19. Service Inventory Systems

19.8. Summary of the Chapter

Inventory often plays a small role in services because

1. There may be no finished goods inventory.

2. Input inventory such as office supplies may be minimal.

3. Input materials may be immediately obtained from local suppliers so that lead time is short (for example, auto repair parts, food, and gasoline).

In other cases, major input inventories may be required.

Service systems utilize input and output inventories to meet predetermined service levels. These inventories represent a cost system that must be managed and controlled. Service inventory control systems are classified into two types: independent demand and dependent demand inventory control systems.

Two independent demand inventory ...

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