There are key differences between service and manufacturing organizations.Which of the following is true regarding these differences?
A) Most service organizations cannot inventory their services to absorb fluctuations in customer demand.
B) Most manufacturing organizations easily permit simultaneous production and consumption of system output.
C) Most manufacturing organizations are typically located closer to the customer, such as a central business district location, due to the simultaneity of consumption and production.
D) Service organizations can easily store current capacity in the form of inventories.

Question

Quizplus · Accepted Answer

Services are simultaneously produced and consumed and are intangible, meaning that their processes create value for customers by performing transformations that do not result in a physical entity. Services, therefore, cannot be inventoried.

There Are Key Differences Between Service and Manufacturing Organizations