Question: Many businesses involve make - to - order operations such as job shops and service facilities wherein customer orders cannot be processed and inventoried ahead
Many businesses involve maketoorder operations such as job shops and service facilities wherein customer orders cannot be processed and inventoried ahead of time. Which of the following is NOT true about the features of service operations?
Many businesses involve maketoorder operations such as job shops and service facilities wherein customer orders cannot be processed and inventoried ahead of time. Which of the following is NOT true about the features of service operations?
A key to managing service operations is matching process capacity and variable demand.
These orders become inflow units that may have to wait before being processed. The queue of waiting orders then becomes the inventory of flow units, and resulting delay increases the order flow time.
The cost of holding the inventory of unprocessed orders does not matter since there is no physical inventory.
Without benefit of inventory, process must keep sufficient capacity to process orders as they come in
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