ASSESSMENT 2026 VERIFIED ANSWERS
GRADED A+
◉ Types of Demand and Capacity.
Answer: -excess demand: level of demand that exceeds maximum
available capacity
(denied service or business lost)
-demand exceeds optimum capacity: No customers are turned away
(Conditions or service quality can deteriorate which results in
dissatisfied customers)
-demand and supply are well balanced: at level of optimum capacity
(no one overworked, results in good service quality)
-excess capacity: demand is below optimum capacity and productive
resources or underutilized, low productivity
(looks like service provider is not desirable)
◉ Productive Service Capacity.
,Answer: -Facilities: determine how many customers the firm can
"hold"
-Equipment: used to process people, possessions or information.•
Not enough equipment can stall productivity
-Labor: staff levels need to be sufficient, so customers are not rushed
or left waiting
-Infrastructure: Some firms need to utilize public or private
infrastructure to provide their service•
◉ Facilities.
Answer: -Facilities: determine how many customers the firm can
"hold"
◉ Equipment.
Answer: -Equipment: used to process people, possessions or
information.• (Not enough equipment can stall productivity)
◉ Labor.
Answer: -Labor: staff levels need to be sufficient, so customers are
not rushed or left waiting
,◉ infrastructure.
Answer: Infrastructure: Some firms need to utilize public or private
infrastructure to provide their service•
◉ Stretching capacity levels:.
Answer: -Capacity of service personnel can be stretched to work at
higher levels of efficiency
-Utilizing the facilities for longer periods of time• Ex: extending
hours•
-Decrease the amount of time it takes to process the customer or
possession
◉ Adjusting Capacity to Match Demand.
Answer: -Schedule downtime during periods of low demand
-Cross-train employees
-Use part-time employees
-Ask customers to share
-Create flexible capacity
-Rent or share extra facilities and equipment
◉ Chasing Capacity.
, Answer: adjusting capacity by tailoring the overall level of capacity
to match variations in demand
◉ underlying causes of these cyclical demand variations.
Answer: • Employment schedules• Tax refunds
• Wage and salary payment dates
• Seasonal changes in climate
• Holidays
◉ Do demand levels seem to change randomly?.
Answer: • Day-to-day changes in the weather
• Health events
• Accidents, fires, and certain criminal activities
• Natural disasters
◉ Managing Demand.
Answer: Excess demand: reducing demand in peak periods
• Higher prices
• Change in product elements (time consuming elements)
• Modifying time and place of delivery
Excess capacity: increasing demand in low periods