INVENTORY DEMAND THROUGH WAITING LINE AND RESERVATIONS PRESENTED BY: SAMEER DHAWAN (1241) SAMPADA KAPPOR (1242) SANCHI VERMA (1243) SONIKA KAPOOR(1258) TRIPTI GUPTA (1264) TUSHAR MATANI (1267) UTTAM UPADHYAY (1269)
INVENTORY DEMAND THROUGH WAITING LINE AND RESERVATIONS
PRESENTED BY:SAMEER DHAWAN (1241)SAMPADA KAPPOR (1242)SANCHI VERMA (1243)SONIKA KAPOOR(1258)TRIPTI GUPTA (1264)TUSHAR MATANI (1267)UTTAM UPADHYAY (1269)
The business in which demand regularly exceeds the supply, managers can take steps to inventory demand.
The two ways to achieve this task are:-
By asking customers to wait in line.By offering them opportunity of reserving in advance.
WAITING IS A UNIVERSAL PHENOMENON
Nobody likes to be kept waiting.Its boring, time wasting and physically uncomfortable.Almost every organization faces the problem of waiting lines mainly in its operations.Example:•Waiting on phone•Waiting for the bills after a restaurant meals
WHY WAITING LINES OCCUR?
Also known as QUEUES. It occurs when the demand
exceeds supply. Queues are basically a symptom
of unresolved capacity management problem.
All the queues are not in the form of physical waiting line.
Some physical queues are geographically dispersed.
The problem of reducing customer waiting time requires a MULTIPRONGED STRATEGY
CHICAGO BANK
Customer satisfaction should be balanced against cost considerations. Technological improvements Human resource strategy Customer oriented improvements
QUEUE CONFIGURATION
SINGLE LINE/SINGLE SERVER /SINGLE STAGE
SINGLE LINE/SINGLE SERVER AT SEQUENTIAL STAGES
PARALLEL LINES TO MULTIPLE SERVERS DESIGNATED LINES TO DESIGNATED
SERVERS SINGLE LINE TO MULTIPLE SERVER SINGLE OR MULTIPLE SERVER
ALTERNATIVE QUEUING CONFIGURATIONS
Single line, single server, single stage
Single line, single servers, sequential stages
Parallel lines to multiple servers
Designated lines to designated servers
Single line to multiple servers (“snake”)
“Take a number” (single or multiple servers)28 29
21
20
24
23
30 25
3126
2732
VIRTUAL WAITS
When two or more people are waiting together it is possible for one to remain and the other to go off in order to do something else in a meanwhile.
“VIRTUAL QUEUE” strategy is the best way where customer register their place on a computer.
Example: Online reservation Doctor’s appointment
DISNEY THEME PARK
Well known theme park for the visitors.
Give full waiting information to its visitors about their ride to a particular attraction.
Guests are able to register their place in line with a computer and were then free to use the wait time visiting other places in the park.
Guests spent more money, more satisfied.
FASTPASS and Q-BOT
QUEUEING SYSTEM CAN BE TAILORED TO MARKET
SEGMENTS
Urgency of the job Duration of service
transaction Payment of premium price Importance of the customers
MINIMIZE PERCEPTION OF WAITING TIME
TWO WAYS TO MINIMIZE PERCEPTION OF WAITING TIME
Psychology Of Waiting Lines
Give Customer Information On Waits
10 PROPOSITIONS ON PSYCHOLOGY OF WAITING LINES
Unoccupied time feels longer than occupied time
Pre- and post-process waits feel longer than in-process waits
Anxiety makes waits seem longer
Uncertain waits are longer than known, finite waits
Unexplained waits are longer than explained waits
Unfair waits are longer than equitable waiting
People will wait longer for more valuable services
Waiting alone feels longer than waiting in groups
Physically uncomfortable waits feel longer Waits seem longer to new or occasional
users
CONTD…
GIVE CUSTOMERS INFORMATION ON WAITS
It helps them to make decisions as to whether they can afford to take the time to wait now or should come later.
It also enables to plan the use of their time while on waiting.
Example: Study conducted in Canada to find out how
students responded to waits while conducting transactions on a computer.
CREATE AN EFFECTIVE
RESERVATION SYSTEM
RESERVATION SYSTEM
Reservations intended to guarantee services when customer wants it.
Commonly used by many people processing services such as hotels, airlines, etc.
CHARACTERISTICS OF WELL DEFINED RESERVATION SYSTEM
Fast and user-friendly for customers and staff
Answers customer questions Offers options for self service
(e.g., the Web) Accommodates preferences
(e.g., room with view) Deflects demand from
unavailable first choices to alternative times and locations
Includes strategies for no-shows and overbooking Requiring deposits to discourage
no-shows Canceling unpaid bookings after
designated time Compensating victims of over-
booking
ADVANTAGES OF RESERVATIONS
Controls and smoothes demand
Pre-sells service Informs and educates
customers in advance of arrival
Saves customers from having to wait in line for service.
Data captured helps organizations Prepare financial projectionsPlan operations and staffing levels
RESERVATION STRATEGY SHOULD FOCUS ON YIELD
Focus on sector wise Load factor Occupancy rate
RESERVATION SYSTEM SHOULD FOCUS ON YIELD
Service firms are looking at their yield–that is the average revenue received per unit of capacity . The aim is to maximize this yield in order to improve profitability.
Setting Capacity Allocation Targets By Segment For A Hotel
Out of commission for renovation
Loyalty Program Members
Transient guestsWeekend package
Groups and conventions
Airline contracts
100%
50%
Week 7 (Low Season)
MNights: TuTime W Th F S Su
Loyalty Program Members
Transient guests
W/Epackage
Groups (no conventions)
Airline contracts
Week 36 (High Season)
M Tu W Th F S Su
Capacity (% rooms)
EFFECTIVE DEMAND AND CAPACITY MANAGEMENT REQUIRES
INFORMATION
Historical data on demand level and composition, noting responses to marketing variables
Demand forecasts by segment under specified conditions
Segment-by-segment data.
Fixed and variable cost data, profitability of incremental salesMeaningful location-by-location demand variationsCustomer attitudes toward queuingCustomer opinions of quality at different levels of capacity utilization
CONTD…
THANK YOU