Which of the Following Represents an Aggressive Approach to Demand

question 68

Multiple Choice

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

• A)lower resort hotel room prices on Wednesdays
• B)appointments
• C)reservations
• D)first-come,first-served rule
• E)none of the above

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Definitions:

Direct Labor

The wages and benefits for employees directly involved in manufacturing a product.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity, such as rent, salaries, and insurance.

Work in Process

Inventory consisting of items in production that are not yet completed, part of the manufacturing process costs including labor, materials, and overhead.

Direct Materials

Basic substances that can be directly connected to the making of a product and are vital parts of the finished goods.