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Managing Capacity and Demand Learning Objectives Describe the strategies for matching capacity and demand for services. Recommend an overbooking strategy. Use Linear Programming to prepare a weekly workshift schedule. Prepare a work schedule for part-time employees. Explain what yield management is and how it is applied. Level Capacity and Chase Demand Strategies for Matching Capacity and Demand for Services Customer-induced Variability Arrival: customer arrivals are independent decisions not evenly spaced. Capability: level of knowledge and skills vary resulting in some hand-holding. Request: uneven service times result from unique demands. Effort: level of commitment to coproduction or self-service varies. Subjective Preference: personal preferences introduce unpredictability. Strategies for ManagingCustomer-induced Variability Segmenting Demand at a Health Clinic Discriminatory Pricing for Camping Experience No. of Daily Type Days and weeks of camping season Days Fee 1 Saturdays and Sundays of weeks 10 to 15, plus 14 $6.00 Dominion Day and civic holidays 2 Saturdays and Sundays of weeks 3 to 9 and 15 to 19, 23 2.50 plus Victoria Day 3 Fridays of weeks 3 to 15, plus all other days of weeks 43 0.50 9 to 15 that are not in experience type 1 or 2 4 Rest of camping season 78 free
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