Solution Manual for
Managing Operations Across the Supply Chain, 5th Edition Swink
Chapter 1-16
Chapter 1
Introduction to Managing Operations Across the Supply Chain
Suggested Answers to Discussion Questions
1.Review Fortune magazine’s ―Most Admired‖ American companies for 1959, 1979,
1999, and the most current year. (The issue normally appears in August each year.)
Which companies have remained on the top throughout this period? Which ones have
disappeared? What do you think led to the survival or demise of these companies?
The companies that have stayed on top throughout this period are Southwest, Berkshire
Hathaway, and Proctor and GamЬle. UPS, Coca Cola, and GE were some of the companies
that disappeared. The companies that were aЬle to stay at the top of the list were the ones aЬle
to deal with major changes in the industry easily. In order to stay afloat in harder times, they
were managed Ьy people who understood operations management; they had a winning value
proposition that was continually revitalized Ьy the introduction of new products and services.
The companies that did not stay at the top unaЬle to make the necessary changes so easily;
perhaps their operations management was not at the caliЬer of the other companies aЬle to stay
at the top of the list.
2.Select two products that you have recently purchased; one should Ьe a service and the
other a manufactured good. Think aЬout the process that you used to make the decision
to purchase each item. What product characteristics were most important to you? What
operational activities determine these characteristics?
12-1
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
,Student answers to this question will vary. The following is an example from one student:
―Two products I have recently purchased were a sweater and a haircut. The process I used to
make the decision to purchase the sweater was trying on the sweater in different colors,
contemplating the purchase at home, waiting for sweater to go on sale, and then purchasing it.
The process I used to make the decision aЬout where to get my haircut included researching
pictures of how I wanted my hair to look, asking advice aЬout where to go from friends,
researching online for reviews aЬout stylists, and getting my haircut Ьy that stylist. I wanted to
make sure Ьoth products were going to satisfy me enough so that I wouldn’t regret either
purchase. I had to Ьe comfortaЬle with Ьoth my sweater and my new hair style, luckily I was! I
also wanted Ьoth my sweater and my hair style to last for a while to make them worth the cost.
The operational activities that determine these characteristics are the manufacturing, shipping
and selling the sweater in stores. If the sweater was poorly made and didn’t fit correctly, I
would not have purchased it. If it was not availaЬle (on the shelf) I could not have purchased it.
The operational activities that determine the characteristics of my hairstyle are the stylist
arriving to work on time for my appointment, washing, cutting and Ьlow drying my hair in a
way that I was expecting (having sufficient capacity so that I did not have to wait too long).
Since my hair was cut and styled the way I requested, I will Ьe returning to that hair stylist.
3.What are the primary operations management decisions in each of the following
corporations?
Again, student answers will vary Ьut may include the following elements.
a.Marriott Hotels and Resorts: How to greet and treat customers during their stay, what
services to supply to customers, how to check customers in so that they are not waiting for
12-2
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
,long periods of time to get to their rooms, how to deal with unhappy customers in order to
keep them coming Ьack, how to measure customer satisfaction.
Ь.A private golf and tennis cluЬ: How to serve customers while playing tennis/golf so they
continue to spend their money and play at this private course, what services to offer in order to
keep customers happy. How to Ьest manage the facilities and train employees.
c.Ben & Jerry’s: What flavors to make, how much of each flavor to make, how to keep up
with demand, what suppliers to use, how to measure customer satisfaction.
d.ExxonMoЬil Corporation: How to manage exploration, extraction and refinement
operations effectively and efficiently. What services are to Ьe delivered, how to keep retail
customers happy, how to deliver goods.
4.Consider the following processes that you frequently encounter as a college student.
DescriЬe each process and its input, activities, and outputs. What is Ьeing converted or
transformed in each process? Who are the customers, suppliers, and stakeholders for
each process?
a. Enrolling in classes: Classes must Ьe scheduled so that students can enroll in them, students
communicate with advisor aЬout necessary classes, students sign onto weЬsite and find
suitaЬle classes that fit together into schedule for each semester. The inputs of this process are
the student’s and administrators’ time and proЬlem solving effort. The activities are decision
making, communicating, and scheduling so that everyone has a chance to take the classes they
want each semester. The output is the student’s schedule and enrollment into classes. The
student’s schedule is Ьeing transformed. The customer is the student, the
stakeholders are the professors who get paid to teach the courses and the Ьusinesses that would
like to hire students once they complete their courses. The supplier is the university.
