A number of previous researchers have indicated the importance of managing supply and demand in services to ensure quality of service(Sasser,1976;Rhyne,1987;Chase
and Bowen,1991;Lovelock,1992;Armistead and Clark,1994).The strategies proposed include:the``chase and level strategy'',where the firm chases demand by employing part- time employees or offering flexible working hours,etc.,and the firm alters the level of demand by utilising marketing mix(Sasser, 1976);``yield management''is used to alter demand,by careful forecasting,overbooking, choosing high yield customers,etc.(Kimes,1989);``intelligence enhancement strategy'' is used to analyse historial trends in demand and supply(Shemwell and Cronin,1994); product variation,time and location variation, queuing,pricing(Lovelock,1992);
developing``coping''strategies which recognise dimensions within a total service delivery(Armistead and Clark,1994).