Oper test 2 chapter 11
Which of the following strategies is inappropriate for managing capacity and demand?
Decrease customer participation in the service process.
Which of the following is not a strategy for managing capacity?
Developing complementary services.
A disadvantage of yield management is that it cannot be implemented in real time.
F
An example of segmenting demand is seen when movie theaters offer matinee prices before 6:00 p.m.
F
The strategy of segmenting demand is feasible only when:
demand is not from a homogeneous source
A health club offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is:
promoting off-peak demand.
Level demand and chase capacity are the two generic strategies for capacity management.
F
Overbooking is a strategy that can be used to smooth demand.
F
Which one of the following four steps in "daily workshift scheduling" is out of order?
Assign operators to shifts.
A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service.
T
Service capacity is defined in terms of an achievable level of output per unit time
T
Some restaurants use tables and chairs instead of booths to create more flexible capacity.
T
The critical fractile is a cumulative probability of demand
T
Work shift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform
T
Yield management is a pricing and capacity allocation system that was developed by American Airlines.
T
Yield management is a strategy that manages both demand and capacity.
T
Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.
T
A good overbooking strategy should:
balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations.
Which one of the following is not a strategy to manage demand?
cross-training employees
Which one of the following is not a characteristic of firms using yield management?
variable capacity
The purpose of differential pricing is to:
make off-peak usage attractive
Bars that offer happy hours in the afternoon are using the strategy of:
promoting off-peak demand.
Time perishability of service capacity is a challenge for service managers because customers demand immediate service.
F
What one of the following is not a characteristic of yield management?
There is one homogeneous customer class.
Several approaches to demand management exist, but only _______ seeks to maximize revenue.
yield management
The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy.
F
The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.
F
The expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.
T
Using part-time personnel at fast-food restaurants allows capacity to vary with demand.
T
