Professional Documents
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Table of Contents
Fluctuations in demand
Capacity-constrained service organizations
Patterns and determinant of demand
Demand levels can be managed
Marketing strategies can reshape demand patterns
Inventory demand through waiting lines
Create an effective reservations system
Fluctuations in demand
Excess demand
Demand exceeds optimum
capacity
Optimum capacity (balance
between demand and capacity)
Excess capacity
Capacity-constrained service
organizations
Capacity-constrained service
organizations
Bus travel: people sit during off peak hours and stand during peak
hours.
Adding chairs and tables at a restaurant
Giving the customer the receipt immediately in a restaurant
Offering simple menus at peak hours
University classes in the morning or on the weekend
Capacity-constrained service
organizations
Is it a predictable cycle?
What are the underlying causes of the variations?
Is it seemingly random?
Can its segments be separated?
Gondolas in
Venice
Take no action
Reduce demand during peak hours
Increase demand when there is excess capacity
Inventory demand by reservation system
Inventory demand by formalized queuing
29
28
30
31
20
26
32
21
25
24
27
23
of job
Duration of service transaction
Payment of premium price
Importance of customer
Create an effective
reservations system
Create an effective
reservations system
Week 7
(low season)
Week 36
(high season)
100%
Loyalty program members
Loyalty program
members
Transient guests
Weekend
package
50%
Weekend
package
Transient guests
Groups and conventions
Groups (no conventions)
Airline contracts
Nights:
Tu
Airline contracts
Th
Sn
M
Time
Tu
Th
Sn
Create an effective
reservations system
Historical data
Demand forecasts
Segment-by-segment data
Fixed and variable costs data
Meaningful location-by-location demand variations
Customer attitudes
Customer opinions