Fast Airlines operates five flights daily between Calgary and Toronto during the winter.One flight leaves Calgary at 12:10 a.m.The flight has a capacity of 120 passengers.In December, the airline was flying with full capacity.But in January, the flight has averaged only 24 passengers, leaving 96 seats empty.The flight requires at least 60 passengers to break even.Which unique aspect of services does this situation describe?

Question

Quizplus · Accepted Answer

This scenario highlights the complexity of the inventory of services.The inventory of services is more complex than that of goods due to the nature of services.Inventory problems exist because services cannot necessarily be stored and accessed when in demand.

Fast Airlines Operates Five Flights Daily Between Calgary and Toronto