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DEMAND &
SUPPLY
Management of customer demand
• The task of managing markets &
ensuring a good fit between demand &
supply is usually very much complex
for services than for goods.
4. Excess capacity.
Capacity Constraints
• Time
For some service business,time is primary
constraint.Example-
Lawyer,Consultant,Hairdresser
• Labor
The firm that employs a large no.of service
providers,labor or staffing level can be a
constraint.Example-A law firm,A university
dept.,consulting firm.
• Equipment
It can be a critical constraint.Example-for
trucking or air-freight delivery services,the
trucks or airplanes needed to service demand
may be a capacity location.
Understanding demand patterns
• Charting demand patterns
• Predictable cycles