Back to Glossary

Service Processes

A process to satisfy demand for services. Example of service processes include engineering design, emergency room diagnosis and treatment, meetings, and inspection.

Because service demand cannot be satisfied before the demand is known, there will never be a stock inventory of “completed services.” The time between the origin of demand and its satisfaction is backorder time. Consequently, all service processes are effectively backordered even when they are delivered within an agreed lead time.

© 2024 Project Production Institute. All Rights Reserved.
X