SOLUTION MANUAL FOR
m m
OPERATIONS AND SUPPLY CHAIN MANAGEMENT 16TH EDITION BY F. ROBERT J
m m m m m m m m m m
ACOBS
Chapterm1-22
CHAPTER 1 m
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
m m m m
Discussion mQuestions
1. UsingmExhibitm1.3masmammodel,mdescribe mthe msource-make-deliver-
returnmrelationshipsminmthe mfollowingmsystems:
a. Anm airline
Source:m Aircraftmmanufacturer, m in-flightm food,m repairm parts,mcomputerm systems
Make:mAircraftmandmflightmcrewm scheduling,mgroundmservicesmprovidedmatmairports,maircraftmma
intenancem andm repair
Deliver:m Outboundm andm arrivingm passengerm service,mbaggagemhandlingm Ret
urn:m Resolvem anym post-servicem issuesm suchm asm lostm orm damagedm luggage
b. Anm automobilem manufacturer
Source:m Suppliersm ofm componentsm andm rawm materials
Make:m Manufacturingmofmvehiclesm andmcomponentsmormsubassembliesm tom bemsoldmasm spar
em parts
Deliver:m Deliverym tom andmsalesm fromm dealerships,mdeliverymofmsparempartsmtomthemwholesale
m system
Return:m Warrantym andm recallm repairs,m trade-ins
c. Am hospital
Source:m Medicalmsupplies,mcleaningmservices,mdisposalmservices,mfoodmservices,mqualifiedmpe
rsonnel
Make:m Inpatientm rooms,m outpatientm clinics,m emergencym room,m operatingm rooms
Deliver:m Scheduling mpatients,mprovidingmtreatment,mambulancemservice,mfamilym counselingm
Return:m Billingm errors,m followm upm visits
d. Anm insurancem company
Source:m Suppliesm neededm form them office,m underwriters,m legalm authoritym tom operate
1-1
, Make:m Establishmpolicym guidelinesmandm pricing,mfieldmagent/representativemandmfacilitym ne
twork,m developmInternetmservicem capabilities,mestablishmpreferredmvehiclem repairmservicem ne
twork
Deliver:m Meetm withmandmadvisem clients,mwritempolicies,m processmandmpaymclaimsmR
eturn:m refundm ofm overpayments
2. Define mthemservice mpackagemofmyourmcollegemormuniversity.m Whatmismitsmstrongestmelement?m Wh
atmismitsmweakestmone?
Them categoriesmwithm examplesm are:
Supporting m facilitym -
m location, m buildings, m labs, m parking m Facilitating m goods m –
m class m schedules, m computers, m books, m chalk
Explicitm servicesm –
m classes m withmqualified minstructors, mplacementmofficesm Implicitm services m
– m statusm andm reputationm (e.g.,m Ivym Leaguem schools)
Atm Indianam UniversitymandmthemUniversitymofmSouthernmCalifornia,m amongm theirm strongestm ele
mentsm aremtheirmbusinessmschoolsmandmtheirmOperationsmManagementmprogramsm(of m course).m
Bothm alsom havem verymdedicatedmalumnim networks.m AmweakmelementmofmIndianam Universitymismit
sm weakm footballm program;m form USC,m weakm elementsm arem on-campusm parkingm andm housing.
3. Whatmservice mindustrymhasmimpressedmyoumthe mmostmwithmitsminnovativeness?
Ourm votem goesmtom cruisem linesmwhichmhavemintroducedmsuchm onboardminnovationsm asmwavemma
chinesm form bellym boardingmandmrockmclimbingmwalls,masmwellm asmallm sortsmof mothermamenitiesm to
m keep m cruisers m involved. m Them industry m ism doing m record m business m asm well.
Somem ofmthem standoutmcompaniesm inm lessminnovativem industriesm arem Bankm of mAmericam(hasmam
formalizedm researchmprogrammtomtrymoutmnewmcustomermservices/amenitiesmsuchmasmvideom scre
ensm inm nextm tomtellerm lines),m Intuitm(e.g.,m puttingmQuickenmmoneymmanagementmsoftwaremonlin
e),m Ikea,m JetBluem Airlines,m andm Progressivem Insurancem (discussed m laterm inm them book).
