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Exam 13: Managing Demand and Capacity

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Question 21

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If you buy your tickets early for a live theater production in Rome,you'll pay about 30 percent less,than if you buy them on the day of the show.The lower price helps the early sale of tickets and guarantees the audience will be large enough to justify the cost and effort put into the production.What strategy does the theater company use to shift demand for theater tickets?

A) Differentiate on price
B) Modify timing and location of service delivery
C) Vary the service offering
D) Stretch capacity
E) Communicate with customers

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

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Question 22

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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?

A) Differentiate on price
B) Modify timing and location of service delivery
C) Vary the service offering
D) Stretch capacity
E) Communicate with customers

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

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Question 23

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

Waiting time feels longer when customers:

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.

The business program at Big State University offers classes that start as early as 6:30 a.m.and as late as 9:30 p.m.for its undergraduates.It also has Saturday and Sunday undergraduate classes in addition to its regular daytime program.Big State University is using which of the following strategies for shifting demand to match capacity?

A professional baseball team that has unsold tickets for a Friday night game cannot resell those tickets for a game the following afternoon due to the _____ characteristic of services.

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

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

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

The primary constraint on service production for an air freight delivery service is:

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

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

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:

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

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?

Large-scale disasters such as the Japanese earthquake and tsunami in 2011 and Superstorm Sandy in 2012 can cause ________ in telephone and Internet services.

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:

An advantage of a single-queue configuration is that customers have an opportunity to select a particular service provider.

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?