Exam 3 PLUS
13. All but one of the following need to be analyzed for capacity requirements when setting up a "Cookies and Ice Cream" shop: a. technology requirements. b. facility requirements. c. equipment requirements. d. labor requirements.
a
14. In the A/B/C analytical queuing model classification, M is used to denote: a. exponential inter-arrival time distribution. b. deterministic inter-arrival time distribution. c. general distribution with mean and variance. d. Erland distribution.
a
For the system to operate satisfactorily over the long run, a. the capacity to serve must be greater than the average demand. b. the expected waiting time for each customer must not exceed average service time. c. the arrival rate must be less than the service rate. d. the number of servers must equal the average number of arrivals per unit time.
a
Which of the following is not a strategy for managing capacity? Select one: a. Developing complementary services b. Using part-time employees c. Forecasting demand d. Scheduling shifts
a. Developing complementary services
When franchising, which of the following is not an issue for the franchisee? Select one: a. Establishing a brand b. Franchise contract c. Degree of discretion d. Conflict resolution
a. Establishing a brand
Global service strategies include all but one of the following: Select one: a. Exporting services b. Following your customers c. Beating-the-clock d. Service offshoring
a. Exporting services
McDonald's includes beer on its menu for German franchises. This is an example of _______ Select one: a. cultural transferability. b. network development. c. host government policy. d. labor norms.
a. cultural transferability.
A health club offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is: Select one: a. promoting off-peak demand. b. partitioning demand. c. using yield management. d. offering price incentives.
a. promoting off-peak demand.
17. A parking lot is a special variation of the _________ queuing model. a. infinite queue M/G/∞ b. finite-queue M/M/c c. infinite queue M/M/c d. finite-queue M/G/1
b
A diversified network is a situation where many services are offered at a single location Select one: a. True b. False
b. False
What is the principal reason that service trade receives low priority at WTO meetings? Select one: a. Controlling service trade is difficult. b. Governments are more concerned with trade in manufactured products. c. Service trade is an insignificant factor in international trade. d. Tariffs cannot be applied to services.
b. Governments are more concerned with trade in manufactured products.
For a chase demand strategy which of the following does not have a high trade-off? Select one: a. Employee utilization b. Labor-skill level c. Labor turnover d. Supervision required
b. Labor-skill level
Which of the following service providers likely would be involved in a single-level bi-directional service supply relationship? Select one: a. Pharmacy b. Professor c. Garage d. Mortgage company
b. Professor
The impact of the production element on physical goods supply chain management was _____ before and _____ after. Select one: a. push , pull b. inflexible, flexible c. vertical, virtual d. multinational, global
b. inflexible, flexible
Mayo Clinic is a service firm that would fall under which of the following categories: Select one: a. single location, single service. b. single location, multiservice. c. multisite, single service d. mulitsite, multiservice
b. single location, multiservice.
Which one of the following four steps in "daily workshift scheduling" is out of order? Select one: a. Forecast demand. b. Convert to operator requirements. c. Assign operators to shifts. d. Schedule shifts.
c. Assign operators to shifts.
15. Which one of the following is not part of the queuing system features? a. calling population b. queue configuration c. queue discipline d. departure process
d
American Express, which offers financial and travel services on a global basis, is an example of a: Select one: a. focused service. b. focused network. c. clustered service. d. diversified network.
d. diversified network.
A queuing system is described by all but one of the following: a. balking behavior b. calling population c. arrival process d. queue configuration
a
All but one of the following is a reason for outsourcing services. Select one: a. Avoids coordination expenses and delays b. Allows the firm to focus on its core competence c. Provides access to latest technology d. Leverages benefits from supplier economies of scale
a. Avoids coordination expenses and delays
A family restaurant is an example of a focused service Select one: a. True b. False
a. True
In general, for infinite queues, the expected number of people in the system is equal to: a. the average arrival rate minus the average service rate. b. the expected number in the queue plus the expected number in service. c. the expected arrival rate times the expected waiting time. d. alternatives (a) and (b) above.
b
Which of the following is not one of Kenichi Ohmae's five "Cs" of strategic planning in a borderless world economy? Select one: a. Competitors b. Creativity c. Company d. Country
b. Creativity
________ is not a characteristic appropriate for a yield management strategy. Select one: a. Relatively fixed capacity b. Steady demand c. Ability to segment markets d. Products sold in advance
b. Steady demand
A good overbooking strategy should: Select one: 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.
b. balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations.
