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

A diagnostic laboratory chain cannot stock its blood-test reports in advance and cannot sell today's idle capacity tomorrow. Which service characteristic does this describe?

The situation describes perishability. Services cannot be inventoried or stored for later sale, so unused capacity on a given day is lost permanently. This differs from manufactured goods, which can be built ahead of demand and held in stock to smooth out fluctuations.

  1. APerishabilityCorrect
  2. BTangibility
  3. CStandardised output
  4. DSeparability of production and consumption

Explanation

Perishability means service capacity or output cannot be stored; unused capacity today is lost forever. Separability is wrong because services are typically inseparable, being produced and consumed simultaneously. Tangibility and standardised output are not the issue described.

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