SOLUTION MANUAL FOR . .
OPERATIONS AND SUPPLY CHAIN MANAGEMENT 16TH EDITION BY F. ROBERT JACO
. . . . . . . . . .
BS
Chapter.1-22
CHAPTER 1 .
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
. . . .
Discussion.Questions
1. Using.Exhibit.1.3.as.a.model,.describe.the.source-make-deliver-
return.relationships.in.the.following.systems:
a. An.airline
Source:. Aircraft.manufacturer,.in-flight.food,.repair.parts,.computer.systems
Make:.Aircraft.and.flight.crew.scheduling,.ground.services.provided.at.airports,.aircraft.maintenan
ce.and.repair
Deliver:.Outbound.and.arriving.passenger.service,.baggage.handling.Return:.
Resolve.any.post-service.issues.such.as.lost.or.damaged.luggage
b. An.automobile.manufacturer
Source:. Suppliers.of.components.and.raw.materials
Make:. Manufacturing.of.vehicles.and.components.or.subassemblies.to.be.sold.as.spare.parts
Deliver:.Delivery.to.and.sales.from.dealerships,.delivery.of.spare.parts.to.the.wholesale.system
Return:. Warranty.and.recall.repairs,.trade-ins
c. A.hospital
Source:. Medical.supplies,.cleaning.services,.disposal.services,.food.services,.qualified.personn
el
Make:. Inpatient.rooms,.outpatient.clinics,.emergency.room,.operating.rooms
Deliver:.Scheduling.patients,.providing.treatment,.ambulance.service,.family.counseling.Retur
n:.Billing.errors,.follow.up.visits
d. An.insurance.company
Source:. Supplies.needed.for.the.office,.underwriters,.legal.authority.to.operate
1-1
, Make:. Establish.policy.guidelines.and.pricing,.field.agent/representative.and.facility.network,
.develop.Internet.service.capabilities,.establish.preferred.vehicle.repair.service.network
Deliver:.Meet.with.and.advise.clients,.write.policies,.process.and.pay.claims.Return:.
refund.of.overpayments
2. Define.the.service.package.of.your.college.or.university.. What.is.its.strongest.element?. What.is.its.w
eakest.one?
The.categories.with.examples.are:
Supporting.facility.-
.location,.buildings,.labs,.parking.Facilitating.goods.–
.class.schedules,.computers,.books,.chalk
Explicit.services.–
.classes.with.qualified.instructors,.placement.offices.Implicit.services.–
.status.and.reputation.(e.g.,.Ivy.League.schools)
At.Indiana.University.and.the.University.of.Southern.California,.among.their.strongest.elements.a
re.their.business.schools.and.their.Operations.Management.programs.(of.course)..Both.also.have.v
ery.dedicated.alumni.networks.. A.weak.element.of.Indiana.University.is.its.weak.football.program
;.for.USC,.weak.elements.are.on-campus.parking.and.housing.
3. What.service.industry.has.impressed.you.the.most.with.its.innovativeness?
Our.vote.goes.to.cruise.lines.which.have.introduced.such.onboard.innovations.as.wave.machines.fo
r.belly.boarding.and.rock.climbing.walls,.as.well.as.all.sorts.of.other.amenities.to.keep.cruisers.invol
ved.. The.industry.is.doing.record.business.as.well.
Some.of.the. standout.companies.in. less.innovative.industries.are.Bank.of.America.(has.a.formaliz
ed.research.program.to.try.out.new.customer.services/amenities.such.as.video.screens.in.next.to.tel
ler.lines),. Intuit.(e.g.,.putting.Quicken.money.management.software.online),.Ikea,.JetBlue.Airlines,
.and.Progressive.Insurance.(discussed.later.in.the.book).
4. What.is.product-service.bundling.and.what.are.the.benefits.to.customers?
Product-service.bundling.is.adding.Value-
added.services.to.a.firm’s.product.offerings.to.create.more.value.for.the.customer.. This.provides.be
nefits.in.two.areas.. First,.this.differentiates.the.organization.from.the.competition.. Secondly,.thes
e.services.tie.customers.to.the.organization.in.a.positive.way..Alternatively,.bundling.can.also.invol
ve.adding.products.to.a.service,.for.example,.adding.the.sale.of.convenience.items.and.snacks.at.a.
hotel.
5. What.is.the.difference.between.a.service.and.a.good?
A.service.is.an.intangible.process.(you.can’t.hold.it.in.your.hands),.while.a.good.is.the.physical.outpu
t.of.a.process.
6. Look.at.the.job.postings.at.http://www.indeed.com.and.evaluate.the.opportunities.for.an.OS
M.major.with.several.years.of.experience.
