Several of the differences between manufacturing and service stem from the physical nature of the output. Manufacturing can stockpile inventories of finished products in advance of customer demand. Service organizations usually cannot.

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Manufacturing involves the production of tangible goods that can be stored in inventory before being sold, whereas services are intangible and cannot be produced ahead of time or stored, making them highly dependent on real-time demand.

Several of the Differences Between Manufacturing and Service Stem from the Physical