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Exam 13: Managing Demand and Capacity

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Question 21

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Which of the following is NOT a risk associated with the use of price differentiation to smooth demand?

A) Customers paying higher prices may feel they are being treated unfairly
B) Attracting undesired market segments
C) Increased capacity utilization
D) Customers becoming accustomed to low price
E) The potential impact on the organization's image

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

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Question 22

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Convention hotels provide meeting rooms and banquet hotels to convention participants.Sometimes a specific convention may involve 2,000 members or only 75 members.To take care of both sizes of groups,convention hotels have movable walls that allow them to expand or contract a facility as needed by the group.By modifying its facility,the convention hotels are able to:

A) Adjust capacity to match demand
B) Create optimal supply
C) Optimize its demand pattern
D) Outsource its requirements
E) Smooth peaks and valleys of demand

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

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Question 23

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Briefly define a "chase demand" strategy.

Shelton Elementary School only needs its gymnasium from Monday through Friday.On the weekends it rents the facilities to an Upward Bound basketball program sponsored by a local church.By renting its facilities,the elementary school is:

The busiest time for tax preparers is the week prior to April 15^th.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?

Overuse or under use of service can directly contribute to provider gap 3 - failure to deliver what was designed and specified.

Hotels next to universities experience _____ fluctuations in demand over time and have peak demand that _____.

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

The primary constraint on service production for a lawyer is:

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

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

What are the challenges and risks in using yield management?

At Benford Bank,all customers opting for the drive-thru can pick from one of three lanes.One line may seem to move faster than the others,but all allow customers to accomplish any type of transaction.Which of the following queue configurations does Benford Bank use?

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

Harris Woodard has purchased a franchise business called Like New Windshields,a company that repairs cracked and pitted vehicle windshields.As a franchisee,he will come to your home or office to repair a damaged windshield.His goal is to make sure that he has enough customers without having more than he can handle efficiently.Which of the following is going to make it difficult for him to accomplish his goal?

If customer waits are common,a first step is to analyze the operational processes to remove any inefficiencies.

Large scale disasters such as Hurricane Katrina in 2005 and the Japanese earthquake and tsunami in 2011 can cause ________ in telephone and Internet services.

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.

Variations in demand relative to capacity can result in all of the following scenarios EXCEPT:

Bianca teaches computer classes on campus as a part of a university continuing education program.One of her most popular classes is called,"Social Media Sanity".In a typical week she teaches three sections of this class and each class meets one day a week for six weeks.Bianca currently teaches 20 students per class.She spends a lot of time preparing her class lectures and makes sure that the class meets the needs of the students in it.Demand for her classes has tripled and she has to turn students away each term.Discuss how Bianca can use "stretch" strategies to adjust the class capacity.