15-1 Managing Demand and Capacity  The Underlying Issue: Lack of Inventory Capability  Capacity Constraints  Demand Patterns  Strategies for Matching Capacity and Demand  Yield Management: Balancing Capacity Utilization, Pricing, Market Segmentation, and Financial Return  Waiting Line Strategies: When Demand and Capacity Cannot Be Matched Chapter15

15-2 Variations in Demand Relative to Capacity

15-3 Understanding Capacity Constraints and Demand Patterns Capacity Constraints  Time, labor, equipment, and facilities  Optimal versus maximum use of capacity Demand Patterns  Charting demand patterns  Predictable cycles  Random demand fluctuations  Demand patterns by market segment

15-4 Demand and Capacity for Service Providers

15-5 Strategies for Shifting Demand to Match Capacity

15-6 Strategies for Adjusting Capacity to Match Demand

15-7 Challenges and Risks in Using Yield Management  Loss of competitive focus  Customer alienation  Employee morale problems  Incompatible incentive and reward systems  Lack of employee training  Inappropriate organization of the yield management function

15-8 Waiting Line Strategies  Employ operational logic  modify operations  adjust queuing system  Establish a reservation process  Differentiate waiting customers  importance of the customer  urgency of the job  duration of the service transaction  payment of a premium price  Make waiting fun, or at least tolerable

15-9 Issues to Consider in Making Waiting More Tolerable  Unoccupied time feels longer than occupied time.  Preprocess waits feel longer than in-process waits.  Anxiety makes waits seem longer.  Uncertain waits seem longer than known, finite waits.  Unexplained waits seem longer than explained waits.  Unfair waits feel longer than equitable waits.  The more valuable the service, the longer the customer will wait.  Solo waits feel longer than group waits.

15-10 Waiting Line Configurations