Planning and Scheduling of Complex, High Value-Added Service Operations

Abstract

This research takes the initial steps of evaluating resource planning for service operations in which the client is a direct resource in the service system. First, this research examines the effects of client involvement on resource planning decisions when a service firm is faced with efficiency and quality considerations. We develop a non-linear, deterministic, single-stage planning model that allows for examination of trade-offs among client involvement, efficiency and quality. Policy recommendations give service firms better insights into setting workforce, client intensity, and service generation levels. <p> Second, we examine the sensitivity of estimates of technology functions to data analysis and make policy recommendations to service providers on how to allocate resources when there are technology function uncertainties and uncontrollable inputs. Results show that resources are allocated to compensate for technology function uncertainties. <p> Third, we gain insights as to how resource decisions are made for multiple stages and for multiple clients. We extrapolate theoretical findings from the single-stage planning study to determine resource allocations across multiple services and stages. Results show that when the dynamic program in the single-stage study is extended there is trade-off between the cost of capacity changes and profits across multiple stages.