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Submitted By venky95381
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When an organization has a clear grasp of its capacity constraints and an understanding of demand patterns. It is in a good position to develop strategies for matching supply and demand.
There are two general approaches for accomplishing demand and capacity. * The first is to smooth the demand fluctuations themselves by shifting demand to match existing supply. * The second general strategy is to adjust capacity to match fluctuations in demand.
Shifting demand and capacity
By shifting demand and capacity an organization seeks to shift customers away from periods in which demand exceeds capacity. Perhaps by convincing them to use the service during periods of slow demand. This may be possible for some customers but not for others. For example, many business travelers are not able to shift their needs for airline, car rental, and hotel services. Pleasure travelers on the other hand can often shift the timing of their trips. Those who can’t shift and can’t be accommodated will represent lost business for the firm.
Vary the service offering
One approach is to change the nature of the service offering, depending on the season of the year, day of the week, or time of day. For example, Whistler Mountain, a ski re sort in Vancouver, Canada, offers its facilities for executive development and training programs during the summer when snow skiing is not possible.
A hospital in the Los Angeles area rents use of its facilities to film production crews who need realistic hospital settings for movies or TV shows. Accounting firms focus on tax preparation late in the year and until April 15. When federal taxes are due in the United States. During other times of the year they can focus on audits and general consulting activities.
Air lines even change the configuration of their plane seating to match the demand from different market segments. In some planes there may

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