An organisation that produces non-physical outputs that require customer involvement and cannot be stored in inventory is referred to as a(n):
A) manufacturing organisation
B) non-inventory organisation
C) operations management organisation
D) service organisation
E) consumer-driven organisation.

Question

Quizplus · Accepted Answer

The term "non-physical outputs" suggests that the organisation does not produce tangible goods, which eliminates choices A and B. Choice C is too vague and can refer to any organisation involved in managing operations, whether they produce physical or non-physical outputs. Choice E is not a commonly used term in this context. Therefore, the best choice is D, service organisation, which produces intangible outputs that require customer involvement and cannot be stored in inventory. Examples include consulting firms, hotels, and airlines.

An Organisation That Produces Non-Physical Outputs That Require Customer Involvement