SOLUTION6MANUAL
OPERATIONS6AND6SUPPLY6CHAIN6MANAGEMENT,617TH6ED
ITION6
BY6F.6ROBERT6JACOBS6AND6RICHARD6CHASE
6 CHAPTERS616-6226|6COMPLETE6
1-1
, • TABLE6OF6CONTENTS
Chapter61:6Introduction
Chapter62:6Strategy
Chapter63:6Design6of6Products6and6Services
Chapter64:6Projects
Chapter65:6Strategic6Capacity6Management
Chapter66:6Learning6Curves
Chapter67:6Manufacturing6Processes
Chapter68:6Facility6Layout
Chapter69:6Service6Processes
Chapter610:6Waiting6Line6Analysis6and6Simulation
Chapter611:6Process6Design6and6Analysis
Chapter612:6Quality6Management
Chapter613:6Statistical6Quality6Control
Chapter614:6Lean6Supply6Chains
Chapter615:6Logistics6and6Distribution6Management
Chapter616:6Global6Sourcing6and6Procurement
Chapter617:6The6Internet6of6Things6and6ERP
Chapter618:6Forecasting
Chapter619:6Sales6and6Operations6Planning
Chapter620:6Inventory6Management
Chapter621:6Material6Requirements6Planning
Chapter622:6Workcenter6Scheduling
1-2
,CHAPTER61
OPERATIONS6AND6SUPPLY6CHAIN6MANAGEMENT
Discussion6Questions
1. Using6Exhibit61.36as6a6model,6describe6the6source-make-deliver-
return6relationships6in6the6following6systems:
a. An6airline
Source:6 Aircraft6manufacturer,6in-flight6food,6repair6parts,6computer6systems
Make:6Aircraft6and6flight6crew6scheduling,6ground6services6provided6at6airpor
ts,6aircraft6maintenance6and6repair
Deliver:6Outbound6and6arriving6passenger6service,6baggage6handl
ing6Return:6Resolve6any6post-
service6issues6such6as6lost6or6damaged6luggage
b. An6automobile6manufacturer
Source:6 Suppliers6of6components6and6raw6materials
Make:6Manufacturing6of6vehicles6and6components6or6subassemblies6to6be6sold
6as6spare6parts
Deliver:6Delivery6to6and6sales6from6dealerships,6delivery6of6spare6parts6to6th
e6wholesale6system
Return:6 Warranty6and6recall6repairs,6trade-ins
c. A6hospital
Source:6Medical6supplies,6cleaning6services,6disposal6services,6food6services,6qua
lified6personnel
Make:6 Inpatient6rooms,6outpatient6clinics,6emergency6room,6operating6rooms
Deliver:6Scheduling6patients,6providing6treatment,6ambulance6service,6family6co
unseling6Return:6Billing6errors,6follow6up6visits
d. An6insurance6company
Source:6 Supplies6needed6for6the6office,6underwriters,6legal6authority6to6operate
1-3
, Make:6Establish6policy6guidelines6and6pricing,6field6agent/representative6and6f
acility6network,6develop6Internet6service6capabilities,6establish6preferred6vehicl
e6repair6service6network
Deliver:6Meet6with6and6advise6clients,6write6policies,6process6and6p
ay6claims6Return:6 refund6of6overpayments
2. Define6the6service6package6of6your6college6or6university.6What6is6its6strongest6ele
ment?6What6is6its6weakest6one?
The6categories6with6examples6are:
Supporting6facility6-
6location,6buildings,6labs,6parking6Facilitating6goods6–
6class6schedules,6computers,6books,6chalk
Explicit6services6–
6classes6with6qualified6instructors,6placement6offices6Implicit6s
ervices6–6status6and6reputation6(e.g.,6Ivy6League6schools)
At6Indiana6University6and6the6University6of6Southern6California,6among6their6stro
ngest6elements6are6their6business6schools6and6their6Operations6Management6progr
ams6(of6course).6Both6also6have6very6dedicated6alumni6networks.6A6weak6element6
of6Indiana6University6is6its6weak6football6program;6for6USC,6weak6elements6are6on
-campus6parking6and6housing.
