1. In service industries, capacity is often viewed as the _______.

a. minimum rate of output per unit time

b. amount of setup time

c. units of resource availability

d. amount of overtime scheduled

2. Based upon your readings in the textbook, consider the following scenario: Magnira Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Magnira Hotels?

a. Investment

b. Allocation

c. Capacity expansion

d. Capacity sharing

3. Customers entering a queue (waiting line) at a cafeteria on a first come, first served basis. The arrival rate follows a Poisson distribution, and the maximum length is unlimited. If the average number of arrivals is 6 customers per minute and the average service rate per minute of a single server is 10 per minute, what is the average number of customers in the system? Assume Model 1.

a. 0.6

b. 0.9

c. 1.50

d. 0.25

e. none of the above