SOLUTION MANUAL FOR . .
Managing.Operations.Across.the.Supply.Chain,.5th.Edition.Swink
Chapter.1-16
Chapter.1
Introduction.to.Managing.Operations.Across.the.Supply.Chain
Suggested Answers to Discussion Questions
. . . .
1. Review.Fortune.magazine’s.―Most.Admired‖.American.companies.for.1959,.1979,.19
99,.and.the.most.current.year..(The.issue.normally.appears.in.August.each.year.).Which.co
mpanies.have.remained.on.the.top.throughout.this.period?.Which.ones.have.disappeared
?.What.do.you.think.led.to.the.survival.or.demise.of.these.companies?.The.companies.that.h
ave.stayed.on.top.throughout.this.period.are.Southwest,.Berkshire.Hathaway,.and.Proctor.and.G
amble..UPS,.Coca.Cola,.and.GE.were.some.of.the.companies
that.disappeared..The.companies.that.were.able.to.stay.at.the.top.of.the.list.were.the.ones.able.to.deal.
with.major.changes.in.the.industry.easily..In.order.to.stay.afloat.in.harder.times,.they.were.managed.
by.people.who.understood.operations.management;.they.had.a.winning.value.proposition.that.was.
continually.revitalized.by.the.introduction.of.new.products.and.services..The.companies.that.did.no
t.stay.at.the.top.unable.to.make.the.necessary.changes.so.easily;.perhaps.their.operations.manageme
nt.was.not.at.the.caliber.of.the.other.companies.able.to.stay.at.the.top.of.the.list.
2. Select.two.products.that.you.have.recently.purchased;.one.should.be.a.service.and.the.othe
r.a.manufactured.good..Think.about.the.process.that.you.used.to.make.the.decision.to.purchas
e.each.item..What.product.characteristics.were.most.important.to.you?.What.operational.acti
vities.determine.these.characteristics?
12-1
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
,Student.answers.to.this.question.will.vary..The.following.is.an.example.from.one.student:
―Two.products.I.have.recently.purchased.were.a.sweater.and.a.haircut..The.process.I.used.to.make.t
he.decision.to.purchase.the.sweater.was.trying.on.the.sweater.in.different.colors,.contemplating.the.
purchase.at.home,.waiting.for.sweater.to.go.on.sale,.and.then.purchasing.it..The.process.I.used.to.ma
ke.the.decision.about.where.to.get.my.haircut.included.researching.pictures.of.how.I.wanted.my.hair.
to.look,.asking.advice.about.where.to.go.from.friends,.researching.online.for.reviews.about.stylists,.
and.getting.my.haircut.by.that.stylist..I.wanted.to.make.sure.both.products.were.going.to.satisfy.me.e
nough.so.that.I.wouldn’t.regret.either.purchase..I.had.to.be.comfortable.with.both.my.sweater.and.my
new.hair.style,.luckily.I.was!.I.also.wanted.both.my.sweater.and.my.hair.style.to.last.for.a.while.to.ma
.
ke.them.worth.the.cost..The.operational.activities.that.determine.these.characteristics.are.the.manuf
acturing,.shipping.and.selling.the.sweater.in.stores..If.the.sweater.was.poorly.made.and.didn’t.fit.corr
ectly,.I.would.not.have.purchased.it..If.it.was.not.available.(on.the.shelf).I.could.not.have.purchased.it.
. The.operational.activities.that.determine.the.characteristics.of.my.hairstyle.are.the.stylist.arriving.to
. work.on.time.for.my.appointment,.washing,.cutting.and.blow.drying.my.hair.in.a.way.that.I.was.expe
cting.(having.sufficient.capacity.so.that.I.did.not.have.to.wait.too.long).
Since.my.hair.was.cut.and.styled.the.way.I.requested,.I.will.be.returning.to.that.hair.stylist.
3. What.are.the.primary.operations.management.decisions.in.each.of.the.following.cor
porations?
