Guiding readers through each stage in the design and implementation of service operations, this book combines lively examples that are easy to relate to with clearly explained theory. Readers are introduced to the main differences between managing services to managing products and given a concise induction into the core principles of operations management. The text then maps out each consecutive stage in the life of a service, from the initial business proposal for a new service, through market research practices, to the development and implementation of a service and concludes with the termination and disposal of a service.

Managing Capacity and Variations in Demand

Managing capacity and variations in demand

We need to understand what is the operational capacity of an organization so we can plan it properly. Capacity issues form an integral part of operations strategy. In this chapter we will be considering short to medium-term capacity issues. These are about ensuring that we have sufficient capacity of the right type available to meet demand for the planning period. Variations in demand will affect the use we make of that capacity.

Learning Outcomes

When you have completed this chapter you should be able to:

  • Define capacity.
  • Evaluate strategies for reconciling capacity and demand.
  • Understand approaches to demand management in services.


Capacity planning can mean different things to different people. Clearly, agreeing on a common, formal definition of the process ...

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