Exam 11: Managing Capacity and Demand

A cruise ship has available a certain number of rooms in each of 10 categories of appointments ranging from a two-bunk inside cabin to a suite with an outside patio and indoor sitting area. If a passenger requests a sailing date in which the desired cabin is sold out, which of the following actions would be considered the least viable alternative for the cruise line?

Which of the following is not an example of the differential pricing policy?

A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service.

Time perishability of service capacity is a challenge for service managers because customers demand immediate service.

The strategy of segmenting demand is feasible only when ________.

Which of the following strategies is inappropriate for managing capacity and demand?

An example of segmenting demand is seen when movie theaters offer matinee prices before 6:00 p.m.

Workshift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform.

Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.

Level demand and chase capacity are the two generic strategies for capacity management.

SABRE is the name for American Airlines' yield management system.

A medical clinic has two doctors and each can treat 25 patients a day. The doctors see walk-in patients whose arrival times cannot be controlled, and also patients who have made appointments. Knowing the expected number of walk-ins per day, appointments are scheduled to utilize the doctors fully. The following table gives the expected number of walk-ins for a particular week: What is the total number of appointments that can be scheduled during this week?

A disadvantage of yield management is that it cannot be implemented in real time.

Yield management is a pricing and capacity allocation system that was developed by American Airlines.

________ is not a strategy for reduction of customer-induced variability.

The purpose of differential pricing is to ________.

Which of the following four steps in 'daily workshift scheduling' is out of order?

Using part-time personnel at fast-food restaurants allows capacity to vary with demand.

________ is not a characteristic appropriate for a yield management strategy.

Bars that offer happy hours in the afternoon are using the strategy of ________.