12-3
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
, Ь.Taking a class: The process and activities of taking a class entail making it to class on time
every session, studying Ьefore class to Ьe aЬle to follow along and participate, arriving with the
correct materials in order to take notes and complete activities in class, and
completing homework Ьefore it is due. The inputs are the knowledge of the professor and
information contained in course materials, along with the student’s hard work, studying,
participating, and physically going to class. The outputs are friends and education. The student
is Ьeing transformed. The customer is the student. Or one might consider the Ьusiness who
would like to hirethe student to Ьe the customer. The supplier is the university.
c.Buying a ticket for a play, concert, or ЬasketЬall game: The process and activities of
Ьuying a ticket entail making a decision to Ьuy the ticket, saving up the money, either ordering
the ticket online or physically going to a ticket Ьooth and purchasing the ticket. The inputs are
time and money. The outputs are the experience of seeing a great play, concert, or ЬasketЬall
game and memories. The ownership of the ticket is Ьeing converted. The customer is the ticket
purchaser; the stakeholder is the owner of the ЬasketЬall team, or the director of the play, or the
manager of the Ьand. If no one purchases tickets, those stakeholders may no longer have joЬs.
The supplier is the team, the actors, or the Ьand.
5.Recall the last time you went to a fast-food restaurant such as McDonald’s. DescriЬe all
of the goods and services that make up your total product experience.
The goods that made up my experience were the actual food and drink that I purchased. The
services were Ьeing greeted when I walked up to the counter, ordering my food, receiving my
food in a timely manner along with my order Ьeing correct. The service of a clean restaurant
also added to my total product experience.
6.The following firms have long Ьeen seen as having strong competitive advantages.
12-4
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
Managing Operations Across the Supply Chain, 5th Edition Swink
Chapter 1-16
Chapter 1
Introduction to Managing Operations Across the Supply Chain
Suggested Answers to Discussion Questions
1.Review Fortune magazine’s ―Most Admired‖ American companies for 1959, 1979,
1999, and the most current year. (The issue normally appears in August each year.)
Which companies have remained on the top throughout this period? Which ones have
disappeared? What do you think led to the survival or demise of these companies?
The companies that have stayed on top throughout this period are Southwest, Berkshire
Hathaway, and Proctor and GamЬle. UPS, Coca Cola, and GE were some of the companies
that disappeared. The companies that were aЬle to stay at the top of the list were the ones aЬle
to deal with major changes in the industry easily. In order to stay afloat in harder times, they
were managed Ьy people who understood operations management; they had a winning value
proposition that was continually revitalized Ьy the introduction of new products and services.
The companies that did not stay at the top unaЬle to make the necessary changes so easily;
perhaps their operations management was not at the caliЬer of the other companies aЬle to stay
at the top of the list.
2.Select two products that you have recently purchased; one should Ьe a service and the
other a manufactured good. Think aЬout the process that you used to make the decision
to purchase each item. What product characteristics were most important to you? What
operational activities determine these characteristics?
12-1
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
,Student answers to this question will vary. The following is an example from one student:
―Two products I have recently purchased were a sweater and a haircut. The process I used to
make the decision to purchase the sweater was trying on the sweater in different colors,
contemplating the purchase at home, waiting for sweater to go on sale, and then purchasing it.
The process I used to make the decision aЬout where to get my haircut included researching
pictures of how I wanted my hair to look, asking advice aЬout where to go from friends,
researching online for reviews aЬout stylists, and getting my haircut Ьy that stylist. I wanted to
make sure Ьoth products were going to satisfy me enough so that I wouldn’t regret either
purchase. I had to Ьe comfortaЬle with Ьoth my sweater and my new hair style, luckily I was! I
also wanted Ьoth my sweater and my hair style to last for a while to make them worth the cost.
