Chapter 11-13 Quiz Contemporary Issues Management

The cost of service capacity is determined by ________. A.) the number of servers on duty B.) the total number of customers C.) the number of customers waiting D.)waiting time

A.) the number of servers on duty

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

A.) yield management

In the A/ B/ C analytical queuing model classification, M is used to denote ________. A.) deterministic inter-arrival time distribution B.) general distribution with mean and variance C.) Erland distribution D.) exponential inter-arrival time distribution

D.) exponential inter-arrival time distribution

A parking lot is a special variation of the ________ queuing model. A.) infinite queue M /G /∞ B.) infinite queue M /M /c C.) finite-queue M /G /1 D.) finite-queue M /M /c

D.) finite-queue M /M /c

In using the critical fractile criterion P(d < x) = C u/(C u + C o) for overbooking, the 'd' refers to the ________. A.) number of no-shows based on past experience B.) cost of underestimating demand C.) cost of overestimating demand D.) number of rooms overbooked

A.) number of no-shows based on past experience

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

B.) Developing complementary services.

According to Maister, which of the following statements is not true for waits? A.) Unfair waits feel longer than fair waits. B.) In-process waits feel longer than preprocess waits. C.) Anxiety makes waits feel longer. D.) Unoccupied time feels longer than occupied time.

B.) In-process waits feel longer than preprocess waits.

The ________ queuing model is often used in situations when little or no waiting occurs. A.) M /G /1 B.) M /G /∞ C.) M /M /c D.) M /M /1

B.) M /G /∞

________ is not a characteristic appropriate for a yield management strategy. A.) Ability to segment markets B.) Steady demand C.) Products sold in advance D.) Relatively fixed capacity

B.) Steady demand

Which of the following is not part of the queuing system features? A.) Queue configuration. B.) Queue discipline. C.) Departure process. D.) Calling population.

C.) Departure process.

Which of the following queue configurations permits opportunities for division of labor and service differentiation? A.) Take a number. B.) Single queue. C.) Multiple queue. D.) Self-serve.

C.) Multiple queue.

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

C.) it is viewed as fair

________ variability is not one of the five sources of customer-induced variability. A.) Effort B.) Capability C.) Arrival D.) Demand

D.) Demand

Which of the following techniques does not lessen the boredom of waiting customers? A.) Displaying time with a large analog clock. B.) Installing a television tuned to CNN. C.) Telling customers how long the wait is at different points in the queue. D.) Placement of mirrors in elevators.

A.) Displaying time with a large analog clock.

Spatial distribution of demand is important to consider in which of the following services? A.) Emergency ambulance services. B.) Restaurants. C.) Banking. D.) Motels.

A.) Emergency ambulance services.

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.) Jockeying is eliminated.

For a chase demand strategy, which of the following does not have a high trade-off? A.) Labor-skill level. B.) Supervision required. C.) Employee utilization. D.) Labor turnover.

A.) Labor-skill level.

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.) mean number of customers being served

Supermarkets can be described by which of the following facility arrangement? A.) Servers in parallel. B.) Self-service. C.) Many service centers in parallel and series. D.) Self-serve followed by service in parallel.

D.) Self-serve followed by service in parallel.

One advantage of the multiple queue compared to a single queue is that multiple queues ________. A.) lead to a perceived shorter service time B.) reduce the average service time C.) minimize wait times D.) lead to a perceived shorter wait time

D.) lead to a perceived shorter wait time

Faced with variable demand and a perishable capacity, a service manager can smooth demand by ________. A.) increasing the customer self-service content of the service B.) scheduling workshifts to vary workforce needs according to demand C.) using part-time help during peak hours D.) using reservations and appointments

D.) using reservations and appointments

__________________ is the condition of a system when operating characteristics are dependent on time. A.) Transient state B.) Strategic capacity C.) Steady state D.) Finite queue

A.) Transient state

In the A/B/C classification of queuing models, A stands for A.) arrival distribution B.) size of the waiting area C.) mean departure rate D.) service time distribution

A.) arrival distribution

The purpose of differential pricing is to ________. A.) make off-peak usage attractive B.) charge customers according to their ability to pay C.) adjust capacity to demand D.) make peak period usage unattractive

A.) make off-peak usage attractive

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.) Overbook the cabin. C.) Offer a downgraded cabin with special privileges such as a $100 certificate for use in the casino. D.) Attempt to steer the passenger to an available date.

B.) Overbook the cabin.

A single-server food cart competes with several nearby food carts and experiences arrival of customers during an 8-hour period as shown below: 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.) reneging; expand the menu B.) balking; add another server during peak periods C.) jockeying; offer price discounts between 2 p.m. and 4 p.m. D.) balking; offer "2 for 1" specials during slow periods

B.) balking; add another server during peak periods

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

B.) minimize the expected opportunity cost of idle service capacity

n general, for infinite queues, the expected number of people in the system is equal to ________. A.) the expected arrival rate times the expected waiting time B.) the expected number in the queue plus the expected number in service C.) the average arrival rate minus the average service rate D.) A and B

B.) the expected number in the queue plus the expected number in service

The calling population is termed finite when ________. A.) there is no queue discipline specified B.) there is restriction on the maximum number in the queue C.) only a limited number of people may use the facility in any given period D.) the interarrival time is not very large

C.) only a limited number of people may use the facility in any given period

The A/B/C notation classifies queuing systems on the basis of ________. A.) arrival rates and service rates B.) arrival rates and queue discipline C.) queue discipline alone D.) arrival rates, service rates, and number of servers

D.) arrival rates, service rates, and number of servers