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.

Question

Quizplus · Accepted Answer

Service inventory costs are related to idle production capacity because services cannot be stored or inventoried like products, leading to costs when resources are not being utilized.

How Is Inventory of Services Different from That of Products