventory model and derive a more detailed structure of the optimal policy. Finally, our numerical study provides actionable insights into the effects of random capacities. Among others, we find that approximating a slightly/moderately variable remanufacturing capacity as its deterministic mean capacity or ignoring the correlation between two random capacities under a multi-period setting incurs a limited cost to the firm.

Variation in labor skills and offshoring across time zones

AbstractWe check the role of time‐zone difference on offshoring of service tasks when the skill of labors varies between the partner countries. We frame a model where partner countries are located in non‐overlapping time zones, and the skill level of the partner‐country labors is lower. In our model, service production is divided into two sequential stages, and output is a supermodular function of the skill of labors and time. The problem of the producers is to choose between domestic production and offshoring. Domestic production employs high‐skill labors though the time management is inefficient. On the other hand, offshoring to a non‐overlapping time zone helps to work round the clock and reduce the cost, but the lower expertise of skilled labor lowers the output. In such a framework, we check conditions for beneficial offshoring. The condition derived in our analysis provides combinations of skill and time that can make offshoring beneficial. Results show that offshoring across time zones is beneficial even when the complexity of stages of production vary. However, only the relatively less‐critical task is offshored. We further find that availability of domestic low‐skill labor does not benefit the firm, while foreign low‐skill labor may be beneficially utilized through time‐zone exploitation.

Mechanics 4.0 and Mechanical Engineering Education

Industry 4.0 is an industrial paradigm that is causing changes in form and substance in factories, companies and businesses around the world and is impacting work and education in general. In fact, the disruptive technologies that frame the Fourth Industrial Revolution have the potential to improve and optimize manufacturing processes and the entire value chain, which could lead to an exponential evolution in the production and distribution of goods and services. All these changes imply that the fields of engineering knowledge must be oriented towards the concept of Industry 4.0, for example, Mechanical Engineering. The development of various physical assets that are used by cyber-physical systems and digital twins is based on mechanics. However, the specialized literature on Industry 4.0 says little about the importance of mechanics in the new industrial era, and more importance is placed on the evolution of Information and Communication Technologies and artificial intelligence. This article presents a frame of reference for the importance of Mechanical Engineering in Industry 4.0 and proposes an extension to the concept of Mechanics 4.0, recently defined as the relationship between mechanics and artificial intelligence. To analyze Mechanical Engineering in Industry 4.0, the criteria of the four driving forces that defined mechanics in the Third Industrial Revolution were used. An analysis of Mechanical Engineering Education in Industry 4.0 is presented, and the concept of Mechanical Engineering 4.0 Education is improved. Finally, the importance of making changes to the educational models of engineering education is described.

Pharmaceutical Supply Chain Management

Supply chain management (SCM) refers to the coordination and oversight of all activities involved in the production, procurement, transformation, and delivery of goods or services from the point of origin to the point of consumption. It encompasses the planning, execution, and control of various processes involved in the flow of materials, information, and finances across the entire supply chain. In this paper, the authors have done a detailed analysis of the pharmaceutical dataset and predicted useful metrics that can be used in the shipping industry. This paper aims to demonstrate the application of machine learning models on the prediction of shipping mode. The model is trained on various features of the pharmaceutical supply chain dataset such as unit price, first-line designation, and delivery dates. Data cleaning and feature engineering were done and multiple models were trained. Out of the models tested, XGboost was found to give the best results for the prediction of weight, shipment modes and delivery date. Key Words: Supply chain management, Machine Learning models, Shipping Industry, XG Boost

The dilemma of employee productivity measures and managerialism practices: an empirical exploration in financial institutions

