ManagingVOperationsVAcrossVtheVSupplyVChain,V5thVEditionVSwink
ChapterV1-16
ChapterV1
IntroductionVtoVManagingVOperationsVAcrossVtheVSupplyVChain
SuggestedVAnswersVtoVDiscussionVQuestions
1. ReviewVFortuneVmagazine’sV―MostVAdmired‖VAmericanVcompaniesVforV1959,V
1979,V1999,VandVtheVmostVcurrentVyear.V(TheVissueVnormallyVappearsVinVAugustV
eachVyear.)VWhichVcompaniesVhaveVremainedVonVtheVtopVthroughoutVthisVperiod?
VWhichVonesVhaveVdisappeared?VWhatVdoVyouVthinkVledVtoVtheVsurvivalVorVdemi
seVofVtheseVcompanies?VTheVcompaniesVthatVhaveVstayedVonVtopVthroughoutVthisVperi
odVareVSouthwest,VBerkshireVHathaway,VandVProctorVandVGamble.VUPS,VCocaVCola,Va
ndVGEVwereVsomeVofVtheVcompanies
thatVdisappeared.VTheVcompaniesVthatVwereVableVtoVstayVatVtheVtopVofVtheVlistVwereVtheV
onesVableVtoVdealVwithVmajorVchangesVinVtheVindustryVeasily.VInVorderVtoVstayVafloatVinV
harderVtimes,VtheyVwereVmanagedVbyVpeopleVwhoVunderstoodVoperationsVmanagement;Vth
eyVhadVaVwinningVvalueVpropositionVthatVwasVcontinuallyVrevitalizedVbyVtheVintroduction
VofVnewVproductsVandVservices.VTheVcompaniesVthatVdidVnotVstayVatVtheVtopVunableVtoV
makeVtheVnecessaryVchangesVsoVeasily;VperhapsVtheirVoperationsVmanagementVwasVnotVat
VtheVcaliberVofVtheVotherVcompaniesVableVtoVstayVatVtheVtopVofVtheVlist.
2. SelectVtwoVproductsVthatVyouVhaveVrecentlyVpurchased;VoneVshouldVbeVaVserviceV
andVtheVotherVaVmanufacturedVgood.VThinkVaboutVtheVprocessVthatVyouVusedVtoVma
keVtheVdecisionVtoVpurchaseVeachVitem.VWhatVproductVcharacteristicsVwereVmostVim
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©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
,portantVtoVyou?VWhatVoperationalVactivitiesVdetermineVtheseVcharacteristics?
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©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
,StudentVanswersVtoVthisVquestionVwillVvary.VTheVfollowingVisVanVexampleVfromVoneVstudent:
―TwoVproductsVIVhaveVrecentlyVpurchasedVwereVaVsweaterVandVaVhaircut.VTheVprocessVI
VusedVtoVmakeVtheVdecisionVtoVpurchaseVtheVsweaterVwasVtryingVonVtheVsweaterVinVdiffer
entVcolors,VcontemplatingVtheVpurchaseVatVhome,VwaitingVforVsweaterVtoVgoVonVsale,VandV
thenVpurchasingVit.VTheVprocessVIVusedVtoVmakeVtheVdecisionVaboutVwhereVtoVgetVmyVhai
rcutVincludedVresearchingVpicturesVofVhowVIVwantedVmyVhairVtoVlook,VaskingVadviceVabou
tVwhereVtoVgoVfromVfriends,VresearchingVonlineVforVreviewsVaboutVstylists,VandVgettingVm
yVhaircutVbyVthatVstylist.VIVwantedVtoVmakeVsureVbothVproductsVwereVgoingVtoVsatisfyVme
VenoughVsoVthatVIVwouldn’tVregretVeitherVpurchase.VIVhadVtoVbeVcomfortableVwithVbothVm
yVsweaterVandVmyVnewVhairVstyle,VluckilyVIVwas!VIValsoVwantedVbothVmyVsweaterVandVm
yVhairVstyleVtoVlastVforVaVwhileVtoVmakeVthemVworthVtheVcost.VTheVoperationalVactivities
VthatVdetermineVtheseVcharacteristicsVareVtheVmanufacturing,VshippingVandVsellingVtheVswe
aterVinVstores.VIfVtheVsweaterVwasVpoorlyVmadeVandVdidn’tVfitVcorrectly,VIVwouldVnotVhav
eVpurchasedVit.VIfVitVwasVnotVavailableV(onVtheVshelf)VIVcouldVnotVhaveVpurchasedVit.VThe
VoperationalVactivitiesVthatVdetermineVtheVcharacteristicsVofVmyVhairstyleVareVtheVstylistVar
rivingVtoVworkVonVtimeVforVmyVappointment,Vwashing,VcuttingVandVblowVdryingVmyVhair
VinVaVwayVthatVIVwasVexpectingV(havingVsufficientVcapacityVsoVthatVIVdidVnotVhaveVtoVw
aitVtooVlong).
SinceVmyVhairVwasVcutVandVstyledVtheVwayVIVrequested,VIVwillVbeVreturningVtoVthatVhairVstylist.
3. WhatVareVtheVprimaryVoperationsVmanagementVdecisionsVinVeachVofVtheVfoll
owingVcorporations?
Again,VstudentVanswersVwillVvaryVbutVmayVincludeVtheVfollowingVelements.
a. MarriottVHotelsVandVResorts:VHowVtoVgreetVandVtreatVcustomersVduringVtheirVsta
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©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
, y,VwhatVservicesVtoVsupplyVtoVcustomers,VhowVtoVcheckVcustomersVinVsoVthatVtheyVare
VnotVwaitingVfor
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©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.