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A model for efficiency-based resource integration in services

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  • White, Sheneeta W.
  • Badinelli, Ralph D.
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    Abstract

    Service processes, such as consulting, require coordinated efforts from the service recipient (client) and the service provider in order to deliver the desired output – a process known as resource integration. Client involvement directly affects the efficiency of service processes, thereby affecting capacity decisions. We present a mathematical model of the resource-integration decision for a service process through which the client and the service provider co-produce resource outputs. This workforce planning model is unique because we include the extent of client involvement as a policy variable and introduce to the resource-planning model efficiency and quality performance measures, which are functions of client involvement. The optimization of resource planning for services produces interesting policy prescriptions due to the presence of a client-modulated efficiency function in the capacity constraint and subjective client value placed on participation in the service process. The primary results of this research are optimal decision rules that provide insights into the optimal levels of client involvement and provider commitment in resource integration.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0377221711008125
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    Bibliographic Info

    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 217 (2012)
    Issue (Month): 2 ()
    Pages: 439-447

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    Handle: RePEc:eee:ejores:v:217:y:2012:i:2:p:439-447

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    Web page: http://www.elsevier.com/locate/eor

    Related research

    Keywords: OR in manpower planning; Services; Coproduction; Dynamic programming;

    References

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    1. Boaz Golany & Eran Tamir, 1995. "Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach," Management Science, INFORMS, vol. 41(7), pages 1172-1184, July.
    2. Pekka Korhonen & Mikko Syrjänen, 2004. "Resource Allocation Based on Efficiency Analysis," Management Science, INFORMS, vol. 50(8), pages 1134-1144, August.
    3. Bordoloi, Sanjeev K. & Matsuo, Hirofumi, 2001. "Human resource planning in knowledge-intensive operations: A model for learning with stochastic turnover," European Journal of Operational Research, Elsevier, vol. 130(1), pages 169-189, April.
    4. Wallace J. Hopp & Eylem Tekin & Mark P. Van Oyen, 2004. "Benefits of Skill Chaining in Serial Production Lines with Cross-Trained Workers," Management Science, INFORMS, vol. 50(1), pages 83-98, January.
    5. Janice E. Carrillo & Cheryl Gaimon, 2004. "Managing Knowledge-Based Resource Capabilities Under Uncertainty," Management Science, INFORMS, vol. 50(11), pages 1504-1518, November.
    6. Charles C. Holt & Franco Modigliani & Herbert A. Simon, 1955. "A Linear Decision Rule for Production and Employment Scheduling," Management Science, INFORMS, vol. 2(1), pages 1-30, October.
    7. Antreas D. Athanassopoulos, 1998. "Decision Support for Target-Based Resource Allocation of Public Services in Multiunit and Multilevel Systems," Management Science, INFORMS, vol. 44(2), pages 173-187, February.
    8. Gerard M. Campbell, 1999. "Cross-Utilization of Workers Whose Capabilities Differ," Management Science, INFORMS, vol. 45(5), pages 722-732, May.
    9. Charles C. Holt & Franco Modigliani & John F. Muth, 1956. "Derivation of a Linear Decision Rule for Production and Employment," Management Science, INFORMS, vol. 2(2), pages 159-177, January.
    10. Guillaume Roels & Uday S. Karmarkar & Scott Carr, 2010. "Contracting for Collaborative Services," Management Science, INFORMS, vol. 56(5), pages 849-863, May.
    11. Beasley, J. E., 2003. "Allocating fixed costs and resources via data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 147(1), pages 198-216, May.
    12. Cheryl Gaimon & Gerald L. Thompson, 1984. "A Distributed Parameter Cohort Personnel Planning Model That Uses Cross-Sectional Data," Management Science, INFORMS, vol. 30(6), pages 750-764, June.
    13. Cheryl Gaimon, 1997. "Planning Information Technology--Knowledge Worker Systems," Management Science, INFORMS, vol. 43(9), pages 1308-1328, September.
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