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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

A Chennai hospital measures that its operations produce an intangible output which cannot be stored, and the patient takes part in the process. Which pair of characteristics of services does this best illustrate?

The hospital's output cannot be stored, which is perishability, and the patient takes part in producing the service, which is inseparability. The other options describe features of manufactured goods such as tangibility, inventory and make-to-stock, so they do not fit.

  1. AInseparability and perishabilityCorrect
  2. BTangibility and storability
  3. CStandardisation and inventory build-up
  4. DMake-to-stock production and low customer contact

Explanation

An output that cannot be stored is perishable, and customer participation in the process shows production and consumption occur together, which is inseparability. The other options describe goods-type features such as tangibility, storage and stock building.

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