A relatively recent concept that refers to the movement of new products through existing distribution channels is called: Select one: a. economies of scale b. economies of scope c. diversification d. micromarketing
b. economies of scope
19. Which of the following is not a criterion for capacity planning? a. average customer waiting time b. probability of excessive waiting c. the rate of departure d. probability of sales lost because of inadequate waiting area
c
According to Maister, one of the following statements is not true of waits. a. Unoccupied time feels longer than occupied time. b. Anxiety makes waits feel longer. c. In-process waits feel longer than preprocess waits. d. Unfair waits feel longer than fair waits.
c
In the long run, if service capacity is inadequate for the arrival rate, one of the following will likely occur: a. servers will slow down. b. customers will demand less. c. reneging will occur. d. prices will be increased.
c
All but one of the following is a caution when considering outsourcing services: Select one: a. Loss of direct control over quality b. Jeopardize employee loyalty because of job-loss fears c. Costs might increase d. In-house capability to perform service will atrophy
c. Costs might increase
The two-way classification for the taxonomy for outsourcing business services contains six cells. Which one of the following is not a descriptive title for one of the cells? Select one: a. Facility support b. Professional c. Employee d. Facilitator
c. Employee
Sources of value in service chain management include all but one of the following: Select one: a. bidirectional optimization b. management of productive capacity c. management of mobile workers d. management of perishability
c. management of mobile workers
10. The ___________ queuing model is often used in situations when little if no waiting occurs. a. M/M/1 b. M/M/c c. M/G/1 d. M/G/(x)
d
Which of the following is not an essential feature of a queuing system? a. Calling population b. Queue configuration c. Service process d. Customer
d
All but one of the following depicts the impact of service chain management: Select one: a. Proactive demand management b. Variable pricing c. Real-time tracking d. Pull system for flow of information
d. Pull system for flow of information
Which of the following is not a source of uncertainty in managing a supply chain? Select one: a. Supplier delivery performance b. Manufacturing reliability c. Customer demand d. Quality control
d. Quality control
Strategies to improve productive capacity include all but one of the following: Select one: a. embellishment b. transfer c. replacement d. bidirectional optimization
d. bidirectional optimization
The impact of pricing on service chain management was _____ before and _____ after. Select one: a. high, low b. passive, active c. static, dynamic d. fixed, variable
d. fixed, variable
A 5:00 p.m. pickup for FedEx was not workable in Spain owing to extended business hours. This is an example of cultural adoption under which of the following global service strategies: a. beating the clock. b. service offshoring. c. following your customers. d. multicountry expansion.
d. multicountry expansion.
Several approaches to demand management exist, but only _______ seeks to maximize revenue. Select one: a. promoting off-peak demand b. reservation systems c. offering price incentives d. yield management
d. yield management
9. Service capacity decisions have all but one of the following strategic characteristics: a. the decision to invest in capacity will attract competitors. b. financial investment in capacity must be balanced against the costs of lost sales. c. inadequate short-term capacity needs can generate customers for the competition. d. hostile customers can result from inadequate capacity following a marketing campaign.
a
After selecting a line in a multiple queue system, a customer is ________ when she or he switches to a different line perceive it to be moving faster. a. jockeying b. balking c. reneging d. weaving
a
For the exponential distribution we have: a. the mean equal to its standard deviation. b. the variance equal to the standard deviation. c. no specific relationship between mean and variance. d. the mean equal to the reciprocal of the variance.
a
Little's Law states that a relationship exists between a. line length and waiting time. b. multiple and single queues. c. waiting in queue and waiting in system. d. exponential time between arrivals and Poisson arrival rate.
a
Supermarkets can be described by which of the following facility arrangement? a. Self-serve followed by service in parallel b. Many service centers in parallel and series c. Servers in parallel d. Self-service
a
The FCFS rule is most often used because: a. analytical models depend upon its use. b. it represents social justice. c. it is viewed as fair. d. most other rules are not as easily applied.
a
Which of the following is not an advantage of a multiple-queue configuration? a. FCFS rule is guaranteed. b. Differentiation of service can be provided. c. Division of labor is possible. d. Customers have choice of server.
a
Which of the following is not an effective way to manage the psychology of waiting? a. Prominently display time with a large analog clock. b. Inform customers when long waits are anticipated. c. Use diversions to occupy customer waiting times. d. Employ a take-a-number system to ensure fairness.
a
Which one of the following is not true of multiple queue configurations? a. Jockeying is eliminated. b. Division of labor is possible. c. Service provided can be differentiated. d. The FCFS rule is not always followed.
