CSM 415 Module 4

drawback

A ___ to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service

off peak demand

Bars that offer happy hours in the afternoon are using the strategy of promoting

old empty feeling

empty of unoccupied time feels awful and keeps us from other productive activities.

reservations and appointments

faced with variable demand and a perishable capacity, a service manager can smooth demand by using

Excuse Me, But I Was First

fairness in the delivery process

Maister's Second Law

first impressions can influence the remainder of the service experience

jockey

for a multiple channel queuing system with multiple queues, allowing customers to _____ will enhance utilization.

balk

for a single channel queuing system with finite queue, the value may exceed because some potential customers are forced to

foot in the door

gives customers the feeling that they are not in fact waiting

work shift scheduling problem

important in service organizations that face a cyclic demand for their services

FCFS rule

most often used because analytical models depend upon its use.

demand variability

not one of the 5 sources of of customer induced variability

jockeying

practice of customers in a multiple queue system leaving one queue to join another

Light at the end of the tunnel

relieving the customer's anxiety about how long the wait will be

tables and chairs

some restaurants use ______ instead of booths to create more flexible capacity

calling population

source of customers; infinite or finite

exponential distribution

the mean equal to its standard deviation

waiting, money

the time a consumer will spend _____ is directly related to the amount of _____ he is paying for the service.

part time personnel

using ____ at fast food restaurants allows capacity to vary with demand

jockeying

when a customer switches back and forth between alternate queues in an effort to reduce waiting time

poisson distribution

when the number of arrivals per unit time follows a ____ , the most important implication is that the time between arrivals is exponentially distributed.

parallel

An arrangement in servers in ______ is an insurance against breakdown of the service in case of absenteeism or equipment failure. It thus adds to flexibility at the expense of capacity utilization.

service capacity

an achievable level of output per unit of time

Maister's First Law

Customers compare expectations with perceptions

perceived shorter wait time

one advantage of the multiple queue compared to a single queue is that multiple queues lead to a

Poisson Distribution

the discrete distribution that descries random arrivals or departures from a busy server per time interval

multiplying the loss for each no show possibility and its probability of occurrence, and then adding the products.

Expected loss for an overbooking reservation strategy would be calculated by

off peak

The purpose of differential pricing is to make ____ usage attractive

demand is not from a homogeneous source

The strategy of segmenting demand is feasible only when _____________

pricing and capacity allocation

Yield management is a _______ system that was developed by American Airlines.

demand and capacity

Yield management is a strategy that manages both

yield management

a comprehensive system to maximize revenue for capacity-constrained services using reservation systems, overbooking, and partitioning demand

critical fractile

a cumulative probability of demand

off peak demand

a health club offering reduced rate membership for students to workout before 4:00 pm on weekdays is promoting

queue discipline

a rule for selecting the next customer in line to be served

chase demand

a strategy of adjusting capacity to match demand fluctuations

Customer Induced Variability

arrival, capability, request, effort, subjective preference

overbooking

A good ______ strategy should balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations.

homogeneous

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

level capacity

a strategy of holding capacity fixed allowing for underutilization and some customer waiting

cross training employees

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

telephone companies

demand smoothing is accomplished by the differential pricing policy of

queue configuration

number of queues, their locations, their spatial requirements, and their effects on customer behavior

reneging

occurs when a customer in queue departs before obtaining service

balk

occurs when an arriving customer sees a long queue and decides not to seek service

empirical studies

suggested that the distribution of inter-arrival times is exponential.

overbooking

taking reservations in excess of available capacity in anticipation of customer no-shows

calling population

termed finite when only a limited number of people may use the facility in any given period

Exponential Distribution

the continuous distribution that describes the time between arrivals or service times

critical fractile

the cumulative probability of demand formed by the ratio of the cost of underestimating demand divided by the sum of the costs of underestimating demand and overestimating demand

Yield Management

the process of allocating a fixed perishable resource to several market segments in the most profitable manner

less, longer

The _____ the service costs him, the ____ he is willing to wait.

balking behavior

Multiple queue configuration may deter

maximize revenue

Several approaches to demand management exist, but only yield management seeks to