PurposeThis empirical study aims to explore how actors in specific human resource practices (HRPs) such as line managers (LMs) impact employee productivity measures in the context of financial institutions (FI) banks.Design/methodology/approachThis cross-country study adopted a qualitative methodology. It employed semi-structured interviews to collect data from purposefully selected 12 business facing directors (BFDs) working in the top 10 banks in Nigeria and the UK. The data collected were analysed with the help of the trans-positional cognition approach (TPCA) phenomenological method.FindingsThe findings of a TPCA analytical process imply that in the UK and Nigeria’s FIs, the BFDs line managers’ human resources practices (LMHRPs) resulted in a highly regulated workplace, knowledge gap, service operations challenges and subjective quantitatively driven key performance indicators, considered service productivity paradoxical elements. Although the practices in the UK and Nigerian FIs had similar labels, their aggregates were underpinned by different contextual issues.Practical implicationsTo support LMs in better understanding and managing FIs BFDs productivity measures and outcomes, we propose the Managerial Employee Productivity Operational Definition framework as part of their toolkit. This study will be helpful for banking sectors, their regulators, policymakers, other FIs’ industry stakeholders and future researchers in the field.Originality/valueWithin the context of the UK and Nigeria’s FIs, this study is the first attempt to understand how LMHRPs impact BFDs productivity in this manner. It confirms that LMHRPs result in service productivity paradoxical elements with perceived or lost productivity implications.

Predicting the site productivity of forest tree species using climate niche models

Species occurrence-based climate niche models (CNMs) serve as valuable tools for predicting the future ranges of species’ suitable habitats, aiding the development of climate change adaptation strategies. However, these models do not address an essential aspect - productivity, which holds economic significance for timber production and ecological importance for carbon sequestration and ecosystem services. In this study, we investigated the potential to extend the CNMs to predict species productivity under various climate conditions. Lodgepole pine (Pinus contorta Dougl. ex Loud.) and Douglas-fir (Pseudotsuga menziesii Franco.) were selected as our model species due to their comprehensive range-wide occurrence data and measurement of site productivity. To achieve this, we compared and optimized the performance of four individual modeling algorithms (Random Forest (RF), Maxent, Generalized Boosted Models (GBM), and Generalized Additive Model (GAM)) in reflecting site productivity by evaluating the effect of spatial filtering, and the ratio of presence to absence (p/a ratio) observations. Additionally, we applied a binning process to capture the overarching trend of climatic effects while minimizing the impact of other factors. We observed consistency in optimal performance across both species when using the unfiltered data and a 1:1.5 p/a ratio, which could potentially be extended to other species. Among the modeling algorithms explored, we selected the ensemble model combining RF and Maxent as the final model to predict the range-wide site productivity for both species. The predicted range-wide site productivity was validated with an independent dataset for each species and yielded promising results (R2 above 0.7), affirming our model’s credibility. Our model introduced an innovative approach for predicting species productivity with high accuracy using only species occurrence data, and significantly advanced the application of CNMs. It provided crucial tools and insights for evaluating climate change's impact on productivity and holds a better potential for informed forest management and conservation decisions.

Seminatural areas act as reservoirs of genetic diversity for crop pollinators and natural enemies across Europe

AbstractDespite increasing recognition of the importance of the multiple dimensions of biodiversity, including functional or genetic diversity as well as species diversity, most conservation studies on ecosystem service‐providing insects focus on simple diversity measures such as species richness and abundance. In contrast, relatively little is known about the genetic diversity and resilience of pollinators or natural enemies of crop pests to population fragmentation and local extinction. The genetic diversity and demographic dynamics of remnant populations of beneficial insects in agricultural areas can be a useful indicator proving additional insights into their conservation status, but this is rarely evaluated. Although gene flow between agricultural and seminatural areas is key to maintaining genetic diversity, its extent and directionality remain largely unexplored. Here, we apply a pan‐European sampling protocol to quantify genetic diversity and structure and assess gene flow between agricultural and nearby seminatural landscapes in populations of two key ecosystem service‐providing insect species, the lady beetle Coccinella septempunctata, an important predator of aphids and other crop pests, and the bee pollinator Andrena flavipes. We show that A. flavipes populations are genetically structured at the European level, whereas populations of C. septempunctata experience widespread gene flow across the continent and lack any defined genetic structure. In both species, we found that there is high genetic connectivity between populations established in croplands and nearby seminatural areas and, as a consequence, they harbor similar levels of genetic diversity. Interestingly, demographic models for some regions support asymmetric gene flow from seminatural areas to nearby agricultural landscapes. Collectively, our study demonstrates how seminatural areas can serve as genetic reservoirs of both pollinators and natural enemies for nearby agricultural landscapes, acting as sources for recurrent recolonization and, potentially, contributing to enhancing ecosystem service and crop production resilience in the longer term.