1-2
, There.are.pages.and.pages.of.these.when.you.do.a.search.on.operations.supply.chain.management
.. Here.are.some.examples:
Global.Active.Ingredient.Supply.Planner.F
MC.Corporation
US.-.PA.-.Philadelphia
This.is.your.opportunity.to.join.the.Agricultural.Products.Group.(APG).and.work.on.the.team.respon
sible.for.global.active.ingredient.planning..You'll.serve.as.a.central.Supply.Planner.working.in.tande
m....
Purchasing.Manager.(Buyer)
Texas.Dow.Employees.Credit.Union.(TDECU)
US.-.TX.-.Lake.Jackson.-.Nearest.Metro.area.-.South.Houston
Education.Accredited.university.degree.in.Business.or.Marketing.with.certification.in.Purchasing,.I
nventory.Management,.or.Logistics..Accredited.Purchasing.Practitioner.(APP).or.Certified.Purchasi
ng....
Product.Line.Manager.Cin
tas.Corporation
US.-.OH.-.Mason
High.School.diploma.or.GED.required,.4.year.degree.preferred.Knowledge.of.and.experience.using.I
nternet.and.Microsoft.Office.(Word,.Excel,.PowerPoint,.and.Email).3.years.management.experienc
e.preferred....
Director.Purchasing.
Legendary.Baking.U
S.-.CO.-.Denver
CERTIFICATIONS.&.LICENSES.•.Valid.Driver’s.License.and.car.insurance..•.Certified.Purchasing.Man
ager.certification.(C.P.M.).preferred..•.Certified.Food.Purchasing.Manager....
Process.Improvement.Manager.ARAMAR
K.Corporation
US.-.TX.-.Houston
Bachelor's.Degree.required..Technical.Engineering.discipline.within.Industrial,.Mechanical,.C
hemical,.or.Food.Operations.strongly.preferred..•.Minimum.5.years.Lean.manufacturing.expe
rience.coupled....
7. Recent.outsourcing.of.parts.and.services.that.had.previously.been.produced.internally.is.ad
dressed.by.which.current.issue.facing.operations.and.supply.management.today?
The.coordination.of.relationships.between.mutually.supportive.but.separate.organizations.
8. What.factors.account.for.the.resurgence.of.interest.in.OSCM.today?
With.companies.facing.competition.on.a.global.scale,.and.ever-
advancing.manufacturing.and.information.technologies,.firms.realize.the.competitive.advantage.
their.OSCM.functions.can
1-3
, provide.if.properly.managed.. Many.have.found.that.the.same.old.way.of.doing.business.leaves.t
hem.unable.to.compete.successfully.
9. As.the.field.of.OSCM.has.advanced,.new.concepts.have.been.applied.to.help.companies.compete
.in.a.number.of.ways,.including.the.advertisement.of.the.firm’s.products.or.services..One.recent.c
oncept.to.gain.the.attention.of.companies.is.promoting.sustainability.. Discuss.how.you.have.see
n.the.idea.of.sustainability.used.by.companies.to.advertise.their.goods.or.services.
There.of.course.will.be.a.number.of.examples.that.students.will.bring.up,.though.they.may.need.so
me.prodding.to.jog.their.memories.. Some.examples.to.start.with.might.be.IBM’s.“I’m.an.IBMer”.ca
mpaign.where.they.advertise.how.they.are.“building.a.smarter.planet.”. Bottled.water.manufactur
ers.have.reduced.the.amount.of.plastic.used.in.many.of.their.products,.thus.saving.production.and.
distribution.costs,.but.also.allowing.them.to.advertise.how.the.new.bottles.are.better.for.the.enviro
nment.because.they.result.in.less.waste.
10. Some.people.tend.to.use.the.terms.effectiveness.and.efficiency.interchangeably,.though.we’v
e.seen.they.are.different.concepts.. But.is.there.any.relationship.at.all.between.them?.Can.a.fir
m.be.effective.but.inefficient?. Very.efficient.but.essentially.ineffective?. Both?.Neither?
Firms.can.be.anywhere.on.these.two.dimensions.. It.is.possible.for.a.firm.to.be.the.best.at.what.they.
do.in.serving.their.market,.but.be.very.wasteful.in.doing.so.. Alternatively,.a.firm.could.squeeze.ever
y.last.dollar.out.of.their.processes.but.fail.to.deliver.what.the.market.expects.and.desires.. Of.course
,.the.best.firms.will.provide.the.goods.and.services.that.the.market.desires,.exactly.as.the.market.de
sires,.and.do.so.at.a.minimum.cost.. Firms.that.are.both.inefficient.and.ineffective.do.not.survive.for.l
ong.in.any.market.
