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Which of the following is NOT considered a capacity constraint for a service provider?


A) Equipment
B) Labor
C) Money
D) Facilities
E) Time

F) A) and E)
G) All of the above

Correct Answer

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

A) True
B) False

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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?


A) Lack of inventory capability
B) Compatibility management
C) Customer heterogeneity
D) Franchise empowerment
E) Fluctuating equilibrium points

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

Correct Answer

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For those people who think they need some sort of psychological counseling but don't feel they have the time,talkspace.com allows users to communicate with a licensed therapist online.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 online service at these times.


A) Random demand fluctuation
B) Relative demand shift
C) Predictable demand cycle
D) Vertical demand configuration
E) Organized demand pattern

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

Correct Answer

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


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) B) and E)
G) D) and E)

Correct Answer

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


A) Dentist
B) Hospital
C) Carwash
D) Stockbroker
E) Interior decorator

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

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Kensworth-McCoy is a government auditing firm that specializes in auditing public transportation systems.The firm was operating at maximum capacity when it was asked to submit a bid on a very lucrative account in Chicago.If the firm were to win this account and keep all of its current accounts,it will more than likely:


A) Decrease employee turnover potential
B) Increase customer satisfaction through a work focus
C) Increase employee burnout
D) Increase service quality
E) Create a narrower window of opportunity for meeting deadlines

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

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Nine months after the terrorist 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) :


A) Random demand fluctuation
B) Relative demand shift
C) Predictable demand cycle
D) Vertical demand configuration
E) Organized demand pattern

F) None of the above
G) A) and B)

Correct Answer

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The fundamental issue underlying supply and demand management in services is the lack of _____ capability.


A) Inventory
B) Customization
C) Automation
D) Standardization
E) Transportation

F) B) and D)
G) B) and E)

Correct Answer

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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.

A) True
B) False

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In a supermarket,customers who have only a few items will wait longer than customers who have a full cart of groceries because supermarkets use a differentiating queue.

A) True
B) False

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

A) True
B) False

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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:


A) Gap 1
B) Gap 2
C) Gap 3
D) Gap 4
E) Gap 5

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

Correct Answer

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Which of the following is NOT a strategy for adjusting capacity to match demand?


A) Cross-training employees
B) Scheduling down time during periods of low demand
C) Renting additional facilities or equipment
D) Using part-time employees
E) Differentiating on price

F) A) and B)
G) All of the above

Correct Answer

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


A) Wide; can usually be met without a major delay
B) Wide; regularly exceeds capacity
C) Narrow; can usually be met without a major delay
D) Narrow; regularly exceeds capacity
E) Wide,can never be met

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

Correct Answer

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The Kingston Little Theater is a semi-professional troupe that presents six productions annually.It knows that if it presents a musical from the 1950s or the 1960s it will attract a large audience from the gay community to see the production.It could chart its demand pattern by looking at:


A) How it acquires prospects
B) Geographical influences on demand
C) Audience empowerment
D) Market segments
E) Seasonal fluctuations

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

Correct Answer

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


A) Demand that exceeds maximum capacity
B) Demand that exceeds optimum capacity
C) Supply and demand balanced at the level of optimum capacity
D) Demand that is below optimum capacity
E) All of the above scenarios can result from variations in demand relative to capacity.

F) B) and D)
G) C) and E)

Correct Answer

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Which of the following queue configurations is designed to ensure fairness of waiting time?


A) Multiple queue
B) Double queue
C) Take-a-number queue
D) Queue with barriers
E) Roundabout queue

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

Correct Answer

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Convention hotels provide meeting rooms and banquet hotels to convention participants.Sometimes a specific convention may involve 2000 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) A) and C)
G) D) and E)

Correct Answer

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The Baltimore Orioles,a professional baseball team,offer standing room only seats to fans when a home game at The Ballpark at Camden Yards is sold out.The Baltimore Orioles are stretching _____ to adjust the capacity of The Ballpark at Camden Yards to meet fan demand.


A) Time
B) Labor
C) Facilities
D) Equipment
E) Customers

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

Correct Answer

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