An empty airline seat cannot be held as inventory and sold at a later time.This is an illustration of which of the following statements?
A)Services cannot be inventoried.
B)Services have low demand volatility.
C)Services require skilled labor.
D)Capacity required for services is hard to predict.

Question

Quizplus · Accepted Answer

This statement reflects the characteristic of services that they cannot be inventoried. Unlike physical products, services cannot be stored for future sale, and hence, any unused capacity goes wasted. This characteristic creates unique challenges for service providers to manage their capacity utilization efficiently. The given statement is not related to demand volatility, labor requirements, or capacity predictability, making options B, C, and D incorrect.

An Empty Airline Seat Cannot Be Held as Inventory and Sold