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Balancing Demand & Capacity
1
1)Modify the Place and Time
Time
Place
2) Adjusting Capacity to
Match Demand:
There are several different
strategies used to balance
demand and capacity by
service organizations.
Those are ;
1) Ask customers to change:
Capacity can be stretched by asking customers to share a unit of capacity normally meant for one individual.
1) Stretching Capacity Levels:
2)Cross-train employees:
Employees can be cross-trained to perform a variety of tasks, they can be shifted to where help is needed most, thereby increasing total capacity.
Actual level of capacity remains unchanged, but more people are being served with the same level of capacity.
3)Invite customers to perform self-service:
If the number of employees is limited, capacity can be increased by involving customers in co-production of certain tasks which is led by adding self-service technologies such as electronic equipments.
3) Using Marketing Mix Elements
2)Change Product Elements
Yigit Guler
2011500252
Balancing
Demand & Capacity
4) Inventorying Demand Through
Waiting Lines & Queuing Systems
Since services can not be stored for later use, it must be done in real time. However, firms cannot afford to provide a lot of extra capacity that would not be used most of the time which leads to occurring of waiting lines and queuing systems. For services to be successful, they should know how to manage those lines in order to retain people from waiting there for a long time. Therefore, they should consider various ways;
1) Rethinking the design of the queuing system.
2)Installing a reservations system.
3)Tailoring the queuing system to different market segments.
4)Managing customers’ behavior and their perception of the wait.
5)Redesigning processes to shorten the time of each transaction.