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Demand and Capacity in Services

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Submitted By ankitkhurana86
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,demand, capacityFlow of Essay
We will be first introducing our topic “Managing Demand and Capacity” through papers - “Managing the Tug of War between supply and demand in services industries” by “Gabriel Bitran” and “Susana Mondschein” and “Managing Service Organizations” by John Bowen and Robert C Ford. These papers explains the general challenges faced by services firms in managing capacity, demand and also describes generalized solution to solve those issues. After introducing our topic, we will delve in to specifics of “Managing Demand” and “Managing Capacity” through different research papers. Under the topic “Managing demand”, we have discussed two research papers- “Strategies for Managing Demand in Capacity-Constrained Services Organizations” by “Christopher H. Lovelock” and “Impact of demand management on the service system performance” by “David M Rhyne”. Under capacity management, we have discussed 2 research papers – “Capacity Management in Services Organizations” by Hans Corsten and Stephan Stuhlmann and “Capacity as a Strategic Marketing Variable” by Steven M. Shugan.
.After this, we have discussed papers based on the solutions to manage both demand and capacity. We reviewed research papers “Optimum service capacity and demand management with price incentives “ by Özgür Özlük, Abdelghani A. Elimam, Eduardo Interaminense, and “Demand and capacity management decisions in services”, by Kenneth J. Klassen and Thomas R. Rohlede. In the end, we have picked up a specific service sector industry and explored research papers to understand how demand and capacity is managed in that particular industry.

Introduction We will first introduce our subject through paper “Managing the Tug of War between supply and demand in services industries” by “Gabriel Bitran” and “Susana Mondschein”. Paper starts with discussing Queues as an unavoidable occurrence in the

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