3. Describe the inventory issues Peapod must manage. From the company’s beginning, Peapod cofounder Thomas Parkinson insisted that his fi rm’s website be inviting—packed with images of bright carrots, fresh-baked bread, deep red tomatoes, fl avorful beef.

But none of these images would have credibility if the food delivered to customers who shopped online at Peapod didn’t live up to expectations. All it would take to turn a customer away from placing a second order would be one overripe banana, one slightly gray piece of meat, or a carton of ice cream with freezer burn. To get it right the fi rst time and every time, Peapod relies on an operation that mixes elements of both manufacturing and service businesses. Watch the video to fi nd out how managers at Peapod handle operations at this hybrid management workplace.