Refer to Figure 13.1 on page 384 of the text. Discuss the four scenarios presented in the lecture (excess demand, demand exceeds optimum capacity, demand and supply are balanc

Refer to Figure 13.1 on page 384 of the text.

Discuss the four scenarios presented in the lecture (excess demand, demand exceeds optimum capacity, demand and supply are balanced, excess capacity) in the context of your term project  

Using your term project theme, work through the following questions: 

Chart the demand pattern for this service. Is it predictable? 

What is the constraint(s) on capacity?

What strategies could be used to match demand and capacity by:

shifting demand to meet capacity?

Reply to classmate 

Classmate 1: My answers are based on my group's parking mobile app theme

1. Chart the demand pattern for this service. Is it predictable? 

Depending on variables such as location, time of day, day of the week, and local events, the demand pattern for a parking mobile app might vary. Overall, peak times, weekends, and special events are predicted to have increased demand. The demand pattern may show some level of predictability based on historical data and trends. For example, if the app has been operating for a while, you can analyze past data to identify recurring patterns and seasonal fluctuations in demand. However, unexpected events or changes in circumstances can also impact demand and make it less predictable.

1. What is the constraint(s) on capacity?

The main constraint on capacity in the context of a parking mobile app is the availability of parking spaces in the designated areas. The app relies on the physical parking infrastructure in a given location, and if there are limited parking spaces, it can become a constraint on capacity. Other potential constraints could include limitations in the app's technology infrastructure to handle a large number of users.

1. What strategies could be used to match demand and capacity by:

shifting demand to meet capacity?

Incentives for off-peak parking: Offer discounts, loyalty rewards, or other incentives for users who choose to park during less busy times.

Reservation system: Allow users to reserve parking spots in advance, encouraging them to plan their parking and spread out demand more evenly.

adjusting capacity to meet demand?

Partnering with additional parking facilities: Expand the app's network of parking facilities to increase the overall capacity available.

Collaborate with local businesses: Explore partnerships with nearby businesses that have underutilized parking spaces, such as office buildings during non-business hours.

1. Is a waiting line strategy needed?  If yes, what type of approach would you use?  If no, why not?

A waiting line strategy might be necessary if demand goes over the available parking capacity. One approach could be implementing a queue system where users can join a waitlist for a specific parking area. Users can get a notification when a parking space is available, giving them a specific amount of time to claim it. They can also have access to real-time information about available parking spaces nearby which would ultimately help them decide when and where to park.

1. Is yield management relevant in this context?  If yes, how would you use it?  If no, why not?

Yield management may be applicable when dealing with a parking mobile app. The app could use yield management strategies to figure out the best pricing plan for different time and parking lots. For example, prices can be raised during periods of high demand in order to generate revenue, and they can be lowered during times of low demand in order to encourage more customers to park. This way the app can efficiently manage capacity and maximize revenue by changing pricing in response to demand.