scholarly journals How Will an Economic Downturn Impact the SME Industrial Cluster in Malang?

2021 ◽  
Author(s):  
Emma Yunika Puspasari ◽  
Ni’matul Istiqomah ◽  
Nur Anita Yunikawati ◽  
Magistyo Purboyo Priambodo

Malang is one of the cities that supports the creation of a competitive creative economy. There are a number of industrial clusters spread throughout the Malang area, one of which is the Sanitair cluster. Industry security in Malang was very high before the COVID-19 pandemic. The COVID-19 pandemic has caused a decline in the economy and in activity in the creative economy sector in Malang, including in the Sanitair industry cluster. The economic shock caused by the COVID-19 pandemic gradually subsided as the stability of the domestic financial market and economic sectors stretched. However, the supply and demand sides of the industry were both hit, so recovery efforts still need more time. The spread of the virus also has not shown signs of ending along with the increasing trend of cases and confirmed deaths. The demand for various social and economic activities is getting stronger, marked by loosening of physical distancing in many areas. On the other hand, the existing public health infrastructure is still inadequate. So, there is a high risk to moving back the various wheels of social and economic activity in the Sanitair industry cluster in Malang. COVID-19 affected the supply chain of the SME industry, including the absorption of products, the availability of raw materials, suppliers and the distribution process of the Sanitair industry. Keywords: Economic downturn, Industrial cluster, supply chain

Author(s):  
Sunil Chopra

In 2003, ITC responded to the high level of obsolete inventory by shifting risk from finished products to manufacturing and raw materials. This required that their supply chain be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain that included moving manufacturing in-house improved flexibility and responsiveness. Obsolete inventory was significantly reduced and the company was much better at matching supply and demand. Cost, however, continued to be higher than that at third parties. The company had to decide on the appropriate tradeoff between cost and responsiveness when structuring its supply chain.The case illustrates how Wills has changed its supply chain to become more flexible and responsive. This change, however, has come at a cost. The case requires the students to analyze the tradeoff between cost and responsiveness/flexibility to decide on an appropriate level of flexibility/responsiveness. The case also requires the student to understand the relative value of increased flexibility versus increased responsiveness.


2014 ◽  
Vol 697 ◽  
pp. 478-481
Author(s):  
Chun Ling Liu ◽  
Shuang Shuang Liu

To explore the attributes of cluster supply chain, and provide its driving model (2P&2BP) for more effective and more efficient way in implementing mass customization. The paper analyzes cluster supply chain driving model for implementing mass customization manufacturing using data from case study from 8 garment and IT industrial clusters. In process of implementing mass customization, we found that cluster supply chain has supplying level, marketing level and supplementing level to support its driving model (2P&2BP: Pull/push/burst power/bottleneck press) rather than conventional pull\push model. thus SMEs (small and medium-sized enterprises) in industrial cluster would have chances to extensively participate cooperate with core companies in the form of supply chain, thus expanding gradually.


2021 ◽  
Vol 15 (3) ◽  
pp. 78-96
Author(s):  
Mehdi Shoja ◽  
Farhad Hosseinzadeh Lotfi ◽  
Amir Gholam Abri ◽  
Alireza Rashidi Komijan

A new approach that has dominated the production operations management field in recent years is supply chain management. A supply chain includes all the facilities, tasks and activities involved in manufacturing a product from suppliers to customers. Its various elements are planning, supply and demand management, procurement of raw materials, production scheduling, distribution and delivery of products to the customer. Special structures in the supply chain have been less studied in previous research. In this paper, the supply chain and its performance evaluation are examined in the presence of non-discretionary, undesirable and negative data. For this purpose, another model of the network DEA is presented which evaluates performance of the chain in the presence of non-discretionary inputs and outputs, undesirable outputs and negative outputs even in its internal structure. The efficiency of the chain stages is also calculated using a dual model. Subsequently, 42 cement companies listed on the Tehran stock exchange were evaluated, each of which has a chain of four stages including suppliers, manufacturers, distributors and customers. Based on the implementation of the model, six companies were found to be efficient and the rest were introduced as inefficient. Moreover, 25 cement companies in the Supplier sector, 18 companies in the manufacturing sector, seven companies in the distribution sector and finally 17 companies in the customer service sector were found to be efficient.


