International Journal of Services Operations and Informatics (11 papers in press)
A Value Co-creation Approach to Industrial Product-Service Systems
by Fang Zhao, Daolai Cheng
Abstract: As present trends in economic and population growth continue, the natural environment is increasingly being stressed. More and more researchers, institutes and programs paid attention to Product-Service Systems (PSS) in the last decade because PSS integrates tangible artifact and intangible service to achieve sustainability, improve enterprise competitiveness, and meet customer needs better. In order to respond to the transformation, this paper proposes the concept and approach of value co-creation for industrial Product-Service System. In this paper, Industrial Product-service is defined as service portfolio provided for satisfying customers value demands based on sale of industrial product. Based on the discussion of value co-creation mechanism, a systematic solution to support the implementation of commerce management from different levels is proposed. Then the value co-creation process is discussed which includes three cycles: value co-creation, ability development, and value realization. Finally, a case study is proposed to verify the feasibility and applicability. The study on the product-service value co-creation lays a basis for further development and application of PSS. So the perspective and implementation solution of PSS will lay a strong frontier basis for further development and application of PSS for the benefit of industries.
Keywords: value demands; value co-creation; value creation process; Industrial Product-Service Systems.
Fuzzy Random Integrated Vendor-Buyer Inventory Model with Imperfect-quality Items and Controllable Lead Time
by Nughthoh Arfawi Kurdhi, Siti Aminah, Dewi Retno Sari Saputro
Abstract: In this research, an integrated vendor-buyer inventory model with a random number of defective items under fuzzy random lead time demand is developed. The length of lead time affects the competitive abilities of a business directly and it can be controlled by adding a crashing cost. It is assumed that the lead time demand is normally distributed and the shortages are permitted, which are partially backlogged. In the model, lead time demand, annual demand rate, adjustable production rate, and backorder fraction are imprecise in nature and are represented by the triangular fuzzy numbers. Signed distance method is used to defuzzify the fuzzy total inventory cost. The objective is to determine simultaneously the optimal order quantity, the lead time, and the number of deliveries, which minimize the expected total average cost. An algorithm procedure of finding the optimal solution is developed. Furthermore, numerical example and sensitivity analysis are carried out to illustrate the proposed integrated model.
Keywords: Integrated model; fuzzy set; fuzzy random variable; imperfect-quality items.
Under the Fairness Preference Existing the Strategy of Dual Channel Supply Chain Order of Customer Transfer
by Yu Lijian, Hsueh Yichen
Abstract: Fairness preference theory into the supply chain behavior operation management is anrnimportant research direction. This paper introduce the equity preference to double channelsrnsupply chain. On the double channel conditions respectively, the order problem in tworncircumstances supply chain members which are no customer transfer and existing customersrntransfer. In the case of retailers dominate, producers for their Internet direct channelrnreserved product quantity and retailers order quantity. Finally, to obtain that fairnessrnpreference has the influence on the order quantity by numerical analysis. It is more suitablernfor producers to open the type of network marketing platform products, and to providernconstructive guidance.
Keywords: Fairness preference theory ;double channels supply chain.
Customer Satisfaction towards Islamic Banking in Saudi Arabia: an Application of CARTER Model.
by Fayaz Ahmad Lone
Abstract: The purpose of this paper is to view the satisfaction level of customers of Islamic banks in Saudi Arabia through solicitation of the CARTER model. This study is expected to help practitioners predict the future of Islamic finance in Saudi Arabia while taking the overall response of customers into consideration. The paper presents primary data collected through a self-designed questionnaire on a five point Likert scale from four regions of Saudi Arabia (Dammam, Makkah, Madinah and Riyadh). ANOVA test was used to interpret the data collected on the basis of six dimensions of CARTER model viz. Compliance, Assurance, Reliability, Tangibility, Empathy and Responsiveness. The results reveal that customers are satisfied with the working of Islamic finance as far as various dimensions of CARTER model are concerned. All the variables for verifying the customer satisfaction are found significant across different regions. Of the six dimensions, a relatively lower rating was found with respect to compliance (the only dimension that makes Islamic banks different from conventional banks), indicating that Islamic banking institutions should pay due attention towards compliance dimension of the CARTER model. This study makes some significant theoretical and practical contribution to the domain of Islamic finance.
