How Is Inventory of Services Different from That of Products

question 104

Multiple Choice

How is inventory of services different from that of products?

• A) Time is less important to customers of services than customers of products.
• 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 perishability.

---

Definitions:

Operations Manager

Someone whose job is to guide, plan, and monitor the production process and modify organizational practices in the creation of goods or services.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Operations Strategy

A long-term plan specifying the methods and processes used by an organization to produce goods or deliver services, aligning with overall business strategy.