Question 1

Which of the following is not a strategy for managing capacity?

Accepted Answer

A)  Developing complementary services. 
B)  Using part-time employees. 
C)  Forecasting demand. 
D)  Scheduling shifts. 
A)  Developing complementary services. 
B)  Using part-time employees. 
C)  Forecasting demand. 
D)  Scheduling shifts.

Question 2

A restaurant that features special lunchtime combo meals is providing all of the following benefits, except: ________.

Accepted Answer

A)  promotes off-peak demand 
B)  increases customer satisfaction 
C)  decreases service times 
D)  segment demand 
A)  promotes off-peak demand 
B)  increases customer satisfaction 
C)  decreases service times 
D)  segment demand

Question 3

Service capacity is defined in terms of an achievable level of output per unit time.

Accepted Answer

A) True 
 B)False

Question 4

When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.

Accepted Answer

A) True 
 B)False

Question 5

Overbooking is a strategy that can be used to smooth demand.

Accepted Answer

A) True 
 B)False

Question 6

Faced with variable demand and a perishable capacity, a service manager can smooth demand by ________.

Accepted Answer

A)  using part-time help during peak hours 
B)  scheduling workshifts to vary workforce needs according to demand 
C)  increasing the customer self-service content of the service 
D)  using reservations and appointments 
A)  using part-time help during peak hours 
B)  scheduling workshifts to vary workforce needs according to demand 
C)  increasing the customer self-service content of the service 
D)  using reservations and appointments

Question 7

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

Accepted Answer

A)  Provide generous staffing 
B)  Cross-train employees 
C)  Reward increased effort 
D)  Do work for customers 
A)  Provide generous staffing 
B)  Cross-train employees 
C)  Reward increased effort 
D)  Do work for customers

Question 8

The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.

Accepted Answer

A) True 
 B)False

Question 9

For a chase demand strategy, which of the following does not have a high trade-off?

Accepted Answer

A)  Employee utilization. 
B)  Labor-skill level. 
C)  Labor turnover. 
D)  Supervision required. 
A)  Employee utilization. 
B)  Labor-skill level. 
C)  Labor turnover. 
D)  Supervision required.

Question 10

________ variability is not one of the five sources of customer-induced variability.

Accepted Answer

A)  Arrival 
B)  Capability 
C)  Effort 
D)  Demand 
A)  Arrival 
B)  Capability 
C)  Effort 
D)  Demand

Question 11

When yield management is implemented, which one of the following does not result?

Accepted Answer

A)  Consumer surplus increases. 
B)  Multiple prices are offered. 
C)  Capacity is more fully utilized. 
D)  Market for the service is segmented. 
A)  Consumer surplus increases. 
B)  Multiple prices are offered. 
C)  Capacity is more fully utilized. 
D)  Market for the service is segmented.

Question 12

Which of the following is not a characteristic of firms using yield management?

Accepted Answer

A)  Ability to segment their market. 
B)  Perishable inventory. 
C)  Variable capacity. 
D)  Product sold in advance. 
A)  Ability to segment their market. 
B)  Perishable inventory. 
C)  Variable capacity. 
D)  Product sold in advance.

Question 13

A health club's offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is ________.

Accepted Answer

A)  promoting off-peak demand 
B)  partitioning demand 
C)  using yield management 
D)  offering price incentives 
A)  promoting off-peak demand 
B)  partitioning demand 
C)  using yield management 
D)  offering price incentives

Question 14

The critical fractile is a cumulative probability of demand.

Accepted Answer

A) True 
 B)False

Question 15

A good overbooking strategy should ________.

Accepted Answer

A)  minimize the expected opportunity cost of idle service capacity 
B)  balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations 
C)  minimize the expected cost of turning away reservations 
D)  none of the above; services should try to avoid overbooking 
A)  minimize the expected opportunity cost of idle service capacity 
B)  balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations 
C)  minimize the expected cost of turning away reservations 
D)  none of the above; services should try to avoid overbooking

Question 16

Cross-training employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times.

Accepted Answer

A) True 
 B)False

Question 17

Several approaches to demand management exist, but only ________ seeks to maximize revenue.

Accepted Answer

A)  promoting off-peak demand 
B)  reservation systems 
C)  offering price incentives 
D)  yield management 
A)  promoting off-peak demand 
B)  reservation systems 
C)  offering price incentives 
D)  yield management

Question 18

Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods.

Accepted Answer

A) True 
 B)False

Question 19

Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.

Accepted Answer

A) True 
 B)False

Question 20

Yield management is a strategy that manages both demand and capacity.

Accepted Answer

A) True 
 B)False

Which of the following is not a strategy for managing capacity?

A restaurant that features special lunchtime combo meals is providing all of the following benefits, except: ________.

Service capacity is defined in terms of an achievable level of output per unit time.

When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.

Overbooking is a strategy that can be used to smooth demand.

Faced with variable demand and a perishable capacity, a service manager can smooth demand by ________.

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

The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.

For a chase demand strategy, which of the following does not have a high trade-off?

________ variability is not one of the five sources of customer-induced variability.

When yield management is implemented, which one of the following does not result?

Which of the following is not a characteristic of firms using yield management?

A health club's offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is ________.

The critical fractile is a cumulative probability of demand.

A good overbooking strategy should ________.

Cross-training employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times.

Several approaches to demand management exist, but only ________ seeks to maximize revenue.

Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods.

Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.

Yield management is a strategy that manages both demand and capacity.

The Service Economy

Service Strategy

New Service Development

The Service Encounter

Supporting Facility and Process Flows

Service Quality

Process Improvement

Service Facility Location

Service Supply Relationships

Globalization of Services

Managing Waiting Lines

Capacity Planning and Queuing Models

Forecasting Demand for Services

Managing Service Inventory

Managing Service Projects

Filters

Exam 11: Managing Capacity and Demand

Which of the following is not a strategy for managing capacity?

A restaurant that features special lunchtime combo meals is providing all of the following benefits, except: ________.

Service capacity is defined in terms of an achievable level of output per unit time.

When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.

Overbooking is a strategy that can be used to smooth demand.

Faced with variable demand and a perishable capacity, a service manager can smooth demand by ________.

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

The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.

For a chase demand strategy, which of the following does not have a high trade-off?

________ variability is not one of the five sources of customer-induced variability.

When yield management is implemented, which one of the following does not result?

Which of the following is not a characteristic of firms using yield management?

A health club's offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is ________.

The critical fractile is a cumulative probability of demand.

A good overbooking strategy should ________.

Cross-training employees as a strategy to increase flexibility is feasible only when there exist tasks, the demands for which peak at different times.

Several approaches to demand management exist, but only ________ seeks to maximize revenue.

Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods.

Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.

Yield management is a strategy that manages both demand and capacity.

The Service Economy

Service Strategy

New Service Development

The Service Encounter

Supporting Facility and Process Flows

Service Quality

Process Improvement

Service Facility Location

Service Supply Relationships

Globalization of Services

Managing Waiting Lines

Capacity Planning and Queuing Models

Forecasting Demand for Services

Managing Service Inventory

Managing Service Projects

Filters