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Balancing Demand and Productive Capacity 嫉器擞钻厢书打垦巴躬守筑唐锑验撑朗隶堑衙笆铬寂箕捆才拽镐褐富薪阿Balancing Demand and Productive CapacityBalancing Demand and Productive Capacity Fluctuations in Demand Threaten Service Productivity Productive capacity can take several forms in services Physical facilities designed to contain customers - restaurant Physical facilities designed for storing or processing goods – cold room Physical equipment used to process people, possessions, or information – dentist chair Labor - staff Infrastructure – electricity, water Financial success in capacity-constrained business is a function of management’s ability to use productive capacity as efficiently and profitably as possible. 群踞谅噪沈撤茎丝翠鸿题揽逛希罢配链护辟僻倒潍作敬芋丢卜祸窑落启唯Balancing Demand and Productive CapacityBalancing Demand and Productive Capacity From Excess Demand to Excess Capacity 济席屋谎恫人占礁咀诞克食耘二叼霉绵羡烦路寝镇瑞肿舜浸哇梭藤孤媒窘Balancing Demand and Productive CapacityBalancing Demand and Productive Capacity Addressing Problem of Fluctuating Demand Two basic approaches of which most firms use a mix of: Adjust level of capacity to meet demand Need to understand productive capacity and how it varies on an incremental basis Need to determine number of covers served and kitchen ability to deliver more Manage level of demand Use marketing strategies to smooth out peaks, fill in valleys Hairdressers have pensioner discount day midweek Ski resorts promote walking trails in summer Inventorying demand until capacity becomes available 寺趾你脖歹棋碾千霖圾南捏遵宰诈位卉饭逾昌当玉阐诀安挣笆谐穴毁衔梗Balancing Demand and Productive CapacityBalancing Demand and Productive Capacity Managing Capacity Enables more people to be served at same level of capacity Stretch and shrink: Offer inferior extra capacity at peaks (e.g., bus/train standees) Use facilities for longer/shorter periods Reduce amount of time spent in process by minimizing slack time Adjusting capacity to match demand Rest during low demand Cross-train employees Use part-time employees Customers perfo
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