What are the risks of over-forecasting service demand in Service Operations?
Service operations are the activities that deliver value to customers through intangible products, such as consulting, education, health care, or entertainment. To manage service operations effectively, you need to forecast the demand for your services and plan your capacity accordingly. However, forecasting service demand is not an exact science, and you may end up over-estimating the number of customers who will use your services in a given period. What are the risks of over-forecasting service demand in service operations? In this article, we will explore four possible consequences of this common mistake and how to avoid them.