Again,.student.answers.will.vary.but.may.include.the.following.elements.
a. Marriott.Hotels.and.Resorts:.How.to.greet.and.treat.customers.during.their.stay,.what.servi
ces.to.supply.to.customers,.how.to.check.customers.in.so.that.they.are.not.waiting.for
12-2
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
,long.periods.of.time.to.get.to.their.rooms,.how.to.deal.with.unhappy.customers.in.order.to.keep.t
hem.coming.back,.how.to.measure.customer.satisfaction.
b. A.private.golf.and.tennis.club:.How.to.serve.customers.while.playing.tennis/golf.so.they.conti
nue.to.spend.their.money.and.play.at.this.private.course,.what.services.to.offer.in.order.to.keep.custo
mers.happy..How.to.best.manage.the.facilities.and.train.employees.
c. Ben.&.Jerry’s:.What.flavors.to.make,.how.much.of.each.flavor.to.make,.how.to.keep.up.with.d
emand,.what.suppliers.to.use,.how.to.measure.customer.satisfaction.
d. ExxonMobil.Corporation:.How.to.manage.exploration,.extraction.and.refinement.opera
tions.effectively.and.efficiently..What.services.are.to.be.delivered,.how.to.keep.retail.customers.
happy,.how.to.deliver.goods.
4. Consider.the.following.processes.that.you.frequently.encounter.as.a.college.student.
Describe.each.process.and.its.input,.activities,.and.outputs..What.is.being.converted.or.transfo
rmed.in.each.process?.Who.are.the.customers,.suppliers,.and.stakeholders.for.each.process?
a. Enrolling.in.classes:.Classes.must.be.scheduled.so.that.students.can.enroll.in.them,.students.co
mmunicate.with.advisor.about.necessary.classes,.students.sign.onto.website.and.find.suitable.classe
s.that.fit.together.into.schedule.for.each.semester..The.inputs.of.this.process.are.the.student’s.and.ad
ministrators’.time.and.problem.solving.effort..The.activities.are.decision.making,.communicating,.
and.scheduling.so.that.everyone.has.a.chance.to.take.the.classes.they.want.each.semester..The.output
. is.the.student’s.schedule.and.enrollment.into.classes..The.student’s.schedule.is.being.transformed..
The.customer.is.the.student,.the.stakeholders.are.the.professors.who.get.paid.to.teach.the.courses.and.
the.businesses.that.would.like.to.hire.students.once.they.complete.their.courses..The.supplier.is.the.u
niversity.
12-3
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
, b. Taking.a.class:.The.process.and.activities.of.taking.a.class.entail.making.it.to.class.on.time.ever
y.session,.studying.before.class.to.be.able.to.follow.along.and.participate,.arriving.with.the.correct.
materials.in.order.to.take.notes.and.complete.activities.in.class,.and.completing.homework.before.it.
is.due..The.inputs.are.the.knowledge.of.the.professor.and.information.contained.in.course.materials,
. along.with.the.student’s.hard.work,.studying,.participating,.and.physically.going.to.class..The.outp
uts.are.friends.and.education..The.student.is.being.transformed..The.customer.is.the.student..Or.one.
might.consider.the.business.who.would.like.to.hire.the.student.to.be.the.customer..The.supplier.is.th
e.university.
c. Buying.a.ticket.for.a.play,.concert,.or.basketball.game:.The.process.and.activities.of.buying.
a.ticket.entail.making.a.decision.to.buy.the.ticket,.saving.up.the.money,.either.ordering.the.ticket.onli
ne.or.physically.going.to.a.ticket.booth.and.purchasing.the.ticket..The.inputs.are.time.and.money..Th
e.outputs.are.the.experience.of.seeing.a.great.play,.concert,.or.basketball.game.and.memories..The.o
wnership.of.the.ticket.is.being.converted..The.customer.is.the.ticket.purchaser;.the.stakeholder.is.the.
owner.of.the.basketball.team,.or.the.director.of.the.play,.or.the.manager.of.the.band..If.no.one.purcha
ses.tickets,.those.stakeholders.may.no.longer.have.jobs..The.supplier.is.the.team,.the.actors,.or.the.ba
nd.
5. Recall.the.last.time.you.went.to.a.fast-
food.restaurant.such.as.McDonald’s..Describe.all.of.the.goods.and.services.that.make.up.your.t
otal.product.experience.
The.goods.that.made.up.my.experience.were.the.actual.food.and.drink.that.I.purchased..The.services.
were.being.greeted.when.I.walked.up.to.the.counter,.ordering.my.food,.receiving.my.food.in.a.timely.
manner.along.with.my.order.being.correct..The.service.of.a.clean.restaurant.also.added.to.my.total.pr
oduct.experience.
