Operations Management - CH 11/12

Which of the following is not a strategy to manage demand? A) Cross-training employees. B) Offering price incentives. C) Developing reservation systems. D) Partitioning demand.

A) Cross-training employees.

Which of the following four steps in 'daily workshift scheduling' is out of order? A) Forecast demand. B) Convert to operator requirements. C) Assign operators to shifts. D) Schedule shifts.

C) Assign operators to shifts.

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

Which of the following is not a characteristic of firms using yield management? A) Ability to segment their market. B) Perishable inventory. C) Variable capacity. D) Product sold in advance.

C) Variable capacity.

Bars that offer happy hours in the afternoon are using the strategy of ________. A) creating adjustable capacity B) developing complementary services C) increasing customer participation D) promoting off-peak demand

D) promoting off-peak demand

Several approaches to demand management exist, but only ________ seeks to maximize revenue. A) promoting off-peak demand B) reservation systems C) offering price incentives D) yield management

D) yield management

A good overbooking strategy should ________. 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

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

Which of the following is not a strategy for managing capacity? A) Developing complementary services. B) Using part-time employees. C) Forecasting demand. D) Scheduling shifts.

A) Developing complementary services.

The strategy of segmenting demand is feasible only when ________. 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

Which of the following is not a characteristic of yield management? 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.

A health club's offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is ________. A) promoting off-peak demand B) partitioning demand C) using yield management D) offering price incentives

A) promoting off-peak 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? 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.

The purpose of differential pricing is to ________. 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