a
Which queue configuration permits opportunities for division of labor and service differentiation? a. multiple queue b. single queue c. take a number d. self serve
a
A restaurant that features special lunchtime combo meals is providing all but one of the following benefits? Select one: a. Promotes off-peak demand b. Increases customer satisfaction c. Decreases service times d. Segment demand
a. Promotes off-peak demand
When franchising which one of the following is not a benefit to the franchiser? Select one: a. Proven business b. Rapid expansion c. Right to dictate conditions d. Fees from the franchisee
a. Proven business
All but one of the following is a managerial implication of bi-directional relationships: Select one: a. Vendor selection based on reputation b. Service supply relationships are hubs c. Service capacity analogous to inventory d. Quality variation of customer inputs
a. Vendor selection based on reputation
The physical goods supply chain contains all but one of the following elements: Select one: a. competitor b. distributor c. retailer d. customer
a. competitor
When yield management is implemented which one of the following does not result: Select one: 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
The strategy of segmenting demand is feasible only when: Select one: a. demand is not from a homogeneous source. b. demand is cyclic and predictable. c. arrivals for service are random. d. making appointments is impossible.
a. demand is not from a homogeneous source.
Multinational expansion by a service firm is: Select one: a. often driven by customer demand. b. vital for growth. c. not recommended for labor intensive operations. d. primarily a defense strategy.
a. often driven by customer demand.
According to Maister's Second Law of Service: a. perceptions minus expectations equal the level of customer satisfaction. b. first impressions can influence the remainder of the service experience. c. quality in the service industry is essentially free. d. a waiting customer cannot be satisfied.
b
Empirical studies have suggested that the distribution of inter-arrival times is: a. Poisson b. Exponential c. Uniform d. FCFS
b
Pooling of servers results in reduced waiting time because: a. the mean service time for the pool as a whole is now constant. b. servers are utilized better. c. multiple queues are replaced by a single queue. d. alternatives (a) and (b) above.
b
The calling population is termed finite when: a. there is restriction on the maximum number in the queue. b. only a limited number of people may use the facility in any given period. c. the interarrival time is not very large. d. there is no queue discipline specified.
b
When the number of arrivals per unit time follows a Poisson distribution, the most important implication is that: a. the arrivals are dependent and non-random. b. the time between arrivals is exponentially distributed. c. eventually the queue length will stabilize. d. the rate of completion of service is also Poisson distributed.
b
Which of the following is not one of the major considerations in planning multinational operations? Select one: a. Cultural transferability b. Technological compatibility c. Network development d. Host government policy
b. Technological compatibility
What one of the following is not a characteristic of yield management? Select one: a. Capacity is relatively fixed. b. There is one homogeneous customer class. c. The service is considered a perishable inventory. d. Demand fluctuates yet is somewhat predictable.
b. There is one homogeneous customer class.
"Develop foreign customers" is a consideration for the global service strategy of "following your customers". The relevant globalization factor is: Select one: a. cultural adoption. b. customer contact. c. complexity. d. Customization.
b. customer contact
"Hiring local personnel" addresses the labor intensity factor in the ________ global service strategy Select one: a. multicountry expansion b. following your customers c. service offshoring d. beating the clock
b. following your customers
The purpose of differential pricing is to: Select one: a. make peak period usage unattractive. b. make off-peak usage attractive. c. charge customers according to their ability to pay. d. adjust capacity to demand.
b. make off-peak usage attractive.
Making knowledge available to customers at low cost is called: Select one: a. embellishment b. transfer c. replacement d. co-production
b. transfer
16. The symbol ρ is used to denote which one of the following parameters: a. number of customers in the system. b. number of servers. c. traffic intensity. d. finite size of queue.
c
20. In the equation LS = LQ + ρ, ρ refers to: a. number of servers. b. traffic density. c. mean number of customers being served. d. number of customer that have been served.
c
21. Which of the following is not true of pseudo-random numbers? a. They exhibit the characteristics of true random numbers. b. They are generated using a mathematical function. c. They are stored in a computer file. d. An identical sequence can be replicated with the same seed value.
c
A queuing system is said to be in a transient condition when: a. its parameters change with time. b. its parameters remain constant. c. it is still under the influence of the initial state. d. it grows beyond bound.
c
Spatial distribution of demand is important to consider in which of the following services? a. Restaurants b. Banking c. Emergency ambulance services d. Motels
c
Which of the following strategies is inappropriate for managing capacity and demand? Select one: a. Smooth customer demand by offering price incentives. b. Scheduling staff to meet variations in forecasted customer demand. c. Decrease customer participation in the service process. d. Promoting off-peak use of facilities.
c. Decrease customer participation in the service process.
When outsourcing facilitator services, which one of the following is not a consideration? Select one: a. Knowledge of alternate vendors is important b. Involvement of end user in vendor identification c. Experience with particular industry is important d. Detailed specification written by user
c. Experience with particular industry is important
The "cookie-cutter" concept best describes which expansion strategy? Select one: a. Focused service b. Clustered service c. Focused network d. Diversified network
c. Focused network
_______ is not part of the service chain concept. Select one: a. Conversion b. Distribution c. Inventory management d. Knowledge management
c. Inventory management
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? Select one: a. Offer an upgraded cabin at a reduced price. b. Attempt to steer the passenger to an available date. c. Overbook the cabin. d. Offer a downgraded cabin with special privileges such as a $100 certificate for use in the casino.
c. Overbook the cabin.
