Demand/supply disequilibrium management.

             Demand/supply disequilibrium management refers to the management of fluctuating, but otherwise normal and expected demand (in terms of average demand and supply), a condition that Kotler (1973) referred to as irregular demand.
             This article analyzes management response to short-run fluctuations in demand and supply (i.e. fluctuations that occur on a daily, weekly, or seasonal basis). Long-run disequilibrium responses owing to the lack of viability of the product in a dynamic marketplace or owing to macro issues such as the business cycle, strikes, or embargoes are outside the parameters of this discussion. For the sake of brevity, we term the management of supply/demand imbalances associated with irregular demand, disequilibrium management.
             The rest of the article is organized in four sections. The next section is a background section that sets the contextual framework for the rest of the article. Then, a short section on direct disequilibrium management strategies is provided. The main body of the article deals with two additional categories of disequilibrium management strategies:
             1 intelligence enhancement strategies that arm service enterprise managers with the information they need to make the marketing and managerial moves necessary to alleviate potential imbalances; and
             2 risk reduction strategies that lessen the exposure to losses resulting from supply/demand imbalances.
             Finally, the managerial implications of the article are discussed.
             Marketers of physical goods can hold inventories to buffer fluctuations in demand and supply, but services are acts or processes and therefore, difficult or impossible to inventory (Rathmell, 1966; Sasser, 1976). A theater owner cannot take an empty seat from Thursday night and add it to capacity for Friday night's sellout. An insurance agent can inventory her application forms, but not her time. Or, when demand is over-full, loyal customers may be forced to go to another service p...

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