Service Capacity and Yield Management Quiz

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Questions and Answers

What does the arrival rate (λ) represent in a service process?

The time interval between arrivals

The average time taken to serve a customer

The number of arrivals within a specific time period (correct)

The total number of arrivals in an unspecified time period

Which distribution is typically used to model the number of arrivals in a given time interval?

Geometric distribution

Binomial distribution

Poisson distribution (correct)

Normal distribution

What is the inter-arrival time (1/λ) in the context of call centers?

The average duration of a call

The waiting time for the first call to arrive

The total duration of observation

The time between two successive calls (correct)

In the example of a carwash, if the arrival rate is 10 cars per hour, how long is the average inter-arrival time?

6 minutes Signup and view all the answers

Why is the exponential distribution suitable for modeling inter-arrival times?

It reflects a memoryless and random process Signup and view all the answers

If a home appliance repair service has an arrival rate of 4 maintenance requests per season, what is the corresponding inter-arrival time?

13 weeks Signup and view all the answers

What type of information can the average inter-arrival time provide to service managers?

It aids in scheduling and resource allocation Signup and view all the answers

In a call center with an arrival rate of 3 calls per minute, what is the expected time between two calls?

20 seconds Signup and view all the answers

What is the formula for calculating system utilization in a queuing system?

$\frac{\lambda}{c \cdot \mu}$ Signup and view all the answers

Which formula expresses the relationship between average arrival rate and average waiting time in queue?

Lq = λ * Wq Signup and view all the answers

What does Ls represent in queuing theory?

Average number of customers in service Signup and view all the answers

How is the average number of customers in the system calculated?

L = λ * W Signup and view all the answers

Which of the following statements is true regarding the average service time Ws?

Ws affects Ls when multiplied by λ. Signup and view all the answers

In a queuing system, what does Lq specifically indicate?

Average number of customers waiting in line. Signup and view all the answers

How is the probability of exactly x customers in the system represented?

px Signup and view all the answers

Which of the following would NOT be a factor in determining the average number of customers in service (Ls)?

Total operational costs of the service Signup and view all the answers

What does the inter-arrival time in an exponential distribution typically represent in a supply chain context?

The time between arrivals of elements in a process Signup and view all the answers

Which of the following intervals shows the highest frequency of occurrences based on the provided data?

(0.0, 0.7] Signup and view all the answers

How does supply chain variability affect capacity adjustment tactics?

It necessitates frequent changes in capacity to match demand Signup and view all the answers

In performance measurement, which of the following aspects is crucial for assessing the efficiency of supply chain operations?

Time taken for each delivery phase Signup and view all the answers

What is a primary environmental impact of inefficient supply chain strategies?

Higher operational costs Signup and view all the answers

Which demand and supply strategy primarily focuses on inventory control?

Lean strategy Signup and view all the answers

Which option describes an adjustment tactic to increase supply chain capacity?

Investing in new technology or equipment Signup and view all the answers

In the context of environmental impacts, how can supply chains minimize waste?

Implementing just-in-time delivery practices Signup and view all the answers

Which approach focuses on aligning production with actual consumer demand?

Demand-driven planning Signup and view all the answers

What role does performance measurement play in supply chain management?

It evaluates the effectiveness and efficiency of operations Signup and view all the answers

Study Notes

Module D: Service Capacity

This module covers service capacity, demand, and supply
It discusses understanding variability in service operations (customer-induced and operations-induced variability)
Two general ways to match demand and supply (chase demand and level capacity strategies) are highlighted.
Essential features of queuing systems (calling population, arrival process, queue configurations, queue discipline, service process) are explained
Common queuing systems and queuing analysis methods are introduced.
Design of an optimal queuing system, capacity planning criteria, queuing systems practice problems, demand management (differential pricing), and the newsvendor problem are discussed.

Yield Management

What is Yield Management?
Why is Yield Management useful in the service industry?
What do "Newsvendor", "Overbooking", and "Advance-Selling" have in common?
Yield Management practice problems are covered

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Description

This quiz covers essential topics related to service capacity, demand, and supply, focusing on variability in service operations and strategies to match demand and supply. It also explores the principles of yield management and its application in the service industry, including key practices and concepts such as the newsvendor problem and queuing systems.