OM of Goods vs. Services

Question 1

Companies usually sell product package

Answer 1

product package, which are a combination ‘collection ’of goods (physical items) and services (intangible product).

Question 2

Proportion of goods and services

Answer 2

in typical purchase bundle

Question 3

OM of Goods vs. Services

Answer 3

The differences between goods and services impact the management of the goods portion versus management of the service portion.

Question 4

Managing service is more challenging?!!

Answer 4

• Typically labor intensive
• Frequently focused on unique individual attributes or desires
• Often an intellectual task performed by professionals
• Often difficult to mechanize and to store for inventory
• Often difficult to evaluate for quality