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 Time of the day

week
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

 Unfairwaits 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
Thank You