Green Brewing: Part Two

In part one of our Green Brewing series, we started our journey down the rabbit-hole of beer production and the environment with a discussion about energy use and gas recovery. We took a glimpse into specific breweries in the region and studied how they address their energy demand and how they control their carbon dioxide and nitrogen release, depending on size, location, and other factors. Continuing in part two, we follow the theme of sustainability by examining the “greenness†of commonly used brewing ingredients, containers, and ancillary packaging in the beer supply chain. We look at how brewing companies at the forefront of sustainability initiatives are pushing the envelope to reduce the damaging effects of commodity-based agricultural practices and waste of natural resources

Scheduling Workforce Relief Breaks In Advance Versus In Real-Time

This paper focuses upon employee rest breaks, or reliefs, in workforce scheduling. Historically, the workforce scheduling literature has largely ignored reliefs, as less than 18% of the 64 papers we surveyed scheduled reliefs. The argument has been that one need not schedule reliefs in advance, since they can easily be scheduled in real-time. We find this argument to be flawed. We show that failing to schedule reliefs in advance will have one of two undesirable outcomes. First, there will be a less profitable deployment of labor should all reliefs actually be taken in real-time. Second, if some reliefs are never assigned or if relief-timing restrictions are relaxed so that more reliefs may be assigned in real-time, there will be a disgruntled and less productive workforce and perhaps violations of contractual obligations. Our findings are supported by anecdotal evidence drawn from commercial labor scheduling software

Strategies for Integrating Capacity with Demand in Service Networks

Service managers face the problem of simultaneously developing and implementing both capacity and demand management strategies. Often they must choose between marketing options, for shifting or increasing demand, or operations management options such as adding additional capacity via more equipment or employees. The interaction of these two functional area strategies can have surprising, unintended, and often detrimental outcomes from a profit perspective. This article looks at the outcomes of various combinations of these decisions in a service network, a service with multiple activities within one site. We develop and apply an integrative model for determining the profit-maximizing capacity management strategy for a service network. We implement the model by combining a conjoint analysis-based optimal product design model from marketing with a simulation model investigating capacity and demand management strategies from operations management. We tested the model using data from an actual service network, a ski resort. Our results indicated that queue information signage was the most effective strategy for improving profitability. We also found that a decision that management believed would increase revenues—changing the customer class mix—actually decreased profitability substantially

A Picture Is Worth a Thousand Words: Using Photo-Elicitation to Solicit Hotel Guest Feedback

Executive Summary: Although written surveys have their place in determining how guests view a particular hotel, a graphic-based approach gives them a chance to show rather than just tell hoteliers what is important. One such graphic technique is photo-elicitation, which encourages guests to use images and descriptions to respond to a hotel\u27s design and amenities. In a photo-elicitation assessment, the hotelier simply gives participating guests the use of a camera to photograph whatever catches their eye as being meaningful. Then the guest and hotelier can review the sets of prints (or internet albums) for an explanation of why the guest considers a particular image to be important. In a test at Cornell\u27s Statler Hotel, the 40 guests who participated seemed to be enthusiastic in recording their likes and dislikes. For this pilot study, the researchers handed out one-time-use film cameras and then interviewed the participants to learn more about why they took each photo. The disadvantages of this procedure were the relatively high cost of the cameras and processing and interview time. Using digital cameras and internet photo albums might make for a more economical approach. With their photos, guests pointed out such problems as an armoire door that refused to stay open and a bathroom telephone that was badly placed. On the other hand, participants were delighted with the hotel\u27s beautiful view of central campus and its thoughtful placement of home-like furniture in guest rooms

Emerging Discourse Incubator: The Roles of Institutional Complexity and Hybridity in Social Impact Supply Chain Management

Supply chain research and practice has moved beyond green or environmental issues to include social issues. But much of the focus still remains on attempts of large companies to reduce social harm along their supply chains rather than creating social good. At the same time, research investigating the role of NGOs in supply chains or humanitarian logistics often emphasizes temporary initiatives and overlooks long term viability. This conceptual paper seeks to expand the playing field by looking at how social enterprises manage their supply chains to generate social benefit while maintaining or improving their financial viability in the long term. Our contribution is to consider those socially motivated organizations that lie on the continuum between purely social and purely commercial enterprises. We consider how these organizations manage their supply chains for social impact and define this area as social impact supply chain management (SISCM). In this work, we view these organizations and managerial issues through the lens of institutional complexity, that is, the presence of multiple and possibly conflicting institutional logics in the focal organization. We propose that, for these organizations, supply chain strategy, stakeholder identification and engagement, and relationship management might differentiate SISCM from traditional supply chain management. And as a result, we offer future research directions that might add clarity to effective SISCM

