SOLUTION MANUAL
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
, TABLE OF CONTENTS
44 44
Chapter441:44Introduction
Chapter442:44Strategy
Chapter443:44Design44of44Products44and44Ser
vices44Chapter444:44Projects
Chapter445:44Strategic44Capacity44Managem
ent44Chapter446:44Learning44Curves
Chapter447:44Manufacturing44Processes44Ch
apter448:44Facility44Layout
Chapter449:44Service44Processes
Chapter4410:44Waiting44Line44Analysis44and44Simu
lation44Chapter4411:44Process44Design44and44Ana
lysis4 4 Chapter4412:44Quality44Management
Chapter4413:44Statistical44Quality44Control44
Chapter4414:44Lean44Supply44Chains
Chapter4415:44Logistics44and44Distribution44Manage
ment44Chapter4416:44Global44Sourcing44and44Procu
rement44Chapter4417:44The44Internet44of44Things44a
nd44ERP4 4 Chapter4418:44Forecasting
Chapter4419:44Sales44and44Operations44Plan
ning44Chapter4420:44Inventory44Managemen
t4 4 Chapter4421:44Material44Requirements44Pl
anning
,Chapter4422:44Workcenter44Scheduling
CHAPTER441
OPERATIONS44AND44SUPPLY44CHAIN44MANAGEMENT
Discussion44Questions
1. Using44Exhibit441.344as44a44model,44describe44the44source-make-
deliver-return44relationships44in44thefollowing44systems:
a. An44airline
Source:44Aircraft44manufacturer,44in-
flight44food,44repair44parts,44computer44systems44Make:44Aircraft44and44flight44cre
w44scheduling,44ground44services44provided44at44airports,
aircraftmaintenance44and44repair
Deliver:44Outbound44and44arriving44passenger44service,44baggage44
handling44Return:44Resolve44any44post-
service44issues44such44as44lost44or44damaged44luggage
b. An44automobile44manufacturer
Source:4 4 Suppliers44of44components44and44raw44materials
Make:44Manufacturing44of44vehicles44and44components44or44subassemblies44to
44be44sold44as44spareparts
Deliver:44Delivery44to44and44sales44from44dealerships,44delivery44of44spare44part
s44to44the44wholesalesystem
Return:44 Warranty44and44recall44repairs,44trade-ins
c. A44hospital
Source:44Medical44supplies,44cleaning44services,44disposal44services,44food44servi
ces,44qualifiedpersonnel
Make:4 4 Inpatient44rooms,44outpatient44clinics,44emergency44room,44operating4
4rooms44Deliver:44Scheduling44patients,44providing44treatment,44ambulance44s
ervice,44family44counselingReturn:44Billing44errors,44follow44up44visits
d. An44insurance44company
Source:4 4 Supplies44needed44for44the44office,44underwriters,44legal44authority44to44operate
, Make:44Establish44policy44guidelines44and44pricing,44field44agent/representativ
e44and44facility44network,44develop44Internet44service44capabilities,44establish44p
referred44vehicle44repair44servicenetwork
Deliver:44Meet44with44and44advise44clients,44write44policies,44process44and44pay4
4claimsReturn:4 4 refund44of44overpayments
2. Define44the44service44package44of44your44college44or44university.44What44is44its44stron
gest44element?44What44isits44weakest44one?
The44categories44with44examples44are:
Supporting44facility44-
44location,44buildings,44labs,44parking44Facilitating44goods4
4–44class44schedules,44computers,44books,44chalk
Explicit44services44–
44classes44with44qualified44instructors,44placement44officesImplicit
44services44–
44status44and44reputation44(e.g.,44Ivy44League44schools)
At44Indiana44University44and44the44University44of44Southern44California,44among44
their44strongest44elements44are44their44business44schools44and44their44Operations
44Management44programs44(of44course).Both44also44have44very44dedicated44alum
ni44networks.44A44weak44element44of44Indiana44University44is44its44weak44football44
program;44for44USC,44weak44elements44are44on-campus44parking44and44housing.
3. What44service44industry44has44impressed44you44the44most44with44its44innovativeness?
Our44vote44goes44to44cruise44lines44which44have44introduced44such44onboard44inn
ovations44as44wave44machines44for44belly44boarding44and44rock44climbing44walls,4
4as44well44as44all44sorts44of44other44amenities44tokeep44cruisers44involved.4 4 The44i
ndustry44is44doing44record44business44as44well.
Some44of44the44standout44companies44in44less44innovative44industries44are44Bank44of44A
merica44(has44a44formalized44research44program44to44try44out44new44customer44service
s/amenities44such44as44video44screensin44next44to44teller44lines),44Intuit44(e.g.,44putting
44Quicken44money44management44software44online),44Ikea,JetBlue44Airlines,44and44Pro
gressive44Insurance44(discussed44later44in44the44book).
4. What44is44product-service44bundling44and44what44are44the44benefits44to44customers?
Product-service44bundling44is44adding44Value-
added44services44to44a44firm’s44product44offerings44to44createmore44value44for44the44
customer.44This44provides44benefits44in44two44areas.44First,44this44differentiates44the
organization44from44the44competition.44Secondly,44these44services44tie44customers44t
o44the44organizationin44a44positive44way.44Alternatively,44bundling44can44also44involv
e44adding44products44to44a44service,44for44example,44adding44the44sale44of44convenie
nce44items44and44snacks44at44a44hotel.
