Chapter 9 - SM

T/F: A good example of inventorying demand is a haircut that can be set up and prepared for one day and executed the next.

F

T/F: Efforts directed at changing demand patterns on a city bus should be aimed at cross- training individual employees.

F

T/F: Measures of capacity utilization include: the number of hours that facilities, labor and equipment are productively employed in revenue operations and the size of the physical facility.

F

T/F: Optimum and maximum capacities are never one and the same (e.g. a sport performance).

F

T/F: Parallel lines to multiple servers is commonly known as a "Snake"

F

T/F: Processing times for people are typically less variable than objects or things.

F

T/F: Random fluctuations in business are usually caused by factors well within management's control.

F

T/F: The goal of a restaurant in varying its service level and menus is only to appeal to different needs within the same group of customers.

F

When a firm wants to inventory demand via a reservation system and has insufficient capacity it should lower prices selectively.

F

T/F: For the monetary price of a service to be effective as a demand management tool, managers must have some sense of the shape and slope of a product's demand curve.

T

T/F: One of the most direct ways for a hotel to reduce excess demand at peak periods is to charge customers more money to use the service during those periods.

T

T/F: One way to stretch capacity is to utilize the facility for longer periods.

T

T/F: Queues represent a symptom of unresolved capacity management problems.

T

T/F: The term "productive capacity" refers to the resources or assets that a firm can employ to create goods and services.

T

T/F: Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate.

T

Which of the following hotel customers has the most inelastic demand slope? a. Business travelers in high season. b. Business travelers in low season. c. Tourists in high season. d. Tourists in low season. e. All groups have equivalent demand curves.

a. Business travelers in high season.

A cleaning and repair firm that wants to generate business during low demand periods would do best to offer which of the following? a. Offer free pickup and delivery of portable items that need servicing. b. Vary the time when service is available. c. Add more service options. d. Increase prices to get the most out of current customers. e. Educate customers on when they should have things cleaned or repaired.

a. Offer free pickup and delivery of portable items that need servicing.

Possible strategic applications of excess capacity include all of the following EXCEPT ____________. a. reducing variation in current capacity b. free trials for prospective customers c. free trials for intermediaries who sell to end customers d. employee rewards e. bartering with the firm's own suppliers

a. reducing variation in current capacity

Theme parks cleverly design their waiting areas to do which of the following? a. Make the wait look as long as it is so they aren't disappointed b. Find ways to give the customers the impression of constant progress c. Keep the waiting area distraction free so people keep moving in line d. Post clocks everywhere so people know how long they have been in line e. Offer customers additional services while they wait

b. Find ways to give the customers the impression of constant progress

Which of the following is NOT one of the alternative queuing configurations discussed? a. Single line/single servers at sequential stages b. Multiple line to single servers ("snake") c. Parallel lines to multiple servers d. Designated lines to designated servers e. "Take a Number" (single or multiple servers)

b. Multiple line to single servers ("snake")

Which of the following is NOT one of the productive capacity forms in a service context? a. Physical facilities designed to contain customers b. Physical equipment used to process people, possessions, or information c. Customers d. Labor e. Infrastructure

c. Customers

According to a national survey of 1000 adults in the United States, which of the following is the most dreaded waiting queue? a. Restaurant b. Department of Motor Vehicles c. Doctor's office d. Grocery store e. Airport

c. Doctor's office

All of the following are questions to ask about demand patterns and their underlying causes EXCEPT ____________. a. Do demand levels follow a predictable cycle? b. What are the underlying causes of these cyclical variations? c. How much demand are competitors receiving? d. Do demand levels seem to change randomly? e. Can demand for a particular service over time be disaggregated by market segment?

c. How much demand are competitors receiving?

Which of the following may result in allocation to separate queuing areas? a. Time already spent waiting b. Excess capacity c. Urgency of the job d. Excess demand e. Multiple locations

c. Urgency of the job

Which of the following is the correct action for a firm to take that wants to reduce demand and has insufficient capacity? a. Take no action. b. Consider override for most desirable segments. c. Consider priority systems for most desirable segments. d. Increase prices or encourage use in other time slots. e. Lower prices selectively.

d. Increase prices or encourage use in other time slots.

Which of the following is NOT one of the five basic approaches to managing demand? a. Taking no action and leaving demand to find its own levels. b. Reduce demand in peak periods. c. Increase demand when there is excess capacity. d. Inventory capacity until demand increases. e. Inventory demand by creating a formalized queuing system.

d. Inventory capacity until demand increases.

The demand for a city bus is most likely to vary by all EXCEPT which of the following? a. Time of day. b. Day of the week. c. Season of the year. d. Population in the city. e. All of the above will likely cause demand to vary on a city bus.

d. Population in the city.

The problem of capacity constrained organizations that cannot stockpile services is most commonly found among services that process ____________ and ____________. a. non-labor intensive information; time b. physical possessions; time c. people; non-labor intensive information d. people; physical possessions e. non-labor intensive information; physical possessions

d. people; physical possessions

Which of the following is NOT a way of understanding the nature of demand curves? a. Research. b. Analyzing parallel situations in other locations. c. Trial and error. d. Analyzing parallel situations in comparable services. e. Analyzing competing demand positions.

e. Analyzing competing demand positions.

A service organization's capacity to satisfy demand is constrained by all of the following EXCEPT ____________. a. physical facilities b. equipment c. personnel d. sequence of services provided e. number of competitors

e. number of competitors