Demand/supply disequilibrium management.

Demand/supply disequilibrium management refers to the management of fluctuating, but otherwise normal and expected demand (in terms of average demand and supply), a condition that Kotler (1973) referred to as irregular demand. This article analyzes management response to short-run fluctuations in demand and supply (i.e. fluctuations that occur on a daily, weekly, or seasonal basis). Long-run disequilibrium responses owing to the lack of viability of the product in a dynamic marketplace or owing to …

…all of the disequilibrium strategies discussed, how and when managers should choose to apply the suggested strategies is contingent on situational factors. For instructional and reference purposes, we deliberately created separate categories for the different types of strategies. Nevertheless, the various types of disequilibrium management strategies are not static and mutually exclusive, but dynamic and interactive. Service firm managers should evaluate the efficacy of the strategies described in this article in their own contextual circumstance.