APPLICATION OF SIMULATION TECHNIQUES TO ‘PRIORITY-DRIVEN’ FEATURES AS DEMONSTRATED IN SERVICE ORGANIZATIONS

Application of Simulation Techniques to 'Priority - driven' features as demonstrated in service organisations. 
 

     

Abstract: 

 
One might be quite familiar with the working of services like a Pizza Outlet or a Coffee Shop, and other similar systems which share the same operation model. 


It has been observed and experienced that these places attract customers from a wide spectrum of Age, Social & Economic Background, Profession and Purchasing Power.This variation in the trend of people wanting to avail of these services in turn translates naturally into a variation in their priority to avail these services.For E.g. a lady might want her Pizza made immediately as she has other important work at hand; while a group of friends might not mind a slight delay as they have come especially to have a good time.This gives rise to an idea of Priority-Based incentive scheme where the pricing for the service differs with the customer’s urgency in wanting to avail of it.
 
The authors have made an effort at modeling a system where the customer’s ‘urgency’ in wanting a service has a significant effect on the price she/he eventually pays to the service provider. The model has been simulated extensively and, the statistics thus generated have been exhaustively analyzed, and some very interesting facts surface as a result.
 
Based on the Simulation and a study of various scenarios, this paper discusses:The feasibility of the incentive system for the proprietor and customer;The implications in Designing-Installing-Maintaining such a system.Defining the objectives of such a system; and how far can it go in achieving these objectives if it is practically introduced into the ‘Real world’ The final part of this paper explores the possibility of introducing such a system in various other avenues, and how this system has to be sculpted in order to make it Future-Proof.

 

Ananth Rangarajan is an alumnus from PGP Co. ’16. Ananth is designated as Lead – Category Manager at Flipkart. If you are interested in knowing more about the article and areas of research, please get in touch with Ananth on ananth_rangarajan2016@pgp.isb.edu / +91 9970291560.