Operations Management: Adjusting Capacity & Queues

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Questions and Answers

Which strategy ensures that regular customers and those needing immediate consideration are prioritized?

Ignoring requests from non-regular customers

Offering discounts to new customers

Attending to regular and special needs customers first (correct)

Prioritizing orders based on payment methods

What is a potential consequence of implementing full charge pricing during peak periods?

Increased use of discount coupons

Increase in repeat customer visits

Reduced demand for services (correct)

Higher customer satisfaction rates

Which method is NOT a way to temporarily increase capacity during peak demand?

Reducing staffing levels (correct)

Hiring part-time employees

Renting additional facilities

Extending operating hours

What does the chase demand strategy primarily focus on adjusting?

Allocating and adjusting service resources Signup and view all the answers

How can outsourcing activities impact capacity management?

It allows for flexibility during peak demand periods. Signup and view all the answers

Which of the following is a disadvantage of disallowing discount cards during peak periods?

Loss of loyal customers seeking discounts Signup and view all the answers

Which of these tactics is not included in ways to manage capacity effectively?

Reducing overall service offerings Signup and view all the answers

What is the primary goal of expanding capacity temporarily?

To meet immediate service demands Signup and view all the answers

What technique can be used during lean periods to improve operational efficacy?

Scheduling downtime for operations Signup and view all the answers

How can organizations increase demand when service demand is low?

By offering new types of services Signup and view all the answers

What is a key strategy for aligning capacities and demand in the tourism industry?

Educating customers about service advantages Signup and view all the answers

Queueing in the tourism industry often occurs due to what main reason?

Mismatched capacity management Signup and view all the answers

What is one way organizations manage employee readiness during lean periods?

By strategically scheduling vacations and training Signup and view all the answers

What is a consequence of a mismatch between capacity management and demand?

Waiting lines and queue systems Signup and view all the answers

What is one way organizations can prioritize service for high-spending customers?

Offering them a special waiting area or separate lines. Signup and view all the answers

What role do promotional packages play during lean seasons?

They provide price differentiation to attract customers. Signup and view all the answers

What type of customers are served first due to pressing needs?

Customers with medical or security concerns. Signup and view all the answers

Why might precise matching of capacity and demand be considered too costly for some organizations?

It involves maintaining unused capacity during lean periods. Signup and view all the answers

Which service option is likely for customers requiring more attention?

Endorsement to a service provider catering to specialized requirements. Signup and view all the answers

What challenge does the tourism and hospitality industry face regarding waiting times?

Reducing customers' waiting time effectively. Signup and view all the answers

How does long waiting time affect customer perception?

It reflects poorly on the organization's concern for them. Signup and view all the answers

What is a potential accommodation for customers who pay a premium price?

Access to special priority lanes. Signup and view all the answers

Which factor significantly impacts guest experiences during waiting times?

The duration of the wait and conditions. Signup and view all the answers

What type of queue is suggested for accommodating customers properly?

The correct queue type based on customer needs. Signup and view all the answers

What is a key advantage of using a numbering queuing system in a travel agency?

It provides a fair and visual method for queuing. Signup and view all the answers

How can organizations effectively lessen waiting in lines?

By implementing a reservation process. Signup and view all the answers

What is one strategy organizations should use to understand unnecessary queuing?

Conduct a queue configuration analysis. Signup and view all the answers

Why might designated lines be more effective for certain transactions in a travel agency?

They allow for better accommodation of specific customer needs. Signup and view all the answers

What is queue configuration focused on?

The number and setup of the queuing system. Signup and view all the answers

How do some service organizations differentiate waiting customers?

By prioritizing customers based on their needs. Signup and view all the answers

Which approach to queuing might not be suitable for small travel agencies?

Implementing designated lines. Signup and view all the answers

What potential benefit can spreading demand through a reservation process provide?

Better management of customer arrivals. Signup and view all the answers

What is a characteristic of a single sequential line in a queuing system?

Customers wait in a single line but pass through several serving segments. Signup and view all the answers

Which type of queue involves customers receiving numbers from an automated counter?

Numbering system Signup and view all the answers

What is an example of a parallel lines queuing system?

Check-in counters at airports Signup and view all the answers

What does the designated lines queuing system aim to achieve?

It segregates customers based on specific categories. Signup and view all the answers

What primarily determines the appropriate queuing system for a tourism establishment?

Customers' specific needs and concerns. Signup and view all the answers

In which scenario is a waiting list queuing system most effective?

When customers are served based on their group size. Signup and view all the answers

What could be a potential drawback of a single line to multiple servers?

It can lead to longer waiting times for certain customers. Signup and view all the answers

What can happen if a tourism establishment fails to implement an appropriate queuing system?

Customer dissatisfaction and complaints. Signup and view all the answers

Study Notes

Adjusting Capacity to Meet Demand

Shifting capacity involves changing an organization's ability to meet customer needs during peak periods and minimizing the capacity during downtime.
Increase capacity temporarily can be achieved through extended operating hours, part-time staff, cross-trained employees, outsourcing, and renting facilities/equipment.
Chase demand strategy involves adjusting service resources to match demand fluctuations. This involves scheduling downtime during low periods for maintenance and renovations, and scheduling employee vacations and training strategically.
Increase demand to match capacity can be achieved through customer education, facility conversion, new service offerings, and price differentiation.

Waiting Lines and Queue Systems

Waiting lines occur when the demand for a service exceeds the capacity to handle it.
Queue configuration considers the design and effect of the queue system, including the number of queues, locations, and space needed.

Types of Queues

Single sequential line is where customers pass through several serving segments. An example is a buffet line in restaurants.
Parallel lines to multiple servers apply to establishments that cater to many people at once, such as the immigration section at the airport.
Single line to multiple servers allows customers to form a single line and be served by the first available server. An example is airline check-in counters.
Designated lines segregate lines for different customer categories, such as senior citizens or persons with disabilities.
Numbering system provides customers with numbers from an automated counter, used in organizations catering to large numbers of customers, such as big travel agencies.
Waiting list requires customers to provide their names and group size and wait until their names are called.

Strategies for Dealing with Queuing

Auditing the operational process helps identify reasons for unnecessary queuing and implement changes to eliminate waiting lines and facilitate movement.
Implementing a reservation process allows customers to choose their arrival time and guarantees accommodation, spreading the demand to less popular slots.
Differentiating waiting customers involves prioritizing customers based on their needs or profiles. This includes:
- Importance of the customer (e.g., high spenders)
- Urgency of the job (e.g., medical or security concerns)
- Duration of the service transaction (e.g., express lanes for short services)
- Payment of a premium price (e.g., VIP lounges)

Managing Waiting Time

Waiting time impacts guest experiences and perception of service quality.
Long waiting times can lead to customer dissatisfaction.
Using the correct queue type is essential to accommodate customers properly.

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Description

This quiz explores the strategies for adjusting capacity to meet demand in operations management. It covers concepts like shifting capacity, chase demand strategies, and efficient queue systems. Test your understanding of these critical operational concepts.