Operations and Supply Chain Management
SOLUTION MANUAL
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
1-1
, Operations and Supply Chain Management
• TABLE OF CONTENTS
Chapter 1: Introduction
Chapter 2: Strategy
Chapter 3: Design of Products and Services
Chapter 4: Projects
Chapter 5: Strategic Capacity Management
Chapter 6: Learning Curves
Chapter 7: Manufacturing Processes
Chapter 8: Facility Layout
Chapter 9: Service Processes
Chapter 10: Waiting Line Analysis and Simulation
Chapter 11: Process Design and Analysis
Chapter 12: Quality Management
Chapter 13: Statistical Quality Control
Chapter 14: Lean Supply Chains
Chapter 15: Logistics and Distribution Management
Chapter 16: Global Sourcing and Procurement
Chapter 17: The Internet of Things and ERP
Chapter 18: Forecasting
Chapter 19: Sales and Operations Planning
Chapter 20: Inventory Management
Chapter 21: Material Requirements Planning
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, Operations and Supply Chain Management
Chapter 22: Workcenter Scheduling
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 maintenance 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 personnel
Make: Inpatient rooms, outpatient clinics, emergency room, operating rooms
Deliver: Scheduling patients, providing treatment, ambulance service, family
counseling Return: Billing errors, follow up visits
d. An insurance company
Source: Supplies needed for the office, underwriters, legal authority to operate
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
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, Operations and Supply Chain Management
2. Define the service package of your college or university. What is its strongest element?
What is its weakest 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 are their business schools and their Operations Management
programs (of course). Both also have very 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 for belly boarding and rock climbing walls, as well as all sorts of
other amenities to keep cruisers involved. The industry is doing record business as
well.
Some of the standout companies in less innovative industries are Bank of America (has
a formalized research program to try out new customer services/amenities such as
video screens in next to teller 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 benefits in two areas. First, this
differentiates the organization from the competition. Secondly, these services tie
customers to the organization in a positive way. Alternatively, bundling can also
involve adding products to a service, for example, adding the sale of convenience
items and snacks at a hotel.
5. What jis jthe jdifference jbetween ja jservice jand ja jgood?
A jservice jis jan jintangible jprocess j(you jcan’t jhold jit jin jyour jhands), jwhile ja jgood jis jthe
jphysicaljoutput jof ja jprocess.
1-4
SOLUTION MANUAL
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
1-1
, Operations and Supply Chain Management
• TABLE OF CONTENTS
Chapter 1: Introduction
Chapter 2: Strategy
Chapter 3: Design of Products and Services
Chapter 4: Projects
Chapter 5: Strategic Capacity Management
Chapter 6: Learning Curves
Chapter 7: Manufacturing Processes
Chapter 8: Facility Layout
Chapter 9: Service Processes
Chapter 10: Waiting Line Analysis and Simulation
Chapter 11: Process Design and Analysis
Chapter 12: Quality Management
Chapter 13: Statistical Quality Control
Chapter 14: Lean Supply Chains
Chapter 15: Logistics and Distribution Management
Chapter 16: Global Sourcing and Procurement
Chapter 17: The Internet of Things and ERP
Chapter 18: Forecasting
Chapter 19: Sales and Operations Planning
Chapter 20: Inventory Management
Chapter 21: Material Requirements Planning
1-2
, Operations and Supply Chain Management
Chapter 22: Workcenter Scheduling
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 maintenance 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 personnel
Make: Inpatient rooms, outpatient clinics, emergency room, operating rooms
Deliver: Scheduling patients, providing treatment, ambulance service, family
counseling Return: Billing errors, follow up visits
d. An insurance company
Source: Supplies needed for the office, underwriters, legal authority to operate
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
1-3
, Operations and Supply Chain Management
2. Define the service package of your college or university. What is its strongest element?
What is its weakest 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 are their business schools and their Operations Management
programs (of course). Both also have very 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 for belly boarding and rock climbing walls, as well as all sorts of
other amenities to keep cruisers involved. The industry is doing record business as
well.
Some of the standout companies in less innovative industries are Bank of America (has
a formalized research program to try out new customer services/amenities such as
video screens in next to teller 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 benefits in two areas. First, this
differentiates the organization from the competition. Secondly, these services tie
customers to the organization in a positive way. Alternatively, bundling can also
involve adding products to a service, for example, adding the sale of convenience
items and snacks at a hotel.
5. What jis jthe jdifference jbetween ja jservice jand ja jgood?
A jservice jis jan jintangible jprocess j(you jcan’t jhold jit jin jyour jhands), jwhile ja jgood jis jthe
jphysicaljoutput jof ja jprocess.
1-4
