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Question:Compared to manufacturing systems, what is it about the environment of service operations that makes them much harder to control?

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Short Answer

Expert verified

Answer

In the case of service operations, 鈥渦ncertainty and variability鈥 make it difficult to control them properly.

Step by step solution

01

The uncertainty and variability make the difference

Step 1: The uncertainty and variability make the difference

Uncertainty and variability are the factors that have a great impact on service marketing as they can occur at any time without any warning that can cause difficulty for the service operation. They need to be prepared all the time for any kind of uncertainty because it can give a negative impact on their business and may affect their image which will ultimately affect their future activity.

02

Difference between the manufacturing systems and the service environment

Step 2: Difference between the manufacturing systems and the service environment

The difference between manufacturing and service firms is about what they produce i.e. the manufacturing firms produce the goods that are tangible whereas service firms provide services to the intangible customers.Services are perishable whereas goods are not which means services are produced and consumed at the same time, they cannot be stored.

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Most popular questions from this chapter

Why is lean hard to implement in practice?

One of your Taiwanese suppliers has bid on a new line of molded plastic parts that are currently being assembled at your plant. The supplier has bid \(0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier鈥檚 factory are estimated at \)0.01 per unit. Additional inventory handling charges should amount to \(0.005 per unit. Finally, administrative costs are estimated at \)20 per month. Although your plant can continue producing the part, the plant would need to invest in another molding machine, which would cost \(10,000. Direct materials can be purchased for \)0.05 per unit. Direct labor is estimated at \(0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at \)0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house at a rate of 100 percent of direct labor cost. The firm uses a cost of capital of 15 percent per year. What should you do, continue to produce in-house, or accept the bid from your Taiwanese supplier?

What objections might a marketing manager have to uniform plant loading?

A period of time during which the production schedule cannot be changed.

A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?

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