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Many organizations offer a combination of goods and services to their customers. As you learned this...

Many organizations offer a combination of goods and services to their customers. As you learned this week, there are key differences between production of goods and delivery of services. What are implications of these differences relative to managing operations?  

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There are many implications due to the differences between delivery of services and production of goods. The key difference between the services and goods is the tangibility of the output. We have the delivery of services which differentiate from production of goods because it’s an intangible product, it is produced and consumed at the same time, it is often unique.

The main difference between these two is the amount of customer interaction that involves.For example, in a service firm, because the customer contact degree is high, we have to make sure that employees are better trained in customer service than employees in a manufacturing industry are. In a pure-service industry firm, we will build a lot of looseness in scheduling because of the uncertainty of input.

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