Oper test 2 chapter 11

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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


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