Tuesday, October 25, 2005

Yes, Service can be Inventoried

In their very peculiar way of course.
In an article published in the Fall 2005 issue of the MIT Sloan Management Review titled Managing Service Inventory to Improve Performance, Sunil Chopra and Martin A. Lariviere explain how “Creating “service inventory,” that is, a way to store completed work, can reduce costs and improve quality. For example, financial institutions establish predetermined rules to apply to customers based on credit scores. Hotels create systems to record guests’ preferences. In such cases, firms reduce the work required once customers enter the process.”