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3.3.11 seminar on demand  and supply management in services
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3.3.11 seminar on demand and supply management in services

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Demand and supply management in services

Demand and supply management in services

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  • 1. Announcement
     You can join this group by either using the email address or user name below: Email - servicemarketing364mkt@yahoo.comUsername-- Andrew Seminar
  • 2. Demand and Supply Management In Services
    Characteristics of services
    Volatile and unpredictable markets
    Once a plane has left, the chance to earn has gone
  • 3. Causes Of Volatile And Unpredictable Of Demand In Services
    Causes of seasonality
    Climate
    Festive
    Behavioural
    Political
    financial
    Social
  • 4. Demand Management Strategy
    Level capacity plan strategy - constant supply regardless of demand size
    Chase demand strategy- matching supply with demand as demand varies
  • 5. Demand Management Strategy
    Service pricing
    Customer behaviour
    Understanding the market- what customers prefer and what time
    Hiring of staff- part-time, overtime, bank staffing; agency, etc
    Capacity sharing arrangement- hotels refers each other
    Customer participation
    Waiting time management –queuing strategy
  • 6. Demand Management Strategy
    Renting/leasing equipment
    Cross- training employees
    Facility planning
    Technology – reservation systems; SST
    Peak and off peak
    outsourcing elements of the production process
  • 7. Demand forecasting
    Intentions and expectations surveys
    Market share
    Market forecast
    Sales force opinion
    Expert opinion
    Past sales analysis
  • 8. Skiing in Switzerland
  • 9. Task 1
    Assume you manage a winter ski resort in Switzerland
    Explain the underlying pattern of demand fluctuation likely to occur and the challenges it would present to you as a manager.
    Is the pattern of demand predictable or random?
    Explain and give examples of how you might use different strategies to smooth the peaks and valleys of demand during peak and slow periods.
  • 10. Skiing in Switzerland
  • 11. Task 2
    Assume that you are a manager of an airline
    The graph below shows your monthly demand levels.
    Explain the underlying pattern of demand fluctuation and the challenges it would present to you as a manager.
    Is the pattern of demand predictable or random?
    Explain and give examples of how you might use different strategies to smooth the peaks and valleys of demand during peak and slow periods.
  • 12. Airline - Monthly Demand Level