Week 6 Quiz

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1. A service blueprint with a large number of intricate steps is considered to have a
A) high degree of divergence.
B) low degree of complexity.
C) high degree of complexity.
D) low degree of divergence.
2. The term "customer contact" refers to
A) the handling of the product by the customer.
B) the influence the customer has on service design.
C) the amount of time spent waiting in the system.
D) the physical presence of the customer in the system.
3. Bars that offer happy hours in the afternoon are using the strategy of
A) creating adjustable capacity.
B) developing complementary services.
C) increasing customer participation.
D) promoting off-peak demand.
4.
Check processing is an example of a process with
A) indirect customer contact and low divergence.
B) direct customer contact and low divergence.
C) no customer contact and high divergence.
D) no customer contact and low divergence.
5. Which one of the following is not an example of a high customer contact service?
A) Dry cleaning.
B) Banking.
C) School.
D) Hotel.
6. _________ variability is not one of the five sources of customer-induced variability.
A) Arrival.
B) Capability.
C) Effort.
D) Demand.
7. A medical clinic has two doctors and each can treat 25 patients a day. The doctors see walk-in
patients whose arrival times cannot be controlled, and also patients who have made
appointments. Knowing the expected number of walk-ins per day, appointments are scheduled to
utilize the doctors fully. The following table gives the expected number of walk-ins for a particular
week:

What is the total number of appointments that can be scheduled during this week?
A) 30
B) 35
C) 40
D) 45
8.
___________ is not one of the categories of intellectual property.
A) A trademark.
B) A trade secret.
C) Industrial design.
D) Process layout.

9. A good overbooking strategy should
A) minimize the expected opportunity cost of idle service capacity.
B) balance the expected opportunity cost of idle service capacity and expected cost of
turning away customers who have reservations.
C) minimize the expected cost of turning away reservations.
D) none of the above; services should try to avoid overbooking.
10.
The purpose of differential pricing is to
A) make peak period usage unattractive.
B) make off-peak usage attractive.
C) charge customers according to their ability to pay.
D) adjust capacity to demand.
Refer to the results from the SimQuick simulation model below to answer the following 5 multiplechoice questions. You will see that the results are similar to the two-teller, bank model described
from pages 19-21 in the SimQuick book. You can click the image to open it in its own window if
you wish.

11.
Based on the above simulation results, on average, how long are tellers working per hour? (Time
is measured in minutes, and there are two tellers)
A) 15 minutes.
B) 25 minutes.
C) 35 minutes.
D) 45 minutes.
E) None of these answers.

12. On average, how long do customers wait in the line (buffer) before going to one of the two
tellers?
A) .5 minutes (30 seconds).
B) 3.77 minutes (3 minutes and 46 seconds).
C) .38 minutes (23 seconds).

D) .73 minutes (44 seconds).
E) None of these answers.
13. On average, the throughput of the service system at the end of the simulation is estimated
at:
A) 59.00 customers.
B) 3.77 customers.
C) 57.83 customers.
D) 8.92 customers.
E) More than of these answers is correct.
14. On average, approximately how long does a customer spend in the service system if the
teller takes an average of 2.4 minutes to serve a customer?
A) 2 minutes and 24 seconds.
B) 2 minutes and 54 seconds.
C) 3 minutes and 8 seconds.
D) 3 minutes and 24 seconds.
E) None of these answers.
15. In addition to the average performance of the system, process analysts must also consider
___________ to arrive at valid conclusions regarding the performance of a service system.
A) process variation.
B) process toleration.
C) process design.
D) process control.
E) None of these answers.
16. Consider the admissions process you encountered upon enrollment at Sullivan University.
Discuss the general process flow. What were the bottleneck(s) and how can the process be
improved? I don’t expect a detailed model with distributions, etc. but rather a general discussion
of how the process looks and ways to improve it.

1. Analysis
I used the Regression model for forecasting.
Independent variable – Attendance
Dependent Variables – Year, Homecoming, Craft Festival and Quarter (Removed in second run)
Confidence Level -95%
The final Equation obtained for me in order to use in forecasting
Attendance = 35380.2 + 2305.8 * Year + 4005.6*Homecoming + 11078*Craft Festival
Seaso Gam
n
e
2003
1
2
3
4
5

Attendance
35380.2 + 2305.8 *6 + 4005.6*0- 11078*0
35380.2 + 2305.8 *6 + 4005.6*1- 11078*0
35380.2 + 2305.8 *6 + 4005.6*0- 11078*0
35380.2 + 2305.8 *6 + 4005.6*0- 11078*1
35380.2 + 2305.8 *6 + 4005.6*0- 11078*0

