The real cost of making customers wait

Abstract

This paper considers the problem of estimating the service capacity that should be provided in a situation in which additional capacity may result in greater demand. Difficulties with conventional approaches are discussed. It is shown to be possible to estimate optimal service capacity in a relatively convenient manner from transaction data in some situations. This procedure has pedagogical as well as practical uses.

Citation

Ittig, P.T. (2002), "The real cost of making customers wait", International Journal of Service Industry Management, Vol. 13 No. 3, pp. 231-241. https://doi.org/10.1108/09564230210431956