In some service businesses the provider of the service is


1. Explain why one guest who stays in the hotel between 5 and 7 hours pays the same room rate as another guest who spends between 15 and 20 hours.

2. In some service businesses, the provider of the service is on commission, which can reduce:

a. service variability

b. intangibility

c. work overtime

d. inventory carrying costs

e. the number of employees

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Operation Management: In some service businesses the provider of the service is
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