optimal Service Design: Integrating Marketing and Operations Elements for Capacity Decisions

摘要

This paper develops a service optimizing model which integrates marketing and operations management issues. To address the issues related to simultaneous production and consumption of services, the model uses utility theory with various strategies for capacity and demand management to illustrate the interaction between a firm's market share and the waiting time of its customers. The model is applied to an expansion decision for an existing ski resort to determine capacity and demand management strategies that maximize annual profits.