3. What6service6industry6has6impressed6you6the6most6with6its6innovativeness?
Our6vote6goes6to6cruise6lines6which6have6introduced6such6onboard6innovations6as6
wave6machines6for6belly6boarding6and6rock6climbing6walls,6as6well6as6all6sorts6of
6other6amenities6to6keep6cruisers6involved.6 The6industry6is6doing6record6business6
as6well.
Some6of6the6standout6companies6in6less6innovative6industries6are6Bank6of6America6(
has6a6formalized6research6program6to6try6out6new6customer6services/amenities6such
6as6video6screens6in6next6to6teller6lines),6Intuit6(e.g.,6putting6Quicken6money6manage
ment6software6online),6Ikea,6JetBlue6Airlines,6and6Progressive6Insurance6(discussed6lat
er6in6the6book).
4. What6is6product-service6bundling6and6what6are6the6benefits6to6customers?
Product-service6bundling6is6adding6Value-
added6services6to6a6firm’s6product6offerings6to6create6more6value6for6the6customer.
6This6provides6benefits6in6two6areas.6First,6this6differentiates6the6organization6from6
the6competition.6Secondly,6these6services6tie6customers6to6the6organization6in6a6posi
tive6way.6Alternatively,6bundling6can6also6involve6adding6products6to6a6service,6for6
example,6adding6the6sale6of6convenience6items6and6snacks6at6a6hotel.
5. What6is6the6difference6between6a6service6and6a6good?
A6service6is6an6intangible6process6(you6can’t6hold6it6in6your6hands),6while6a6good
6is6the6physical6output6of6a6process.
6. Look6at6the6job6postings6at6http://www.indeed.com6and6evaluate6the6opportu
1-4
OPERATIONS6AND6SUPPLY6CHAIN6MANAGEMENT,617TH6ED
ITION6
BY6F.6ROBERT6JACOBS6AND6RICHARD6CHASE
6 CHAPTERS616-6226|6COMPLETE6
1-1
, • TABLE6OF6CONTENTS
Chapter61:6Introduction
Chapter62:6Strategy
Chapter63:6Design6of6Products6and6Services
Chapter64:6Projects
Chapter65:6Strategic6Capacity6Management
Chapter66:6Learning6Curves
Chapter67:6Manufacturing6Processes
Chapter68:6Facility6Layout
Chapter69:6Service6Processes
Chapter610:6Waiting6Line6Analysis6and6Simulation
Chapter611:6Process6Design6and6Analysis
Chapter612:6Quality6Management
Chapter613:6Statistical6Quality6Control
Chapter614:6Lean6Supply6Chains
Chapter615:6Logistics6and6Distribution6Management
Chapter616:6Global6Sourcing6and6Procurement
Chapter617:6The6Internet6of6Things6and6ERP
Chapter618:6Forecasting
Chapter619:6Sales6and6Operations6Planning
Chapter620:6Inventory6Management
Chapter621:6Material6Requirements6Planning
Chapter622:6Workcenter6Scheduling
1-2
,CHAPTER61
OPERATIONS6AND6SUPPLY6CHAIN6MANAGEMENT
Discussion6Questions
1. Using6Exhibit61.36as6a6model,6describe6the6source-make-deliver-
return6relationships6in6the6following6systems:
a. An6airline
Source:6 Aircraft6manufacturer,6in-flight6food,6repair6parts,6computer6systems
Make:6Aircraft6and6flight6crew6scheduling,6ground6services6provided6at6airpor
ts,6aircraft6maintenance6and6repair
Deliver:6Outbound6and6arriving6passenger6service,6baggage6handl
ing6Return:6Resolve6any6post-
service6issues6such6as6lost6or6damaged6luggage
b. An6automobile6manufacturer
Source:6 Suppliers6of6components6and6raw6materials
Make:6Manufacturing6of6vehicles6and6components6or6subassemblies6to6be6sold
6as6spare6parts
