Service Management: An Integrated Approach to Supply Chain Management and Operations

19. Service Inventory Systems

19.1. Introduction

To date, operations managers, both practitioners and academicians, have focused on developing the theory and planning of inventory control systems for manufacturing operations. This chapter extends this theory to the area of service inventory management.

If a service is a deed, performance, or effort, as some writers have defined it, why should we be concerned with inventory problems? There are several reasons for giving considerable consideration to inventories in service businesses.

First, practically all services use some sort of input materials that are kept in inventory. Second, many services supply an output product in addition to some sort of performance. Third, adequate service levels ...