Service Capacity Design With an Integrated Market Utility-Based Method

[Excerpt] The purpose of this chapter is to present a model that integrates customer preferences and service design. In response to the need for interdisciplinary service management research, we present a framework that specifies the key elements of an integrated market utility-based model (MUM) and a method for determining optimal service designs based on customer needs and preferences. We also explore the relationships among revenue, capacity costs, and those service design attributes that have significant operational consequences. Our model builds on the topics we have described and integrates customer utility models that are commonly used in market research with capacity variables and their corresponding costs that are typical operations management issues. The proposed method is general and can be adapted for different types of service operations

Designing and Positioning Food Services for Multicultural Markets

[Excerpt] Businesses that seek to develop an appropriate operations strategy for serving a multicultural customer market face challenges that are distinct from businesses that serve a relatively homogeneous local market. While the strategic implications of expanding services from a domestic market to international locations have been well documented, the issue of dealing with multinational customers at a single location has largely been neglected by researchers, as far as we can determine. This paper attempts to fill the research gap by presenting a method for determining the extent to which restaurant managers should maintain standard menus and food items, as opposed to customizing their operations for different ethnic and cultural groups. To that end, we applied a customer-based approach to help managers at four international-airport food outlets to improve their food- service revenues from their three major passenger groups: English-, Japanese-, and Spanish-speaking customers. In this case, language preference was used as a proxy for cultural identity. We submit that although there are many differences among, say, English-speaking peoples, they are more similar to each other than they are to, say, Spanish speakers. Moreover, the language a person speaks is a substantial factor in trying to communicate in a particular location. One can guess that Japanese speakers in the United States, for example, might experience more language barriers than either English or Spanish speakers. We present an approach for modeling the preferences of different cultural groups, evaluating the differences among the groups, and determining a strategy to maximize market share for each of the four food-service providers that we studied. Indeed, one food-service vendor implemented our study\u27s recommendations and enjoyed a substantial revenue gain over the previous year\u27s same-period sales. We believe that the method we propose has valuable implications for any service provider who must consider operating strategies for a multicultural or multinational site, although we focus on the distinct concept of a domestic foodservice business that serves a multicultural market

A Market Utility-Based Model for Capacity Scheduling in Mass Services

Only a small set of employee scheduling articles have considered an objective of profit or contribution maximization, as opposed to the traditional objective of cost (including opportunity costs) minimization. In this article, we present one such formulation that is a market utility-based model for planning and scheduling in mass services (mums), mums is a holistic approach to market-based service capacity scheduling. The mums framework provides the structure for modeling the consequences of aligning competitive priorities and service attributes with an element of the firm’s service infrastructure. We developed a new linear programming formulation for the shifts-scheduling problem that uses market share information generated by customer preferences for service attributes. The shift-scheduling formulation within the framework of mums provides a business-level model that predicts the economic impact of the employee schedule. We illustrated the shift-scheduling model with empirical data, and then compared its results with models using service standard and productivity standard approaches. The result of the empirical analysis provides further justification for the development of the market-based approach. Last, we discuss implications of this methodology for future research

Country Natural Beef: A Maturing Co-op at the Crossroads

A Business Base Study of a Group of Northwest Cattle Ranchers that Formed a Co-op to Market Natural Beef Products, in the Face of economic uncertainty and the rise of corporate farms and ranches. Provides an overview of the cattle ranching industry, the history of the co-op, its economic outlook, and future challenges

A Market-Utility Approach to Scheduling Employees

[Excerpt] Scheduling front-line service providers is a constant challenge for hospitality managers, given the inevitable tradeoff between service standards and operating expense. Traditional employee scheduling typically applies a cost-minimization approach to specify the level of front-line service providers who will be available to meet periodic demand. That cost includes the opportunity cost of lost customers, which is part of the pseudo-costs of understaffing. A confounding and often ignored effect, however, is the benefit generated by maintaining high service levels in a system where capacity exceeds demand. That is, scheduling more frontline service providers than the minimum level necessary to provide acceptable customer service (what might be considered to be overstaffing in some rubrics) may mean that customers receive service that is better than they expected (or what company standards prescribe). In this paper we report on a scheduling approach that explicitly considers the interrelationships among customer preferences, customer demand, waiting times, and scheduling decisions. This approach, which we call the market-utility model for scheduling (MUMS), helps managers consider the dynamics of scheduling service employees. First, we discuss the components that make up this approach, which includes methods from customer-preferences modeling, service-capacity planning, and the four tasks of labor scheduling proposed by Thompson. Next, we\u27ll show how the model applies to balancing queue lengths and operating costs for an airport food-court vendor. Finally, we discuss the value of MUMS for hospitality managers