Skip to main content
Business LibreTexts

27.4: Operations Management in the Service Industry

  1. Last updated
  2. Save as PDF
  • Page ID
    45589

    • \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)

    Learning Objectives
    • Explain how operations management relates to the service industry

    In businesses that produce services, the need for operations management may seem less obvious, since they don’t produce tangible goods. Operations management is all about transformation, though—taking inputs and transforming them into outputs—and it involves things like suppliers, supply chains, and logistics. All of these things are present in service industries. Consider how “operations” play out in a service business—let’s say in a theme park like Wally World. Although the company doesn’t manufacture products, it is still producing an experience. The following breakdown gives you an idea of how and why operations management is so important to this kind of business:

    • How do you control the crowds? How many guests should be let into the park before the line to ride the Tea Cups is intolerably long?
    • How many cars should be attached to the Cyclone of Doom rollercoaster to maximize the number of riders but still ensure their safety and security?
    • For July 4th weekend, how many tons of ice cream need to be ordered to supply all the ice-cream carts and keep all the hot, tired, and hungry patrons happy?
    • Where do you purchase the park’s supplies? That’s everything from souvenir cups with Wally’s picture on them to paper plates and napkins for the restaurants.
    • How do you staff entrances and exits? How much security is enough to let guests feel comfortable letting their children roam around?

    How do you manage the operations of this type of business that produces fun as its primary product? Answer: You hire an operations manager!

    PRactice Question

    https://assessments.lumenlearning.co...essments/14457

    Contributors and Attributions

    CC licensed content, Original
    CC licensed content, Shared previously

    27.4: Operations Management in the Service Industry is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

    1. Back to top
    • Was this article helpful?

    Recommended articles

    1. Article type
      Section or Page
      OER program or Publisher
      Lumen
      Show TOC
      no
    2. Tags
      This page has no tags.