The Application of Lean Concept Combines Demand Channel and Supply Channel in Service Industry

• Published in: 2010 IEEE International Conference on Industrial Engineering and Engineering Management pp. 1309 - 1313
• Main Authors: Yao-Hung Hsieh, Chen, H, Chang, W
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.12.2010
• Subjects: consumption cycle; demand chain; Lead; lean consumption; lean marketing; lean service
• ISBN: 9781424485017; 1424485010
• ISSN: 2157-3611; 2157-362X
• DOI: 10.1109/IEEM.2010.5674400

Based on the concept of lean, the consumption cycle of demand channel and supply channel is investigated in this paper. Moreover, the combination of relationship between customer demand, lean service, lean marketing, lean consumption, lean design and lean production is studied to derive the expectative benefit from the application of the consumption cycle model of demand chain in service industry. Especially hotel industry is applied as a case study. The model is expected to prove the point that the advantages of willing consumption from customers and resources waste and cost reducing from producers enables both of customers and producers to create their benefits. Once a hotel executes the consumption cycle model of demand chain, both hotels and customers are able to reach the win-win situation from dominant strategy equilibrium that makes up an optimum consumption cycle. Moreover, the cost from manufacture and consumption is reduced, customer needs is satisfied, and hotels' productivity and consumer buying power are raised. All of causes help forward improve the speed of consumption cycle.