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Love Lock 09

Love Lock 09

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Published by api-3698751
Chapter 9
Chapter 9

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Published by: api-3698751 on Oct 14, 2008
Copyright:Attribution Non-commercial

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03/18/2014

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Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
9- 1
Chapter 9Balancing Demand
and Capacity
Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
9- 2
Relating Demand to Capacity:
Four Key Concepts
\ue000Excess demand: too much demand relative to capacity at a
given time
\ue000Excess capacity: too much capacity relative to demand at a
given time
\ue000Maximum capacity: upper limit to a firm\u2019s ability to meet
demand at a given time
\ue000Optimum capacity: point beyond which service quality
declines as more customers are serviced
Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
9- 3
Variations in Demand Relative to Capacity
(Fig. 9-1)
VOLUME DEMANDED
TIME CYCLE 1
TIME CYCLE 2
Maximum Available
Capacity
Optimum Capacity
(Demand and Supply
Well Balanced
Low Utilization
(May Send Bad Signals)
Demand exceeds capacity
(business is lost)
Demand exceeds
optimum capacity
(quality declines)
Excess capacity
(wasted resources)
CAPACITY UTILIZED

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