Capacity + Demand queuing management (6)

Design capacity

theoretical macimum capacity (in theory) inaccurate

Effective Capacity

potential capacity achieved on a 'typical' day, example: takes into account maintenance and product changeovers.

Achieved capacity

Actual capacity output which is less than effective as it adds additonal unplanned non-work time like machine breakdowns

Utilization

proportion of Design capacity thats actually achieved in any operation

Efficiency

Proportion of effective capacityactually acheived in any operation

Capacity planning

long-term, involves forecasting, finding new locations, buying new equipment, changing process types, etc

Capacity scheduling

Short/medium term, uses exisiting capacity, constraints management and exploits bottleneck

Level capacity

stays aggregate level as demand fluctuates and only increases if it goes above that level. capacity to fit demand

Chase demand

expand 10% step by step as demand increases, aka follows demand every step of the way. capacity to fit demand

Demand management

they infleunce demand to fit capacity

Pricing strategy

marketing mix P, encourages/discourages sales

Promotions

marketing mix P, encourage early orderings or bulk purchase

Place

marketing mix P, scheduling modifies delivery lead time longer or shorter

Product/service design

marketing mix P, changed to service different market

Revenue (Yield) management

helping firms sell right inventory unit to the right customer at the right time - Kimes 1997

Forecasting

Predicts level of demand for a product or service

Panel approach

Qualitative method, group of experrs determine best guess of demand prediction.

Delphi method

Qualitiative method, Questionaire to gain info from wider range of experts

Scenario planning

Qualitative method, Group of experrs look at possible scenarios with associated risks before predicting demand

Time series analysis

Quantitative method, looks at historical data to predict future demand.

Causal modelling

looks at relationships between variables (factors), regression and multi regression sees how closely related the variables are.

Single line Queue

customers are in a single line one by one they join when they arrive

Multiple channels queue

seen at supermarkets, multiple individual queues but no filtering

Diffuse Queue

Take a ticket e.g. no formal queue lines but customers register their place in the process with a ticket.

Priority queue

lots of different queues for various types of customers e.g. 'fast track, pay with cash or card, etc

FCFS

First come first serve queue management

LCFS

last come first serve, queue management

SPF

shortest processed first, queue management

SIRO

serve in random order, queue management

Rejecting queue

dont even enter process of queue

Balking

in the queue for a bit but decide they are uncomfortable and leave process

Reneging

relexed in queue but thought the flow would be quicker, lose patience and leaves process

Scarcity principle

An economic theory states that a limited supply of a good, coupled with unlimited demand for that good, results in a mismatch between the desired supply and demand equilibrium