Assessing advance production strategy in a service operation

College

Gokongwei College of Engineering

Department/Unit

Industrial Engineering

Document Type

Archival Material/Manuscript

Publication Date

2009

Abstract

This paper takes a deeper look into the practice of advance production in a service business organization where delivery of service is facilitated through the production and offering of a tangible good or product. Using service quality and productivity as performance metrics, it was found that advance production can generally be beneficial if service production time takes longer compared to the interval of time between demand occurrences for the organization's services. The extent by which advance production could yield desirable metric levels is highly dependent on how long the produced good or product can be held before it is disposed of or perished. The longer the allowable time that the good or product can be held, the better advance production can be as an operational strategy for the business. It was noted though that variability in the interval of time between demand occurrences can significantly degrade the advantages offered by the advance production practice.

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Disciplines

Operations Research, Systems Engineering and Industrial Engineering

Note

Paper presented at the 13th OU-DLSU Academic Research Workshop held on September 21-23, 2009

Keywords

Service industries—Management

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