Keywords: customer service quality; Islamic banks; Customer satisfaction; CARTER model; Islamic and Conventional Banks.
An ARIMA model for the forecasting of healthcare waste generation in the Garhwal region of Uttarakhand, India
by Ankur Chauhan, Amol Singh
Abstract: This study has been carried out to analyse and forecast the quantities of healthcare waste generated from the hospitals of Garhwal region of Uttarakhand, India. In this study, a suitable auto regressive integrated moving average (ARIMA) model has been developed, on the basis of different statistical parameters, for the forecasting of healthcare waste. The analysis of results on the basis of the statistical parameters such as adjusted R-square value, mean square error (MSE) and mean absolute percentage error (MAPE); the AR(1)MA(1) model has been found as the best ARIMA model for the forecasting of healthcare waste generation. The daily data of healthcare waste generation has been used to develop the ARIMA model in this study. The ARIMA model developed in this study would help the waste disposal firm to plan its waste collection and disposal strategy related decisions in future.
Keywords: Healthcare waste; capacity planning; Time series; Forecasting; ARIMA model.
Managing Service Performance based on Multidimensional and Categorical Satisfaction Data
by Yan-Kwang Chen, Fei-Rung Chiu
Abstract: As customer service plays a major role in the success of a firm, the issues of how to assess the performance of customer service and how to keep it under control have become the popular themes of research. In this paper, a new performance index is proposed for managing the service performance of a service system based on the sample data of categorical scale satisfaction on multidimensional service elements. With the new performance index, the level of service performance can be assessed and judge whether the level deviates from the desired level. To prevent unavoidable sampling errors that results in incorrect conclusions, a hypothesis-testing procedure of the new performance index is proposed. Furthermore, a marginal performance index is proposed to recognize the service elements that fail to meet service standards when the service performance of the service system is in the status of out-of-control status. To validate the usefulness of the proposed approach, an illustrative example is demonstrated. The contributions and innovation points of this study are: (1) the categorical data used in this study is neither limited to ordinal, nor limited to nominal scale, and thus the approach can provide a wider range of applications; (2) the new method can be used for a firm to monitor the overall performance achieved by the service system, and give an out-of-control interpretation when detecting disappointed service performance.
Keywords: service performance; multidimensional service elements; categorical scale; customer satisfaction; performance index.
Value evaluation method of industrial product-service based on customer perception
by Pengpeng Wang
Abstract: It has become an important trend in the manufacturing industry that service is used to enhance the competitiveness of businesses as well as an important source of values. Aiming to realize the performance evaluation of industrial product-service and lay a basis for further development and application of industrial product-service systems, a value evaluation method based on customer perception is presented in this paper. Firstly, performance evaluation index system of industrial product-service is proposed based on product-service value properties. The performance evaluation method is developed based on Ordered Weighted Averaging operator of fuzzy language. Secondly, ability evaluation index system of service value creation is proposed based on value demands of customers. And the ability evaluation method is developed based on fuzzy synthetic and hierarchy analysis. Finally, the proposed approach to product-service value evaluation is demonstrated by an example of automobile marketing service from XX 4S shop.
Keywords: Industrial product-service systems; Performance evaluation; Value evaluation; Customer perception.
