Questions from Service Management

Q: 1. The use of a ski-resort hotel for business

1. The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy. 2. Overbooking is a strategy that can be used to smooth demand. 3...

Q: 12. Yield management is a pricing and capacity allocation system that

12. Yield management is a pricing and capacity allocation system that was developed by American Airlines. 13. Yield management is a strategy that manages both demand and capacity. 14. An example of se...

Q: 1. Waiting is often seen as psychological punishment because the consumer

1. Waiting is often seen as psychological punishment because the consumer is aware of the opportunity cost of waiting time and the resulting loss of earnings. 2. The net result of waiting, apart from...

Q: 1. Capacity planning decisions deal implicitly with decisions on the cost

1. Capacity planning decisions deal implicitly with decisions on the cost of making consumers wait and the extent to which these costs can be borne. 2. A system is said to be in a transient state when...

Q: 14. When Xerox Corporation introduced the Model 9200 Duplicating System,

14. When Xerox Corporation introduced the Model 9200 Duplicating System, the level of service dipped because technical representatives were assigned to territories. 15. The average time a customer sho...

Q: 1. Because of the nontangible nature of a service, forecasting

1. Because of the nontangible nature of a service, forecasting does not play as important a role in service operations as in manufacturing operations. 2. The trade-off to be made with respect to accur...

Q: 11. Fast-food restaurants use a causal model to forecast

11. Fast-food restaurants use a causal model to forecast daily demand for menu items. 12. Subjective models are used to assess the future impact of changing demographics. 13. Costs for preparing time-...

Q: 1. Point-of-sale scanning became feasible only when

1. Point-of-sale scanning became feasible only when industry agreed upon a universal system of bar coding. 2. One role of holding inventory is to hedge against anticipated increases in the cost of the...

Q: 21. World-class service operations strive to replace workers with

21. World-class service operations strive to replace workers with enhanced automation. 22. Firms classified as "available for service" view quality improvement efforts with disdain. 23. For a firm ach...

Q: 11. POS scanning is used to initiate a purchase order to

11. POS scanning is used to initiate a purchase order to a pre-approved vendor automatically when the stock levels are depleted (or reach a reorder point). 12. Information management has been the key...