Operation Management

Poor Demand Planning In a seasonal business like hospitality, the c hallenges of balancing how much of a good or service to buy—and when to buy it—are greatly increased. With customers demanding best quality goods and services, you don’t want to risk running out, so you might end up spending more than you should to make sure customer service doesn’t take a hit. On the other hand, if you stock up on goods when they’re more affordable but they aren’t used, you’ve effectively wasted your money completely (if they’re perishable or fall out of fashion) or wasted time and labor dealing with storage you didn’t plan to use.