1. Varying work force levels A. Can invite competition in the long run 2. Subcontracting B. Not feasible in many pure services 3. Planned inventory C. An aggressive strategy to attract more customers when the inventory is high 4. Backorders D. Economical for seasonal jobs that require low skill levels 5. Promotions E. Can result in loss of sales unless the company has unique service 6. Which of the following is not a characteristic that is required for Yield Management? A. Use of Linear Programming methodology B. Fixed and Perishable Capacity C. Ratio of Fixed to Variable cost is high D. Segmented Market 7. If an airline company does not have Hub and Spoke system and is serving 10 cities, it may need _ aircrafts. A 10 B. 90 C. 100 D. 45 8. Linear Programming is less popular than Trial and Error for Aggregate Planning for all of the following reasons, except: A. Hardware and software requirements can be expensive B. Solution time can be very high C. Data requirements are minimal D. Expertise is limited 9. Which of the following is not an example of Yield Management application A. Revenue per salesperson in Auto retail B. Revenue per square foot of retail space in Target C. Revenue per scat-mile in Delta Airlines D. Revenue per room-night in Quality Inn 10. Which of the following is not true in yield management in the Airline industry A. Overbooking is more between New York and London than between New York and Aruba (Caribbean) B. The Hub and Spoke system is not practiced by major US airlines because it is unpopular among passengers C. Overbooking can occasionally result in both voluntary and involuntary doboardings D. Discount allocation and dynamic pricing are practiced routinely