ADM 3322 Lecture 15: Chapter 9 Balancing Demand Against Productive Capacity

• School: University of Ottawa
• Department: Administration
• Course: ADM 3322
• Professor: Marzena Cedzynski

Document Summary

Lecture 15 - chapter 9 balancing demand against. Thursday, november 5, 2015. 9. 1 fluctuations in demand threaten service productivity. From excess demand to excess capacity. Four conditions potentially faced by fixed- capacity services: Too much demand relative to capacity at a given time. Upper limit to a firm"s ability to meet demand at a given time. Demand and supply are well balanced at the level of optimum capacity. Too much capacity relative to demand at a given time. We are not able to handle people they are coming and we cannot serve them. Variations in demand relative to capacity. How demands are likely to fluctuate. Some are more expensive than others. E. g. we are limited by # of tables or # of servers that can serve our clients. When we think about managing capacity are we going to stretch or adjust capacity. Squeeze more people within a given capacity. We are going to actually adjust, try to increase our capacity.