Important Capacity Concepts Operations Management Assignment Help

Important Capacity Concepts

In service operations we often distinguish between maximum capacity and optimum capacity because of the customer's direct interaction with the service facility Christopher Love lock has identified four different situations that the service manager may encounter in trying to match customer demand with the existing capacity of the operation These situations illustrated in Exhibit 7.5 are (a) demand exceeds maximum capacity causing customers to be turned away; (b) demand, although less than maximum capacity exceeds optimum capacity resulting in customers who receive poor service (c) demand equals optimum capacity; and (d) demand is less than optimum capacity resulting in idle capacity.

Important Capacity Concepts

Important Capacity Concepts

 

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