Operations and Supply Chain Management
SOLUTION MANUAL
Operations and Supply Chain Management, 17th 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
Chapter 22: Workcenter Scheduling
1-2
, Operations and Supply Chain Management
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
1-3
, Operations and Supply Chain Management
Make: aEstablish apolicy aguidelines aand apricing, afield aagent/representative aand
afacility anetwork, adevelop aInternet aservice acapabilities, aestablish apreferred
avehicle arepair aserviceanetwork
Deliver: aMeet awith aand aadvise aclients, awrite apolicies, aprocess aand
apay aclaimsaReturn: a refund aof aoverpayments
2. Define athe aservice apackage aof ayour acollege aor auniversity. aWhat ais aits astrongest aelement?
aWhat aisaits aweakest aone?
The acategories awith aexamples aare:
Supporting afacility a- alocation, abuildings, alabs, aparking
aFacilitating agoods a– aclass aschedules, acomputers, abooks,
achalk
Explicit aservices a– aclasses awith aqualified ainstructors, aplacement
aofficesaImplicit aservices a– astatus aand areputation a(e.g., aIvy
aLeague aschools)
At aIndiana aUniversity aand athe aUniversity aof aSouthern aCalifornia, aamong atheir
astrongest aelements aare atheir abusiness aschools aand atheir aOperations aManagement
aprograms a(of acourse).aBoth aalso ahave avery adedicated aalumni anetworks. aA aweak
aelement aof aIndiana aUniversity ais aits aweak afootball aprogram; afor aUSC, aweak aelements
aare aon-campus aparking aand ahousing.
3. What aservice aindustry ahas aimpressed ayou athe amost awith aits ainnovativeness?
Our avote agoes ato acruise alines awhich ahave aintroduced asuch aonboard ainnovations aas
awave amachines afor abelly aboarding aand arock aclimbing awalls, aas awell aas aall asorts aof
aother aamenities atoakeep acruisers ainvolved. a The aindustry ais adoing arecord abusiness aas
awell.
Some aof athe astandout acompanies ain aless ainnovative aindustries aare aBank aof aAmerica
a(has aa aformalized aresearch aprogram ato atry aout anew acustomer aservices/amenities asuch
aas avideo ascreensain anext ato ateller alines), aIntuit a(e.g., aputting aQuicken amoney
amanagement asoftware aonline), aIkea,aJetBlue aAirlines, aand aProgressive aInsurance
a(discussed alater ain athe abook).
4. What ais aproduct-service abundling aand awhat aare athe abenefits ato acustomers?
Product-service abundling ais aadding aValue-added aservices ato aa afirm’s aproduct aofferings
ato acreateamore avalue afor athe acustomer. aThis aprovides abenefits ain atwo aareas. aFirst,
athis adifferentiates atheaorganization afrom athe acompetition. aSecondly, athese aservices atie
acustomers ato athe aorganizationain aa apositive away. aAlternatively, abundling acan aalso
ainvolve aadding aproducts ato aa aservice, afor aexample, aadding athe asale aof aconvenience
aitems aand asnacks aat aa ahotel.
5. What ais athe adifference abetween aa aservice aand aa agood?
A aservice ais aan aintangible aprocess a(you acan’t ahold ait ain ayour ahands), awhile aa agood ais
athe aphysicalaoutput aof aa aprocess.
1-4
SOLUTION MANUAL
Operations and Supply Chain Management, 17th 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
Chapter 22: Workcenter Scheduling
1-2
, Operations and Supply Chain Management
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
1-3
, Operations and Supply Chain Management
Make: aEstablish apolicy aguidelines aand apricing, afield aagent/representative aand
afacility anetwork, adevelop aInternet aservice acapabilities, aestablish apreferred
avehicle arepair aserviceanetwork
Deliver: aMeet awith aand aadvise aclients, awrite apolicies, aprocess aand
apay aclaimsaReturn: a refund aof aoverpayments
2. Define athe aservice apackage aof ayour acollege aor auniversity. aWhat ais aits astrongest aelement?
aWhat aisaits aweakest aone?
The acategories awith aexamples aare:
Supporting afacility a- alocation, abuildings, alabs, aparking
aFacilitating agoods a– aclass aschedules, acomputers, abooks,
achalk
Explicit aservices a– aclasses awith aqualified ainstructors, aplacement
aofficesaImplicit aservices a– astatus aand areputation a(e.g., aIvy
aLeague aschools)
At aIndiana aUniversity aand athe aUniversity aof aSouthern aCalifornia, aamong atheir
astrongest aelements aare atheir abusiness aschools aand atheir aOperations aManagement
aprograms a(of acourse).aBoth aalso ahave avery adedicated aalumni anetworks. aA aweak
aelement aof aIndiana aUniversity ais aits aweak afootball aprogram; afor aUSC, aweak aelements
aare aon-campus aparking aand ahousing.
3. What aservice aindustry ahas aimpressed ayou athe amost awith aits ainnovativeness?
Our avote agoes ato acruise alines awhich ahave aintroduced asuch aonboard ainnovations aas
awave amachines afor abelly aboarding aand arock aclimbing awalls, aas awell aas aall asorts aof
aother aamenities atoakeep acruisers ainvolved. a The aindustry ais adoing arecord abusiness aas
awell.
Some aof athe astandout acompanies ain aless ainnovative aindustries aare aBank aof aAmerica
a(has aa aformalized aresearch aprogram ato atry aout anew acustomer aservices/amenities asuch
aas avideo ascreensain anext ato ateller alines), aIntuit a(e.g., aputting aQuicken amoney
amanagement asoftware aonline), aIkea,aJetBlue aAirlines, aand aProgressive aInsurance
a(discussed alater ain athe abook).
4. What ais aproduct-service abundling aand awhat aare athe abenefits ato acustomers?
Product-service abundling ais aadding aValue-added aservices ato aa afirm’s aproduct aofferings
ato acreateamore avalue afor athe acustomer. aThis aprovides abenefits ain atwo aareas. aFirst,
athis adifferentiates atheaorganization afrom athe acompetition. aSecondly, athese aservices atie
acustomers ato athe aorganizationain aa apositive away. aAlternatively, abundling acan aalso
ainvolve aadding aproducts ato aa aservice, afor aexample, aadding athe asale aof aconvenience
aitems aand asnacks aat aa ahotel.
5. What ais athe adifference abetween aa aservice aand aa agood?
A aservice ais aan aintangible aprocess a(you acan’t ahold ait ain ayour ahands), awhile aa agood ais
athe aphysicalaoutput aof aa aprocess.
1-4
