1. 15-1 MANAGING DEMAND AND CAPACITY

2. 15-2 Variations in Demand Relative to Capacity

3. 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

4. 15-4 Demand and Capacity for Service Providers

5. 15-5 Constraints on Capacity

6. 15-6 Strategies for Shifting Demand to Match Capacity

7. 15-7 Strategies for Adjusting Capacity to Match Demand

8. 15-8 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

9. 15-9 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

10. 15-10 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.

11. 15-11 Waiting Line Configurations