Demand and capacity management decisions in services: How they impact on one another

Demand and capacity management decisions in services: How they impact on one another

0.00 Avg rating0 Votes
Article ID: iaor2003223
Country: United Kingdom
Volume: 22
Issue: 5
Start Page Number: 527
End Page Number: 548
Publication Date: Jan 2002
Journal: International Journal of Operations & Production Management
Authors: ,
Keywords: simulation: applications
Abstract:

Service managers are continually challenged with balancing customer demand and service capacity. Recent studies have raised awareness of various demand and capacity management practices available to services, but little numerical work has been done to identify how these decisions work together and how they relate to one another. For instance, reducing prices may attract customers during a slow period, but the extent of impact this should have on cross-training staff is not clear. A simulation based on theoretical and empirical insights explores the impact of various decisions on profitability and operations. The dicisions modelled include the impact of: automation, customer participation, cross training employees, informing customers about the operation, and others. It is shown that demand and capacity decisions do indeed impact on each other – sometimes in ways that are not initially obvious. Results provide useful thought-starters for service managers striving to improve their operations.

Reviews

Required fields are marked *. Your email address will not be published.