Because Service Capacity Is Perishable and Service Demand Is Highly

question 23

Multiple Choice

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to:

• A) control demand by limiting capacity.
• B) control capacity through price changes over time.
• C) establish fair guidelines for overbooking capacity.
• D) shift customer demand to other firms that can handle the excess business.
• E) balance price and revenue considerations with their need to fill unused capacity.

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Definitions:

Productivity Measurement

The process of quantifying the efficiency and effectiveness of production.

Precise Units

Measurement or quantities described with accuracy and exactness, often in the context of manufacturing or science.

Workforce Size

The total number of employees, both full time and part time, engaged in an organization or available in the market.

Equipment Used

Equipment used refers to the tools, machinery, and devices employed in the execution of a specific task or operation.