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Exam 13: Managing Demand and Capacity

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Question 1

True/False

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

A) True
B) False

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Question 2

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Mass transit train and bus service has peak periods of demand Monday through Friday during morning and evening rush hours.Demand for mass transit service:

A) Fluctuates randomly
B) Follows no discernible pattern
C) Follows a predictable demand cycle
D) Follows a vertical demand configuration
E) Is dissatisfactory

F) B) and C)
G) A) and E)

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Question 3

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Peak demand for rooms at the Ritz-Carlton Hotel,an upscale hotel in Phoenix,Arizona,occurs during the tourist season from November through mid-April.During the summer slow season when demand for rooms drops considerably,the Ritz-Carlton encourages local Phoenix and Tucson residents to experience the beauty of the hotel on weekends by offering attractively priced weekend packages.The Ritz-Carlton uses which of the following strategies for shifting demand to match capacity?

Which of the following is NOT an example of a strategy used to shift demand to match capacity?

When the advising center at Santa Rosa Community College stays open longer hours during the week prior to registration for classes,what strategy for matching capacity and demand is being used?

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.

By renting its 21 executive suites for slumber parties on the weekend,the Hyatt Regency Reston in Reston,Virginia is shifting demand to match capacity by varying its service offering.

Waiting time feels longer when customers:

Which of the following is NOT considered a capacity constraint for a service provider?

On certain days during the week,Disneyworld allows guests who stay at a Disney Resort hotel to enter the Magic Kingdom,Epcot Center or Disney-MGM Studios one hour before the parks are open to the public.Walt Disney World is minimizing waiting time by differentiating customers on the basis of:

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:

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

The Long Island Railroad installed ticket vending machines in train stations to expedite the purchase of train tickets during periods of peak demand.The Long Island Railroad is using which of the following waiting line strategies?

A contractor could use outsourcing as a way to adjust its capacity to meet demand.

What are the critical fixed-capacity factors that affect how well a service business can handle demand fluctuations?

In order to increase usage of the family-oriented ski resort,its owner sent letters to several college fraternities inviting them to spend their winter vacation at the resort.By inviting college students,the resort more than likely widened provider:

Supermarkets with express checkout lanes for customers purchasing 10 items or less are using which of the following waiting line strategies?

In a supermarket,customers who have only a few items will wait longer than customers who have a full cart of groceries because supermarkets use a differentiating queue.

Last spring the advisement center at Santa Rosa Community College was unable to help all the students who wanted advice on the school's new core curriculum.During the summer the advisement center has hired you to analyze its operational procedures for any inefficiencies.As it exists now,students enter a room,take a chair or more likely a position standing up and get to talk to their assigned advisor whenever that advisor becomes free.Since all the advisors have access to the same information,you have suggested that the center set up queues.Briefly explain the different queue configurations and indicate which would be best in this situation.

New York City rents a number of its public school facilities to local flea markets on weekends during the school year and summer months.New York City is using which of the following strategies for shifting demand to match capacity in its public schools?