4. Whatmismproduct-service mbundlingmandmwhatmare mthe mbenefitsmtomcustomers?
Product-servicem bundling m ism addingm Value-
addedmservicesmtomamfirm’smproductmofferingsmtom createmmoremvaluemformthem customer.m Thism pr
ovidesmbenefitsminmtwomareas.m First,m thismdifferentiatesmthemorganizationm frommthemcompetitio
n.m Secondly,mthesemservicesmtiem customersmtomthemorganization minmampositivemway.m Alternativel
y,m bundling mcanmalsom involvemaddingmproductsmtomamservice,m formexample,maddingm themsalemofm
conveniencem itemsm andm snacksm atm am hotel.
5. Whatmismthe mdifference mbetweenmamservice mandmamgood?
Am servicem ism anmintangiblem processm (youmcan’tmholdmitminmyourmhands),mwhilem amgoodmismthem phy
sicalm outputm of m am process.
6. Lookmatmthemjobmpostingsmatmhttp://www.indeed.commandmevaluatemthemopportunitiesmfo
rmanmOSMmmajormwithmseveralmyearsmof mexperience.
1-2
, Therem arem pagesmandmpagesmofmthesemwhenmyoumdomamsearchmonmoperationsmsupplym chainm ma
nagement.m Herem arem somem examples:
GlobalmActivemIngredientmSupplymPlanner
m FMCm Corporation
USm - m PAm -m Philadelphia
Thism ismyourmopportunitymtom joinmthemAgriculturalmProductsmGroupm(APG)m andmworkmonmthemtea
mm responsiblem formglobalm activem ingredientmplanning.mYou'llm servemasmamcentralm Supplym Planne
rm workingm inm tandemm ...
Purchasing mManagerm (Buyer)
Texasm Dowm Employeesm Creditm Unionm (TDECU)
USm - m TXm -m Lakem Jacksonm -m Nearestm Metrom aream -m Southm Houston
Educationm AccreditedmuniversitymdegreeminmBusinessmormMarketingm withmcertificationm inm Purch
asing,m InventorymManagement,mormLogistics.mAccreditedmPurchasingmPractitionerm(APP) morm Cert
ifiedm Purchasing m ...
ProductmLinemManagermC
intasm Corporation
USm - m OHm -m Mason
Highm Schoolm diplomam ormGEDmrequired,m4m yearmdegreem preferredm Knowledgem ofmandmexperienc
em usingm InternetmandmMicrosoftmOfficem (Word,mExcel,mPowerPoint,mandmEmail) m 3myearsmmanage
mentm experiencem preferredm ...
DirectormPurchasin
gm LegendarymBakin
gm USm -m COm -
m Denver
CERTIFICATIONSm&mLICENSESm •mValidmDriver’smLicensemandmcarminsurance.m• mCertifiedmPurchasi
ngm Managerm certificationm (C.P.M.) m preferred.m • m Certifiedm Foodm Purchasing m Managerm ...
ProcessmImprovementmManagerm ARAMA
RKm Corporation
USm - m TXm -m Houston
Bachelor'sm Degreem required.m Technicalm Engineeringmdisciplinem withinmIndustrial,mMechanic
al,m Chemical,m orm Foodm Operationsmstronglym preferred.m•m Minimumm 5myearsm Leanmmanufa
cturingm experiencem coupledm ...
7. Recentmoutsourcingmofmpartsmandmservicesmthatmhadmpreviouslymbeenmproducedminternal
lymismaddressedmbymwhichmcurrentmissuemfacingmoperationsmandmsupplymmanagementmto
day?
Themcoordination m ofmrelationshipsm betweenm mutuallym supportivem butmseparatem organizations.
8. Whatmfactorsmaccountmformthe mresurgence mof minterestminmOSCMmtoday?
Withm companiesm facingm competition m onm am globalm scale,m andm ever-
advancing mmanufacturing mandm informationmtechnologies,mfirmsmrealizem themcompetitivem adva
ntagemtheirm OSCMm functionsm can
1-3
, providem if m properlymmanaged.m Manym havemfoundmthatmthem samem oldmwaymofmdoingm business
m leaves m themm unablem to m competem successfully.
