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Identify The Two Major Differences Between Service And Manufacturing Organizations. Find An Example Of A Service And Manufacturing Company And Compare Them?

Answer»

 Manufacturing organizations produce a physical PRODUCT that can be stored in inventory. Service organizations cannot CREATE an inventory of the service since it is intangible. For example, Ford Motors is a manufacturer. It makes automobiles, customers have little CONTACT with the OPERATION, and they can create an inventory of vehicles. McDonalds is an example of a service organization. Customers go directly to the restaurant where they are served quickly by the staff.

 Manufacturing organizations produce a physical product that can be stored in inventory. Service organizations cannot create an inventory of the service since it is intangible. For example, Ford Motors is a manufacturer. It makes automobiles, customers have little contact with the operation, and they can create an inventory of vehicles. McDonalds is an example of a service organization. Customers go directly to the restaurant where they are served quickly by the staff.



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