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
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, 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: sEstablish spolicy sguidelines sand spricing, sfield sagent/representative sand
sfacility snetwork, sdevelop sInternet sservice scapabilities, sestablish spreferred svehicle
srepair sservicesnetwork
Deliver: sMeet swith sand sadvise sclients, swrite spolicies, sprocess sand spay
sclaimssReturn: s refund sof soverpayments
2. Define sthe sservice spackage sof syour scollege sor suniversity. sWhat sis sits sstrongest selement?
sWhat sissits sweakest sone?
The scategories swith sexamples sare:
Supporting sfacility s- slocation, sbuildings, slabs, sparking
sFacilitating sgoods s– sclass sschedules, scomputers, sbooks,
schalk
Explicit sservices s– sclasses swith squalified sinstructors, splacement
sofficessImplicit sservices s– sstatus sand sreputation s(e.g., sIvy sLeague
sschools)
At sIndiana sUniversity sand sthe sUniversity sof sSouthern sCalifornia, samong stheir sstrongest
selements sare stheir sbusiness sschools sand stheir sOperations sManagement sprograms s(of
scourse).sBoth salso shave svery sdedicated salumni snetworks. sA sweak selement sof sIndiana
sUniversity sis sits sweak sfootball sprogram; sfor sUSC, sweak selements sare son-campus
sparking sand shousing.
3. What sservice sindustry shas simpressed syou sthe smost swith sits sinnovativeness?
Our svote sgoes sto scruise slines swhich shave sintroduced ssuch sonboard sinnovations sas
swave smachines sfor sbelly sboarding sand srock sclimbing swalls, sas swell sas sall ssorts sof
sother samenities stoskeep scruisers sinvolved. s The sindustry sis sdoing srecord sbusiness sas
swell.
Some sof sthe sstandout scompanies sin sless sinnovative sindustries sare sBank sof sAmerica s(has
sa sformalized sresearch sprogram sto stry sout snew scustomer sservices/amenities ssuch sas
svideo sscreenssin snext sto steller slines), sIntuit s(e.g., sputting sQuicken smoney smanagement
ssoftware sonline), sIkea,sJetBlue sAirlines, sand sProgressive sInsurance s(discussed slater sin sthe
sbook).
4. What sis sproduct-service sbundling sand swhat sare sthe sbenefits sto scustomers?
Product-service sbundling sis sadding sValue-added sservices sto sa sfirm’s sproduct sofferings sto
screatesmore svalue sfor sthe scustomer. sThis sprovides sbenefits sin stwo sareas. sFirst, sthis
sdifferentiates sthesorganization sfrom sthe scompetition. sSecondly, sthese sservices stie
scustomers sto sthe sorganizationsin sa spositive sway. sAlternatively, sbundling scan salso sinvolve
sadding sproducts sto sa sservice, sfor sexample, sadding sthe ssale sof sconvenience sitems sand
ssnacks sat sa shotel.
5. What sis sthe sdifference sbetween sa sservice sand sa sgood?
A sservice sis san sintangible sprocess s(you scan’t shold sit sin syour shands), swhile sa sgood sis
sthe sphysicalsoutput sof sa sprocess.
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: sEstablish spolicy sguidelines sand spricing, sfield sagent/representative sand
sfacility snetwork, sdevelop sInternet sservice scapabilities, sestablish spreferred svehicle
srepair sservicesnetwork
Deliver: sMeet swith sand sadvise sclients, swrite spolicies, sprocess sand spay
sclaimssReturn: s refund sof soverpayments
2. Define sthe sservice spackage sof syour scollege sor suniversity. sWhat sis sits sstrongest selement?
sWhat sissits sweakest sone?
The scategories swith sexamples sare:
Supporting sfacility s- slocation, sbuildings, slabs, sparking
sFacilitating sgoods s– sclass sschedules, scomputers, sbooks,
schalk
Explicit sservices s– sclasses swith squalified sinstructors, splacement
sofficessImplicit sservices s– sstatus sand sreputation s(e.g., sIvy sLeague
sschools)
At sIndiana sUniversity sand sthe sUniversity sof sSouthern sCalifornia, samong stheir sstrongest
selements sare stheir sbusiness sschools sand stheir sOperations sManagement sprograms s(of
scourse).sBoth salso shave svery sdedicated salumni snetworks. sA sweak selement sof sIndiana
sUniversity sis sits sweak sfootball sprogram; sfor sUSC, sweak selements sare son-campus
sparking sand shousing.
3. What sservice sindustry shas simpressed syou sthe smost swith sits sinnovativeness?
Our svote sgoes sto scruise slines swhich shave sintroduced ssuch sonboard sinnovations sas
swave smachines sfor sbelly sboarding sand srock sclimbing swalls, sas swell sas sall ssorts sof
sother samenities stoskeep scruisers sinvolved. s The sindustry sis sdoing srecord sbusiness sas
swell.
Some sof sthe sstandout scompanies sin sless sinnovative sindustries sare sBank sof sAmerica s(has
sa sformalized sresearch sprogram sto stry sout snew scustomer sservices/amenities ssuch sas
svideo sscreenssin snext sto steller slines), sIntuit s(e.g., sputting sQuicken smoney smanagement
ssoftware sonline), sIkea,sJetBlue sAirlines, sand sProgressive sInsurance s(discussed slater sin sthe
sbook).
4. What sis sproduct-service sbundling sand swhat sare sthe sbenefits sto scustomers?
Product-service sbundling sis sadding sValue-added sservices sto sa sfirm’s sproduct sofferings sto
screatesmore svalue sfor sthe scustomer. sThis sprovides sbenefits sin stwo sareas. sFirst, sthis
sdifferentiates sthesorganization sfrom sthe scompetition. sSecondly, sthese sservices stie
scustomers sto sthe sorganizationsin sa spositive sway. sAlternatively, sbundling scan salso sinvolve
sadding sproducts sto sa sservice, sfor sexample, sadding sthe ssale sof sconvenience sitems sand
ssnacks sat sa shotel.
5. What sis sthe sdifference sbetween sa sservice sand sa sgood?
A sservice sis san sintangible sprocess s(you scan’t shold sit sin syour shands), swhile sa sgood sis
sthe sphysicalsoutput sof sa sprocess.
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