Question

Which one of the following statements is false?

1) Service that do not involve significant interaction with customers can be managed much the same as goods in a factory.
2) A service is any primary or complementary activity that does not directly produce a physical product.
3) Some very significant differences exist between goods and services that create different demands on the operations function.
4) Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization.

Answer 1

The false statement is that designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization.

Step-by-step explanation:

The false statement is: Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization.

The other statements are true:

1. Service that do not involve significant interaction with customers can be managed much the same as goods in a factory. For example, a back-office process in a bank can be managed similar to a manufacturing process in a factory.
2. A service is any primary or complementary activity that does not directly produce a physical product. This means that services are intangible and do not involve the production of physical goods.
3. Some very significant differences exist between goods and services that create different demands on the operations function. These differences include intangibility, inseparability, variability, and perishability.