- What is the primary objective of Capacity Management in service operations?A) To increase production ratesB) To match service capacity with customer demandC) To reduce supply chain costs
D) To expand service offerings
Answer: B) To match service capacity with customer demand
- Which of the following best describes ‘Service Capacity’?A) The amount of raw materials available for service productionB) The maximum number of customers that a service facility can handle at a given timeC) The financial resources allocated for service delivery
D) The speed at which a service is delivered
Answer: B) The maximum number of customers that a service facility can handle at a given time
- Which strategy is used to manage capacity during peak demand periods in services?A) OutsourcingB) Expanding physical infrastructureC) Implementing flexible scheduling and resource allocation
D) Increasing inventory levels
Answer: C) Implementing flexible scheduling and resource allocation
- In capacity management, what does the term ‘Yield Management’ refer to?A) Optimizing the mix of service offerings to maximize revenueB) Increasing the number of service staffC) Adjusting prices based on service demand and capacity
D) Enhancing service delivery speed
Answer: C) Adjusting prices based on service demand and capacity
- Which of the following is a common technique for forecasting service demand?A) Linear ProgrammingB) Moving AverageC) Monte Carlo Simulation
D) Resource Planning
Answer: B) Moving Average
- What role does ‘Staff Scheduling’ play in capacity management?A) It ensures that sufficient staff is available to meet customer demandB) It determines the budget for service operationsC) It manages supplier relationships
D) It schedules maintenance for service equipment
Answer: A) It ensures that sufficient staff is available to meet customer demand
- Which metric is commonly used to assess the effectiveness of capacity management in service operations?A) Utilization RateB) Return on Assets (ROA)C) Cost of Goods Sold (COGS)
D) Net Promoter Score (NPS)
Answer: A) Utilization Rate
- What is ‘Capacity Cushion’ in the context of service operations?A) The excess capacity that is intentionally maintained to handle unexpected demand surgesB) The additional cost incurred to expand service facilitiesC) The minimum capacity required to meet average demand
D) The amount of downtime in service operations
Answer: A) The excess capacity that is intentionally maintained to handle unexpected demand surges
- Which approach helps in balancing demand and capacity in a service setting?A) Expanding service facilitiesB) Implementing appointment systems and reservationsC) Increasing service prices
D) Reducing service quality
Answer: B) Implementing appointment systems and reservations
- In a service setting, what is ‘Overbooking’ used for?A) To ensure that service facilities are fully utilized by anticipating no-shows or cancellationsB) To increase the number of service staffC) To expand physical infrastructure
D) To reduce service delivery times
Answer: A) To ensure that service facilities are fully utilized by anticipating no-shows or cancellations