opportunity is lost. e customers served by the rm may not receive the prom-
ised quality due to overcrowding and excessive use of human and other resources.
DEMAND VARIATIONS
Service rms o en encounter demand variations for two major reasons. e
rst reason is that services are perishable; they cannot be stored or invento-
ried, which puts service rms at a serious disadvantage vis-à-vis manufactur-
ing rms. Since services production and consumption are simultaneous, any
unutilized capacity is lost forever. Further, services also cannot be transported
from one place to another or transferred from one person ...
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