MANAGING DEMAND & CAPACITY

AND
WAITING LINE STRATEGIES
 Group-4
Group Members:
Kavita Kumari-20
Moazzama Perween-52
Kanishka Chaudhary-19
Ritha Marak-41
Pratibha Kumari-36
Monika-29
 INTRODUCTION

Theservice cant be stored as an inventor

y and for future use, and hence services a
re perishable, hence the demand becom
e critical

Services are intangible in nature

 Demand
Demand is the amount of particular econo
mic good or service that a consumer or gr
oup of consumer will want to purchase at
a given price.

Capacity
Capacity is the amount available at given
price.
Combination of demand and sup
ply

Excess demand
Suffer quality
Customers turned away
Lost business opportunities
Demand exceeds optimum capacity
Queuing and long waits
All customers serviced
Excess pressure on all resources
Demand and supply are well balanced
Pleasant amount of crowding
No delays
Serviced quality delivered

Demand less than optimum supply

Resources are under utilized
Customers have full use of facilities
No waiting
CONSTRAINTS ON CAPACITY
Nature of Constraints Type of Service
Time Legal
Consulting
Accounting
Medical

Labor Law firm

Accounting firm
Consulting firm
Health Clinic

Equipment Delivery service

Telecommunications
Network services

Facilities Hotels
Hospitals
Airlines
Schools
Managing capacity

1)Capacity level
Actual level of capacity remains unchanged.

Stretching capacity is to utilize the facilities for longe

r periods.
2) Adjusting capacity to demand patte
rns
Schedule downtime during the periods of low dem
and
Gross train employees
Use part-time employees
Invite customers to perform- self service
Ask customers to share
Demand too low
Perform maintenance renovation
Schedule vacations
Schedule employee training
Lay off employees
Strategies for shifting dema
nd to match capacity

Demand too high

Use signage to communicate busy days and time.
Offer incentives to customers for usage during non peak t
imes
Take care of loyal or regular customers first.
Advertise peak usage times and benefits of non peak use.
Demand too low

Use sales and advertising to increase busin

ess from current market segment.
Modify the service offering to appeal to ne
w market segments
Offer discounts or price reduction.
Modify hours of operation.
Waiting line
Definition:
oA waiting line system is defined by two imp
ortant elements: The population source of it
s customers and the process or service syste
m.
oAlso called queuing system.
 types

1. Single queue
2. Multiple queue
3. Take a number
Waiting line st
rategy
Unoccupied time feels longer than occupied
time
Solo waits feels longer than group waits
Physically uncomfortable waits feels longer th
an comfortable waits
 Unfair waits are longer than familiar one.
Unfamiliar waits seem longer than familia
r one.
Anxiety makes waits seem longer.
The more valuable the service, the longer
people will wait.