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Exam 13: Managing Demand and Capacity

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Question 31

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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) A) and E)
G) A) and B)

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Question 32

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Rosa Wilkins gives 30-minute therapeutic massages at a local gym.All of her Monday and Friday appointments are taken and she has a waiting list for those who would like to move their regular massage to the first or the last day in the week.At the end of those days Wilkins is exhausted.Demand on Tuesdays and Thursdays is at an acceptable level,but no one seems to want a massage on Wednesday.Wilkins wishes she could convince some of her Monday and Friday customers to come on Wednesday.Can you give her some ideas to help shift the demand for her service?

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Question 33

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A hotel that has 300 rooms charges a rate of $150 per night Monday through Thursday.During this period of peak demand,the hotel operates at 100 percent capacity.On weekends (Friday through Sunday) ,the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $150 per night.Calculate the hotel's yield for a Saturday night,if it fills 50 percent of the $150 rooms and sells all of the $100 rooms.

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?

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

The marketing department at a well-known university has 11 full-time faculty members and 3 part-time faculty members.There are more than 400 marketing majors at this university.The primary constraint for offering a course in mobile marketing would more than likely be:

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.

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?

Callie's Canine Cottage has 45 kennels for boarding dogs.During June,July,August,November and December,each of the kennels is booked.During these months,Callie's always charges its regular price of $15 per day per kennel.When business is slow,Callie's sometimes charges a discounted rate of $13 per day per kennel for the first 25 kennels booked and $15 for the rest.On September 15^th,Callie's filled 25 kennels at $13 per day and 10 kennels at $15 per day.Calculate Callie's yield for September 15^th.

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

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

Traditional yield management strategies are most appropriate when:

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

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

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

Which of the following organizations is most likely to experience wide fluctuations in demand?

The appliance store told the home owner that it would deliver her new stove on Monday between 4 p.m.and 5 p.m.The appliance store uses which of the following waiting line strategies?

The primary constraint on service production for a popular,well-established theater company that annually presents a series of musical comedies is:

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.

Nine months after the terrorists' attacks on the World Trade Center and the Pentagon,maternity hospitals were filled to capacity as people who had been waiting for the right time to have children decided that there was no time like the present.The maternity hospitals experienced a(n) :