9. Asmthe mfieldmof mOSCMmhasmadvanced,mnewmconceptsmhave mbeenmappliedmtomhelpmcompanies
m compete minm amnumbermofmways, mincludingmthemadvertisementmofmthemfirm’smproducts mormser
vices.mOne mrecentmconceptmtomgainmthe mattentionmofmcompaniesmismpromotingmsustainability.
m Discuss m how myoum havem seenmthemideamofmsustainability m usedmby mcompaniesm tom advertise m t
heirmgoodsmormservices.
Therem ofm coursem willm bemamnumberm of mexamplesmthatmstudentsm willm bringmup,mthoughm theymma
ym needm somemproddingmtomjogmtheirm memories.m Somemexamplesm tomstartm withmmightmbemIBM’s
m “I’mm an mIBMer”m campaignm wheremthey madvertisemhow mtheymarem“building ma msmartermplanet.”
m Bottled m waterm manufacturers mhavemreduced mthemamountmofmplasticm used min mmany mofmtheirmpr
oducts,m thusmsavingm productionmandm distributionmcosts,mbutmalsomallowingmthemmtomadvertisem
howm them newm bottlesm arem betterm form them environmentm becausem theym resultm inm lessm waste.
10. Some mpeople mtendmtomusemthemtermsmeffectivenessmandmefficiencyminterchangeably, mthou
ghmwe’vemseenmtheymare mdifferentmconcepts.m Butmismtheremanymrelationshipmatmallmbetwee
nmthem?mCanmamfirmmbemeffectivembutminefficient?m Verymefficientmbutmessentiallymineffecti
ve?m Both?mNeither?
Firmsm canm bem anywherem onmthesemtwomdimensions.m Itmismpossiblem formam firmmtombem thembestm at
m whatm they mdomin m servingm theirm market,mbutmbem very mwastefulmin m doingmso.m Alternatively, mam fir
mm couldm squeezemeverym lastmdollarm outmofm theirm processesmbutm failm tomdeliverm whatmthemmarke
tm expectsm andmdesires.m Ofmcourse,mthembestmfirmsmwillm providem themgoodsm andmservicesmthatmth
em marketm desires,m exactlymasmthem marketmdesires,m andmdom somatm amminimummcost.m Firmsmthatm
arem bothm inefficientm andm ineffectivem dom notm survivem form longm inm anym market.
1-4
m m
OPERATIONS AND SUPPLY CHAIN MANAGEMENT 16TH EDITION BY F. ROBERT J
m m m m m m m m m m
ACOBS
Chapterm1-22
CHAPTER 1 m
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
m m m m
Discussion mQuestions
1. UsingmExhibitm1.3masmammodel,mdescribe mthe msource-make-deliver-
returnmrelationshipsminmthe mfollowingmsystems:
a. Anm airline
Source:m Aircraftmmanufacturer, m in-flightm food,m repairm parts,mcomputerm systems
Make:mAircraftmandmflightmcrewm scheduling,mgroundmservicesmprovidedmatmairports,maircraftmma
intenancem andm repair
Deliver:m Outboundm andm arrivingm passengerm service,mbaggagemhandlingm Ret
urn:m Resolvem anym post-servicem issuesm suchm asm lostm orm damagedm luggage
b. Anm automobilem manufacturer
Source:m Suppliersm ofm componentsm andm rawm materials
Make:m Manufacturingmofmvehiclesm andmcomponentsmormsubassembliesm tom bemsoldmasm spar
em parts
Deliver:m Deliverym tom andmsalesm fromm dealerships,mdeliverymofmsparempartsmtomthemwholesale
m system
Return:m Warrantym andm recallm repairs,m trade-ins
c. Am hospital
Source:m Medicalmsupplies,mcleaningmservices,mdisposalmservices,mfoodmservices,mqualifiedmpe
rsonnel
Make:m Inpatientm rooms,m outpatientm clinics,m emergencym room,m operatingm rooms
Deliver:m Scheduling mpatients,mprovidingmtreatment,mambulancemservice,mfamilym counselingm
Return:m Billingm errors,m followm upm visits
d. Anm insurancem company
Source:m Suppliesm neededm form them office,m underwriters,m legalm authoritym tom operate
1-1
, Make:m Establishmpolicym guidelinesmandm pricing,mfieldmagent/representativemandmfacilitym ne
twork,m developmInternetmservicem capabilities,mestablishmpreferredmvehiclem repairmservicem ne
twork
Deliver:m Meetm withmandmadvisem clients,mwritempolicies,m processmandmpaymclaimsmR
eturn:m refundm ofm overpayments
2. Define mthemservice mpackagemofmyourmcollegemormuniversity.m Whatmismitsmstrongestmelement?m Wh
atmismitsmweakestmone?
