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.

Question

Quizplus · Accepted Answer

Effective control of all goods leaving the facility is an applicable technique for controlling service inventories, as it helps ensure that the right services are delivered to customers at the right time. A and B are incorrect because service inventory is a real concept and safety stock can be necessary to prevent delays or cancellations of services. D is incorrect because service inventory can also have setup costs, such as the time and materials needed to set up a conference room for a meeting. E is incorrect because personnel selection, training, and discipline are important but not necessarily easy components of controlling service inventories.

Which of the Following Statements Regarding Control of Service Inventories