CHAPTER 9 - BALANCING DEMAND
Cards (28)
- Demand - The amount of need of certain products or goods for consumption
- Service Industry - it implies to the quantity of services that are required from the firms
- Yield Management - also known as revenue management
- Facilities - resources that pertain to handling of customers to store goods and services
- Labor - refers to human elements that manipulate the process
- Single line to multiple servers - type of queue known as snake
- Balanced Demand and Supply at Optimum Capacity - ideal situation for both organization and customers
- Random Demand Fluctuations - weather condition of an area
- Demand Patterns by Market Segment - analysis of the profile of an organization customer
- Price - Use price and nonmonetary cost to manage demand
- Product - Change product elements
- Place - Modify place and time of delivery
- Promotion - promotion and education
- Optimal Capacity - fully utilized but not overused
- Maximum Capacity - fully utilized, leading to customer dissatisfaction
- Time - primary constraints
- Labor - critical constraint
- Equipment - critical for those dependent on machineries
- Facilities - such as rooms, bath areas and tables also limit the capacity
- Strategies in Modifying Demand to Match Existing Capacity - Communicate with customers, Modify Timing and Location of service delivery, Offer incentives for Off peak usage, Set priorities, Charge Full Price
- Strategies in Adjusting Capacity to Meet Demand - Increase capacity temporarily, Adjust use of resources, Increase demand to match Capacity
- Increase Capacity Temporarily - Extend people, use part time employees, Cross training employees, Outsource activities, Rent or Share
- Adjust use of resources - Schedule downtime, Perform maintenance, Schedule vacations, Modify facilities, Perform Self service, Ask customers to share, Create flexibility Capacity
- Chase demand strategy - aims to modify service resources to go after the demand curve
- Increase Demand to Match Capacity - Educate Customers, Convert how the facility is Used, Modify the service offering, Differentiate on Price
- Productive Capacity - resources or assets that organization utilize to manufacture goods and render services
- Equipment - important element of capacity
- Infrastructure - public and private structures