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
