Exam 7: Managing Capacity
__________ is a strategic task that involves the future development and acquisition of capacity in order to meet future market needs.
CAPACITY PLANNING
Management of demand and management of resources constitute the two broad content areas of capacity management.
True
What are the assumptions of the basic waiting line model? Are these valid in real life? Give examples in which the model might be the most accurate and the most inaccurate.
The basic waiting line model, also known as the queuing theory, makes several assumptions:
1. Arrival rate: The model assumes that customers arrive at a constant rate over time, following a Poisson distribution.
2. Service rate: The model assumes that service times are constant and follow an exponential distribution.
3. Queue discipline: The model assumes that customers join a single queue and are served on a first-come, first-served basis.
4. Queue capacity: The model assumes that there is an infinite or finite but large capacity for the queue.
5. Population: The model assumes that the population of potential customers is infinite or very large.
In real life, these assumptions may not always hold true. For example, in a fast-food restaurant, the arrival rate of customers may vary throughout the day, with peaks during lunch and dinner times. Additionally, the service times for different customers may vary based on their orders and the efficiency of the staff. In some cases, customers may also have the option to choose between multiple queues, such as at a supermarket with multiple checkout lanes.
The model might be the most accurate in situations where the assumptions closely align with the actual system, such as in a call center with a large number of incoming calls and a standardized service process. In contrast, the model might be the most inaccurate in situations with highly variable arrival and service rates, limited queue capacity, or a small population of potential customers, such as a small doctor's office with limited appointment slots.
Overall, while the basic waiting line model provides a useful framework for understanding and analyzing queues, it is important to consider the specific characteristics of the system in question and adjust the model's assumptions accordingly.
Waiting line remedies come in two forms: mental and psychological.
Powerful scheduling software that can accommodate multiple constraints for managing fixed capacity and inflexible demand can be used to schedule
Yield management can be used by all of the following industries except
If demand cannot be segmented into price- and time-sensitive categories, then this is the best situation for yield management to work.
Variance in planned capacity expenditures and cost of underutilized capacity are two financial measures of managing capacity.
Capacity management is an operational activity that primarily focuses on the intelligent utilization of capacity.
Maximizing yield is the same as maximizing capacity utilization.
Customer involvement and frequent communication can affect customer psychological perceptions of waiting time.
All of the following actions can be taken if demand falls suddenly except
Capacity management techniques have found nontraditional applications in areas such finance, telecom, and hospitals.
Which of the following statements best describes process management?
Price changes are useful ways for shifting demand to meet available capacity of a facility.
__________ can increase capacity by redesigning work flows and identifying and managing constraint points in a system.
All of the following can be done when the resources that provide capacity are fixed except
The basic M/M/1 queuing model has all of the following properties except
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