Which of the Following Statements Regarding Control of Service Inventories

question 104

Multiple Choice

Which of the following statements regarding control of service inventories is TRUE?

• A) Service inventory is a fictional concept, because services are intangible.
• B) Service inventory needs no safety stock, because there's no such thing as a service stockout.
• C) Effective control of all goods leaving the facility is one applicable technique.
• D) Service inventory has carrying costs but no setup costs.
• E) Good personnel selection, training, and discipline are easy.

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Definitions:

Self-Starters

Individuals who begin or carry out tasks without needing external encouragement or pressure, showing initiative and motivation.

Intern

is an individual, often a student or recent graduate, working temporarily in a job to gain work experience or meet requirements for a qualification.

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An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.

Franchisor

Firm whose products are sold to customers by the franchisee.