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Which type of process do most service firms rely on, and why?

AContinuous, because their runs last weeks at a time
BContinuous, because every customer wants the same thing
CIntermittent, because they tailor service to each customer
DIntermittent, because they never use any equipment at all
Answer & Solution
Correct answer: C. Intermittent, because they tailor service to each customer
1. Some service companies do use a continuous process, an electric utility being the standard case. 2. Most service firms, however, rely on intermittent processes. 3. The reason is that a restaurant, a surgeon, and an advertising agency each customize what they deliver to suit the individual customer. 4. Customized output means short runs, and short runs are the defining feature of an intermittent process. 5. Such production runs can be extremely short, amounting to one grilled salmon or one physical exam at a time. 6. Option D is wrong because service firms use plenty of equipment, and the reason for the choice is variety rather than the absence of machinery. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Production Timing_
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