Question

The text presents multiple techniques that service firms can use to make their processes leaner. Which technique is demonstrated by a restuarant that offers special discounts mid-week to attract more demand during a traditionally slow period?A) Vary income levels.B) Eliminate unnecessary activities.C) Reduce inventory levels.D) Reduce labor requirements.E) Level the facility load.

Answer 1

Answer:

E) Level the facility load.

Explanation:

The facility load refers to the utilized capacity of the restaurant. Apparently this restaurant's sales are not that high during the weekdays, and in low periods it probably falls even more. The largest portion of a restaurant's costs are generally fixed costs that must be paid regardless of the sales volume.

By offering special promotions and discounts during weekdays, management hopes to increase sales volume.

The same applies to hotels that offer special discounts on low travel seasons because they are open and they need to cover their fixed costs.

Answer 2

Answer:D

Explanation:

Reduce labour requirement