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Article
A Market Utility-based Model for Capacity Scheduling in Mass Services
Production and Operations Management (2003)
  • Madeleine E. Pullman, Cornell University
  • John C. Goodale, University of Oregon
  • Rohit Verma, University of Utah
Abstract
Only a small set of employee scheduling articles have considered an objective of profit or contribution maximization, as opposed to the traditional objective of cost (including opportunity costs) minimization. In this article, we present one such formulation that is a market utility-based model for planning and scheduling in mass services (MUMS). MUMS is a holistic approach to market-based service capacity scheduling. The MUMS framework provides the structure for modeling the consequences of aligning competitive priorities and service attributes with an element of the firm's service infrastructure. We developed a new linear programming formulation for the shift-scheduling problem that uses market share information generated by customer preferences for service attributes. The shift-scheduling formulation within the framework of MUMS provides a business-level model that predicts the economic impact of the employee schedule. We illustrated the shift-scheduling model with empirical data, and then compared its results with models using service standard and productivity standard approaches. The result of the empirical analysis provides further justification for the development of the market-based approach. Last, we discuss implications of this methodology for future research.
Keywords
  • Production management -- Mathematical models,
  • Scheduling,
  • Consumers' preferences,
  • Service industries -- Management
Publication Date
June, 2003
Publisher Statement
Copyright © 1999-2014 John Wiley & Sons, Inc. DOI: 10.1111/j.1937-5956.2003.tb00499.x
Citation Information
Madeleine E. Pullman, John C. Goodale and Rohit Verma. "A Market Utility-based Model for Capacity Scheduling in Mass Services" Production and Operations Management Vol. 12 Iss. 2 (2003)
Available at: http://works.bepress.com/rohit_verma/3/