Question 1

When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.

Accepted Answer

This statement is true. When a chase demand strategy is used, it is important to have plans in place to effectively manage capacity based on changing demand. This includes being able to utilize, transfer, or reduce service capacity when there is excess available, as well as quickly developing or borrowing capacity when demand exceeds current capacity levels.

Question 2

The optimal capacity utilization for an organization would be 100%.

Accepted Answer

It is not advisable for an organization to run at 100% capacity utilization as it leaves no room for unforeseen circumstances, maintenance, and upgrades. It is generally recommended to operate at around 80-90% capacity utilization to maintain efficiency and flexibility.

Question 3

Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.

Accepted Answer

Cross-training workers allows for a more flexible workforce, enabling organizations to better handle fluctuations in demand and adjust capacity as needed.

Question 4

In most services, customers are either directly or indirectly involved in the production of the service itself.

Accepted Answer

In many services, customers are directly involved in the production process (e.g. haircuts, massages, consulting services). In other cases, customers may not be directly involved but still have an impact on the service through their demands and preferences. For example, a restaurant may change its menu based on customer feedback, even if customers are not cooking the food themselves.

Question 5

A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.

Accepted Answer

A service bundle consists of the explicit service, supporting facility, facilitating goods, and implicit services.

Question 6

Since the 1950s, the percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.

Accepted Answer

This statement is true as the use of technology and mass production techniques developed during the 1950s enabled businesses to increase their efficiency and productivity, leading to a shift towards service-related jobs.

Question 7

A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders.Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers.Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant.To analyze this situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.

Accepted Answer

The situation described fits the queuing model for an infinite source, multiple servers, and multiple channels, since there are three separate lines (channels) and three cash register attendants (servers) taking orders from an infinite number of customers.

Question 8

Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.

Accepted Answer

The answer of Balking occurs when customers decide to leave...

Question 9

Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E.Cheese (kids theme) are all examples of Entertailment facilities.

Accepted Answer

The answer of Themed restaurants such as the ESPN zone...

Question 10

In a franchise, the franchisee invests some of their own money, while paying a percentage of sales to the franchiser.

Accepted Answer

This statement is true. Franchisees typically invest their own money to open a franchise, while also paying a percentage of their sales to the franchiser as part of the franchise agreement.

Question 11

When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.

Accepted Answer

The carwash provides cleansing and maintenance services that enhance the state of the vehicle, making it more presentable and possibly improving its longevity, thus providing state utility to the automobile.

Question 12

Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.

Accepted Answer

This statement is true. Empowering front-line service personnel to identify and solve problems in a timely and empathetic manner is important for maintaining long-term customer satisfaction, particularly when service failures occur.

Question 13

In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.

Accepted Answer

This statement accurately reflects the key components that service organizations need to consider in order to maximize customer satisfaction and encourage repeat visits.

Question 14

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

Accepted Answer

The text states that good queue management involves managing only the customer's perceived waiting time, which means taking actions to reduce or distract from the perceived time rather than the actual time.

Question 15

A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.

Accepted Answer

A retailer with two checkout stands is an example of a single-channel, single-phase queuing system if each checkout stand operates independently, serving customers from the same line. If the two stands serve different functions in a sequence for each customer, it would be a multi-phase system. However, as described, it suggests a single-phase process at each stand.

Question 16

Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.

Accepted Answer

The answer of Baumol's disease refers to the fact that...

Question 17

Service facilities are normally decentralized.

Accepted Answer

Service facilities are often decentralized in order to improve accessibility and reduce congestion in high-traffic areas. This allows for easier access to services for customers and decreases the burden on any one location.

Question 18

Service organizations need to consider the fact that the services they provide are not consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.

Accepted Answer

Service organizations primarily provide services that are consumed by the immediate customer, as services are intangible and are often produced and consumed simultaneously, making it difficult to pass them down a distribution channel in the same way physical products are.

Question 19

When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.

Accepted Answer

When a level demand strategy is used, the capacity remains constant, so during peak demand periods, excess customers may need to be managed through demand or queue management tactics.

Question 20

Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.

Accepted Answer

Location strategy is important because it can help businesses create advantages such as obstacles for competitors trying to enter the market or positioning yourself to better serve your target market. Additionally, choosing the right location can help you attract more customers and generate additional demand.

Quiz 12: Service Response Logistics