10aggregate planning in services differs from

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Unformatted text preview: s and can lead to a widespread decrease in overall productivity. 10. Aggregate planning in services differs from aggregate planning in manufacturing in the following ways: ■ Most services are perishable and cannot be inventoried. It is virtually impossible to produce the service early in anticipation of higher demand at a later time. ■ Demand for services is often difficult to predict. Demand variations may be more severe and more frequent. 187 188 CHAPTER 13 A G G R E G A T E P L A N N I N G ■■ Services are more customized than manufactured goods and can be offered in many different forms. This variability makes it difficult to allocate capacity. Units of capacity may also be hard to define. ■ Because most services cannot be transported, service capacity must be available at the appropriate place as well as at the appropriate time. ■ Service capacity is generally altered by changes in labor, rather than by equipment or space, and labor is a highly flexible resource. 11. T...
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