What can be a significant consequence of high demand variability in service design?

High demand variability in service design can lead to waiting lines or idle resources, making this choice the most relevant. When demand fluctuates significantly, it becomes challenging for service providers to match their resources effectively with customer needs. During periods of high demand, customers may experience longer wait times as the available service capacity is overwhelmed. Conversely, during low-demand periods, resources may remain underutilized, leading to idle staff or equipment.

This mismatch stems from the inherent characteristics of services, such as their intangible nature and the simultaneous production and consumption process. Service providers must often operate with a flexible capacity to respond to variability; however, if not managed correctly, this can result in customer dissatisfaction due to delays, as well as inefficiencies where staff are not effectively utilized.

In contrast, the other options typically do not address the immediate implications of high demand variability in service contexts directly. For instance, while decreased service quality could be a secondary effect of overburdened resources, it is not an outright consequence of demand variability itself. Similarly, increased product inventory is more relevant to manufacturing settings, where a physical product can be stored, and enhanced customer satisfaction is unlikely to result from unmet demand and longer wait times.