1-4
OPERATIONS AND SUPPLY CHAIN MANAGEMENT 16TH EDITION BY F. ROBERT JACO
. . . . . . . . . .
BS
Chapter.1-22
CHAPTER 1 .
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
. . . .
Discussion.Questions
1. Using.Exhibit.1.3.as.a.model,.describe.the.source-make-deliver-
return.relationships.in.the.following.systems:
a. An.airline
Source:. Aircraft.manufacturer,.in-flight.food,.repair.parts,.computer.systems
Make:.Aircraft.and.flight.crew.scheduling,.ground.services.provided.at.airports,.aircraft.maintenan
ce.and.repair
Deliver:.Outbound.and.arriving.passenger.service,.baggage.handling.Return:.
Resolve.any.post-service.issues.such.as.lost.or.damaged.luggage
b. An.automobile.manufacturer
Source:. Suppliers.of.components.and.raw.materials
Make:. Manufacturing.of.vehicles.and.components.or.subassemblies.to.be.sold.as.spare.parts
Deliver:.Delivery.to.and.sales.from.dealerships,.delivery.of.spare.parts.to.the.wholesale.system
Return:. Warranty.and.recall.repairs,.trade-ins
c. A.hospital
Source:. Medical.supplies,.cleaning.services,.disposal.services,.food.services,.qualified.personn
el
Make:. Inpatient.rooms,.outpatient.clinics,.emergency.room,.operating.rooms
Deliver:.Scheduling.patients,.providing.treatment,.ambulance.service,.family.counseling.Retur
n:.Billing.errors,.follow.up.visits
d. An.insurance.company
Source:. Supplies.needed.for.the.office,.underwriters,.legal.authority.to.operate
1-1
, Make:. Establish.policy.guidelines.and.pricing,.field.agent/representative.and.facility.network,
.develop.Internet.service.capabilities,.establish.preferred.vehicle.repair.service.network
Deliver:.Meet.with.and.advise.clients,.write.policies,.process.and.pay.claims.Return:.
refund.of.overpayments
2. Define.the.service.package.of.your.college.or.university.. What.is.its.strongest.element?. What.is.its.w
eakest.one?
The.categories.with.examples.are:
Supporting.facility.-
.location,.buildings,.labs,.parking.Facilitating.goods.–
.class.schedules,.computers,.books,.chalk
Explicit.services.–
.classes.with.qualified.instructors,.placement.offices.Implicit.services.–
.status.and.reputation.(e.g.,.Ivy.League.schools)
At.Indiana.University.and.the.University.of.Southern.California,.among.their.strongest.elements.a
re.their.business.schools.and.their.Operations.Management.programs.(of.course)..Both.also.have.v
ery.dedicated.alumni.networks.. A.weak.element.of.Indiana.University.is.its.weak.football.program
;.for.USC,.weak.elements.are.on-campus.parking.and.housing.
3. What.service.industry.has.impressed.you.the.most.with.its.innovativeness?
Our.vote.goes.to.cruise.lines.which.have.introduced.such.onboard.innovations.as.wave.machines.fo
r.belly.boarding.and.rock.climbing.walls,.as.well.as.all.sorts.of.other.amenities.to.keep.cruisers.invol
ved.. The.industry.is.doing.record.business.as.well.
Some.of.the. standout.companies.in. less.innovative.industries.are.Bank.of.America.(has.a.formaliz
ed.research.program.to.try.out.new.customer.services/amenities.such.as.video.screens.in.next.to.tel
ler.lines),. Intuit.(e.g.,.putting.Quicken.money.management.software.online),.Ikea,.JetBlue.Airlines,
.and.Progressive.Insurance.(discussed.later.in.the.book).
4. What.is.product-service.bundling.and.what.are.the.benefits.to.customers?
Product-service.bundling.is.adding.Value-
added.services.to.a.firm’s.product.offerings.to.create.more.value.for.the.customer.. This.provides.be
nefits.in.two.areas.. First,.this.differentiates.the.organization.from.the.competition.. Secondly,.thes
e.services.tie.customers.to.the.organization.in.a.positive.way..Alternatively,.bundling.can.also.invol
ve.adding.products.to.a.service,.for.example,.adding.the.sale.of.convenience.items.and.snacks.at.a.
hotel.
5. What.is.the.difference.between.a.service.and.a.good?
A.service.is.an.intangible.process.(you.can’t.hold.it.in.your.hands),.while.a.good.is.the.physical.outpu
t.of.a.process.
6. Look.at.the.job.postings.at.http://www.indeed.com.and.evaluate.the.opportunities.for.an.OS
M.major.with.several.years.of.experience.
