Author Question: Describe the difficulties associated with applying efficiency models to service ... (Read 34 times)

Kikoku · **on:** Jun 28, 2018

Describe the difficulties associated with applying efficiency models to service organizations.

Question 2

In the marketing strategy section of the marketing plan, the firm details how it will gain a competitive advantage by doing something better than the competition.

Indicate whether the statement is true or false

Toya9913 · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

The servuction system itself is an operations nightmare, since it is impossible to use inventories and impossible to decouple production from the customer. Instead of receiving demand at a constant rate, the system is linked directly to a market that frequently varies from day to day, hour to hour, and even minute to minute. This creates massive problems in capacity planning and utilization.

Answer to Question 2

True