Final answer:
Standard goods are pre-defined selections available to customers in durable and nondurable forms. These require knowledge of component specifications and sourcing, along with efficient inventory management to adjust to consumer demand.
Step-by-step explanation:
The term you are asking about refers to standard goods, which are the configurations of standard parts, subassemblies, or services that customers can choose from a predetermined, limited set. These goods often relate to durable goods, like cars and refrigerators, as well as nondurable goods, such as food and clothing. The design of these goods requires a thorough understanding of the shapes and dimensions of all physical components, the source of components (whether they're externally sourced or fabricated within the company), and the materials and processes to be used in fabrication. This category also includes a detailed schematic diagram of any electrical subsystems and computer code for any embedded assembly processes.
Businesses which manage these standard goods may have varying levels of inventories that fluctuate based on consumer demand. The inventory category is relatively small and includes goods produced by a business but not yet sold to consumers, often stored in warehouses. Inventory levels tend to decrease when business is better than expected, or increase when it is worse than expected, highlighting the importance of efficient inventory management.