In managing service provider businesses, it is important to decentralize
consumers at peak time and increase sales not at peak time as well. Shy and
Stanbacka[5] have dealt with this problem to explore optimal service hours under a
specific ideal time distribution, and discussed the existence of optimal opening and
closing times. In the actual environments, however, service providers strategically
introduce a wide variety of special offers such as discounted price to collect more consumers.
In this study, we deal with optimal service hours with a special offer of price discount
immediately after the opening time and just before the closing time with the view to
attracting extra consumers whose ideal and convenient service times are before the
opening time and after the closing time. Under the ideal service time distribution by
Shy and Stanbacka[5], the provider’s profit is first formulated as an objective function
to be maximized and then clarified is the condition under which the service provider
can earn more profit by special offers than without special offers. An optimal business
hours is also explored to clarify the conditions where there exist optimal opening and
closing times. Numerical examples are also presented to illustrate the proposed model
formulation.
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