A dynamic model of budget competition allocation on craft industry: evidence from Indonesia

This research aims to create a sustainable dynamic model concept towards the craft industry, which competes with each other in order to get the government budget allocation. The object of this research is superior industry (IU) from regional work unit. The regional work unit allocates its fund’s proportion of wood craft industry (IKA) by 51 percent and leather craft industry (IKU) by 49 percent. With almost equal portion, it turns out that the development result of IU has unequal proportion, which is 34 percent for IKA and 66 percent for IKU. This inequality indicates that there is a budgeting allocation, which is not based on performance. System dynamic simulation approach (SD) is conducted to predict the development of performance of both observation objects. In the phase of SD model development, Balanced Scoreboard (BSC) framework is used as a frame of development. The approach of ARCH-type model Success to Successful (StoS) is used as a concept of problem-solving. Several scenarios are formed in this research and needed as symbiosis redesign policy towards IKA product to increase the absorption of IKU product. Practical implications on sustainability of IKA and IKU are discussed in this research. The problem-solving can be applicable and replicable in Indonesia’s craft industry.

System Dynamic Simulation of Salacca-Pondoh’s Business as Usual Condition in Sleman District, Yogyakarta Province, Indonesia

Production of horticultural crops in Sleman District is dominated by salacca-pondoh with total production in 2016 reaching 73 kton, cover up to 98% of total salacca-pondoh’s production in Yogyakarta Province. But salacca-pondoh’s farmers actually got very low-price during harvest season and they only act as a price taker that had low bargaining position, so that their welfare. This research formulated salacca-pondoh’s business as usual condition in Sleman District in form of system dynamic simulation. The factors influenced the low income of farmers during harvest season were identified. Result showed there are several seasonal “pitfalls” points in the farmer’s income which made it dropped far below the average value. It has potential to make the farmers not to replant salacca-pondoh then switch to other fruits that are more profitable. Product diversification either vertically or horizontally by allocating some of the fruit and waste to be convert into derivative products can be a step to increase the income of salacca-pondoh’s farmers and intensify the economic activity in Sleman District.

Economic and Environmental Assessment of Spare Parts Production Using Additive Manufacturing

This chapter aims to investigate the potential economic and environmental sustainability outcomes of additive manufacturing (AM) for spare parts logistics. System dynamic simulation was conducted to analyze the sustainability of producing a spare part used in a railways subsystem using a particular additive manufacturing (AM) technology (i.e., selective laser sintering [SLS]) compared to producing it using injection molding. The results of the simulation showed that using SLS for the chosen part is superior to the conventional one in terms of total variable costs as well as for carbon footprint. Compared to the conventional supply chain, for the AM supply chain, the costs of the supplier reduces by 46%, that of the railways company reduces by 71%, while the overall supply chain costs reduce by 61.9%. The carbon emissions in the AM supply chain marginally reduces by 2.89% compared to the conventional supply chain.