Question 1

Effective differential pricing over time will generally

Accepted Answer

A) decrease the level of product availability for the consumer willing to pay full price and also decrease total profits for the retailer. 
B) decrease the level of product availability for the consumer willing to pay full price but will increase total profits for the retailer. 
C) increase the level of product availability for the consumer willing to pay full price and also increase total profits for the retailer. 
D) increase the level of product availability for the consumer willing to pay full price but will decrease total profits for the retailer. 
A) decrease the level of product availability for the consumer willing to pay full price and also decrease total profits for the retailer. 
B) decrease the level of product availability for the consumer willing to pay full price but will increase total profits for the retailer. 
C) increase the level of product availability for the consumer willing to pay full price and also increase total profits for the retailer. 
D) increase the level of product availability for the consumer willing to pay full price but will decrease total profits for the retailer.

Question 2

The tactic of overbooking or overselling the available asset is suitable in any situation where customers are able to cancel orders and the value of the asset drops significantly after a deadline.

Accepted Answer

A) True 
 B)False

Question 3

The two forms of supply chain assets are

Accepted Answer

A) capacity and inventory. 
B) capacity and revenue. 
C) inventory and revenue. 
D) inventory and warehouse space. 
A) capacity and inventory. 
B) capacity and revenue. 
C) inventory and revenue. 
D) inventory and warehouse space.

Question 4

Any asset that loses value over time is perishable.

Accepted Answer

A) True 
 B)False

Question 5

How do firms address the problems of spoilage and spill?

Accepted Answer

In most instances of differential pricin

Question 6

Scenario 16.3 - AITP's Revenge
The student chapter of the Association of Information Technology Professionals (AITP)notices the success that the APICS student chapter has with their traditional barbecue sauce fundraiser.Blinded by their jealousy,the club officers decide to sell a competing product,clocks made out of junk computer parts that the club sponsor whips up in his garage.Club officers set up a card table in the atrium of the business building and take turns staffing it for the duration of the computer clock season,which is four months.Twenty-five years of experience have revealed that demand varies depending on the month of the season.Customer demand in the first month can be described as 20-p1,in the second month as 20-1.4p2,in the third month 20-1.8p3,and in the fourth month 20-2.2p4.
-The components needed to produce a computer clock cost twenty-five cents.What should the price of the computer clocks be in the first month of the selling season?

Accepted Answer

A) $5.68 
B) $7.27 
C) $10.13 
D) $14.52 
A) $5.68 
B) $7.27 
C) $10.13 
D) $14.52

Question 7

Most firms must decide what fraction of an asset to

Accepted Answer

A) sell in bulk and what fraction of the asset to discard. 
B) save for the spot market and what fraction of the asset to discard. 
C) save for emergencies and what fraction of the asset to rework. 
D) sell in bulk and what fraction of the asset to save for the spot market. 
A) sell in bulk and what fraction of the asset to discard. 
B) save for the spot market and what fraction of the asset to discard. 
C) save for emergencies and what fraction of the asset to rework. 
D) sell in bulk and what fraction of the asset to save for the spot market.

Question 8

Scenario 16.3 - AITP's Revenge
The student chapter of the Association of Information Technology Professionals (AITP)notices the success that the APICS student chapter has with their traditional barbecue sauce fundraiser.Blinded by their jealousy,the club officers decide to sell a competing product,clocks made out of junk computer parts that the club sponsor whips up in his garage.Club officers set up a card table in the atrium of the business building and take turns staffing it for the duration of the computer clock season,which is four months.Twenty-five years of experience have revealed that demand varies depending on the month of the season.Customer demand in the first month can be described as 20-p1,in the second month as 20-1.4p2,in the third month 20-1.8p3,and in the fourth month 20-2.2p4.
-The components needed to produce a computer clock cost twenty-five cents.What should the price of the computer clocks be in the third month of the selling season?

Accepted Answer

A) $14.52 
B) $10.13 
C) $7.27 
D) $5.68 
A) $14.52 
B) $10.13 
C) $7.27 
D) $5.68

Question 9

Scenario 16.1 - The Stone Lion
The Stone Lion,a bed and breakfast located in a sleepy town,caters to two groups of customers,young couples interested in something marginally more exotic than a staycation,and corporate clients interested in doing some team-building at a location with no cellular service.Corporations know they can get rooms with minimal notice,but young couples on tight budgets tend to plan well in advance of their planned stay at the property.The corporate rate for rooms is $250 per person and the demand pattern is normal with a mean of 20 and a standard deviation of 10.The proprietor of the Stone Lion takes pity on the young couples and charges them only $150 for identical accommodations.
-If the corporate price and young couples' price both double,how many additional rooms should the Stone Lion hold for corporate clients?

Accepted Answer

A) 3 
B) 2 
C) 1 
D) 0 
A) 3 
B) 2 
C) 1 
D) 0

Question 10

How can firms address the problem of perishable assets?

