We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byReginald Williston
Modified over 2 years ago
McGraw-Hill © 2000 The McGraw-Hill Companies 1 S M S M McGraw-Hill © 2000 The McGraw-Hill Companies Chapter 14 MANAGING DEMAND AND CAPACITY
McGraw-Hill © 2000 The McGraw-Hill Companies 2 S M Objectives for Chapter 14: Managing Demand and Capacity Explain: the underlying issue for capacity-constrained services the implications of capacity constraints the implications of different types of demand patterns on matching supply and demand Lay out strategies for matching supply and demand through: shifting demand to match capacity or flexing capacity to meet demand Demonstrate the benefits and risks of yield management strategies Provide strategies for managing waiting lines
McGraw-Hill © 2000 The McGraw-Hill Companies 3 S M Understanding Capacity Constraints and Demand Patterns Understanding Capacity Constraints and Demand Patterns Time, labor, equipment and facilities Optimal versus maximal use of capacity Charting demand patterns Predictable cycles Random demand fluctuations Demand patterns by market segment Capacity Constraints Demand Patterns
McGraw-Hill © 2000 The McGraw-Hill Companies 4 S M Figure 14-3 Strategies for Shifting Demand to Match Capacity Figure 14-3 Strategies for Shifting Demand to Match Capacity Use signage to communicate busy days and times Offer incentives to customers for usage during non-peak times Take care of loyal or regular customers first Advertise peak usage times and benefits of non-peak use Charge full price for the service--no discounts Use sales and advertising to increase business from current market segments Modify the service offering to appeal to new market segments Offer discounts or price reductions Modify hours of operation Bring the service to the customer Demand Too HighDemand Too Low Shift Demand
McGraw-Hill © 2000 The McGraw-Hill Companies 5 S M Figure 14-4 Strategies for Flexing Capacity to Match Demand Stretch time, labor, facilities and equipment Cross-train employees Hire part-time employees Request overtime work from employees Rent or share facilities Rent or share equipment Subcontract or outsource activities Perform maintenance renovations Schedule vacations Schedule employee training Lay off employees Demand Too HighDemand Too Low Flex Capacity
McGraw-Hill © 2000 The McGraw-Hill Companies 6 S M Table 14-1 What is the Nature of Demand Relative to Supply? Source: Christopher H. Lovelock, Classifying Services to Gain Strategic Marketing Insights, Journal of Marketing, 47, 3 (Summer 1983): 17.
McGraw-Hill © 2000 The McGraw-Hill Companies 7 S M Table 14-2 What is the Constraint on Capacity?
McGraw-Hill © 2000 The McGraw-Hill Companies 8 S M Waiting Line Issues and Strategies unoccupied time feels longer preprocess waits feel longer anxiety makes waits seem longer uncertain waits seem longer than finite waits unexplained waits seem longer unfair waits feel longer longer waits are more acceptable for valuable services solo waits feel longer
McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 14 Managing Demand and Capacity The Underlying Issue: Lack of Inventory.
15 Chapter Managing Demand and Capacity The Underlying Issue: Lack of Inventory Capability Capacity Constraints Demand Patterns Strategies for.
MANAGING DEMAND AND CAPACITY Donna J. Hill, Ph.D. Fall 2000.
MANAGING DEMAND AND CAPACITY Chapter 15. Objectives Explain the underlying issue for capacity-constrained services: lack of inventory capability Present.
“MANAGING DEMAND & CAPACITY AND WAITING LINE STRATEGIES” Presented By: Anubhav (07) Vipasana(40)
15-1 Managing Demand and Capacity The Underlying Issue: Lack of Inventory Capability Capacity Constraints Demand Patterns Strategies for Matching.
15-1 MANAGING DEMAND AND CAPACITY Variations in Demand Relative to Capacity.
Managing Capacity and Demand. Airlines miss out on revenue if the seats are not filled. The railways lose money if trains have empty seats. Similarly,
Managing Demand and Capacity The Underlying Issue: Lack of Inventory Capability Capacity Constraints Demand Patterns Strategies for Matching Capacity and.
