Operations Management (please refer to uploaded file) Essay

Operations Management (please refer to uploaded file) - Essay Example On the other hand, a service supply chain deals with the intangibles due to which little physical inputs are required. Even the number of suppliers in a service-based supply chains are limited to an extent. Raw materials required by the internet service providers are limited to only offices and servers. The costs incurred by the service supply chain are less as compared to the product supply chain (Veronneau and Roy, 2009). Logistics is essential in product-base supply chain as the manufacturing industry highly depends on the transportation of physical goods from one destination to another. If the raw materials are not transferred from one place to another, the supply chain will be broken which halts the operations of the company and the company is forced to use different modes of transportation; land, sea or air. Furthermore, the cost of logistics is quite high depending on the size and weight of the raw material that is being moved (Min and Zhou, 2002). On the other hand, for a service industry logistics is irrelevant as the industry directly deals with the intangibles. The cost incurred by the product-based industry for logistics are utilised by the service-based industry for upgrading servers and for maintenance (Veronneau and Roy, 2009). This upgrade and maintenance allows enhancement in the speed and communication between the clients and the internet service providers. In a traditional product-based supply chain, finished goods are those products that have been completely transformed from raw material to products that are ready to be sold (Simatupang and Sidharan, 2002). For Coca Cola Company, a finished good represents a chilled bottle of coke ready to be served to the customers to meet their demand. In a service industry, a finished good represents quality service to the clients. This means that the customer should be satisfied with the internet