Dynamic capacity adjustments with reactive customers

Ann van Ackere, Christian Haxholdt, Erik R. Larsen*

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

17 Citationer (Scopus)

Abstract

In this paper we develop a behavioural model in which customers come and go based on their perception of waiting time (relative to other facilities) while managers gradually adjust the capacity of the facility based on their perception of demand. We explicitly account for the difference in access to information between existing and potential customers, which implies that the perception of potential customers lags the perception of current customers. We investigate the outcome of the interaction between these simultaneous dynamic decision processes, and in particular the impact of the lags created by the perception formation process and the time to implement desired changes in capacity. These multiple delays may result in customers and service provider being out of step: customers walk away just as the service provider manages to bring extra capacity online. (C) 2012 Elsevier Ltd. All rights reserved.

OriginalsprogEngelsk
TidsskriftOmega: The International Journal of Management Science
Vol/bind41
Nummer4
Sider (fra-til)689-705
Antal sider17
ISSN0305-0483
DOI
StatusUdgivet - 2013
Udgivet eksterntJa

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