Process Analysis Quiz

Actual Revenue / Total Capacity

Total Capacity * Max. Price / Capacity used * Average Price paid

Actual Revenue / Potential Revenue

Total Capacity * Max. Price / Actual Revenue

To sell the right capacity to the right customer at the right price

To offer discounts to all customers

To maximize the total revenue without considering capacity

To reduce the capacity to increase demand

Use signage to communicate busy days and times

Offer incentives to customers for usage during non-peak times

Charge full price for the service--no discounts

Take no action

Demand > Capacity

Demand exceeds optimum capacity

Demand Too High

Excess demand

Facilities

Labor

Time

Equipment

Peak Pricing

Dynamic Pricing

Yield Management

Off-Peak Incentives

To offer fixed prices throughout the year

To maximize revenue by adjusting prices based on demand

To provide discounts to all customers

To reduce the number of available rooms

Implementing just-in-time inventory systems

Offering discounts during off-peak hours

Reducing service quality standards

Increasing advertising expenditure

Automating service delivery processes to increase efficiency

Decreasing the need for customer interactions

Minimizing the importance of workforce scheduling

Eliminating the need for capacity adjustments

Increasing customer wait times

Eliminating the need for queue management systems

Enhancing service efficiency and reducing wait times

Minimizing the importance of customer feedback