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Exam 15: Managing Demand and Capacity

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Question 41

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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.

A) True
B) False

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Question 42

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Which of the following is a risk associated with the use of yield management?

A) Excessive customer loyalty
B) Too much focus on competition
C) Employee morale problems
D) Misuse of company-driven service blueprints
E) Overreliance on salaries

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

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Question 43

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

What kind of demand fluctuation for janitorial services resulted from the 2004 hurricane season in Florida?

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

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?

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:

List the four bases that can be used to differentiate waiting customers.

For those people who think they need some sort of psychological counseling but don't feel they have the time, the Internet offers HYPERLINK "http://sedoparking.com/search/registrar.php?domain=hear2listen.com&registrar=sedopark" www.hear2listen.com, which allows users to communicate with a licensed therapist at a cost of $1 per minute. Due to a(n) _____, the web site's owners know most of their business comes in the evenings and on weekends, so they have hired therapists to work for the Internet service at these times. A. Random demand fluctuation B. Relative demand shift C. Predictable demand cycle D. Vertical demand configuration E. Organized demand pattern

The business program at Kennesaw 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. KSU is using which of the following strategies for shifting demand to match capacity?

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

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

Which of the following is NOT a long-term strategy for adjusting capacity with demand fluctuations?

During June, July, August, November and December, each of the cages at Ruff's Boarding Kennel is booked. Ruff's has 45 large dog cages. It charges $7 per day to board a large dog, but during the other months, business is slow. Ruff's charges $6 per day for 25 of its cages and its regular price for the rest. On September 14th, Ruff's had all of its $6 per day filled and half of its $8 per day cages full. Calculate the kennel's yield for that night.

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

What is the fundamental issue underlying supply and demand management in services?

Vacation-destination resorts experience _____ fluctuations in demand over time and have peak demand that _____.

Research indicates that yield management approaches are most profitable when a service market is targeting one large market segment.

Waiting time feels longer when customers:

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?