January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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The critical role of capacity
It is often asserted that the main difference between a product and a service is that products can be made ahead of production and consumption and held as inventory whereas generally a service is created at the moment of consumption. However the equivalent to inventory in a service context is capacity.
Capacity represents the available resources that can be utilised to meet a certain level of demand. In a restaurant it could include the number of tables and chairs, the level of staffing and the opening times. In a hospital, capacity would be determined by the number of beds, the availability of medical staff, the hours during which operating theatres and diagnostic equipment (i.e. scanners) are in use, and so on. ...
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