12-4
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
Managing.Operations.Across.the.Supply.Chain,.5th.Edition.Swink
Chapter.1-16
Chapter.1
Introduction.to.Managing.Operations.Across.the.Supply.Chain
Suggested Answers to Discussion Questions
. . . .
1. Review.Fortune.magazine’s.―Most.Admired‖.American.companies.for.1959,.1979,.19
99,.and.the.most.current.year..(The.issue.normally.appears.in.August.each.year.).Which.co
mpanies.have.remained.on.the.top.throughout.this.period?.Which.ones.have.disappeared
?.What.do.you.think.led.to.the.survival.or.demise.of.these.companies?.The.companies.that.h
ave.stayed.on.top.throughout.this.period.are.Southwest,.Berkshire.Hathaway,.and.Proctor.and.G
amble..UPS,.Coca.Cola,.and.GE.were.some.of.the.companies
that.disappeared..The.companies.that.were.able.to.stay.at.the.top.of.the.list.were.the.ones.able.to.deal.
with.major.changes.in.the.industry.easily..In.order.to.stay.afloat.in.harder.times,.they.were.managed.
by.people.who.understood.operations.management;.they.had.a.winning.value.proposition.that.was.
continually.revitalized.by.the.introduction.of.new.products.and.services..The.companies.that.did.no
t.stay.at.the.top.unable.to.make.the.necessary.changes.so.easily;.perhaps.their.operations.manageme
nt.was.not.at.the.caliber.of.the.other.companies.able.to.stay.at.the.top.of.the.list.
2. Select.two.products.that.you.have.recently.purchased;.one.should.be.a.service.and.the.othe
r.a.manufactured.good..Think.about.the.process.that.you.used.to.make.the.decision.to.purchas
e.each.item..What.product.characteristics.were.most.important.to.you?.What.operational.acti
vities.determine.these.characteristics?
12-1
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
,Student.answers.to.this.question.will.vary..The.following.is.an.example.from.one.student:
―Two.products.I.have.recently.purchased.were.a.sweater.and.a.haircut..The.process.I.used.to.make.t
he.decision.to.purchase.the.sweater.was.trying.on.the.sweater.in.different.colors,.contemplating.the.
purchase.at.home,.waiting.for.sweater.to.go.on.sale,.and.then.purchasing.it..The.process.I.used.to.ma
ke.the.decision.about.where.to.get.my.haircut.included.researching.pictures.of.how.I.wanted.my.hair.
to.look,.asking.advice.about.where.to.go.from.friends,.researching.online.for.reviews.about.stylists,.
and.getting.my.haircut.by.that.stylist..I.wanted.to.make.sure.both.products.were.going.to.satisfy.me.e
nough.so.that.I.wouldn’t.regret.either.purchase..I.had.to.be.comfortable.with.both.my.sweater.and.my
new.hair.style,.luckily.I.was!.I.also.wanted.both.my.sweater.and.my.hair.style.to.last.for.a.while.to.ma
.
ke.them.worth.the.cost..The.operational.activities.that.determine.these.characteristics.are.the.manuf
acturing,.shipping.and.selling.the.sweater.in.stores..If.the.sweater.was.poorly.made.and.didn’t.fit.corr
ectly,.I.would.not.have.purchased.it..If.it.was.not.available.(on.the.shelf).I.could.not.have.purchased.it.
. The.operational.activities.that.determine.the.characteristics.of.my.hairstyle.are.the.stylist.arriving.to
. work.on.time.for.my.appointment,.washing,.cutting.and.blow.drying.my.hair.in.a.way.that.I.was.expe
cting.(having.sufficient.capacity.so.that.I.did.not.have.to.wait.too.long).
Since.my.hair.was.cut.and.styled.the.way.I.requested,.I.will.be.returning.to.that.hair.stylist.
3. What.are.the.primary.operations.management.decisions.in.each.of.the.following.cor
porations?
