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| Author: | Ittig, P. |
| Title: | Planning service capacity when demand is sensitive to delay |
| Journal: | Decision Sciences
1994 : JUL/AUG, VOL. 25:4, p. 541-560 |
| Index terms: | SERVICE MANAGEMENT OPERATIONS MANAGEMENT CAPACITY |
| Language: | eng |
| Abstract: | This paper presents a model designed to help determine the number of clerks or servers in a retail queuing situation. The model demonstrates a realistic treatment of the effect of waiting time on customer demand and revenues by treating the average waiting time as a form of price. Thus, the demand rate and service level are interrelated. The number of servers is obtained by balancing the cost of additional servers against the revenues and profits arising from greater demand. |
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