Attendanc
e
49215
53220.6
49215
38137
49215

Total Attendance
(Rounded)

239003
2004

1
2
3
4
5

35380.2 + 2305.8 *7 + 4005.6*0- 11078*0
35380.2 + 2305.8 *7 + 4005.6*1- 11078*0
35380.2 + 2305.8 *7 + 4005.6*0- 11078*0
35380.2 + 2305.8 *7 + 4005.6*0- 11078*1
35380.2 + 2305.8 *7 + 4005.6*0- 11078*0

51520.8
55526.4
51520.8
40443
51520.8
250532

Conclusion – We see that Homecoming Games varies positive with attendance and Craft Festival varies
negative with attendance. Therefore Games 1,3 and 5 will be expected to have similar attendance.
2. Revenues
We see that the price per ticket in 2004 is $20.00 and that in 2004 is $20.00+5%*20 = $21.00
Seaso Attendanc
n
e
2003
239003
2004
250532

Price
$20.00
$21.00

Revenue
$4,780,060.00
$5,261,172.00

3. Options
The only option feasible according to me for SWU is to increase the capacity of the stadium. We can see
the maximum projected attendance for 2004 is 55,526. The current capacity is 54,000. By doing that they

can sell more tickets and thus increase the revenue. In future is the demand for tickets increases
continuously then they can think of building a bigger stadium.

E-commerce strategies
In order to implement a successful e-commerce site the philosophy should be build a business first and
then the web site. An effective ecommerce site begins by understanding and defining the business
strategy, goals and metrics for the site, and then crafting a website that is tailored to meet those site
objectives.
The main steps involved are as follows –
1. Make proper Ecommerce Requirements Specification (ERS) – This will clearly specify what the site
wants to accomplish, both for the business and the users. This eventually has to be translated into a set of
requirement for the content and functionality of the site.
2. Make proper Design Document – An excellent Ecommerce Website that also contains a Content
Management System, an Email Marketing System, a Product Catalog System, a 3D Modeling tool to
showcase your products, Web Analytics, and integration with the ecommerce supply chain. This aspects
has to be framed into comprehensive design from the ERS.
3. Effective Development Strategy – There is a need of develop a dedicated Custom Solution that is
architected from the ground up specifically for this business.
4. Integrating the end product – Proper integration procedure should be there between the organizations
and its user, business partners, banks etc. this is a very critical aspect of e-commerce development.
5. Continuous evaluation of effectiveness – Continuous monitoring should be there in order to overcome
the following shortcomings








Shopping cart abandonment
Bad User Experience and usability
Poor navigation
Slow performance
Slow or limited site search
Inability to make changes quickly
Poor Performance with search engines

6. Risk Analysis and Management – The likelihood that a negative outcome will occur in the course of
developing and operating an electronic commerce strategy. This has to be taken care properly.

Factors for successful implementation of e-commerce
Business success factors –
1. Attracting New Customers: By planning and implementing a search-engine friendly architecture
from the start, your ecommerce site gains relevant and targeted traffic
2. Increasing Sales: By streamlining the sales process and improving the shopping experience we
increase the conversion rate and the average ticket price
3. Increasing Customer Loyalty and Retention: An enhanced, usable, and pleasing ecommerce
experience generates greater user satisfaction and trust which translates into returning customers.
Technological success factors –
1. Providing Superior Customer Service and Communications: Help your customers to
communicate, engage and ultimately identify themselves with your business through ecommerce
tools, user communities, online support, and by providing them with comprehensive and timely
product information
2. Reducing Operating Costs and Increasing Efficiency: Reduce your customer acquisition,
customer service and fulfillment costs by leveraging the website for client communications and
process automation
Organizational success factors –
1. Promoting Your Brand and Enhancing Your Brand Image: This is essential to display a
consistent corporate identity online along with a professional style guide. A proper ecommerce
Marketing solution promotes an organization’s products to the right audience, resulting in
enhanced Brand Recognition and demand
2. Preparing for Future Needs: With a proper plan and scalable architecture, an ecommerce site
can accommodate additional requirements, features and functionality in the future

ReferencesEcommerce Strategy (N.D.) retrieved from
http://www.ecommercepartners.net/Services/Ecommerce-Consulting/EcommerceStrategy.shtml
Turban, E., King, D., lee, J., Liang, T.P., & Turban, D. (2012). Electronic Commerce. Managerial and
Social Networks Perspective 2012.
Rana T. (2003) Applying E-Commerce in Business Sage Publications pp 44-295

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