1-2
, There.are.pages.and.pages.of.these.when.you.do.a.search.on.operations.supply.chain.management
.. Here.are.some.examples:
Global.Active.Ingredient.Supply.Planner.F
MC.Corporation
US.-.PA.-.Philadelphia
This.is.your.opportunity.to.join.the.Agricultural.Products.Group.(APG).and.work.on.the.team.respon
sible.for.global.active.ingredient.planning..You'll.serve.as.a.central.Supply.Planner.working.in.tande
m....
Purchasing.Manager.(Buyer)
Texas.Dow.Employees.Credit.Union.(TDECU)
US.-.TX.-.Lake.Jackson.-.Nearest.Metro.area.-.South.Houston
Education.Accredited.university.degree.in.Business.or.Marketing.with.certification.in.Purchasing,.I
nventory.Management,.or.Logistics..Accredited.Purchasing.Practitioner.(APP).or.Certified.Purchasi
ng....
Product.Line.Manager.Cin
tas.Corporation
US.-.OH.-.Mason
High.School.diploma.or.GED.required,.4.year.degree.preferred.Knowledge.of.and.experience.using.I
nternet.and.Microsoft.Office.(Word,.Excel,.PowerPoint,.and.Email).3.years.management.experienc
e.preferred....
Director.Purchasing.
Legendary.Baking.U
S.-.CO.-.Denver
CERTIFICATIONS.&.LICENSES.•.Valid.Driver’s.License.and.car.insurance..•.Certified.Purchasing.Man
ager.certification.(C.P.M.).preferred..•.Certified.Food.Purchasing.Manager....
Process.Improvement.Manager.ARAMAR
K.Corporation
US.-.TX.-.Houston
Bachelor's.Degree.required..Technical.Engineering.discipline.within.Industrial,.Mechanical,.C
hemical,.or.Food.Operations.strongly.preferred..•.Minimum.5.years.Lean.manufacturing.expe
rience.coupled....
7. Recent.outsourcing.of.parts.and.services.that.had.previously.been.produced.internally.is.ad
dressed.by.which.current.issue.facing.operations.and.supply.management.today?
The.coordination.of.relationships.between.mutually.supportive.but.separate.organizations.
8. What.factors.account.for.the.resurgence.of.interest.in.OSCM.today?
With.companies.facing.competition.on.a.global.scale,.and.ever-
advancing.manufacturing.and.information.technologies,.firms.realize.the.competitive.advantage.
their.OSCM.functions.can
1-3
, provide.if.properly.managed.. Many.have.found.that.the.same.old.way.of.doing.business.leaves.t
hem.unable.to.compete.successfully.
9. As.the.field.of.OSCM.has.advanced,.new.concepts.have.been.applied.to.help.companies.compete
.in.a.number.of.ways,.including.the.advertisement.of.the.firm’s.products.or.services..One.recent.c
oncept.to.gain.the.attention.of.companies.is.promoting.sustainability.. Discuss.how.you.have.see
n.the.idea.of.sustainability.used.by.companies.to.advertise.their.goods.or.services.
There.of.course.will.be.a.number.of.examples.that.students.will.bring.up,.though.they.may.need.so
me.prodding.to.jog.their.memories.. Some.examples.to.start.with.might.be.IBM’s.“I’m.an.IBMer”.ca
mpaign.where.they.advertise.how.they.are.“building.a.smarter.planet.”. Bottled.water.manufactur
ers.have.reduced.the.amount.of.plastic.used.in.many.of.their.products,.thus.saving.production.and.
distribution.costs,.but.also.allowing.them.to.advertise.how.the.new.bottles.are.better.for.the.enviro
nment.because.they.result.in.less.waste.
10. Some.people.tend.to.use.the.terms.effectiveness.and.efficiency.interchangeably,.though.we’v
e.seen.they.are.different.concepts.. But.is.there.any.relationship.at.all.between.them?.Can.a.fir
m.be.effective.but.inefficient?. Very.efficient.but.essentially.ineffective?. Both?.Neither?
Firms.can.be.anywhere.on.these.two.dimensions.. It.is.possible.for.a.firm.to.be.the.best.at.what.they.
do.in.serving.their.market,.but.be.very.wasteful.in.doing.so.. Alternatively,.a.firm.could.squeeze.ever
y.last.dollar.out.of.their.processes.but.fail.to.deliver.what.the.market.expects.and.desires.. Of.course
,.the.best.firms.will.provide.the.goods.and.services.that.the.market.desires,.exactly.as.the.market.de
sires,.and.do.so.at.a.minimum.cost.. Firms.that.are.both.inefficient.and.ineffective.do.not.survive.for.l
ong.in.any.market.
1-4
