Strategy Managing Supply and Demand
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Adjusting capacity and demand for services firms are generally difficult to do, because the service is not durable (perishable). Besides variability in service capacity is also very high. The reason is the customer participation in service delivery, but every customer is unique.
Most service operations have the maximum productive capacity. If demand exceeds supply, then there is the possibility the company will lose some of its customers or subscribers may also have to wait. These conditions contrast with the situation when supply exceeds demand, in which the productive capacity will disappear just like that they can not be saved. Therefore each service companies need to understand the factors that mernbatasi capacity of demand pattern at hand.
In any particular moment, the service capacity will still be facing one of the following four conditions:
1. Excessive demand
In these conditions, the demand far exceeds the maximum capacity available. As a result there are some customers who can not be served and the company is losing customers.
2. Optimum capacity exceeds demand
In this condition, there is no customer is denied or not served. However, his condition is very noisy / crowded, so almost all customers likely to perceive a decrease in the quality of services provided by the company.
3. Balanced supply and demand at optimum capacity
Staff and facilities busy company without having an excessive workload, and the customers receive quality service without any delay.
4. Excess capacity
Demand was below the optimum capacity, so there are some resources wasted (no idle capacity).
In the four cases above, the maximum capacity available distinguished by optimum capacity. If the demand exceeds the maximum capacity, then some potential customers not served and the company is likely to lose them forever. Whereas if the demand is between optimum and maximum capacity, then there is a risk that all customers served at that time will receive inferior services, so they are not satisfied.
Implications Variations / Demand for Capacity
a request exceeds the capacity (lost business opportunities)
b optimum capacity exceeds demand (declining service quality)
excess capacity c (suniber waste resources)
However, sometimes the optimum and maximum capacity of the same. For example stage (music, drama, theater, film) or the stadium, the more you watch (even if the full capacity), then the audience will be more satisfied and happy. On the other hand there are also situations where customers will experience better service if the company does not operate at full capacity. For example, a photocopy service quality may decline if all the copiers used and highly compressed schedule. As a result some customers had to wait his turn.
There are two basic approaches to address demand fluctuations, which adjusts the level of capacity to meet variations in demand and manage the level of demand.