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there is still a large gap in reaching a considerable degree of consensus. In the literature,
service characteristics most frequently mentioned include: intangibility, heterogeneity,
simultaneity/inseparability, perishability, and customer participation (Nie and Kellogg,
1999). Based on these features, the service is almost impossible to store in advance for
unexpected customer demand. Service capacity is the maximum amount that the service
provider can provide for a certain period of time in accordance with its own personnel,
facilities, equipment and other resources (van Ackere et al., 2013; Li and Jiang, 2013).
Service providers are often limited in regard to services provided, human resources and
equipment limitations, and tend to plan their production systems according to the best
service capacity settings. In the service supply chain system point of view, service capacity is
pre-established, so it is difficult to change the production capacity in the short-term; the
service provider will be committed to make full use of the service once the capacity is
achieved, in order to obtain maximum profit. Today's services provide integration of the use
of physical devices and information systems; many of the services supply chain activities
and semi-finished products can be embedded in the personnel and equipment, and thus have
a "stock" concept like the physical products supply chain system, called the "service
inventory" (Chopra and Lariviere, 2005).
Inventory is one of the most important operational metrics in supply chain management;
it is usually necessary to maintain a safety level to fulfill potential demand in certain periods
(Chopra and Lariviere, 2005). For physical goods, the safety stock preparation means a
manufacturer stores commodities in advance in an appropriate place, so customers can
instantly get the required amount for consumption. In the service sector, service inventory is
a conceptual process; it is how firms create value and complete all the value activities for
their customers. It allows service providers to decide how to stage resources and allocate
them by analyzing different needs, and by the interests of economies of scale as well as rapid
response to all kinds of needs of consumers. With appropriate forms of service inventory and
customer participation in the design, firms can provide better service quality, faster response
times and competitive prices in order to achieve greater customer satisfaction.
With the location-based service technology maturity, use of satellite navigation
technology to promote innovative taxi transportation service in the supply chain system has
become an interesting research topic (Liao, 2001). Taxi drivers and passengers have long
been in an information asymmetry relationship in Taiwan. From the passenger's point of
view, due to the lack of a car brand recognition system, it is hard to determine the merits of
the car, the quality of service and the quality of drivers in advance. On the other hand, the