Them categoriesmwithm examplesm are:
Supporting m facilitym -
m location, m buildings, m labs, m parking m Facilitating m goods m –
m class m schedules, m computers, m books, m chalk
Explicitm servicesm –
m classes m withmqualified minstructors, mplacementmofficesm Implicitm services m
– m statusm andm reputationm (e.g.,m Ivym Leaguem schools)
Atm Indianam UniversitymandmthemUniversitymofmSouthernmCalifornia,m amongm theirm strongestm ele
mentsm aremtheirmbusinessmschoolsmandmtheirmOperationsmManagementmprogramsm(of m course).m
Bothm alsom havem verymdedicatedmalumnim networks.m AmweakmelementmofmIndianam Universitymismit
sm weakm footballm program;m form USC,m weakm elementsm arem on-campusm parkingm andm housing.
3. Whatmservice mindustrymhasmimpressedmyoumthe mmostmwithmitsminnovativeness?
Ourm votem goesmtom cruisem linesmwhichmhavemintroducedmsuchm onboardminnovationsm asmwavemma
chinesm form bellym boardingmandmrockmclimbingmwalls,masmwellm asmallm sortsmof mothermamenitiesm to
m keep m cruisers m involved. m Them industry m ism doing m record m business m asm well.
Somem ofmthem standoutmcompaniesm inm lessminnovativem industriesm arem Bankm of mAmericam(hasmam
formalizedm researchmprogrammtomtrymoutmnewmcustomermservices/amenitiesmsuchmasmvideom scre
ensm inm nextm tomtellerm lines),m Intuitm(e.g.,m puttingmQuickenmmoneymmanagementmsoftwaremonlin
e),m Ikea,m JetBluem Airlines,m andm Progressivem Insurancem (discussed m laterm inm them book).
4. Whatmismproduct-service mbundlingmandmwhatmare mthe mbenefitsmtomcustomers?
Product-servicem bundling m ism addingm Value-
addedmservicesmtomamfirm’smproductmofferingsmtom createmmoremvaluemformthem customer.m Thism pr
ovidesmbenefitsminmtwomareas.m First,m thismdifferentiatesmthemorganizationm frommthemcompetitio
n.m Secondly,mthesemservicesmtiem customersmtomthemorganization minmampositivemway.m Alternativel
y,m bundling mcanmalsom involvemaddingmproductsmtomamservice,m formexample,maddingm themsalemofm
conveniencem itemsm andm snacksm atm am hotel.
5. Whatmismthe mdifference mbetweenmamservice mandmamgood?
Am servicem ism anmintangiblem processm (youmcan’tmholdmitminmyourmhands),mwhilem amgoodmismthem phy
sicalm outputm of m am process.
6. Lookmatmthemjobmpostingsmatmhttp://www.indeed.commandmevaluatemthemopportunitiesmfo
rmanmOSMmmajormwithmseveralmyearsmof mexperience.
1-2
, Therem arem pagesmandmpagesmofmthesemwhenmyoumdomamsearchmonmoperationsmsupplym chainm ma
nagement.m Herem arem somem examples:
GlobalmActivemIngredientmSupplymPlanner
m FMCm Corporation
USm - m PAm -m Philadelphia
Thism ismyourmopportunitymtom joinmthemAgriculturalmProductsmGroupm(APG)m andmworkmonmthemtea
mm responsiblem formglobalm activem ingredientmplanning.mYou'llm servemasmamcentralm Supplym Planne
rm workingm inm tandemm ...
Purchasing mManagerm (Buyer)
Texasm Dowm Employeesm Creditm Unionm (TDECU)
USm - m TXm -m Lakem Jacksonm -m Nearestm Metrom aream -m Southm Houston
Educationm AccreditedmuniversitymdegreeminmBusinessmormMarketingm withmcertificationm inm Purch
asing,m InventorymManagement,mormLogistics.mAccreditedmPurchasingmPractitionerm(APP) morm Cert
ifiedm Purchasing m ...
