Final answer:
Physical goods differ from services in the operations management process by being able to be inventoried and potentially having longer lead times. Physical goods such as durable and non-durable goods can be stored in warehouses or on shelves, whereas services are intangible and cannot be stored or inventoried. Additionally, businesses find it easier to adjust supply over long-term periods for goods versus services.
Step-by-step explanation:
Physical goods can be differentiated from services in the operations management process by being inventoried and having the possibility of longer lead times. Unlike services, which are intangible and cannot be stored, physical goods can be kept in stock. This allows businesses to manage inventory and have goods readily available for consumers, contributing to the ability to control supply and demand more effectively. This characteristic also ties into lead times, which can be longer for goods as they may require manufacturing and shipping. In contrast, services are generally consumed as they are produced, leading to typically shorter lead times.
Goods such as durable and non-durable goods like food, clothing, cars, and refrigerators, are all part of the economy with varying degrees of longevity and turnover. Consumers purchase these goods and services to satisfy their wants and needs, whereas structures and inventories represent other aspects of goods within the economy. Inventories, in particular, refer to the goods that businesses have produced but not yet sold, which fluctuates based on consumer demand and business expectations.
When considering the supply side of the market, producers typically find it easier to expand production over the long term since short-term adjustments can be costly and difficult. This highlights the differences in how physical goods and services can be managed within operations management.