FINAL
1. Explain Level Capacity vs. Chase Demand. What specific strategies can companies uses accommodate each one? Level Capacity is a strategy that can be monitored to plan the projected capacity needed for growth and recession periods. Whereas Chase Demand is based on the variation in demands to accommodate need during period of fluctuation. The strategy for using Level Capacity is when it is necessary to compute the rate of output level needed at certain point in times to accommodate capacity utilization so that projected needs are addressed and the right resources are allocated. Chase Demand would be useful to accommodate companies that use the demand matching strategy, this has the advantage of cutting cost associated with inventory of supplies and free up cash.
2. What are the five sources of customer induced variability? Explain each and provide examples. What are strategies to handle each type of variability? The Five sources of customer induced variability are Arrival: which means that the customer set demand at their own time is not convenient to company; Patient wants to see physician when clinic is closing or want service during lunchtime. Capability: which means that the skills of the services have to be adjusted according to the skills of the customer approach because some are not capable of addressing their need; Customer arrives to buy something and do not know what they want; you provide suggestion, Request: means that all employees should be cross-training enough to provide the necessary services to accommodate any customer request; Effort: customer makes initiative to receive service; Customer call for an appointment to make reservation for service. Subjective Preference: customer’s opinion of how they are treated differs from one customer to the next; a student may think that a waitress offers superb service while and executive things that the service was not etiquette. The best strategies in handling each type