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Operations and Supply Management for Goods and Services

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Operations and Supply Management: Goods and Services

Similarities and Differences between Goods and Services The similarities between good and services are that goods and services provide value to the customer, and they can both be made to fit what a customer wants or needs. The delivery of both goods and services require a process to get to final delivery, so operations management is a critically important skill for both (Collier, 2007). According to Jacobs, there are five things that differentiate goods from services. They are, first, a service is an intangible process that cannot be weighed or measured, but a good has a physical presence that can be. Second, a service must be delivered via interaction with a customer whereas a product is manufactured somewhere away from the customer. Third, how a service is delivered varies as this is dependent on the customer, the service provider and the situation, but the production of goods has no variability. Fourth, the process of delivering a service is dependent on time and can’t be stored, and fifth, services are evaluated as a package of features that include the facility, goods involved in the process, and explicit and implicit services (Jacobs, pp. 11-12). Collier goes on to name a few more differences, namely the demand for services is more difficult to predict and service management skills are vital to the successful delivery of a service.
Operations Management and Production Differences for Goods and Services The operations management chain for goods and services have all of the same functions but they are defined differently. According to Collier, some of the differences in functions are as follows:
Forecasting: The time-frame used in forecasting for goods is longer than for services. This is because goods involve the availability of physical products, whereas forecasting for

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