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Exam 15: Managing Demand and Capacity

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Question 31

True/False

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

A) True
B) False

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Question 32

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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) 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 demand

F) B) and D)
G) A) and B)

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Question 33

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

A dry cleaning establishment is more likely to experience a wide demand fluctuation over time than a cleaning company that specializes in cleaning up after a fire is.

The busiest time for tax preparers is the week prior to April 15th. Many tax preparers send out mailings to their regular customers asking the customers to bring their tax information in to the tax preparer's office in January and February. The mailings explain how they will receive their tax refunds much quicker if they bring their information in now rather than wait till the last minute. Tax preparers are using which of the following strategies for shifting demand to match capacity?

A concert production that charges less for matinee shows than for its evening performances is shifting its demand to match capacity by differentiating on price.

In order to manage fluctuating demand in a service business, an organization must understand all of the following EXCEPT:

What are the three waiting line configurations?

The fundamental issue underlying supply and demand management in services is the lack of _____ capability.

The primary capacity constraint on service production for an interior decorator is time.

"Stretch" strategies for flexing capacity to meet demand can be used indefinitely.

If the patient in the dentist's office is anxious, the wait will seem longer to him or her than it does for a patient who is calm and relaxed.

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?

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.

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.

New Bedford College is a small institution that has not yet adopted online registrations. When it's time to pay for classes, its students can pick from one of three lines. Some lines seem to move faster than others, but all allow the students to accomplish the same goal-paying their tuition and fees. Which of the following queue configurations does New Bedford College use?

How is the advisement center flexing its capacity when it stays open longer hours the week prior to registration for classes?

Last spring the advisement center at New Bedford 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 queue configurations and which will be best in this situation?

Briefly define a "chase demand" strategy.

The lack of inventory capability in services is due to the service characteristic of intangibility.