Again,.student.answers.will.vary.but.may.include.the.following.elements.
a. Marriott.Hotels.and.Resorts:.How.to.greet.and.treat.customers.during.their.stay,.what.servi
ces.to.supply.to.customers,.how.to.check.customers.in.so.that.they.are.not.waiting.for
12-2
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
,long.periods.of.time.to.get.to.their.rooms,.how.to.deal.with.unhappy.customers.in.order.to.keep.t
hem.coming.back,.how.to.measure.customer.satisfaction.
b. A.private.golf.and.tennis.club:.How.to.serve.customers.while.playing.tennis/golf.so.they.conti
nue.to.spend.their.money.and.play.at.this.private.course,.what.services.to.offer.in.order.to.keep.custo
mers.happy..How.to.best.manage.the.facilities.and.train.employees.
c. Ben.&.Jerry’s:.What.flavors.to.make,.how.much.of.each.flavor.to.make,.how.to.keep.up.with.d
emand,.what.suppliers.to.use,.how.to.measure.customer.satisfaction.
d. ExxonMobil.Corporation:.How.to.manage.exploration,.extraction.and.refinement.opera
tions.effectively.and.efficiently..What.services.are.to.be.delivered,.how.to.keep.retail.customers.
happy,.how.to.deliver.goods.
4. Consider.the.following.processes.that.you.frequently.encounter.as.a.college.student.
Describe.each.process.and.its.input,.activities,.and.outputs..What.is.being.converted.or.transfo
rmed.in.each.process?.Who.are.the.customers,.suppliers,.and.stakeholders.for.each.process?
a. Enrolling.in.classes:.Classes.must.be.scheduled.so.that.students.can.enroll.in.them,.students.co
mmunicate.with.advisor.about.necessary.classes,.students.sign.onto.website.and.find.suitable.classe
s.that.fit.together.into.schedule.for.each.semester..The.inputs.of.this.process.are.the.student’s.and.ad
ministrators’.time.and.problem.solving.effort..The.activities.are.decision.making,.communicating,.
and.scheduling.so.that.everyone.has.a.chance.to.take.the.classes.they.want.each.semester..The.output
. is.the.student’s.schedule.and.enrollment.into.classes..The.student’s.schedule.is.being.transformed..
The.customer.is.the.student,.the.stakeholders.are.the.professors.who.get.paid.to.teach.the.courses.and.
the.businesses.that.would.like.to.hire.students.once.they.complete.their.courses..The.supplier.is.the.u
niversity.
12-3
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
, b. Taking.a.class:.The.process.and.activities.of.taking.a.class.entail.making.it.to.class.on.time.ever
y.session,.studying.before.class.to.be.able.to.follow.along.and.participate,.arriving.with.the.correct.
materials.in.order.to.take.notes.and.complete.activities.in.class,.and.completing.homework.before.it.
is.due..The.inputs.are.the.knowledge.of.the.professor.and.information.contained.in.course.materials,
. along.with.the.student’s.hard.work,.studying,.participating,.and.physically.going.to.class..The.outp
uts.are.friends.and.education..The.student.is.being.transformed..The.customer.is.the.student..Or.one.
might.consider.the.business.who.would.like.to.hire.the.student.to.be.the.customer..The.supplier.is.th
e.university.
c. Buying.a.ticket.for.a.play,.concert,.or.basketball.game:.The.process.and.activities.of.buying.
a.ticket.entail.making.a.decision.to.buy.the.ticket,.saving.up.the.money,.either.ordering.the.ticket.onli
ne.or.physically.going.to.a.ticket.booth.and.purchasing.the.ticket..The.inputs.are.time.and.money..Th
e.outputs.are.the.experience.of.seeing.a.great.play,.concert,.or.basketball.game.and.memories..The.o
wnership.of.the.ticket.is.being.converted..The.customer.is.the.ticket.purchaser;.the.stakeholder.is.the.
owner.of.the.basketball.team,.or.the.director.of.the.play,.or.the.manager.of.the.band..If.no.one.purcha
ses.tickets,.those.stakeholders.may.no.longer.have.jobs..The.supplier.is.the.team,.the.actors,.or.the.ba
nd.
5. Recall.the.last.time.you.went.to.a.fast-
food.restaurant.such.as.McDonald’s..Describe.all.of.the.goods.and.services.that.make.up.your.t
otal.product.experience.
The.goods.that.made.up.my.experience.were.the.actual.food.and.drink.that.I.purchased..The.services.
were.being.greeted.when.I.walked.up.to.the.counter,.ordering.my.food,.receiving.my.food.in.a.timely.
manner.along.with.my.order.being.correct..The.service.of.a.clean.restaurant.also.added.to.my.total.pr
oduct.experience.
12-4
©.McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.distribution.without.the.prior.written.consent.of.McGraw.Hill.LLC.