Designing an Integrated Information System with a Fast (Sister Fani) and Attractive Interface to Improve Performance and User Experience: Case Study at SMK PGRI 1 Tangerang

The Integrated Information System (Sister Fani) is an important innovation in the educational environment of SMK PGRI 1 Tangerang. Considering the need for a fast and attractive interface, this study aims to design and implement Sister Fani that meets high standards of performance and user experience. This study adopted a qualitative approach, collecting data through observation, interviews, and documentary research. Research results show that fast and attractive interface design can improve users' efficiency in accessing and using information and provide a better user experience. The practical implication of this study is that the adoption of Sister Fani at SMK PGRI 1 Tangerang can improve the productivity and quality of educational services

The Role of Tax Management as a Moderator in the Effect of Tax Retention Rate and Good Corporate Governance on Earning Quality

The industrial sector plays a very important role in people's lives, as it is the part of the economy that is responsible for the production of goods and services. The primary objective of this research is to empirically explore the dynamic between Tax Retention Rate and Good Corporate Governance concerning Earning Quality, while simultaneously investigating the potential moderating role of Tax Management. Meanwhile, Good Corporate Governance is a critical factor that can affect the integrity and transparency of the company in carrying out its operations. Earning Quality, as a measure of the quality of a company's earnings, is the main parameter in measuring the company's financial performance. The study's research design follows quantitative and associative methodologies. The research population encompasses companies within the industrial sector, as listed on the Indonesia Stock Exchange during the temporal span from 2017 to 2021. Employing a purposive sampling technique, a sample comprising 15 companies, leading to a dataset of 75 observed data points, was selected. To conduct the analysis and hypothesis testing, panel data regression analysis was employed, utilizing Eviews version 12 as the analytical tool. The outcomes of the T-test analyses are noteworthy, as they reveal that both the tax retention rate variable and the good corporate governance variable distinctly influence earning quality. However, the importance of tax management as a mediator in the correlation between tax retention rate and earning quality is insignificant. The findings of this study are expected to provide new insights for stakeholders, regulators, and business practitioners in optimizing tax management and maintaining the quality of corporate profits in the Indonesian capital market environment.

Social equity in international environmental agreements

The aim of this paper is to investigate the problem of designing and building International Environmental Agreements (IEAs) taking into account some normative properties. We consider n asymmetric countries of the world, each one generating a quantity of pollutant emissions from the production of goods and services. We assume that individual emissions yield private benefits and negative externalities affecting all countries. To determine its own level of pollution, each state conducts a cost-benefit analysis. The absence of a supranational entity imposing emissions reduction makes IEAs based on voluntary participation. Examining the standard static non-cooperative game-theoretical model of coalition formation, we discover that the resulting emissions allocations might not be equitable à la Foley. It means that there might exist at least one player preferring to implement some other agent’s strategic plan instead of to play her own strategy. With the goal of studying whether equity, at least among coalesced countries, may be a criterion leading to social improvement, we introduce a new optimization rule. We require that members of an environmental coalition have to solve the maximization problem subject to the constraint imposing that they do not envy each other. Analyzing the particular case of two-player games, we get that, when countries are, in a sense, not too different from each other, our new mechanism endogenously induces social equity. By imposing a suitable total emission cap, the same results extend to all those games where our and standard solutions coexist and are different.