4266690-DMFD-3513-CH7-Aggregate-Capacity-Planning-R

Close scheduling of labor hours to laborassure quick

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Unformatted text preview: e 13.8 Five Service Scenarios Five Service Scenarios Restaurants Restaurants National chains of small service National firms Smoothing the production Smoothing process Planning done at national level Planning and at local level Determining the workforce size Determining Miscellaneous services Miscellaneous Hospitals Hospitals Plan human resource Plan requirements Responding to patient demand Responding Manage demand Manage Law Firm Example Five Service Scenarios (1) Category of Legal Business (2) Best Case (hours) (3) Likely Case (hours) (4) Worst Case (hours) (5) Maximum Demand in People (6) Number of Qualified Personnel Trial work Legal research Corporate law Real estate law Criminal law 1,800 4,500 8,000 1,700 3,500 1,500 4,000 7,000 1,500 3,000 1,200 3,500 6,500 1,300 2,500 3.6 9.0 16.0 3.4 7.0 4 32 15 6 12 19,500 39 17,000 34 15,000 30 Total hours Lawyers needed Airline industry Airline Extremely complex planning Extremely problem Involves number of flights, Involves number of passengers, air and ground personnel Resources spread through the Resources entire system Table 13.9 Yield Management Yield Yield Management Example Demand Curve Room sales Allocating resources to customers at prices that will maximize yield or revenue Potential customers exist who are willing to pay more than the $15 variable cost of the room $15 100 1. Service or product can be sold in advance of consumption Passed-up contribution Some customers who paid $150 were actually willing $150 to pay more for the room 50 2. Demand fluctuates $ margin = (Price) x (50 rooms) = ($150 - $15) x (50) = $6,750 3. Capacity is relatively fixed 4. Demand can be segmented 5. Variable costs are low and fixed costs are high Yield Management Example Money left on the table $15 Variable cost of room $150 Price charged for room Yield Management Matrix Demand Curve Price Total $ margin = (1st price) x 30 rooms + (2nd price) x 30 rooms = rooms ($100 - $15) x 30 + ($200 - $15) x 30 = $2,550 + $5,550 = $8,100 30 $100 Price 1 for room $200 Price 2 for room Predictable 60 $15 Variable cost of room Tend to be fixed Duration of use 100 Unpredictable Room sales Tend to be variable Quadrant 1: Quadrant 2: Movies Stadiums/arenas Convention centers Hotel meeting space Hotels Airlines Rental cars Cruise lines Quadrant 3: Quadrant 4: Restaurants Golf courses Internet service providers Continuing care hospitals Price Figure 13.7 Figure 13.6 Making Yield Management Work 1. Multiple pricing structures must be feasible and appear logical to the customer 2. Forecasts of the use and duration of use 3. Changes in demand Price Figure 13.5 • THE END...
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This note was uploaded on 05/21/2011 for the course ECON 123 taught by Professor Day during the Spring '11 term at Arab Open University, Amman.

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