It refers to the volume of goods and services customers require at a given time.

• Demand

• Supply

The counterforce for demand that represents the number of goods available for consumption.

• Supply

• Capacity

The organization’s ability to render or provide services to customers.

• Productivity

• Capacity

The ability of an organization to create goods and services efficiently and effectively.

• Productivity

• Capacity

When demand for services surpasses maximum available capacity.

• Excess Demand

• Balanced Demand

A condition where customers can still be accommodated but the place becomes crowded.

• Excess Demand

• Demand Exceeding Optimum Capacity

The ideal situation when the establishment is full but not strained.

• Balanced Demand and Supply

• Random Demand

Refers to the periodic increase and decrease of demand at specific intervals.

• Random Demand Fluctuation

• Predictable Cycle

This refers to the unpredictable conditions affecting demand, such as disasters or terrorism.

• Predictable Cycle

• Random Demand Fluctuation

The approach where management observes demand but does not interfere.

• Leave Demand and Take No Action

• Reduce Demand