Accepted Answer

Any asset that loses value over time is

Question 11

Scenario 16.1 - The Stone Lion
The Stone Lion,a bed and breakfast located in a sleepy town,caters to two groups of customers,young couples interested in something marginally more exotic than a staycation,and corporate clients interested in doing some team-building at a location with no cellular service.Corporations know they can get rooms with minimal notice,but young couples on tight budgets tend to plan well in advance of their planned stay at the property.The corporate rate for rooms is $250 per person and the demand pattern is normal with a mean of 20 and a standard deviation of 10.The proprietor of the Stone Lion takes pity on the young couples and charges them only $150 for identical accommodations.
-If the price young couples are willing to pay increases by 50%,how many rooms should be reserved for corporate clients?

Accepted Answer

A) 17 
B) 7 
C) 4 
D) 10 
A) 17 
B) 7 
C) 4 
D) 10

Question 12

Revenue management adjusts the pricing and available supply of assets to maximize profits.

Accepted Answer

A) True 
 B)False

Question 13

Customers will have a negative perception of revenue management tactics if they are simply presented as a mechanism for extracting maximum revenue.

Accepted Answer

A) True 
 B)False

Question 14

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

Accepted Answer

A) spill. 
B) spoilage. 
C) wastage. 
D) excess. 
A) spill. 
B) spoilage. 
C) wastage. 
D) excess.

Question 15

To differentiate between the various market segments,the firm must

Accepted Answer

A) create barriers by identifying product or service attributes that the segments value differently. 
B) eliminate barriers that identify product or service attributes that the segments value differently. 
C) negotiate separately with different market segments that value product or service attributes differently. 
D) develop pricing structures based on the volume of various product or service attributes. 
A) create barriers by identifying product or service attributes that the segments value differently. 
B) eliminate barriers that identify product or service attributes that the segments value differently. 
C) negotiate separately with different market segments that value product or service attributes differently. 
D) develop pricing structures based on the volume of various product or service attributes.

Question 16

The reserved quantity will be affected by the difference in margin between the spot market and the bulk sale,but not the distribution of demand from the spot market.

Accepted Answer

A) True 
 B)False

Question 17

Faced with seasonal peaks,an effective revenue management tactic is to charge a higher price during the peak period and a higher price during off-peak periods.

Accepted Answer

A) True 
 B)False

Question 18

A shortage of capacity (or inventory)occurs when

Accepted Answer

A) there are excessive cancellations. 
B) there are few cancellations. 
C) an expensive backup needs to be arranged. 
D) B and C only 
A) there are excessive cancellations. 
B) there are few cancellations. 
C) an expensive backup needs to be arranged. 
D) B and C only

Question 19

Unused capacity from the past is extremely valuable.

Accepted Answer

A) True 
 B)False

Question 20

The tactic of varying price over time is suitable for assets

Accepted Answer

A) that do not have a clear date beyond which they lose a lot of their value. 
B) that have a clear date beyond which they lose a lot of their value. 
C) where customers are able to cancel orders and the value of the asset drops significantly after a deadline. 
D) where customers are unable to cancel orders and the value of the asset drops significantly after a deadline. 
A) that do not have a clear date beyond which they lose a lot of their value. 
B) that have a clear date beyond which they lose a lot of their value. 
C) where customers are able to cancel orders and the value of the asset drops significantly after a deadline. 
D) where customers are unable to cancel orders and the value of the asset drops significantly after a deadline.

Effective differential pricing over time will generally

The tactic of overbooking or overselling the available asset is suitable in any situation where customers are able to cancel orders and the value of the asset drops significantly after a deadline.

The two forms of supply chain assets are

Any asset that loses value over time is perishable.

How do firms address the problems of spoilage and spill?

Most firms must decide what fraction of an asset to

How can firms address the problem of perishable assets?

Revenue management adjusts the pricing and available supply of assets to maximize profits.

Customers will have a negative perception of revenue management tactics if they are simply presented as a mechanism for extracting maximum revenue.

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

To differentiate between the various market segments,the firm must

The reserved quantity will be affected by the difference in margin between the spot market and the bulk sale,but not the distribution of demand from the spot market.

Faced with seasonal peaks,an effective revenue management tactic is to charge a higher price during the peak period and a higher price during off-peak periods.

A shortage of capacity (or inventory)occurs when

Unused capacity from the past is extremely valuable.

The tactic of varying price over time is suitable for assets

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 16: Pricing and Revenue Management in a Supply Chain

Effective differential pricing over time will generally

The tactic of overbooking or overselling the available asset is suitable in any situation where customers are able to cancel orders and the value of the asset drops significantly after a deadline.

The two forms of supply chain assets are

Any asset that loses value over time is perishable.

How do firms address the problems of spoilage and spill?

Most firms must decide what fraction of an asset to

How can firms address the problem of perishable assets?

Revenue management adjusts the pricing and available supply of assets to maximize profits.

Customers will have a negative perception of revenue management tactics if they are simply presented as a mechanism for extracting maximum revenue.

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

To differentiate between the various market segments,the firm must

The reserved quantity will be affected by the difference in margin between the spot market and the bulk sale,but not the distribution of demand from the spot market.

Faced with seasonal peaks,an effective revenue management tactic is to charge a higher price during the peak period and a higher price during off-peak periods.

A shortage of capacity (or inventory)occurs when

Unused capacity from the past is extremely valuable.

The tactic of varying price over time is suitable for assets

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Sustainability and the Supply Chain

Filters