Exam 9: Balancing Demand and Productive Capacity

Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate.

The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services.

All of the following are questions to ask about demand patterns and their underlying causes EXCEPT ____________. a. Do demand levels follow a predictable cycle? b. What are the underlying causes of these cyclical variations? c. How much demand are competitors receiving? d. Do demand levels seem to change randomly? e. Can demand for a particular service over time be disaggregated by market segment?

Describe how optimum and maximum capacities may differ in the restaurant industry.

Parallel lines to multiple servers is commonly known as a "Snake"

A cleaning and repair firm that wants to generate business during low demand periods would do best to offer which of the following?

Discuss the multi-pronged strategy a large Chicago bank used to reduce customer waiting times.

Which of the following hotel customers has the most inelastic demand slope?

Efforts directed at changing demand patterns on a city bus should be aimed at cross-training individual employees.

Which of the following may result in allocation to separate queuing areas?

Give a situation where optimal and maximum capacities are the same.

List the four key marketing strategies that can be employed to reshape demand.

Random fluctuations in business are usually caused by factors well within management's control.

A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next.

One of the most direct ways for a hotel to reduce excess demand at peak periods is to charge customers more money to use the service during those periods.

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity?

One way to stretch capacity is to utilize the facility for longer periods.

What are the two basic approaches to fluctuating demand?

What are the four supply and demand conditions that a fixed-capacity service may face?

What are thee strategies that can be employed when considering a modification to the place and time of service delivery?