Demand and supply management in services

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