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Exam 13: Managing Demand and Capacity

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Question 1

Multiple Choice

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The lack of inventory capability in services is due to which of the following characteristics of services?

A) Heterogeneity and perishability
B) Simultaneous production and consumption and intangibility
C) Perishability and simultaneous production and consumption
D) Heterogeneity,perishability and intangibility
E) Simultaneous production and consumption and heterogeneity

F) C) and E)
G) D) and E)

Correct Answer

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C

Question 2

True/False

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In a dentist's office,the wait will seem longer for a patient who is anxious than for a patient who is calm and relaxed.

A) True
B) False

Correct Answer

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True

Question 3

Multiple Choice

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The primary constraint on service production for a popular,well-established theater company that annually presents a series of musical comedies is:

A service firm's yield can be raised by increasing capacity used or by decreasing price.

The primary constraint on service production for a lawyer is:

Peak demand regularly exceeds capacity in all of the following service businesses EXCEPT:

Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site.Once an order is placed at the HP web site,it is automatically transmitted to FedEx's Memphis headquarters.Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer.This arrangement was set up as a solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement.Which strategy is HP using to adjust capacity to match demand?

Which of the following service businesses is LEAST likely to experience wide fluctuations in demand over time?

A hotel that has 300 rooms charges a rate of $150 per night Monday through Thursday.During this period of peak demand,the hotel operates at 100 percent capacity.On weekends (Friday through Sunday) ,the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $150 per night.Calculate the hotel's yield for a Saturday night,if it fills 50 percent of the $150 rooms and sells all of the $100 rooms.

When a service firm's resources are fully employed,but not overused; and customers are receiving quality service in a timely manner,the firm is operating _____ capacity.

The appliance store told the home owner that it would deliver her new stove on Monday between 4 p.m.and 5 p.m.The appliance store is using which of the following waiting line strategies?

Which of the following is NOT a base for differentiating waiting customers?

The marketing department at a well-known university has 11 full-time faculty members and 3 part-time faculty members.There are more than 400 marketing majors at this university.The primary constraint for offering a course in mobile marketing would more than likely be:

A dental office that provides patients a variety of magazines to read and TV to watch while they are waiting is using which of the following waiting line strategies?

When determining its demand capacity,a service provider should not consider random demand fluctuations.

Traditional yield management strategies are most appropriate when:

Which of the following is NOT a risk associated with the use of yield management?

Emergency room employees select and see patients in an order based on the patients' need for treatment.Victims who have life-threatening injuries are seen ahead of those with minor complaints like an ingrown toenail or a case of poison ivy.Emergency rooms differentiate their waiting customers on the basis of:

Which of the following factors in managing demand and capacity does NOT lead to provider gap 3,failure to deliver what was designed and specified?

A service firm is underutilizing its labor,equipment and facilities when: