What are the possibilities for matching capacity to sales and vice versa when doing S&OP in a service environment?

What will be an ideal response?


Answer: Inventory cannot be used as a buffer in a pure service environment, so a service sales and operations plan must make sales match capacity or make capacity match sales. Pricing and promotion can be used to bring sales in line with capacity and one technique to do so is yield management, in which prices are regularly adjusted to maximize total profit. In order to make capacity match sales, a service provider can use overtime, a tiered workforce, or offloading. A tiered workforce is one where seasonal workers are hired during peak demand periods and let go during bust periods of sales. A service provider that offloads work has the customers perform part of the work themselves.

Business

You might also like to view...

As discussed your textbook, what does "SEO" stand for?

A. Search-Engine Optimization – Public relations practitioners use SEO to make sure that their organization's website comes up when stakeholders search for the company online. B. Search-Engine Organization – Public relations practitioners must work with their company's IT department to organize the search engines available to employees on their office computers. C. Suspicious Employee-Operatives – To enhance internal communication, public relations practitioners monitor the emails of suspicious employees, using technology to restrict employees' privacy. D. Super-Excited Officials – This is what all public relations practitioners need for a successful news conference. E. Standard Ethical Operations – These are guidelines for the ethical practice of public relations in a specific organization.

Business

Project management control is the term that has emerged to reflect how organizations oversee their project management systems.

Answer the following statement true (T) or false (F)

Business

Explain how an increase in expected interest-rate volatility can decrease the value of

a callable bond. What will be an ideal response?

Business

On January 1, 2017, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by Sacco having a book value of $10,000 was actually worth $40,000 with a six-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2017, Sacco reported net income of $50,000 and paid dividends of $20,000 while in 2018 it reported net income of $75,000 and dividends of $30,000. Assume Dawson has the ability to significantly influence the operations of Sacco.The balance in the Investment in Sacco account at December 31, 2017, is:

A. $100,000. B. $106,000. C. $112,000. D. $140,000. E. $107,500.

Business