Describe how the concept of bottlenecks would apply to services as well as products. Give some examples from your experience.

Quality and productivity management

1- Exactly what decreases in unit cost occur with larger facilities as a result of economies of scale? Might any costs increase with the size of a facility?

2- How ethical is it for airlines, hotels, and other service providers to overlook their limited-capacity facilities intentionally, knowing that at some point they will have to turn away a customer with a “guaranteed” reservation?

3- Describe how the concept of bottlenecks would apply to services as well as products. Give some examples from your experience.

4- Are the principles of waiting captured in the 23 capacity techniques of Table 4.4? Which ones?

5- Would a firm that simply expanded its current product line gain economies of scope? Might highly flexible and proficient labor also offer economies of scope

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