The Capacity Conundrum and Its Strategic Insights

This article offers a thorough review of the literature on product- and service-based supply chain (SC)-based capacity management (CM) solutions for the services industry. The primary objective is to address the research deficit concerning CM within SC operations, particularly given the escalating trend of SCs integrating service provision. The study aims to delineate the foundational principles and methodical approaches required for efficient capacity increase by synthesising knowledge across the disciplines of operations management, manufacturing SCs, services marketing and industrial engineering. The analysis indicates that CM is frequently underrepresented in SC literature, particularly as it relates to the burgeoning service economy. Crucially, research gaps exist concerning the evolving network-based SC systems prevalent in underdeveloped economies. The study affirms that building capacity, defined as enhancing the knowledge, skills and expertise of individuals and organisations, is critical for modern SC management (SCM). Effective capacity expansion is essential for improving operational efficiency, reducing costs, and providing customer value amidst intensified globalisation and technological change. This research proposes a value delivery technique utilising capacity management systems (CMSs) to effectively mitigate SC risks (SCRs) and enhance overall business performance. The increasing proportion of consumer spending allocated to services has underscored their growing significance, leading to the assertion that services are relevant across all business sectors.