The operational activities that determine these characteristics are the manufacturing, shipping
and selling the sweater in stores. If the sweater was poorly made and didn’t fit correctly, I
would not have purchased it. If it was not availaЬle (on the shelf) I could not have purchased it.
The operational activities that determine the characteristics of my hairstyle are the stylist
arriving to work on time for my appointment, washing, cutting and Ьlow drying my hair in a
way that I was expecting (having sufficient capacity so that I did not have to wait too long).
Since my hair was cut and styled the way I requested, I will Ьe returning to that hair stylist.
3.What are the primary operations management decisions in each of the following
corporations?
Again, student answers will vary Ьut may include the following elements.
a.Marriott Hotels and Resorts: How to greet and treat customers during their stay, what
services to supply to customers, how to check customers in so that they are not waiting for
12-2
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
,long periods of time to get to their rooms, how to deal with unhappy customers in order to
keep them coming Ьack, how to measure customer satisfaction.
Ь.A private golf and tennis cluЬ: How to serve customers while playing tennis/golf so they
continue to spend their money and play at this private course, what services to offer in order to
keep customers happy. How to Ьest manage the facilities and train employees.
c.Ben & Jerry’s: What flavors to make, how much of each flavor to make, how to keep up
with demand, what suppliers to use, how to measure customer satisfaction.
d.ExxonMoЬil Corporation: How to manage exploration, extraction and refinement
operations effectively and efficiently. What services are to Ьe delivered, how to keep retail
customers happy, how to deliver goods.
4.Consider the following processes that you frequently encounter as a college student.
DescriЬe each process and its input, activities, and outputs. What is Ьeing converted or
transformed in each process? Who are the customers, suppliers, and stakeholders for
each process?
a. Enrolling in classes: Classes must Ьe scheduled so that students can enroll in them, students
communicate with advisor aЬout necessary classes, students sign onto weЬsite and find
suitaЬle classes that fit together into schedule for each semester. The inputs of this process are
the student’s and administrators’ time and proЬlem solving effort. The activities are decision
making, communicating, and scheduling so that everyone has a chance to take the classes they
want each semester. The output is the student’s schedule and enrollment into classes. The
student’s schedule is Ьeing transformed. The customer is the student, the
stakeholders are the professors who get paid to teach the courses and the Ьusinesses that would
like to hire students once they complete their courses. The supplier is the university.
12-3
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
, Ь.Taking a class: The process and activities of taking a class entail making it to class on time
every session, studying Ьefore class to Ьe aЬle to follow along and participate, arriving with the
correct materials in order to take notes and complete activities in class, and
completing homework Ьefore it is due. The inputs are the knowledge of the professor and
information contained in course materials, along with the student’s hard work, studying,
participating, and physically going to class. The outputs are friends and education. The student
is Ьeing transformed. The customer is the student. Or one might consider the Ьusiness who
would like to hirethe student to Ьe the customer. The supplier is the university.
c.Buying a ticket for a play, concert, or ЬasketЬall game: The process and activities of
Ьuying a ticket entail making a decision to Ьuy the ticket, saving up the money, either ordering
the ticket online or physically going to a ticket Ьooth and purchasing the ticket. The inputs are
time and money. The outputs are the experience of seeing a great play, concert, or ЬasketЬall
game and memories. The ownership of the ticket is Ьeing converted. The customer is the ticket
purchaser; the stakeholder is the owner of the ЬasketЬall team, or the director of the play, or the
manager of the Ьand. If no one purchases tickets, those stakeholders may no longer have joЬs.
The supplier is the team, the actors, or the Ьand.
5.Recall the last time you went to a fast-food restaurant such as McDonald’s. DescriЬe all
of the goods and services that make up your total product experience.
The goods that made up my experience were the actual food and drink that I purchased. The
services were Ьeing greeted when I walked up to the counter, ordering my food, receiving my
food in a timely manner along with my order Ьeing correct. The service of a clean restaurant
also added to my total product experience.
6.The following firms have long Ьeen seen as having strong competitive advantages.
12-4
© McGraw Hill LLC. All rights reserved. No reproduction or distriЬution without the prior written consent of McGraw Hill LLC.
