Balancing Demand & Capacity Managing Waiting Lines

Balancing Demand & Capacity Managing Waiting lines By Priyanka Harivallabhdas

The Ups & Downs of Demand  From – – – –

Excess Demand to Excess Capacity

Excess Demand Demand Exceeds Optimum Capacity Demand & Supply are well balanced Excess Capacity

Variations of Demand based on Time Season of the year Day of the week

Time of the day

Peak Season

Week day

Morning Peak

Off season

Week-end

Mid-day Evening Peak Night Peak

Managing Capacity Physical facilities designed to contain customers  Physical facilities designed for storing or processing goods  Physical equipment used to process people, information  Labour  Infrastructure 

Managing Demand  Schedule

less time in periods of low demand  Use part-time employees  Rent or share extra facilities & equipments  Cross-train employees

Minimizing Perception of Waiting Time  Unoccupied

Time feels longer than Occupied

time  Pre- & post- process waits feel longer than in- process waits  Anxiety makes wait seem longer  Uncertain waits are longer than known waits  Unexplained waits are longer than explained waits

Cont’d  Unfair

waits are longer than Equitable waits  The more valuable the service, the longer people will wait  Solo waits feel longer than group waits  Physically Uncomfortable waits feel comfortable waits  Unfamiliar waits seem longer than familiar ones

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