SCM Chapter 12
11. The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as: a. Service Capacity b. Capacity Utilization c. Productivity Potential d. Service Throughput
A
16. If the average service rate is 15 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes. a. zero b. 0.49 c. 0.28 d. 0.62
B
17. When studying queuing models, a customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Balked b. Reneged c. Stalled d. Disposed
B
1. Which of the following is an example of a person that would be considered to provide a Pure Service? a. Attorney/Lawyer b. Management Consultant c. Musical Entertainer d. All of these
D
11. The optimal capacity utilization for an organization would be 100%.
F
15. According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.
F
3. Service facilities are normally decentralized.
T
12. A basic strategy for managing capacity when the firm utilizes a constant amount of capacity regardless of demand variations is: a. Level demand strategy b. Differentiation demand strategy c. Chase demand strategy d. Baumol's demand strategy
A
13. Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Utilizing fewer facilitating products b. Utilizing technological tools like computers and automated systems c. Cross-training and sharing employees d. Using customers to provide services
A
15. Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 6 customers per hour, determine the mean interarrival time. a. 10 minutes b. 6 minutes c. 60 minutes d. 14 minutes
A
22. First-come-first-served is an example of a(n): a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. single-phase queue design
A
5. You are determining the productivity of your company's service. In your calculation, the inputs used consist of the sum of your company's labor, materials, energy, and capital costs. This can also be referred to as: a. Multiple-factor productivity b. Productivity utilization c. Multi-input efficiency d. Extended productivity
A
19. The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.) a. 0.167 b. 0.75 c. 0.125 d. 1.33
B
3. The Wal-Mart effect is best described by which of the following? a. As large retailers locate in communities, the put smaller companies our of business b. Information technologies have allowed large retailers to maintain good productivity growth rates c. Wal-Mart's use of supplier capacity has made it difficult for other companies to find Suppliers d. The growth of large retailers has had a negative impact on the environment
B
6. The three generic competitive strategies are: a. profit-based, nonprofits, and free services b. cost leadership, differentiation, and focus c. manufacturing, service, and retail d. mass-production, make-to-order, and services
B
8. Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customers may consider paying higher prices? a. Focus Strategy b. Differentiation Strategy c. Cost Leadership Strategy d. Exclusivity Strategy
B
10. Which of the following items would be considered a facilitating product? a. The automobiles washed by the car wash b. The suits being cleaned by the dry cleaner c. The tools used to fix your car at an auto shop d. All of these
C
14. According to the text, the primary elements of all queuing systems include all of the following EXCEPT: a. Input process b. Queue characteristics c. Output process d. Service characteristics
C
18. Service provided by multiple servers acting in parallel is referred to as: a. Multi-platform servicescape b. Multiple-phase queuing system c. Multiple-channel queuing system d. Multi-delivery servicescape
C
23. David Maister's First Rule of Service is: a. It always takes longer than you think to perform the service b. You can't please all the customers all the time c. Satisfaction = perception − expectation d. Under-promise and over-deliver
C
24. All of the following are included in the five dimensions of service quality EXCEPT: a. Reliability b. Responsiveness c. Reasonability d. Assurance
C
9. According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy
C
every ten minutes. On average, how many customers are there in line? (Choose the closest answer.) a. 4.000 Customers b. 0.300 Customers c. 3.000 Customers d. 0.375 Customers
C
2. Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called: a. Service Shrink b. Deming's Decline c. State Utility d. Baumol's Disease
D
21. If = 6 CUSTOMERS/HOUR and = 11 CUSTOMERS/HOUR, in a single server model, find the probability that there will be exactly 1 person in LINE. a. 0.162 b. 0.297 c. 0.248 d. 0.135
D
25. The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as: a. Reliability b. Responsiveness c. Reasonability d. Assurance
D
4. Which of the following would result in an INCREASE in productivity? a. The value/amount of the inputs used increases and the value/amount of outputs decreases b. The value/amount of the inputs used increases and the value/amount of outputs stays the same c. The value/amount of the inputs used stays the same and the value/amount of outputs decreases d. The value/amount of the inputs used stays the same and the value/amount of outputs increases
D
7. Which of the following organizations would be considered an example of a global service? a. FedEx b. Deutsche Bank c. Wal-Mart International d. All of these
D
16. Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.
F
18. A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.
F
19. Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertailment facilities.
F
22. The five dimensions of service quality include: Reliability, durability, performance, aesthetics, and availability.
F
4. Service organizations need to consider the fact that the services they provide are not consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.
F
7. Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.
F
1. When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.
T
10. Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.
T
12. Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.
T
13. When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.
T
14. When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.
T
17. A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze this situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.
T
2. In most services, customers are either directly or indirectly involved in the production of the service itself.
T
20. In a franchise, the franchisee invests some of their own money, while paying a percentage of sales to the franchiser.
T
21. When companies sell products both online and in traditional retail stores this is called a mixed internet distribution strategy.
T
5. Since the 1950s, the percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.
T
6. In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.
T
8. A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.
T
9. Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.
T
