Why is capacity planning for a service more challenging than it is for a goods producer?

Original discussion in apa format due by 18 hours

It is harder than for a good producer to plan capacity for a service because they are intangible. They often require direct contact with the consumer. There is no product that can easily be manufactured in advance or stored until it’s needed. Instead, services must be provided on demand which makes forecasting future demand difficult as customers’ needs may vary significantly from one day to the next.

Also, the capacity planning of services must take into account human labor as much as technological resources in order for it to be possible to evaluate if enough tools or staff are available. It is important to keep track of customers’ requests so that they can be scaled up and down according to their needs. Additionally, certain services can require special skillsets that may not be easily found so businesses must account for these in their workforce planning.

While both service providers and goods producers face difficulties in preparing capacity plans for their products, the service provider must overcome other obstacles due to their specific operations.

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