Chapter 14

Table of Contents

MANAGING DEMAND AND CAPACITY

Objectives for Chapter 14: Managing Demand and Capacity

Fundamental Issue

Managing Demand and Capacity

Matching Supply and Demand

Table 14-1 What is the Nature of Demand Relative to Supply?

Understanding Capacity Constraints and Demand Patterns

Table 14-2 What is the Constraint on Capacity?

Managing Demand

Figure 14-3 Strategies for Shifting Demand to Match Capacity

Shifting Demand

Reducing Demand

Stimulating Demand

Tools for Managing Demand

Managing Capacity

Figure 14-4 Strategies for Flexing Capacity to Match Demand

Part-time Employees

Employees Work Over-time

Peak-time Operating Procedures

Cross-Training of Employees

Increased Customer Participation

Shared Facilities or Equipment

Outsourcing

Yield Management

What does it mean?

Risks Associated with the Use of Yield Management

Waiting Line Issues and Strategies