Why Are Inventory of Services Different from That of Goods

question 169

Multiple Choice

Why are inventory of services different from that of goods?

• A)Time is less important to customers of services than customers of goods.
• B)Only service inventory can be reduced through more efficient movement of products.
• C)There are larger costs associated with the handling of service inventory.
• D)Unlike goods providers,the service provider is often unavailable when there is a demand for the service.
• E)Service inventory costs are related to idle production capacity rather than storage or handling.

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Definitions:

Organizational Problems

Issues or challenges faced by an organization that hinder its ability to achieve its goals or maintain effective operation.

Chief Executive Officer

A redefinition: The principal executive officer responsible for managing an organization's overall operations and making major corporate decisions.

Strategic Plan

A deliberate document that outlines an organization's direction and goals over a specific period, providing a roadmap for achieving those objectives.

Chief Executive Officers

The highest-ranking executives in a company or organization, responsible for making major corporate decisions.