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
, TABLE OF CONTENTS
44 44
Chapter441:44Introduction
Chapter442:44Strategy
Chapter443:44Design44of44Products44and44Ser
vices44Chapter444:44Projects
Chapter445:44Strategic44Capacity44Managem
ent44Chapter446:44Learning44Curves
Chapter447:44Manufacturing44Processes44Ch
apter448:44Facility44Layout
Chapter449:44Service44Processes
Chapter4410:44Waiting44Line44Analysis44and44Simu
lation44Chapter4411:44Process44Design44and44Ana
lysis4 4 Chapter4412:44Quality44Management
Chapter4413:44Statistical44Quality44Control44
Chapter4414:44Lean44Supply44Chains
Chapter4415:44Logistics44and44Distribution44Manage
ment44Chapter4416:44Global44Sourcing44and44Procu
rement44Chapter4417:44The44Internet44of44Things44a
nd44ERP4 4 Chapter4418:44Forecasting
Chapter4419:44Sales44and44Operations44Plan
ning44Chapter4420:44Inventory44Managemen
t4 4 Chapter4421:44Material44Requirements44Pl
anning
,Chapter4422:44Workcenter44Scheduling
CHAPTER441
OPERATIONS44AND44SUPPLY44CHAIN44MANAGEMENT
Discussion44Questions
1. Using44Exhibit441.344as44a44model,44describe44the44source-make-
deliver-return44relationships44in44thefollowing44systems:
a. An44airline
Source:44Aircraft44manufacturer,44in-
flight44food,44repair44parts,44computer44systems44Make:44Aircraft44and44flight44cre
w44scheduling,44ground44services44provided44at44airports,
aircraftmaintenance44and44repair
Deliver:44Outbound44and44arriving44passenger44service,44baggage44
handling44Return:44Resolve44any44post-
service44issues44such44as44lost44or44damaged44luggage
b. An44automobile44manufacturer
Source:4 4 Suppliers44of44components44and44raw44materials
Make:44Manufacturing44of44vehicles44and44components44or44subassemblies44to
44be44sold44as44spareparts
Deliver:44Delivery44to44and44sales44from44dealerships,44delivery44of44spare44part
s44to44the44wholesalesystem
Return:44 Warranty44and44recall44repairs,44trade-ins
c. A44hospital
Source:44Medical44supplies,44cleaning44services,44disposal44services,44food44servi
ces,44qualifiedpersonnel
Make:4 4 Inpatient44rooms,44outpatient44clinics,44emergency44room,44operating4
4rooms44Deliver:44Scheduling44patients,44providing44treatment,44ambulance44s
ervice,44family44counselingReturn:44Billing44errors,44follow44up44visits
d. An44insurance44company
Source:4 4 Supplies44needed44for44the44office,44underwriters,44legal44authority44to44operate
, Make:44Establish44policy44guidelines44and44pricing,44field44agent/representativ
e44and44facility44network,44develop44Internet44service44capabilities,44establish44p
referred44vehicle44repair44servicenetwork
Deliver:44Meet44with44and44advise44clients,44write44policies,44process44and44pay4
4claimsReturn:4 4 refund44of44overpayments
2. Define44the44service44package44of44your44college44or44university.44What44is44its44stron
gest44element?44What44isits44weakest44one?
The44categories44with44examples44are:
Supporting44facility44-
44location,44buildings,44labs,44parking44Facilitating44goods4
4–44class44schedules,44computers,44books,44chalk
Explicit44services44–
44classes44with44qualified44instructors,44placement44officesImplicit
44services44–
44status44and44reputation44(e.g.,44Ivy44League44schools)
At44Indiana44University44and44the44University44of44Southern44California,44among44
their44strongest44elements44are44their44business44schools44and44their44Operations
44Management44programs44(of44course).Both44also44have44very44dedicated44alum
ni44networks.44A44weak44element44of44Indiana44University44is44its44weak44football44
program;44for44USC,44weak44elements44are44on-campus44parking44and44housing.
3. What44service44industry44has44impressed44you44the44most44with44its44innovativeness?
Our44vote44goes44to44cruise44lines44which44have44introduced44such44onboard44inn
ovations44as44wave44machines44for44belly44boarding44and44rock44climbing44walls,4
4as44well44as44all44sorts44of44other44amenities44tokeep44cruisers44involved.4 4 The44i
ndustry44is44doing44record44business44as44well.
Some44of44the44standout44companies44in44less44innovative44industries44are44Bank44of44A
merica44(has44a44formalized44research44program44to44try44out44new44customer44service
s/amenities44such44as44video44screensin44next44to44teller44lines),44Intuit44(e.g.,44putting
44Quicken44money44management44software44online),44Ikea,JetBlue44Airlines,44and44Pro
gressive44Insurance44(discussed44later44in44the44book).
4. What44is44product-service44bundling44and44what44are44the44benefits44to44customers?
Product-service44bundling44is44adding44Value-
added44services44to44a44firm’s44product44offerings44to44createmore44value44for44the44
customer.44This44provides44benefits44in44two44areas.44First,44this44differentiates44the
organization44from44the44competition.44Secondly,44these44services44tie44customers44t
o44the44organizationin44a44positive44way.44Alternatively,44bundling44can44also44involv
e44adding44products44to44a44service,44for44example,44adding44the44sale44of44convenie
nce44items44and44snacks44at44a44hotel.
