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Ger Koole, VU Amsterdam

On the 2005 Markov lecture by Avi Mandelbaum : Building a theory for managing capacity in the service sector. Ger Koole, VU Amsterdam. Services. Characteristic: customer part of the process Examples: hospitals, finance, leisure industry

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Ger Koole, VU Amsterdam

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  1. On the 2005 Markov lecture byAvi Mandelbaum:Building a theory for managing capacity in the service sector Ger Koole, VU Amsterdam

  2. Services • Characteristic: customer part of the process • Examples: hospitals, finance, leisure industry • Other activities such as manufacturing become service-oriented • Examples: Customized car or computer, focus on after sales • Focus on matching demand and supply, service level vs. costs

  3. Management of services • Generic study of services: service engineering • Ex. common aspect of services: unpredictable arrival processes, customer abandonments • Dominant role of managing service capacity and thus queueing: queueing science (term introduced by Avi) • More than queueing theory: also statistics, behavioral sciences, etc.

  4. Call centers • Call centers are a typical product of modern service economies: • Personalized (by definition) • Efficient • “Mass customization”

  5. Service engineering • Systematic study of call centers • Data analysis • Human behavior • Queueing models (“Erlang A”) • Undertaken by Avi’s Technion group with many distinguished co-authors

  6. Square root staffing • Erlang C/A is a black box • Square-root staffing quantifies economies of scale • Halfin-Whitt for M/M/s • Avi and co-authors applied this to many other systems

  7. Current developments • Shared service centers • SLAs for internal services • Outsourcing/offshoring • Increasing use of “new” channels (email, etc) • Increasing complexity through multiple skills

  8. Research challenges • Routing of calls of different types/channels • Scheduling of agents in multi-skill/channel environment • Dealing with uncertainties (for example, in arrival parameters) Very relevant to practice!

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