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How does a hospital fit the model of converting inputs into outputs?
AIt turns staff knowledge and supplies into health care services
BIt breaks a single raw material down into several products
CIt stores finished goods until customers come to collect them
DIt buys finished services and resells them without change
Answer & Solution
Correct answer: A. It turns staff knowledge and supplies into health care services
1. In a manufacturing firm the inputs and outputs are physical and obvious.
2. In a hospital the main inputs are the knowledge and skills of the medical personnel.
3. Equipment and supplies drawn from a variety of sources are added to those.
4. The output is health care services delivered to patients, which is why the same input and output model applies to services as to goods.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Converting Inputs to Outputs_
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