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The Impact of Demand Management on Service System Performance Export

by: David M. Rhyne
The Service Industries Journal, Vol. 8, No. 4. (1988), pp. 446-458.

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Reports of overbuilding in the lodging industry, closings of hospitals, bankruptcies of fast-food chains, and acquisitions of debt-ridden airlines are strong signals that demand management problems exist in service industries. The phenomenal growth experienced by the total service sector has masked these problems somewhat. When the differential between lagged demand and service capacity supply becomes significant, efficiency, productivity, utilisation, service quality, and profitability decline.


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