ch12_metters

ch12_metters - Yield Management Chapter 12 Services Versus...

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Yield Management Chapter 12
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Chapter 12 – Yield Management Successful Service Operations Manage 2 Services Versus Manufacturing Capacity planning task more difficult Inventory Timing Capacity planning mistakes (stock-outs) more expensive
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Chapter 12 – Yield Management Successful Service Operations Manage 3 Services Versus Manufacturing 1 5 5 5 5 50 30 Manufacturing capacity needed: 105/7=15 Service capacity needed? Known Demand Depends on General Service Capacity Strategy Provide: sufficient capacity at all times Match: change capacity as needed Influence: change demand pattern Control: maximize capacity utilization
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Chapter 12 – Yield Management Successful Service Operations Manage 4 Capacity Strategies Capacity issues in services are: More complex than in manufacturing Timing may be important, for example if there are peaks in demand at different times of day More critical than in manufacturing Often no backorders can occur Excess capacity may be perishable An imbalance in supply and demand can result in lost sales or idle employees
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Chapter 12 – Yield Management Successful Service Operations Manage 5 Capacity Strategies Influence: Alter demand patterns to fit firm capacity Pricing, marketing and appointment systems Control: Maximize capacity utilization Compete on cost by driving idle time to zero
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Chapter 12 – Yield Management Successful Service Operations Manage 6 Capacity Strategies Provide: Ensure sufficient capacity at all times High quality/high cost; greater amount of idle time for employees Match: Change capacity as needed Balance quality/cost; part-time workers
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Chapter 12 – Yield Management Successful Service Operations Manage 7 Techniques for Managing Capacity Work-shift scheduling Increased customer participation Adjustable (surge) capacity Shared capacity
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Chapter 12 – Yield Management Successful Service Operations Manage 8 Techniques for Managing Capacity Partitioned demand Price incentives for and promotion of off-peak demand Development of complementary services Yield management
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Chapter 12 – Yield Management Successful Service Operations Manage 9 Managerial Options Supply Management Capacity Work-shift scheduling Increasing customer participation Adjustable (surge) capacity Sharing Capacity Personnel – cross training, part-timers
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Chapter 12 – Yield Management Successful Service Operations Manage
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ch12_metters - Yield Management Chapter 12 Services Versus...

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