Chapter 8, SERVICE INVENTORY MANAGEMENT, MANAGING WAITING LINES (QUEUING),…
SERVICE INVENTORY MANAGEMENT
Inventory is a stock of materials used to satisfy customer demand or support the production of goods or services.
Inventory exist in 3 aggregate categories:-
-Work in Progress
Role of Inventory
Decoupling the stages in the distribution cycle
Accommodating a heavy seasonal demand
Maintaining a supply of materials as a hedge against anticipated increase in their costs
Service inventory planning
Perishable goods model
Economic order quantity
Input and output material
Lumpiness of input materials
Service inventory control system
Independent demand items
Dependent demand items
Economic Order Quantity (EOQ)
Special Inventory Models
Demand Uncertainty - Safety Stocks
Inventory Control Systems
Single Period Inventory Model
MANAGING WAITING LINES (QUEUING)
A queue is a line of waiting customers who require service from one or more servers. It need not be a physical line of individuals in front of a server.
Goal of Managing waiting lines
To balance the trade off between cost of improved service by increasing capacity and the cost of making customers wait is the basis of queuing analysis.
Strategies for Managing Customer Waiting
The psychology of waiting; Maister’s First & Second Law
That old empty feeling
A foot in the door
The light at the end of the tunnel
Excuse me but I was next
Laws of Service
Maister’s First Law: Customers compare expectations with perceptions.
Maister’s Second Law: Is hard to play catch-up ball.
Skinner’s Law: The other line always moves faster.
Jenkin’s Corollary: However, when you switch to another other line, the line you left moves faster.
Essential Features of Queuing Systems
The calling population
The arrival process
BUILDING A WORLD-CLASS SERVICE ORGANIZATION
World-class service organisations have superior business performance and understand relationships between their operations decisions and business performance.
At a corporate level
Clarity of concept
A well-developed strategy
At an operations level
Willingness to listen to customers
Continuous process development
Consistency of service
‘can do’ attitude
Big and little thinking
Supportive and committed staff
Excellent performance management
Lack of complacency
European Foundation for Quality Management (EFQM)