_______ is not a strategy for accommodating of customer-induced variability. Select one: a. Provide generous staffing b. Cross-train employees c. Reward increased effort d. Do work for customers
c. Reward increased effort
________ is(are) the highest level of professional body of knowledge. Select one: a. Advanced skills b. System understanding c. Self-motivated creativity d. Cognitive knowledge
c. Self-motivated creativity
Travel booking is a service that falls in the _________ category of outsourcing business service. Select one: a. facility support b. employee development c. facilitator d. professional
c. facilitator
Which one of the following is not a characteristic of firms using yield management? Select one: a. ability to segment their market b. perishable inventory c. variable capacity d. product sold in advance
c. variable capacity
11. The cost of service capacity is determined by a. the number of customers waiting. b. the total number of customers. c. waiting time. d. the number of servers on duty.
d
12. Queuing models can help explain all but one of the following: a. predicting results of adding servers to a multiple server system. b. effect of reducing service time variation on waiting time. c. determining the size of a parking lot. d. mean arrival rate.
d
18. All but one of the following are advantages of using one large computer system to serve an entire university community: a. short turnaround time. b. large memory. c. economics of scale in services. d. short wait in queue.
d
A single-server food cart competes with several nearby food carts and experiences arrival of customers during an 8-hour period as shown: Customers would probably exhibit a high incidence of ________ during the 11 a.m.-1 p.m. and 4 p.m.-5 p.m. periods; to avoid this opportunity cost, the cart owner should __________ a. balking; offer "2 for 1" specials during slow periods. b. reneging; expand the menu. c. jockeying; offer price discounts between 2 p.m. and 4 p.m. d. balking; add another server during peak periods.
d
All but one of the following are techniques to lessen the boredom of waiting customers: a. placement of mirrors in elevators. b. telling customers how long the wait is at different points in the queue. c. installing a television tuned to CNN. d. displaying time with a large analog clock.
d
One advantage of the multiple queue compared to a single queue is that multiple queues a. minimize wait times. b. reduce the average service time. c. lead to a perceived shorter service time. d. lead to a perceived shorter wait time.
d
The A/B/C notation classifies queuing systems on the basis of: a. arrival rates and queue discipline. b. queue discipline alone. c. arrival rates and service rates. d. arrival rates, service rates, and number of servers.
d
The following are all advantages of the single queue system, except: a. the arrangement guarantees fairness by ensuring that the FCFS rule applies. b. the anxiety of "Am I in the fastest line?" is eliminated. c. the problem of line cutting is reduced. d. the customer has the option of selecting a particular server of preference.
d
Which of the following is not a benefit to the franchisee of a franchise? Select one: a. Brand name b. National advertising c. Economics of scale d. Autonomy
d. Autonomy
_________ variability is not one of the five sources of customer-induced variability. Select one: a. Arrival b. Capability c. Effort d. Demand
d. Demand
Removing the kitchen from Taco Bell outlets to a central location resulted in all of the following benefits, except: Select one: a. Reduction in waste b. Consolidation of demand c. Shorter customer wait times d. Make-to-order customization
d. Make-to-order customization
_________ is not a reason for outsourcing services. Select one: a. Leveraging benefits from a supplier b. Allowing the firm to focus on core competence c. Providing access to latest technology d. None of the above
d. None of the above
A community hospital is an example of a: a. diversified network. b. focused network. c. focused service. d. clustered service.
d. clustered service.
The "employment support" category in the taxonomy for outsourcing business services falls under _________ importance of service and __________ focus of service Select one: a. high, people b. low, process c. high, process d. low, people
d. low, people
In using the critical fractile criterion P(d<x) = Cu/(Cu + Co) for overbooking, the 'd' refers to: Select one: a. cost of overestimating demand. b. cost of underestimating demand. c. number of rooms overbooked. d. number of no-shows based on past experience.
d. number of no-shows based on past experience.
Bars that offer happy hours in the afternoon are using the strategy of: Select one: a. creating adjustable capacity. b. developing complementary services. c. increasing customer participation. d. promoting off-peak demand.
d. promoting off-peak demand.
All of the following are benefits of a multisite type of expansion except: Select one: a. ability to reach a mass market quickly. b. reduced financial risk from local economic downturn. c. preemption of competitors by capturing premium locations. d. retention of control.
d. retention of control.
Faced with variable demand and a perishable capacity, a service manager can smooth demand by: Select one: 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.
d. using reservations and appointments.
