How can you adjust supply to try to match demand?

 

When an organization has a clear grasp of its capacity constraints and an understanding of demand patterns , it is in a good position to develop strategies for matching supply and demand.

Here are some of the strategies used to match the supply with the damend :

1.Shifting demand and capacity

By shifting demand and capacity an organization seeks to shift customers away from periods in which demand exceeds capacity. Perhaps by convincing them to buy a product during periods of slow demand.

2.Reduce Demand during peak times

One strategic approach to matching capacity and demand is to focus on reducing demand during times when customer demand is at its peak for service.

3. Increase demand to match capacity

Other approaches may consider in matching capacity and demand focus increasing demand for a product during times when the company is operating at less than full capacity.

4.Adjusting capacity to meet demand

A second strategic approach to matching supply and demand focuses on adjusting capacity. The fundamental idea here is to adjust, stretch, and align capacity to match customer demand.

5.Waiting Line Strategy

A waiting line system, also known as a queuing system, is exactly what it sounds like. It's when a person or object spends time waiting in a line for an activity or transaction to happen. For example, a customer may be waiting in line to purchase a movie ticket or deposit a check, or a package may be waiting in line at a warehouse to be shipped.

There are two levels a waiting line: a low level, which is initially inexpensive to the company, or a high level , which is initially expensive to the company. However, that expense may be worth it because the higher the customer satisfaction, the more likely a customer is to return. For example, if a customer waits in line to return an item to a store without a receipt, a 'no return policy' would be a low level of service. But a store that issues a store credit would be offering a high level of service.