1. Read the two articles referenced below*** which describe how customers in service industries introduce variability. (15%)
   1. Use the knowledge acquired to discuss how customers introduce variability for the Paramount

1. Discuss whether the Paramount accommodates or reduces this type of variability.

(Reducing variability reduces operating costs, but often at the expense of customer satisfaction; accommodating variability enhances satisfaction at the expense of operating costs)

***Sasser, W. E. (1976) "Match supply and demand in service industries", Harvard Business Review, Nov-Dec, pp. 133-140

*** Frei, F. X. (2006) "Breaking the trade-off between efficiency and service", Harvard Business Review, Nov, pp. 92-101