Construction of System Dynamics Model on Service Strategy and Resource Management

Abstract

Competitiveness of a company has been based on the ability of locating and solving the com-mercial troubles more quickly and effectively than other competitors. For small and medium-sized enterprises (SMEs), it is necessary to expand the boundaries of the traditional organizations and promote across-domain knowledge in different industries. Thus, the opportunities of industrial in-novation can be increased, and the bright future of the industry can also be confirmed. In Taiwan, there are numerous SMEs in various industries. Conducting and researching in resource conservation service innovation technology and transforming system are deemed to be important for modern enterprises. This research was aimed at building a service-oriented system for saving the energy and reducing discharges to perform a new mechanism of resource conservation services for SMEs. The project “Construction of System Dynamics Model on Service Strategy and Resource Management” was aimed to assist “Wai Cheong Electrical Engineering Co., Ltd.”at Chung Hsing Industry Park in Miaoli. The System Dynamics was primarily introduced into this project for per-formance analysis, so that the proposed performance evaluation model could be formulated. With the performance evaluation on the indicators, the overall performance structure was clarified as well. After the reliability analysis of the proposed model was verified, the data provided dynamic results on demand forecasting, quality control, and marketing management for decision making. Then, the effectiveness would be practically adjusted for different quality levels to predict the actual need. It’s the essential way to recognize the cost variation and observe other parameters of the marketing strategy. The strategy was effective to achieve the goals of removing the strategic planning con-straints and reducing resource consumption caused by improper decisions. In conclusion, the con-struction of this model would enhance the opportunity to succeed and achieve in the company’s op-timum profits when confronting the current dynamic and competitive market environment.