Chapter 9 True or False

Question 1

term refers to the resources or assets that a firm can use to create goods and services that are typically key cost components and therefore need to be managed carefully.

In a service context, productive capacity can take several forms, including facilities ,equipment, labor, and infrastructure

Answer 1

Product service capacity

Question 2

level of demand exceeds the maximum available capacity, resulting in some customers being denied service and business is lost.

Answer 2

Excess demand

Question 3

No one is turned away, but conditions are crowded and customers are likely to perceive a deterioration in service quality and may feel dissatisfied.

Answer 3

Demand exceeds optimum capacity

Question 4

Demand is below optimum capacity and productive resources are underutilized, resulting in low productivity

Answer 4

Excess capacity

Question 5

(ability to absorb extra demand) The actual capacity level remains unchanged, and more people are being served with the same capacity.

Answer 5

Elastic Capacity

Question 6

are intended to guarantee that service will be available when the customer wants it.

Answer 6

Reservations

Question 7

is something that occurs everywhere.

known to operations researchers as “queues”

Answer 7

Waiting

Question 8

Saves customers the need to stand in a queue.
This procedure allows them to sit down and relax, or to guess how long the wait will be and do
something else in the meantime

Answer 8

Taking a number.