MANAGING DEMAND AND CAPACITY. Capacity is usually constant whereas demand usually fluctuates. Fluctuations could be due to various reasons, predictable.
Service and Relationship Marketing Module:3 Chapter 9- Managing Capacity and Demand.
MKT 346: Marketing of Services Dr. Houston Chapter 9: Balancing Demand Against Productive Capacity.
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services MarketingChapter 1 - Page 1 CHAPTER 9 Balancing D emand Against P roductive Capacity.
Balancing Demand and Capacity. Demand to Capacity: Four Key Concepts Excess demand: too much demand relative to capacity at a given time Excess capacity:
1 Chapter 9: Balancing Demand and Productive Capacity.
OPIM 204 – Aggregate Planning 1 Aggregate Planning OPIM 3104 Instructor: Jose Cruz.
Copyright 2009 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Sales and Operations Planning Operations Management - 6 th Edition.
Slide © 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter Chapter 9: Balancing Demand and Productive Capacity.
2000 by Prentice-Hall, Inc1 Chapter 9 Capacity Planning.
Slide © 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter From Excess Demand to Excess Capacity Four conditions potentially.
McGraw-Hill© 2000 The McGraw-Hill Companies 1 S M S M McGraw-Hill © 2000 The McGraw-Hill Companies Chapter 16 PRICING OF SERVICES.
1 OMGT 4743/6743 Aggregate Production Planning (APP) Matches market demand to company resources Plans production 6 months to 12 months in advance Expresses.
Managing Demand and Supply A Service Perspective.
BA 320 Operations Management Chapter 9 Capacity and Aggregate Planning.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Aggregate Planning Operations Management - 5 th Edition Chapter.
© 2007 Pearson Education Sales and Operations Planning Chapter 14.
1 Managing Capacity. 2 Service capacity u Objective: match the level of operations with the level of demand, finding the best balance between cost and.
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E Chapter 9 Balancing Demand and Capacity.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Sales and Operational Planning Operations Management Chapter.
© Wiley Chapter 13 – Aggregate Planning Explain business planning Explain sales and operations planning Identify different aggregate planning strategies.
SERVICE CHARACTERISTICS OF HOSPITALITY AND TOURISM MARKETING Chapter 2 Kotler, Bowen, Makens and Baloglu Marketing for Hospitality and Tourism.
F O U R T H E D I T I O N Aggregate Planning © The McGraw-Hill Companies, Inc., 2003 chapter 15 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie.
Copyright Atomic Dog Publishing, 2004 Chapter Eleven Managing Supply, Demand, and Productivity.
Lecture We have covered Service Mktg Service Mktg Mix Consumer Behavior in Services GAP model of Service Quality Understanding Consumer.
Capacity Planning Capacity Planning Pertemuan 04 Mata kuliah: J Manajemen Operasional Tahun: 2010.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 5 Capacity Planning For Products and Services.
Operations Management Contemporary Concepts and Cases Chapter Twelve Capacity Planning Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights.
DO NOT COPY Chapter 10 Capacity Management in service operations.
Managing Capacity and Demand Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Service Characteristics of Hospitality and Tourism Marketing Chapter 2 Kotler, Bowen and Makens Marketing for Hospitality and Tourism.
Chapter 10 People as Strategy: Managing. Chapter Objectives Understand the importance of the consumer in the production of a service and the impact consumer.
Managing Capacity and Demand Chapter Learning Objectives Describe the strategies for matching capacity and demand for services. Recommend.
Copyright 2013 John Wiley & Sons, Inc. Chapter 8 Capacity, Scheduling, and Location Planning.
Business Processes Sales Order Management Aggregate Planning Master Scheduling Production Activity Control Quality Control Distribution Mngt. © 2001 Victor.
1 Learning Objectives: Understand the concepts and methods of aggregate planning Formulate and solve capacity planning problem IES 371 Engineering.
© 2004 Prentice-Hall, Inc. 8-1 Chapter 8 Aggregate Planning in a Supply Chain Supply Chain Management (2nd Edition)
© 2017 SlidePlayer.com Inc. All rights reserved.