Instructor’s Solution Manual for Operations
Management in The Supply Chain: Sustainability
and Resilience: 2024 Release by Roger Schroeder
Complete Chapters 1-18| Verified Q&As| A+ GRADE
GUARANTEED
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Chapter 1
The Operations Function
Teaching Notes
This chapter is aimed at providing an overall framework for the textbook and the field of operations and
supply chain management. A new section is added on the role of operations and supply chain
management in the economy and in the firm. The chapter provides a framework that serves as a beneficial
way of organizing students' understanding of five major operations and supply chain management
decision types: process, quality, capacity, inventory and supply chain. The cross-functional view of
operations management (OM) is also introduced in this chapter to provide relevance for the course in
particular for non-majors. When operations management is related to marketing and finance as a major
business function, all students readily understand the role of operations and supply chain in business.
In teaching this chapter, we highlight the important role that OM and supply chains play in the economy
and the firm. The five decision areas in operations and supply chain and the importance of cross-
functional decision making are emphasized. We also spend some time discussing the importance of both
services and manufacturing, and how business operations are managed within larger, multi-organization
supply chains. We introduce the concept of contingencies and explain that the textbook includes
information on when particular OM activities are „best practices’ and when they are not. We also define
analytics and explain how analytics is used in operations and supply chain management decisions.
Finally, we illustrate major OM and supply chain decisions using the Pizza U.S.A. example, as well as in
other types of businesses. Students may find the typical jobs in OM and supply chain from Monster.com
(in a Chapter 1 Operations Leader box).
The Learning Enrichment section at the end of the chapter provides videos and/or websites that students
can access outside of class or instructors can use in class. These resources help bring the chapter materials
to life, and tap into student interest.
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Learning Enrichment (for self-study or instructor assignments)
Answers to Questions
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1. Operations and supply chain management is ubiquitous, that is present in every organization. Daily, we
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come in contact with various goods and services produced by the transformation of inputs to outputs
under the control of operations managers. Operations and supply chain management is a core business
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function along with marketing and finance. All decisions are cross-functional in nature. You will be
interacting with the operations function no matter what career you choose. Much of what is learned
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related to operations and supply chain management can be applied to other functions.
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2. Operations management is a broader term than production management, encompassing service
organizations as well as manufacturing. Operations management is also a more recent term replacing the
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earlier term production management.
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3. The difference between operations and supply chain management is operations management focuses on
decisions to manage the transformation process that converts inputs into desired finished goods or
services within a single firm. Operations management occurs within and across multiple facilities in an
organization. Supply chain management relates to the network of manufacturing and service operations
that supply each other from raw materials through manufacturing to the ultimate customer. The supply
chain consists of the flows of materials, money, and information along the entire chain of sourcing,
production, and distribution. The supply chain links the operations of many different organizations in
order to satisfy customer needs.
4. Responsibilities differ among operations, marketing and finance managers. A marketing manager
identifies demand for goods or services and develops the market, whereas the operations manager assures
supply of the products or services. The finance manager acquires and allocates the capital resources for
the other functions. Similarities in the three functions include managerial decision making and shared
organizational goals.
5. Operations, marketing, and finance are primary functions of the organization. Human resources,
information systems, and accounting are supporting functions that provide resources and services for the
three primary functions. The operations manager applies resources, analysis and information provided by
supporting functions and integrates them into decision making. The focus of the operations manager is on
decision making rather than on analytic methods.
6. a. The purpose of a college library is to make information available to students and faculty for research
and studying. The output is the bundle of services provided along with facilitating goods: buildings,
computers, books, catalogs and indices.
Process -- facility layout considering book stacks, reference rooms, computer access on-site and from off-
site, degree of computer use and procedures for accessing and circulating information. They must not
only select the appropriate process, but manage the flow of users and information.
Quality -- standards of the college library profession are adopted; quality measures include: ratio of
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consulting staff hours to students, rate of new book and other material purchases, number of complaints,
student satisfaction.
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Capacity -- forecasting of library user needs contributes to decisions on building size, volume of space for
study and materials, print acquisitions, computer work stations, staff hiring and scheduling of shifts.
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Inventory -- decisions concerning the number of books, periodicals, etc. to stock.
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Supply Chain – decisions about sourcing of materials and information. Also, decisions are made about
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best to distribute printed and online materials, along with moving materials and information into the
library.
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b. The purpose of a hotel is to attract and satisfy conventioneers and overnight guests. The output is the
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bundle of services and goods provided: overnight accommodations, maid service, room service,
television, pool, bar, coffee shop.
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Process -- a set of processes for reserving and payment of rooms, housekeeping, restaurant, recreation
services, and ongoing study of service methods; the people who implement these processes including
receptionists, accountants, housekeepers, and maintenance workers.
Quality -- hotel industry standards and the market positioning of the hotel (first class vs. budget)
determine standards; quality measures include number of return visitors, conventions booked, and ratings
by industry evaluators.
Capacity -- number of units and beds; appropriate size for restaurant, bar and convention halls; staffing
for housekeeping, restaurant and office. Scheduling of the workforce is also included.
Inventory -- goods to meet requirements for room upkeep (towels, sheets, etc.), convention catering
(glasses, dishes, food), restaurant and bar.
Supply chain – decisions about sourcing the various materials and services used by the hotel. Logistics is
about moving materials and services to the hotel and then return and recycling of goods.
c. The purpose of a small manufacturing firm is to provide customers with a quality product at a
reasonable price. The output consists of not only the physical good but also any services that accompany
the good, such as assistance in selecting the good (the shopping process) or a warranty.
Process -- the process of securing the raw materials, transforming and assembling them into a finished
good, packaging the product, and arranging for its delivery to customers.
Quality -- definition of quality standards for the manufactured goods, measurement of deviations from
design standards, inspection and control of quality of input materials, prevention of defects.
Capacity -- number of units the facility is capable of producing per unit time, size of inventory storage,
hiring of workers and scheduling of shifts.
Inventory -- raw material inputs, work-in-process, and finished goods, used to smooth production and
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meet customer needs.
Supply chain – Sourcing of materials and services used in the manufacturing process. The distribution and
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storage to and from the manufacturing plant.
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7. a. Operation -- college library
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Inputs -- librarians, staff, library facilities and equipment, energy, capital.
Transformation process -- organizing information, arranging materials for access, interacting with library
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users.
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Outputs -- students and faculty provided with research and study materials.
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b. Operation -- hotel
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Inputs -- facilities, staff, materials for housekeeping and food preparation, communications equipment,
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energy, capital.
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