Why are inventory of services different from that of goods?
A)Time is less important to customers of services than customers of goods.
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 handling.

Question

Quizplus · Accepted Answer

Unlike goods, services cannot be stored in typical inventory. Instead, service inventory is related to idle production capacity rather than storage or handling. This means that service providers may have excess capacity during non-peak periods, leading to higher costs associated with maintaining the capacity even when it is not being utilized. Therefore, the costs associated with service inventory are quite different from those associated with goods inventory.

Why Are Inventory of Services Different from That of Goods