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Jemshah
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Asked: 2023-01-20T16:02:07+00:00 In:

Describe five strategies that a service firm may use to manage fluctuations in demand and supply.(10 marks)November 2022

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Describe five strategies that a service firm may use to manage fluctuations in demand
and supply.(10 marks)November 2022

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    Enlightened
    1. Pricing strategies: The firm can adjust its prices to match changes in demand and supply, such as offering discounts during slow periods and increasing prices during peak periods.
    2. Capacity management: The firm can adjust the capacity of its resources, such as personnel and equipment, to match changes in demand and supply.
    3. Inventory management: The firm can manage its inventory levels to match changes in demand and supply, such as building up inventory during slow periods and reducing inventory during peak periods.
    4. Outsourcing: The firm can outsource some of its services or resources to manage fluctuations in demand and supply. This can help the company to quickly ramp up or reduce its capacity as needed.
    5. Flexible scheduling: The firm can implement flexible scheduling to match changes in demand and supply, such as extending hours during peak periods and reducing hours during slow periods.
    6. Promotion and Marketing: The firm can use promotion and marketing strategies to manage fluctuations in demand, for example by increasing advertising during slow periods and reducing it during peak periods.
    7. Diversification: The firm can diversify its products and services to manage fluctuations in demand, for example by introducing new products or services that are in high demand.
    8. Volume discounts: The firm can offer volume discounts to its customers to manage fluctuations in demand, for example by offering discounts to customers who place large orders or who order during slow periods.
    9. Cross-selling: The firm can encourage customers to purchase additional products or services to manage fluctuations in demand, for example by upselling or cross-selling.
    10. Lead time management: The firm can manage its lead times to match changes in demand and supply, for example by reducing lead times during peak periods and increasing them during slow periods.
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