Classwork
Explain how flexible capacity can be created in each of the following situations: (a) a local library, (b) an office-cleaning service, (c) a technical support helpless. Local library: It has some flexible capacity regarding the entire building, but there are some options that It can be changed in order to make It more flexible. The building or the enable place capacity cannot be changed. HER capacity can be reduced or substituted In rush hours with online self-lending machines.
It would save payroll cost for the library and time for the customers. Office-cleaning service: (number of workers, equipment, technology,) In this case we should focus on those times when the demand is higher than the capacity. If there is too much work and we have limited numbers of workers than we should hire part time, cross-train workers In rush periods. Moreover we should ask the employee to time their day-offs after these periods. Also a possible solution could be to develop the skills of the workers (cleaning speed etc. And also a technical development would be also recommended to buy new equipment with which they can work faster but at the same level of preciosity. Support helpless: (number of lines or helpless) The main capacity what can be influenced is the number of helpless. It is really important for people to wait not too much time. The number of helpless can be Increased In order to reduce waiting times In lines. Also a technological development would be necessary If there are so simple questions, which can be answered by an automatic machine then it would be useful to introduce some self-servicing machines.
This option would save HER costs for the company and also waiting times for the customers. 2. Identify some specific examples of companies in your community (or region) that significantly change their product and/or marketing mix variables in order to encourage patronage during periods of low demand. (5 points) Restaurant happy hours: Some restaurants in Pecs have offered happy hours meals with some discounts. It means that In those periods of the day when there are low level of demands between 10-11 am and 3-5 pm.
Bakery: one of the major bakery chains In Pecs offers discount on In products each day before the closing time. It means that you can buy each product for half price. Swimming pool: The swimming pool of the university has Introduced discounted tickets for the university students in those hours, which are out of the rush hours. It is a perfect opportunity for the students to do some sports and also a good revenue generator I OFF Energy generating companies offer cheaper energy for companies through the night in those hours when the average consumption is much less than through the day. . Select a service organization of your choice and identify its particular patterns of demand with reference to the checklist provided on slide 14. A) What is the nature of this service organization’s approach to capacity and demand management? We choose the Menages solarium company at Razorback Street, Pecs. Usually demands are lower in the summer and it is also fluctuating within a week. Weekend demands are usually higher than the weekdays one. In their communication they focus on seasonal differences in term of the volume of the sunshine.
It is a common thinking, that people with browner skin color are more attractive. B) What changes would you recommend in relation to its management of capacity and demand and why? In our opinion the company should make a shift in its communication in order to reach wider or different customer segment. For example for those who work through the summer, or working till evening, or people who don’t have a good self-esteem the company should offer special opportunities to use the service. If they can achieve these people as well, they can improve the usage of the capacity.
Therefore the demand level would be smoother for the firm. They also can lower their prices before lunchtime to shape the demand. 4. Give examples, based on your own experience, of a reservation system that worked really well, and of one that worked really badly. Identify and evaluate the reasons for the success and failure of these two systems. What recommendations would you make to both firms to improve (or further improve in case of the good example) their reservation systems? (10 points) In the summer we were abroad and we reserved a cruise.
When we send the first inquire email, we immediately receive a personal contact person who helped us during the whole reservation process. If we had any problem, we could ask about everything, and our problem was solved. When we wanted to reserve the chosen room, our contact person suggested us a better option for the same price. So we could get the best option, and we were informed about everything. Kodiak Centre It often happens that 2 or more tickets are sold for one seat at the concert hall.
If there are not free places available it causes unsatisfied guests and bad reputation for the place. The reason is people can buy these tickets in many places in Pecs and online too. They are not able to arrange and check the sold tickets, sometimes they don’t know before the concert how many guests will arrive, how many tickets are available and for which places. A common booking system would be necessary to solve the problem. All ticket offices should use this to centre would be able to