The impact of information and communication technologies on bilateral trade in services
by Christina Tay
Abstract: This paper examines the impact of Information and Communication Technologies (ICT) on bilateral trade in services. Two sets of measurements are included in our estimation models. The first set of measurements is related to trade determinants (GDP, population, common language and distance) and the second set of measurements is related to ICT (fixed broadband, fixed telephone, Internet and mobile-cellular phone). Each ICT variable is disaggregated to estimate and compare for their individual impacts using three variations of service trade: (a) service trade sum of service export and service import, (b) service export, and (c) service import. Using data from 2000 to 2013 on the US and 34 partnering countries we use a total of six models to test for the impact of ICT on bilateral trade in services. Two estimation models including the fixed effects model and pooled ordinary least squares are used. We find that trade determinants such as GDP, population and common language have significant impacts for all three variations of service trade. Distance shows mixed results significant for overall trade and service import, but insignificant for service export. We also find that ICT determinants such as fixed broadband and fixed telephone have significant impacts on service trade, service export and service import. However, mobile-cellular is insignificant for all three variations of service trade. Finally, the Internet is significant for service trade and service export, but not for service import. The results suggest that greater access to ICT along with trading with countries of larger population sizes, greater wealth and having a common language can help boost trade in services. Furthermore, since distance is not a significant factor for service exports, developed nations such as the US can opt to trade with countries of greater distances. Modern ICT technologies such as mobile-cellular phones can be greater capitalized to stimulate both service export and service import.
Keywords: Information and Communicative Technologies; fixed broadband; fixed telephone; Internet; mobile-cellular phone; service trade; service export; service import; bilateral trade in services.
Eenergy-performance optimization for the dynamic consolidation of virtual machines in cloud computing
by Li He, Li Tang, Shuhua Zhang
Abstract: Dynamic consolidation of Virtual Machines (VMs) can reduce energy consumption by switching idle hosts to sleep mode. However, to meet the Quality of Service (QoS) of customers, it is necessary to achieve the trade-off between energy and performance. This paper firstly puts forward a new dynamic threshold adjustment method using the variation coefficient of historical CPU utilization, actual CPU utilization and MIPS (Million Instructions Per Second) requests by VMs in migration list. Furthermore, it devises a novel VM allocation policy based on the grey correlation degree model, and formulates a conversion model of CPU utilization for achieving better trade-off between energy consumption and performance. Finally, some experiments are carried out on the CloudSim and the PlanetLab workloads. The experimental results show that the methods proposed in this paper have obvious advantages on the trade-off between energy and performance during the VM consolidation.
Keywords: VM consolidation; energy and performance optimization; VM allocation; self-adaptive thresholds; grey correlation degree.
An Extension ImportancePerformance Analysis Method Integrated with Fuzzy MICMAC
by Jih Kuang Chen
Abstract: Importance－Performance Analysis (IPA) has attracted the interest of various academics and practitioners from different fields. However, many scholars have put forward some shortcomings of IPA, as well as some methods to improve it. This study focus on a new perspective which the interaction between attribute shall be considered, and proposes an new approach that integrating IPA into another complex problem analysis technique -- Impact Matrix Cross-Reference Multiplication Applied to a Classification (MICMAC) to achieve more convenient calculation and application. Its contribution and innovation are mainly, measuring the interaction between attribute and effectively quantifying the integration of IPA model; may modify the importance and the performance of attribute by influence degree and dependence degree; and integrating the Fuzzy theory to make the assessment results more accurate. Through an empirical study, this method should have certain usability.
Keywords: IPA; MICMAC; influence and dependence.
Research on Decision Making and Coordination Model of Fresh Food Supply Chain with Price and Quality
by Qianwen Liu, Shun Zhang, Chen Zhao
Abstract: With the increasing concern on the quality of fresh food, the competition among enterprises extends from the simple price competition of fresh food to the price and quality. The effectiveness and feasibility of a two-level supply chain is analyzed in the centralized decision making model, the decentralized decision making model and the coordinated decision making model are analyzed respectively, which is taking into account price coefficient and quality influence coefficient. Through the numerical analysis, the retailers, manufacturers and the change of the supply chain of each decision variable are studied. The results show that the sales price and fresh food quality are related to the introduction of variables under three different decisions. After the revenue sharing and the cost sharing contract are coordinated, the manufacturers profit is positive when the revenue sharing coefficient and the cost commitment system are reasonable. Outside the reasonable scope, the retailer is supposed to compensate the manufacturer a fixed fee, and the supply chain overall benefits are greater than the decentralized decision-making benefits.
Keywords: Price and quality competition; Supply chain decision-making and coordination; Revenue sharing cost sharing contract.