The perishability of a service is especially a problem when demand fluctuates.

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Perishability refers to the fact that services cannot be stored or inventoried for future use. This creates a challenge when there are fluctuations in demand because service providers may have difficulty adjusting their resources (e.g. staff, equipment) to meet changing demand levels. This can result in lost revenue opportunities when demand is high or inefficient use of resources when demand is low.

The Perishability of a Service Is Especially a Problem When