 Dynamic capacity adjustments with reactive customersAnn van Ackere, Christian Haxholdt and Erik R. Larsen Omega, 2013, vol. 41, issue 4, 689-705 Abstract: In this paper we develop a behavioural model in which customers come and go based on their perception of waiting time (relative to other facilities) while managers gradually adjust the capacity of the facility based on their perception of demand. We explicitly account for the difference in access to information between existing and potential customers, which implies that the perception of potential customers lags the perception of current customers. We investigate the outcome of the interaction between these simultaneous dynamic decision processes, and in particular the impact of the lags created by the perception formation process and the time to implement desired changes in capacity. These multiple delays may result in customers and service provider being out of step: customers walk away just as the service provider manages to bring extra capacity online. Keywords: System dynamics; Behavioural queueing; Simulation; Capacity management (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:41:y:2013:i:4:p:689-705 Ordering information: This journal article can be ordered from DOI: 10.1016/j.omega.2012.09.007 Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
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