Chapter 12 SCM

A customer who enters a waiting line but leaves prior to receiving services is said to have:

reneged

The goal of an efficient queuing system is that customers never have to wait in a queue. a. True b. False

B. False

The first role of customer service is:

satisfaction = perception - expectation

The desirability scale is from (-1=undesirable) to (3=very important).

7

What is the optimal level of capacity utilization for services?

80%

T/F: In most services, customers are not involved in the production of the service itself.

False

Which of the following is not a technique for managing customer perceived waiting times:

Hiding the wait time

Which of the following is an example of a pure service? a. Retailer b. Auto mechanic c. McDonald's d. Law firm

Law Firm

Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 3 customers per hour, determine the mean interarrival time. a. 20 minutes b. 60 minutes c. 3 minutes d. 12 minutes

a. 20 minutes

For the following layout, determine the total feet traveled per day.

a. 2525 ft.

Baumol's Disease is best described by which of the following? a. As economies become more service-oriented, then productivity growth declines. b. Wal-Mart's use of supplier capacity has made it difficult for other companies to find Suppliers. c. The growth of large retailers has had a negative impact on the environment. d. As large retailers locate in communities, they put smaller companies out of business.

a. As economies become more service-oriented, then productivity growth declines.

Which one of the following is NOT a waiting time management technique? a. Keep the line moving b. Design a fair waiting system c. Keep customers occupied d. Relieve customer anxiety

a. Keep the line moving

The two most basic strategies for managing capacity are: a. Level Demand strategy and chase demand strategy b. Differentiation strategy and focus strategy c. Transitional strategy and divisional strategy d. Demand management strategy and queue management strategy

a. Level Demand strategy and chase demand strategy

As capacity utilization approaches 1.0, which of the following tends to happen? a. Services become more congested b. Wait times decrease c. Perceived quality of service improves d. Service times decrease

a. Services become more congested

Which of the following is a difference between goods and services? a. Services cannot be inventoried b. Goods have high customer-service interaction c. Goods are often unique d. All of these choices are correct.

a. Services cannot be inventoried

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. Cross-training and sharing employees c. Utilizing technological tools like computers and automated systems d. Using customers to provide services

a. Utilizing fewer facilitating products

If the average service rate is 10 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distributions, then determine the probability that the service time will be less than or equal to 8 minutes. a. 0.00 b. 0.55 c. 0.28 d. 0.37

b. 0.55

If the average service rate is 12 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. 0.000 b. 0.565 c. 0.624 d. 0.283

b. 0.565

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. 1.33 b. 0.75 c. 0.167 d. 0.125

b. 0.75

In a 1 server model, if the average arrival rate = 3 customers per hour and the average service rate = 4 customers per hour, determine the average number of customers in the system. a. 1 customer b. 3 customer c. 2 customers d. 4 customers

b. 3 customer

All of the following are considerations used in designing service layouts EXCEPT: a. Reduction of time to restock b. Ease of access to parking lot c. Speed up customer throughput d. Impulse purchasing

b. Ease of access to parking lot

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________. a. Blips b. Gaps c. Breakeven point d. Bloops

b. Gaps

Service distribution channels refer to: a. Service channel queuing arrangements b. How a service delivers its goods and services to customers c. The types of trucks used in distribution d. The queuing discipline used

b. How a service delivers its goods and services to customers

A basic strategy for managing capacity is: a. Differentiation strategy b. Level demand strategy c. Focus strategy d. Queue management strategy

b. Level demand strategy

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. Capacity Utilization b. Service Capacity c. Service Throughput d. Productivity Potential

b. Service Capacity

A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better. a. True b. False

b. false

In 2015, outputs were 12,000 units with inputs of 1,000 labor hours. In 2016, outputs were 13,500 units with 1,200 labor hours. What was the productivity growth from 2015 to 2016? a. 4.19% b. 8.61% c. - 6.25% d. - 12.37%

c. - 6.25%

The average transaction at an automatic teller can be completed in six minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in the queue? a. 1.160 Customers b. 4.000 Customers c. 0.900 Customers d. 0.375 Customers

c. 0.900 Customers

Assuming the number of arrivals per hour is Poisson distributed at a service, with a mean arrival rate of 6 customers per hour, what is the probability that more than 1 customer per hour will arrive? a. 0.862 b. 0.794 c. 0.983 d. 0.997

c. 0.983

Which of the following is one of Maister's Laws of Service? a. Expectation = satisfaction - perception b. Customers are usually satisfied c. It's hard to turn things around if a customer becomes dissatisfied d. Customers should be grouped together

c. It's hard to turn things around if a customer becomes dissatisfied

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. Multiple-channel queuing system

When customers arrive at a service in a random pattern, the __________ is used to describe the arrivals. a. Demand source b. Deterministic distribution c. Poisson distribution d. Queuing channel

c. Poisson distribution

A customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Stalled b. Balked c. Reneged d. Disposed

c. Reneged

The four primary activities of concern in service response logistics are the management of: a. Service capacity, visual workplace, waiting times and distribution channels b. Labor standards, distribution channels, waiting times and service quality c. Service capacity, waiting times, distribution channels and service quality d. Distribution channels, service quality, reputation and waiting times

c. Service capacity, waiting times, distribution channels and service quality

When capacity exceeds demand, demand management techniques can be used to stimulate demand using all of the following EXCEPT: a. Using strategies to stimulate demand b. Lowering prices during off-peak periods c. Use of effective queuing configurations d. Designing aggressive marketing campaigns

c. Use of effective queuing configurations

One of the biggest issues facing franchising is: a. Multiple-phase queuing systems b. Finding good employees c. Control problems d. Infotainment requirements

c. control problems

Which of the following is an example of a person that would be considered to provide a Pure Service? a. Management Consultant b. Attorney/Lawyer c. Musical Entertainer d. All of these choices are correct.

d. All of these choices are correct.

In services, quality is most closely tied to: a. The servers b. Service distribution c. Service technology d. Customer satisfaction

d. Customer satisfaction

All of the following are included in the five dimensions of service quality EXCEPT: a. Assurance b. Responsiveness c. Reliability d. Expectations

d. Expectations

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Starting the service quickly b. Grouping customers c. Keeping customers occupied d. Hiding the wait time

d. Hiding the wait time

Which of the following is NOT a primary activity of concern in service response logistics? a. Management of distribution channels b. Management of waiting times c. Management of service capacity d. Management of inventory

d. Management of inventory

David Maister's First Rule of Service is: a. Under-promise and over-deliver b. You can't please all the customers all the time c. It always takes longer than you think to perform the service d. Satisfaction = perception − expectation

d. Satisfaction = perception − expectation

Eatertainment is: a. Combining television with eating b. Under-promising and over-delivering c. Allowing entertainers some time to eat during their performance d. The combination of restaurant and entertainment elements

d. The combination of restaurant and entertainment elements

All of the following are included in the five dimensions of service quality EXCEPT: a. Assurance b. Responsiveness c. Reliability d. Reasonability

d. reasonability

Customer satisfaction with service depends on:

the service itself and the way it was delivered