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BALANCING DEMAND
AND PRODUCTIVE CAPACITY
GROUP 4 P V Bhanu Prakash Reddy
Rachana Vatsyayan
Ramesh Nair
Sadique Reza
Saurabh Pugalia
Sneha Nagar
INTRODUCTION
Balancing demand and capacity is essential to create benefits for the customers as
well as improving financial returns for the business.
FLUCTUATIONS IN DEMAND THREATEN
SERVICE PRODUCTIVITY
Excess Capacity
Low Utilization (wasted resources)
(may send bad signals)
Productive Capacity
The resources or assets that a firm can employ to create goods and services.
Different forms of productive capacity are:
Employment
Billing or tax payments
Pay days
School hours/holidays
Seasonal Climate changes
Natural cycles
Causes of Random changes in demand:
Weather
Health problems
Accidents, fire, crime
Natural Disasters
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