Assessing advance production strategy in a service operation

• Main Author: Gobaco, Bryan O.
• Format: text
• Published: Animo Repository 2009
• Subjects: Service industries—Management; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/6511
• Institution: De La Salle University

This paper takes a deeper look into the practice of advance production in a service business organization where delivery of service is facilitated through the production and offering of a tangible good or product. Using service quality and productivity as performance metrics, it was found that advance production can generally be beneficial if service production time takes longer compared to the interval of time between demand occurrences for the organization's services. The extent by which advance production could yield desirable metric levels is highly dependent on how long the produced good or product can be held before it is disposed of or perished. The longer the allowable time that the good or product can be held, the better advance production can be as an operational strategy for the business. It was noted though that variability in the interval of time between demand occurrences can significantly degrade the advantages offered by the advance production practice.