2021 ◽  
Vol 93 (2) ◽  
pp. 13-30
Author(s):  
Myroslava Soldak ◽  
Wiesława Caputa ◽  
Lyubomyr Sozanskyy

The article provides a comparative assessment of the innovativeness of Ukrainian and Polish manufacturing. The main types and kinds of innovation in different sectors of the Pridneprovsky Economic Region are identified and each kind of economic activity in the region is rated in terms of intensity and efficiency of development. It was found out that the most promising sector of the Pridneprovsky Economic Region was the engineering industry, where innovation is based on engineering developments and research. The authors provide economic justification for measures to increase intensity and efficiency, and hence the level of innovation of key economic activities of the region. What is required is an innovation-oriented ecosystem that provides conditions for research and development, the formation and development of networks that consolidate activities of research centers and science-intensive industrial production, training of professional staff; reliable protection of intellectual property, the development of industrial clusters; that facilitate access to global sources of technology, knowledge and highly qualified engineering and technical personnel.


2014 ◽  
Vol 488-489 ◽  
pp. 1395-1399
Author(s):  
Mei Han ◽  
Yan Hui Han ◽  
Chao Chen

The cluster theory has become one of the main concepts promoting regional competitiveness, innovation, and growth. Among the measurements, the Location Quotient has been widely adopted by researchers in measuring logistics industrial cluster. This paper tries to measure the degree of logistics industrial cluster for 21 national logistics nodes cities of China with the help of Location Quotient. The results obtained from these regions can be transferred to national logistics nodes cities planning policy attempting to encourage city logistics networks. As a result, it is generally acknowledged that these logistics industrial clusters influence regional economic development.


Author(s):  
E.V. Kutyashova ◽  
O.E. Danilin

The article is devoted to the peculiarities of the economic development of oil-producing countries, the impact of tourism on the economy of energy exporting countries and the formation of gross domestic product. The high dependence of oil-producing countries on the export of raw materials, fluctuations in the world oil market and awareness of the limited resources require a policy of diversification of national economies. Overcoming the dependence of the economy on a narrow range of economic activities, countries choose rapidly developing economic sectors that provide investment inflows, high export earnings and job creation. One such sector is tourism and travel. Within the framework of the study, countries with a high degree of dependence on energy exports were identified and grouped according to the level of economic development. To identify the role of tourism in the formation of the gross domestic product and the development of oil-producing countries, the average growth rates of the gross domestic product, the contribution of tourism to GDP, and investment in tourism were calculated for the period from 2010 to 2019. The countries that have chosen tourism as the direction of economic diversification are highlighted. An assessment of the impact of tourism on the rates of development of national economies of oil-producing countries is given.


2019 ◽  
Vol 42 (1) ◽  
pp. 68-101 ◽  
Author(s):  
Vahid Kayvanfar ◽  
S.M. Moattar Husseini ◽  
Zhang NengSheng ◽  
Behrooz Karimi ◽  
Mohsen S. Sajadieh

PurposeThis paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics and depository facilities for small- and medium-sized enterprises (SMEs) as producers, where all of these interactions are under supervision of a third-party logistics provider (3PL).Design/methodology/approachTo evaluate the values of SDHIC, three mathematical models are proposed, optimally solved via GAMS and then compared. Also, a “linear relaxation-based heuristic” procedure is proposed to yield a feasible initial solution within a significant shorter computational time. To illustrate the values of SDHIC, comprehensive calculations over a case study and generated sets of instances are conducted, including several sensitivity analysis.FindingsThe experimental results demonstrate the efficiency of SDHIC for SMEs via combining batches and integrating the holding space of inventories, while the outcomes of the case study are aligned with those obtained from random sample examples, which confirms the trueness of used parameters and reveals the applicability of using SDHIC in real world. Finally, several interesting managerial implications for practitioners are extracted and presented.Practical implicationsSome of the managerial and practical implications are optimizing interactions of businesses involved in a supply chain of an IC containing some customers, suppliers and manufacturers and rectifying the present noteworthy gaps pertaining to the previously published research via using real assumptions and merging upstream and downstream of the supply chain through centralizing on storage of raw materials (supply echelon) and finished products (demand echelon) at the same place simultaneously to challenge a classic concept in which supply and demand echelons were being separately planned regarding their inventory management and logistics activities and showing the positive consequences of such challenge, showing the performance improvement of the proposed model compared to the classic model, by increasing the storing cost of raw materials and finished products, considering some disadvantages of using SDHIC and showing the usefulness of SDHIC in total, presenting some applied findings according to the obtained results of sensitivity analysis.Originality/valueThe key contributions of this paper to the literature are suggesting a new applied mathematical methodology to the supply chain (SC) of ICs by means of a conjoint provider of warehousing activities called SDHIC, comparing the new proposed model with the two classic ones and showing the proposed model’s dominancy, showing the helpful outcomes of collaborating 3PL with the SMEs in a cluster, proposing a “linear relaxation-based heuristic” procedure to yield a feasible initial solution within a significant shorter computational time and minimizing total supply chain costs of such IC by optimum application of facilities, lands and labor.


