INTR SUPPLY CHAIN: Chapter 12

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Intangibility

The primary difference in services; products cannot be touched, held, or stored in inventory.

Service Productivity Challenges

Difficulties due to high labor content, individual customization, and unpredictable demand.

Cost Leadership Strategy

Focusing on being the lowest-cost service provider through automation and large capital investment.

Differentiation Strategy

Creating a unique service based on customer feedback and specialized offerings.

Focus Strategy

Serving a narrow niche market better than any other firm (e.g., infant cardiac surgery).

Explicit Services

Observable benefits such as the availability of an ATM, vault, or the training of personnel.

Implicit Services

Psychological benefits or "felt" attributes like the atmosphere, privacy, and server attitude.

Facilitating Goods

Tangible elements used or consumed during the service, such as deposit forms or repair tools.

Service Response Logistics

Managing and coordinating service activities: Capacity, Waiting Times, Distribution, and Quality.

Service Capacity

The number of customers a service system is designed to serve per period (e.g., patients per hour).

Level Demand Strategy

Maintaining constant capacity regardless of demand; uses queue management for excesses.

Chase Demand Strategy

Adjusting capacity to match demand fluctuations (e.g., opening more checkout lanes).

Structured Queue

A fixed-position line, such as those found at a bank or supermarket checkout.

Unstructured Queue

Informal lines formed in various directions, often seen at retail stores or taxi stands.

Mobile Queue

A virtual line formed using technology, allowing customers to wait flexibly via smartphone.

Balking

When a potential customer refuses to join a queue because it is too long.

Reneging

When a customer joins a queue but decides to leave before being served.

Single Channel, Single Phase

The simplest queuing design where one customer goes to one representative (e.g., an ATM).

Franchising

A distribution strategy allowing rapid expansion into geographic markets using external owners' resources.

Reliability

Consistently performing a service correctly and dependably; a dimension of service quality.

Responsiveness

Providing prompt and timely service to the customer; a dimension of service quality.

Assurance

The ability of service employees to convey trust and confidence to customers.

Empathy

Providing caring, individualized attention to customers.

Tangibles

The physical characteristics of a service, including facilities, equipment, and server appearance.

Service Recovery

Pre-planned procedures for remedying a poor service experience to maintain customer loyalty.