Deliver:6Delivery6to6and6sales6from6dealerships,6delivery6of6spare6parts6to6th
e6wholesale6system
Return:6 Warranty6and6recall6repairs,6trade-ins
c. A6hospital
Source:6Medical6supplies,6cleaning6services,6disposal6services,6food6services,6qua
lified6personnel
Make:6 Inpatient6rooms,6outpatient6clinics,6emergency6room,6operating6rooms
Deliver:6Scheduling6patients,6providing6treatment,6ambulance6service,6family6co
unseling6Return:6Billing6errors,6follow6up6visits
d. An6insurance6company
Source:6 Supplies6needed6for6the6office,6underwriters,6legal6authority6to6operate
1-3
, Make:6Establish6policy6guidelines6and6pricing,6field6agent/representative6and6f
acility6network,6develop6Internet6service6capabilities,6establish6preferred6vehicl
e6repair6service6network
Deliver:6Meet6with6and6advise6clients,6write6policies,6process6and6p
ay6claims6Return:6 refund6of6overpayments
2. Define6the6service6package6of6your6college6or6university.6What6is6its6strongest6ele
ment?6What6is6its6weakest6one?
The6categories6with6examples6are:
Supporting6facility6-
6location,6buildings,6labs,6parking6Facilitating6goods6–
6class6schedules,6computers,6books,6chalk
Explicit6services6–
6classes6with6qualified6instructors,6placement6offices6Implicit6s
ervices6–6status6and6reputation6(e.g.,6Ivy6League6schools)
At6Indiana6University6and6the6University6of6Southern6California,6among6their6stro
ngest6elements6are6their6business6schools6and6their6Operations6Management6progr
ams6(of6course).6Both6also6have6very6dedicated6alumni6networks.6A6weak6element6
of6Indiana6University6is6its6weak6football6program;6for6USC,6weak6elements6are6on
-campus6parking6and6housing.
3. What6service6industry6has6impressed6you6the6most6with6its6innovativeness?
Our6vote6goes6to6cruise6lines6which6have6introduced6such6onboard6innovations6as6
wave6machines6for6belly6boarding6and6rock6climbing6walls,6as6well6as6all6sorts6of
6other6amenities6to6keep6cruisers6involved.6 The6industry6is6doing6record6business6
as6well.
Some6of6the6standout6companies6in6less6innovative6industries6are6Bank6of6America6(
has6a6formalized6research6program6to6try6out6new6customer6services/amenities6such
6as6video6screens6in6next6to6teller6lines),6Intuit6(e.g.,6putting6Quicken6money6manage
ment6software6online),6Ikea,6JetBlue6Airlines,6and6Progressive6Insurance6(discussed6lat
er6in6the6book).
4. What6is6product-service6bundling6and6what6are6the6benefits6to6customers?
Product-service6bundling6is6adding6Value-
added6services6to6a6firm’s6product6offerings6to6create6more6value6for6the6customer.
6This6provides6benefits6in6two6areas.6First,6this6differentiates6the6organization6from6
the6competition.6Secondly,6these6services6tie6customers6to6the6organization6in6a6posi
tive6way.6Alternatively,6bundling6can6also6involve6adding6products6to6a6service,6for6
example,6adding6the6sale6of6convenience6items6and6snacks6at6a6hotel.
5. What6is6the6difference6between6a6service6and6a6good?
A6service6is6an6intangible6process6(you6can’t6hold6it6in6your6hands),6while6a6good
6is6the6physical6output6of6a6process.
6. Look6at6the6job6postings6at6http://www.indeed.com6and6evaluate6the6opportu
1-4