ProductmLinemManagermC
intasm Corporation
USm - m OHm -m Mason
Highm Schoolm diplomam ormGEDmrequired,m4m yearmdegreem preferredm Knowledgem ofmandmexperienc
em usingm InternetmandmMicrosoftmOfficem (Word,mExcel,mPowerPoint,mandmEmail) m 3myearsmmanage
mentm experiencem preferredm ...
DirectormPurchasin
gm LegendarymBakin
gm USm -m COm -
m Denver
CERTIFICATIONSm&mLICENSESm •mValidmDriver’smLicensemandmcarminsurance.m• mCertifiedmPurchasi
ngm Managerm certificationm (C.P.M.) m preferred.m • m Certifiedm Foodm Purchasing m Managerm ...
ProcessmImprovementmManagerm ARAMA
RKm Corporation
USm - m TXm -m Houston
Bachelor'sm Degreem required.m Technicalm Engineeringmdisciplinem withinmIndustrial,mMechanic
al,m Chemical,m orm Foodm Operationsmstronglym preferred.m•m Minimumm 5myearsm Leanmmanufa
cturingm experiencem coupledm ...
7. Recentmoutsourcingmofmpartsmandmservicesmthatmhadmpreviouslymbeenmproducedminternal
lymismaddressedmbymwhichmcurrentmissuemfacingmoperationsmandmsupplymmanagementmto
day?
Themcoordination m ofmrelationshipsm betweenm mutuallym supportivem butmseparatem organizations.
8. Whatmfactorsmaccountmformthe mresurgence mof minterestminmOSCMmtoday?
Withm companiesm facingm competition m onm am globalm scale,m andm ever-
advancing mmanufacturing mandm informationmtechnologies,mfirmsmrealizem themcompetitivem adva
ntagemtheirm OSCMm functionsm can
1-3
, providem if m properlymmanaged.m Manym havemfoundmthatmthem samem oldmwaymofmdoingm business
m leaves m themm unablem to m competem successfully.
9. Asmthe mfieldmof mOSCMmhasmadvanced,mnewmconceptsmhave mbeenmappliedmtomhelpmcompanies
m compete minm amnumbermofmways, mincludingmthemadvertisementmofmthemfirm’smproducts mormser
vices.mOne mrecentmconceptmtomgainmthe mattentionmofmcompaniesmismpromotingmsustainability.
m Discuss m how myoum havem seenmthemideamofmsustainability m usedmby mcompaniesm tom advertise m t
heirmgoodsmormservices.
Therem ofm coursem willm bemamnumberm of mexamplesmthatmstudentsm willm bringmup,mthoughm theymma
ym needm somemproddingmtomjogmtheirm memories.m Somemexamplesm tomstartm withmmightmbemIBM’s
m “I’mm an mIBMer”m campaignm wheremthey madvertisemhow mtheymarem“building ma msmartermplanet.”
m Bottled m waterm manufacturers mhavemreduced mthemamountmofmplasticm used min mmany mofmtheirmpr
oducts,m thusmsavingm productionmandm distributionmcosts,mbutmalsomallowingmthemmtomadvertisem
howm them newm bottlesm arem betterm form them environmentm becausem theym resultm inm lessm waste.
10. Some mpeople mtendmtomusemthemtermsmeffectivenessmandmefficiencyminterchangeably, mthou
ghmwe’vemseenmtheymare mdifferentmconcepts.m Butmismtheremanymrelationshipmatmallmbetwee
nmthem?mCanmamfirmmbemeffectivembutminefficient?m Verymefficientmbutmessentiallymineffecti
ve?m Both?mNeither?
Firmsm canm bem anywherem onmthesemtwomdimensions.m Itmismpossiblem formam firmmtombem thembestm at
m whatm they mdomin m servingm theirm market,mbutmbem very mwastefulmin m doingmso.m Alternatively, mam fir
mm couldm squeezemeverym lastmdollarm outmofm theirm processesmbutm failm tomdeliverm whatmthemmarke
tm expectsm andmdesires.m Ofmcourse,mthembestmfirmsmwillm providem themgoodsm andmservicesmthatmth
em marketm desires,m exactlymasmthem marketmdesires,m andmdom somatm amminimummcost.m Firmsmthatm
arem bothm inefficientm andm ineffectivem dom notm survivem form longm inm anym market.
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