Lisbon MBA23 session2

Which of the following is NOT a characteristic of services:

• Intangible

• Can be inventoried

• Produced and consumed together

• Quality is difficult to measure

The capacity of a process is dictated by:

• the capacity of the slowest stage, the ‘bottleneck’

• the capacity of the fastest stage, the bottleneck

• the throughput time, the ‘output’

• the average flow of the fastest stage, the ‘output’

If: I - average system's inventory, T - average throughput time, R - average system's flow rate, then by Little's Law

• I = T/R

• T = I + R

• I = R/T

• R = I/T

In any system with variability in demand, you need to have:

• Capacity equal (=) to average demand

• Capacity higher than (>) average demand

• Average demand higher than (>) capacity

• Capacity higher than (>) average service time

If the service rate decreases as the arrival rate remains constant, then, in general

• Customer waiting time increases

• Customer waiting time decreases

• Service costs increase

• Customer dissatisfaction decreases

"In a system with variability in demand, where capacity is 1000 times higher than demand, queues are never formed."

• True, as capacity is far in excess of demand, there will never be queues

• False, we cannot guarantee that, on some occasions, queues won’t form

• It will depend on the type of model being analyzed

• None of the above

Which of the following statements does not make sense?

• Unexplained waits seem longer than waits explained

• Unfair waits seem longer than just waits

• Fair and group waits seem longer than individual waits

• The more valuable the service, the longer the customer is willing to wait