FEATURE PAPER
A Note on Modeling Service Capacity Allocation Under Varying Intensities of Competition
The followingpaper was written by Hongkai Zhang, and Jim Rauch both from East Central University in Ada, Oklahoma. It was presented at the 2009 ACME conference.
ABSTRACT
Based on a linear deterministic price response function, sales revenue is analytically determined for five alternative policies for allocating service capacity over a two-period planning horizon for a service provider in a competitive environment, in which the intensity of competition varies over time. A numerical study is conducted to compare the performances of the considered policies and examine the impacts of competition and price sensitivity.
INTRODUCTION
Advance selling is widely practiced in service industries and there have been studies addressing service capacity allocation for a service provider (e.g., Png 1991; Lee and Ng 2001; Shugan and Xie 2005). In the marketing literature, a particularly important question still stands only partially answered. It is concerned with what is the best way of allocating a service capacity over time for spot and advance selling so that a certain performance measure is optimized. In this paper, we attempt to address the above question over a two-period planning horizon while taking varying intensities of competition into account. In the next section, we first develop the models for the prices of service capacity over the advance and spot periods, respectively, and then the sales revenues of five alternative policies for service capacity allocation policies are analytically determined. The third section presents a numerical example to compare the performances of the five allocation policies and examine the impacts of price sensitivity and competition intensity. The paper concludes with a summary of its findings and managerial implications in the fourth section.
(Read Entire Paper)
TIP OF THE WEEK
The Traditional Five C's Of Credit
. Character refers to the fundamental integrity and honesty that should underlie all human and business relationships. For business customers, character is embodied in the business policies and ethical practices of the firm. Individual customers who are granted credit must be known to be morally responsible persons.
. Capital consists of the cash and other liquid assets owned by the customer. A prospective business customer should have sufficient capital to underwrite planned operations, including an appropriate amount invested by the owner.
. Capacity refers to the customer's ability to conserve assets and faithfully and efficiently follow a financial plan. A business customer should utilize its invested capital wisely and capitalize to the fullest extent on business opportunities.
. Conditions refer to such factors as business cycles and changes in price levels, which may be either favorable or unfavorable to the payment of debts. For example, economic recession places a burden on both business' and consumers' ability to pay their debts. Other adverse factors that might limit a customer's ability to pay include fires and other natural disasters, strong new competition, and labor problems.
. Collateral consists of designated security given as a pledge for fulfillment of an obligation. It is a secondary source for loan repayment in case the borrower's cash flows are insufficient for repaying a loan.
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Small Business Management 15th Edition
The 5 C's of Credit
Justin G. Longenecker
J. William Petty
Leslie E. Palich
Carlos W. Moore
Page 433
Copyright 2011.
ANNOUNCEMENTS
NACCE - National Association for Community College Entrepreneurship Call for Papers
The NACCE invites you to submit an abstract for their 2010 8th Annual Conference. This year's conference will be taking place in Orlando, Florida from October 10th through the 13th! The focus is "Entrepreneurship: The Community College Role in Economic Vitality".
Attending this conference will help you:
* Learn best practices of entrepreneurship education
* Meet and network with fellow college professionals also committed to creating positive organizational change
* Receive immediate answers and solutions to issues that impact your community college
* Identify opportunities and entrepreneurship efforts from other NACCE members
* Discover how to influence your community's economic future
The registration deadline for paper submissions is April 28th, 2010. Register today! For more information Click Here
SBI Journal - Request for Papers And Reviewers
The Small Business Institute is now requesting papers and reviewers for the fifth volume of the Small Business Institute Journal. If you are interested in submitting a paper please visit http://www.sbaer.uca.edu/sbij/about.php to see the guidelines and submission procedure. If you are interested in becoming a reviewer or would like more information please email us at sbij@uca.edu.The fifth issue is to be published April 2010.
Student Case Writing Competition
The Baylor University Entrepreneurship Program and USASBE are jointly sponsoring a student case writing competition in conjunction with USASBE's annual meetings beginning in 2011 at USASBE's 25th Annual Conference to be held January 13-16, 2011 in Hilton Head, South Carolina. This is an innovative international event that supports and encourages undergraduate and graduate students who wish to engage in case research and case writing. Submitted cases are suitable if they advance the field of entrepreneurship, broadly defined, and contribute to an understanding of entrepreneurial phenomena.
For more information Click Here
CDI Central 2010 at the University of Central Arkansas
The Community Development Institute Central is a unique training program offering a comprehensive curriculum of professional knowledge and skills in community and economic development and capacity building. To complete the program, students attend one-week sessions for three consecutive years. There are also "fast track" options where students can complete the entire program in a year or less.
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ICSB 2010: "Entrepreneurship: Bridging Global Boundaries"
The ICSB World Conference 2010 will be taking place June 24-27, 2010. It will be held in Cincinnati, Ohio, USA. The Early Registration Deadline is April 30th, 2010. Topics will deal directly or indirectly with: * Entrepreneurship Education * Individual Entrepreneurship * Women and Minority Entrepreneurship * Small Business and SME's in Developing Economies * Public Policy * Entrepreneurship and Technology * Family Business * Corporate Entrepreneurship * International Entrepreneurship * Entrepreneurship in the Arts * Entrepreneurship Across the Curriculum * Social Entrepreneurship * Additional topics of interest and value to ICSB's membership.
For more information Click Here.
Canadian Council for Small Business & Entrepreneurship
CCSBE is seeking to explore the multifaceted impact entrepreneurs and small businesses have on their communities through their new ventures, business and community outreach.
There is growing recognition by policy makers, members of society, business leaders and youth, that creative approaches are needed to address environmental, economic, and societal issues. The conference program highlights the research, educational methods, and community practices pertaining to venture sustainability and social entrepreneurship. In support of the theme we have attracted an array of plenary and guest speakers, and developed workshops which will contribute to the dialogue.
The conference (October 28th - 30th) offers several opportunities for you to contribute. We encourage you to submit to our Program Committee:
- A full paper for blind review
- An Abstract for blind review
- Or a workshop proposal idea
Submission Deadline: May 1st, 2010. For instructions on how to submit a proposal, and for more information Click Here.
