Cost Analyses for the Basic Service System

Dong-Joo Moon ()
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Dong-Joo Moon: Seoul National University

Chapter Chapter 6 in Congestion-Prone Services Under Quality Competition, 2011, pp 123-151 from Springer

Abstract: Abstract Congestion-prone service systems(or simply, service systems) refer to service production systems that exhibit or have the potential to exhibit congestion causing economic losses to its customers due to limited service capacity. While such congestion causes economic loss to customers, the decision to avoid congestion sometimes leads to excess capacity. Excess capacity, of course, brings its own adverse effects, including uneconomical investments and excessive operating costs to suppliers. It can therefore be said that service time, congestion in particular, is an important factor that affects both supplier and consumer choice, even though service time itself is not a factor contributing to supplier monetary costs.

Keywords: Service Time; Service System; Optimal Capacity; Service Production System; Aggregate Throughput (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1007/978-3-642-20189-9_6

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