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Matching supply and demand in services by capacity management has a direct influence on the ability of the service delivery system to achieve service quality and resource productivity targets. Examines some propositions for the influences of capacity management on quality and resource productivity and for managing capacity. In addition to the chase and level strategies for managing capacity in services suggested by Sasser a coping strategy for capacity management is described which aims to improve the overall delivery of service quality while achieving resource productivity targets. Coping is necessary for all organizations at some time. Some research results derived from the experience of a range of service organizations indicate a less than satisfactory handling of the coping situation.
International Journal of Service Industry Management – Emerald Publishing
Published: May 1, 1994
Keywords: Capacity management; Coping; Customer service; Resource efficiency; Response flexibility; Service quality; Strategic planning; Supply and demand
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