2021 ◽  
Vol 902 (1) ◽  
pp. 012051
Author(s):  
D Prasetyani ◽  
D T Ardianto ◽  
A A Firdaus

Abstract Low production capacity and the traditional farming method that is practiced in Indonesia have resulted in Indonesia dependent on imports to fulfil the demand. Meat, milk, eggs, even skins still can not be fully supplied from national production. Livestock supply chain strategies such as the application of the creative economy and creative industries are needed to overcome the dependency gap on imported raw materials. The challenge in Indonesia is lack of technology & knowledge. This study aimed to determine the role of the creative economy and the creative industry in improving the livestock supply chain in Indonesia. This study used a conceptual method from a literature study. Currently, the creative economy and creative industries are still relatively at the level of SMEs. The recurring problem shows the weak management of technology and knowledge. Based on the literature study result, the creative economy and creative industries can increase the supply of livestock in Indonesia. Hopefully the research on creative economy strategies and creative industries will not only become a trend but also sustainable in the future.


Author(s):  
Jovin Palla ◽  
Kainoa Strickler

Increasing the creative economy during the pandemic is very urgent, as an effort to stabilize the economy in ASEAN. The character of the creative economy is characterized by economic activities that are based on the exploration and exploitation of creative ideas that have high selling value. All tourism ministers from ASEAN countries to strengthen tourism cooperation, one of the economic sectors hardest hit in the pandemic. Intelligent marketing is needed in order to know the strengths of our competitors and market tastes, because in the era of globalization, war is actually a war in the economic field and the creative economy is the main weapon. Strong cooperation in efforts to jointly handle the impact of COVID-19 in the tourism sector in the ASEAN region. All ASEAN members to jointly enhance cooperation not only in dealing with pandemic problems but also in terms of developing the creative economy.


2017 ◽  
Vol 21 (1) ◽  
pp. 115-125
Author(s):  
A. D. Vorontsov

The article describes modern aspects of the basic instruments application of state-private partnership in the formation of the industrial cluster in the dairy industry. It is shown that the main range of tools of public-private partnership is well established in infrastructure projects. The feasibility of using these instruments for the dairy industry is dictated by the transition to the principles of import substitution (particularly in respect of dairy products). Characteristics of legal, organizational, economic and financial tools of public-private partnerships are used in the formation of dairy industrial cluster. Legal instruments are the adoption of an appropriate legislative framework (the agreement on the establishment of the cluster, Federal and regional target programs for the development of industrial clusters, the Concept of state support for territorial clusters in the period until 2018). The formation of industrial clusters is based on several laws in the Russian Federation such as: No. 224-FL "On state-private partnership, municipal-private partnership in the RF", Federal law №115-FL "On concession agreements" and laws of constituent entities of the Russian Federation on public-private partnerships (for example, from 01.06.2016 the law "On regulation of separate relations in the sphere of state-private partnership in the Voronezh region" No. 65-RL). The use of organizational and economic instruments aimed at choosing the optimal legal form that will operate the milk industry cluster (recommended non-profit partnership). It is shown that in modern conditions of market environment instability the financial instruments are of great importance, not only those which are widely distributed (e.g., blended funding), but new ones so called “pilot” tools. Such financial instruments, the author proposes to include, are the use of "deferred payments" and the use of scenario forecasting method. This method enables to carry out funds expenditure for the creation of the necessary infrastructure directly by the investor at the first stage. In this case at the next stage of industrial cluster development, expenses incurred by investor may be reimbursed (compensated) by entering in the budgets additional sources of income from the development of the territory of cluster functioning. The author's proposal is that in this case, in the accounts of the Investment Fund the financial resources for compensation of investors’ expenses can be accumulated to build the infrastructure of the cluster. The sources of additional revenues to the budget system may be additional amounts of tax paid by economic entities located on the territory of the dairy industry cluster, so we can talk about expanding the tax base caused by development of the territory. It is shown that in addition to using the tools of public-private partnership, formation of dairy industrial cluster must be done with consideration of foreign experience of functioning such clusters. The article is also attempted to highlight the main groups of risks that arise when implementing the investment project to build a dairy industrial cluster and to show the ways (tools) of the distribution of these risks between members of the cluster. The author has made the calculations for the change in funding between the major stakeholders in the dairy industrial cluster. In addition, the paper is concerned with a compensation model for the redistribution of additionally arising costs between the potential members of the dairy industrial cluster that would facilitate the use of the priority tools for the formation of dairy industrial cluster.


Sign in / Sign up

Export Citation Format

Share Document