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Ch 5 - Services fall S

Ch 5 - Services fall S - Chapter 5 Differences between...

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Chapter 5
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Differences between services and goods Services are intangible Services require some form of customer  interaction Services are heterogeneous Services are perishable and time dependant (can’t  be stored) Services are evaluated as a package of features
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Generally classified according to who the customer  is: Financial services Health care A service business is the management of organizations whose primary business requires interaction with the customer to produce the service
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The self service approach Beneficial to both the customer and the company
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A central problem in many service settings is the  management of waiting time Reducing waiting time costs money When people waiting are employees, it is easy to  value their time When people waiting are customers, it is more  difficult to value their time Lost sales is one (low) value
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Customer Arrivals Servers Waiting Line Servicing System Exit Queue or
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Population Source Finite Infinite
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Arrival rate : the number of units arriving per  period Constant arrival distribution : periodic, with exactly the  same time between successive arrivals
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