Chapter 12

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

Services become more congested

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

Services cannot be inventoried

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

False

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. 0.283 b. 0.565 c. 0.624 d. 0.000

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. 0.75 b. 0.167 c. 1.33 d. 0.125

0.75

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. 0.375 Customers d. 0.900 Customers

0.900 Customers

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. 3 minutes c. 60 minutes d. 12 minutes

20 mins

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

Ease of access to parking lot

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. True or False

False

In most services, customers are not involved in the production of the service itself. True of False

False

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

Hiding wait time

Service provided by multiple servers acting in parallel is referred to as: a. Multi-delivery servicescape b. Multi-platform servicescape c. Multiple-channel queuing system d. Multiple-phase queuing system

Multiple-channel queuing system

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

Reasonability

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

Reneged

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

Satisfaction = perception − expectation

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

Service capacity, waiting times, distribution channels and service quality

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Using customers to provide services b. Utilizing technological tools like computers and automated systems c. Cross-training and sharing employees d. Utilizing fewer facilitating products

Utilizing fewer facilitating products

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

all of these choices are correct.

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

gaps

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

level demand strategy