Chapter 9 (1)

Question 1

Managing supply
Schedule workshifts

Answer 1

Daily, weekly, period workshifts

1. Forecast demand
2. Determine personnel requirements
3. Determine “shifts”
4. Assign personnel to shifts

Question 2

Managing supply
Use part time employees

Answer 2

When peaks are persistent and predictable (works best with standardized work)

Question 3

managing supply
Cross-Train personnel

Answer 3

Single service anti-cyclic processes
Circus, bus driver become tour guide

Single-service multiple processes different priorities
Supermarket stocker become cashier

Question 4

managing supply

Answer 4

service scape

First class and coach

Adjustable wall

Adjustable time

Question 5

managing supply
share capacity

Answer 5

own scope remains same

Own scope narrows

Question 6

yield management

Answer 6

Use fixed capacity optimally in time to increase revenue

Question 7

Yield formula

Answer 7

Actual revenue/potential revenue

Question 8

Actual revenue and potential revenue formula

Answer 8

Actual revenue = actual capacity used * average actual price

Potential revenue = total capacity *maximum price

Question 9

Yield management (continued)

Answer 9

Relatively fixed capacity

Opportunity to segment demand

Supply is perishable

Serivce is purchased before consumption

Demand fluctuates

Low marginal costs per unit and high marginal cost per capacity extension

Producer-consumer interaction

service cannot be transported