Question 1

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.

Accepted Answer

A)   58 percent
B)   63 percent
C)   78 percent
D)   93 percent
E)   171 percentF) A) and E)
G) C) and D)

Question 2

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

Accepted Answer

A)   Equipment
B)   Labor
C)   Money
D)   Facilities
E)   TimeF) A) and E)
G) B) and E)

Question 3

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?

Accepted Answer

A)   Establishing a reservation process
B)   Making waiting fun or at least tolerable
C)   Expanding waiting room capacity
D)   Differentiating waiting customers
E)   Employing operational logicF) B) and E)
G) A) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A)   Using part-time employees
B)   Cross-training employees
C)   Scheduling downtime during low periods
D)   Performing maintenance and renovations
E)   Outsourcing activitiesF) A) and E)
G) None of the above

Question 6

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.

Accepted Answer

A)   Above maximum
B)   At maximum
C)   Above optimum
D)   At optimum
E)   Below optimumF) None of the above
G) A) and E)

Question 7

The primary constraint on service production for a lawyer is:

Accepted Answer

A)   Equipment
B)   Utility
C)   Money
D)   Facilities
E)   TimeF) C) and E)
G) A) and E)

Question 8

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

Accepted Answer

A)   Hotels
B)   Public transportation systems
C)   Restaurants
D)   Insurance companies
E)   Tax accountantsF) A) and D)
G) C) and D)

Question 9

Traditional yield management strategies are most appropriate when:

Accepted Answer

A)   The service provider has a homogeneous target market
B)   Its target market is not price sensitive
C)   All members of the target market arrive at basically the same time
D)   Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late
E)   All of the target market is equally price sensitiveF) C) and D)
G) All of the above

Question 10

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.

Accepted Answer

A) True 
 B)False  True

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   Baptist Hospital emergency room
B)   Landmark Trust Bank
C)   McDonald's restaurants
D)   Houston Police Department
E)   Becker and Rosen Accounting ServicesF) A) and C)
G) C) and D)

Question 13

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?

Accepted Answer

A)   Lack of communication between contact personnel and company management
B)   Under use of service capacity
C)   Failure to smooth the peaks and valleys of demand
D)   Overuse of service capacity
E)   The attraction of an inappropriate customer mix in an effort to build demandF) B) and E)
G) B) and C)

Question 14

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:

Accepted Answer

A)   Equipment
B)   Labor
C)   Money
D)   Facilities
E)   TimeF) B) and C)
G) B) and E)

Question 15

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

Accepted Answer

A)   Demand exceeds maximum capacity
B)   Demand exceeds optimum capacity
C)   Supply and demand are balanced at the level of optimum capacity
D)   Demand is below optimum capacity
E)   Demand is below minimum capacityF) A) and B)
G) A) and C)

Question 16

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?

Accepted Answer

A)   Establishing a reservation process
B)   Making waiting more pleasurable
C)   Expanding waiting room capacity
D)   Differentiating waiting customers
E)   Employing operational logicF) A) and C)
G) None of the above

Question 17

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

Accepted Answer

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 heterogeneityF) B) and D)
G) B) and C) C

Question 18

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:

Accepted Answer

A)   Willingness to perform service role
B)   Importance of the customer
C)   Duration of the service transaction
D)   Urgency of the job
E)   Payment of a premium priceF) A) and E)
G) All of the above

Question 19

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

Accepted Answer

A)   Incompatible incentive and reward systems
B)   Overbooking
C)   Customer alienation
D)   Loss of competitive focus
E)   All of the above are risks associated with the use of yield management.F) None of the above
G) C) and D) E

Question 20

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

Accepted Answer

A)   Willingness to perform service role
B)   Importance of the customer
C)   Duration of the service transaction
D)   Urgency of the job
E)   Payment of a premium priceF) None of the above
G) B) and D)

Exam 13: Managing Demand and Capacity

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified

The primary constraint on service production for a lawyer is:

Correct Answer
verified

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

Correct Answer
verified

Traditional yield management strategies are most appropriate when:

Correct Answer
verified

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.

Correct Answer
verified
True

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified
C

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

Correct Answer
verified
E

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

Correct Answer
verified

Exam 13: Managing Demand and Capacity

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The primary constraint on service production for a lawyer is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Traditional yield management strategies are most appropriate when:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

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True

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C

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E

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