SOLUTION MANUAL
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
, TABLE OF CONTENTS
76 76
Chapter761:76Introduction
Chapter762:76Strategy
Chapter763:76Design76of76Products76and76Ser
vices76Chapter764:76Projects
Chapter765:76Strategic76Capacity76Managem
ent76Chapter766:76Learning76Curves
Chapter767:76Manufacturing76Processes76Ch
apter768:76Facility76Layout
Chapter769:76Service76Processes
Chapter7610:76Waiting76Line76Analysis76and76Simu
lation76Chapter7611:76Process76Design76and76Ana
lysis7 6 Chapter7612:76Quality76Management
Chapter7613:76Statistical76Quality76Control76
Chapter7614:76Lean76Supply76Chains
Chapter7615:76Logistics76and76Distribution76Manage
ment76Chapter7616:76Global76Sourcing76and76Procu
rement76Chapter7617:76The76Internet76of76Things76a
nd76ERP7 6 Chapter7618:76Forecasting
Chapter7619:76Sales76and76Operations76Plan
ning76Chapter7620:76Inventory76Managemen
t7 6 Chapter7621:76Material76Requirements76Pl
anning
,Chapter7622:76Workcenter76Scheduling
CHAPTER761
OPERATIONS76AND76SUPPLY76CHAIN76MANAGEMENT
Discussion76Questions
1. Using76Exhibit761.376as76a76model,76describe76the76source-make-
deliver-return76relationships76in76thefollowing76systems:
a. An76airline
Source:76Aircraft76manufacturer,76in-
flight76food,76repair76parts,76computer76systems76Make:76Aircraft76and76flight76cre
w76scheduling,76ground76services76provided76at76airports,
aircraftmaintenance76and76repair
Deliver:76Outbound76and76arriving76passenger76service,76baggage76
handling76Return:76Resolve76any76post-
service76issues76such76as76lost76or76damaged76luggage
b. An76automobile76manufacturer
Source:7 6 Suppliers76of76components76and76raw76materials
Make:76Manufacturing76of76vehicles76and76components76or76subassemblies76to
76be76sold76as76spareparts
Deliver:76Delivery76to76and76sales76from76dealerships,76delivery76of76spare76part
s76to76the76wholesalesystem
Return:76 Warranty76and76recall76repairs,76trade-ins
c. A76hospital
Source:76Medical76supplies,76cleaning76services,76disposal76services,76food76servi
ces,76qualifiedpersonnel
Make:7 6 Inpatient76rooms,76outpatient76clinics,76emergency76room,76operating7
6rooms76Deliver:76Scheduling76patients,76providing76treatment,76ambulance76s
ervice,76family76counselingReturn:76Billing76errors,76follow76up76visits
d. An76insurance76company
Source:7 6 Supplies76needed76for76the76office,76underwriters,76legal76authority76to76operate
, Make:76Establish76policy76guidelines76and76pricing,76field76agent/representativ
e76and76facility76network,76develop76Internet76service76capabilities,76establish76p
referred76vehicle76repair76servicenetwork
Deliver:76Meet76with76and76advise76clients,76write76policies,76process76and76pay7
6claimsReturn:7 6 refund76of76overpayments
2. Define76the76service76package76of76your76college76or76university.76What76is76its76stron
gest76element?76What76isits76weakest76one?
The76categories76with76examples76are:
Supporting76facility76-
76location,76buildings,76labs,76parking76Facilitating76goods7
6–76class76schedules,76computers,76books,76chalk
Explicit76services76–
76classes76with76qualified76instructors,76placement76officesImplicit
76services76–
76status76and76reputation76(e.g.,76Ivy76League76schools)
At76Indiana76University76and76the76University76of76Southern76California,76among76
their76strongest76elements76are76their76business76schools76and76their76Operations
76Management76programs76(of76course).Both76also76have76very76dedicated76alum
ni76networks.76A76weak76element76of76Indiana76University76is76its76weak76football76
program;76for76USC,76weak76elements76are76on-campus76parking76and76housing.
3. What76service76industry76has76impressed76you76the76most76with76its76innovativeness?
Our76vote76goes76to76cruise76lines76which76have76introduced76such76onboard76inn
ovations76as76wave76machines76for76belly76boarding76and76rock76climbing76walls,7
6as76well76as76all76sorts76of76other76amenities76tokeep76cruisers76involved.7 6 The76i
ndustry76is76doing76record76business76as76well.
Some76of76the76standout76companies76in76less76innovative76industries76are76Bank76of76A
merica76(has76a76formalized76research76program76to76try76out76new76customer76service
s/amenities76such76as76video76screensin76next76to76teller76lines),76Intuit76(e.g.,76putting
76Quicken76money76management76software76online),76Ikea,JetBlue76Airlines,76and76Pro
gressive76Insurance76(discussed76later76in76the76book).
4. What76is76product-service76bundling76and76what76are76the76benefits76to76customers?
Product-service76bundling76is76adding76Value-
added76services76to76a76firm’s76product76offerings76to76createmore76value76for76the76
customer.76This76provides76benefits76in76two76areas.76First,76this76differentiates76the
organization76from76the76competition.76Secondly,76these76services76tie76customers76t
o76the76organizationin76a76positive76way.76Alternatively,76bundling76can76also76involv
e76adding76products76to76a76service,76for76example,76adding76the76sale76of76convenie
nce76items76and76snacks76at76a76hotel.
Operations and Supply Chain Management, 16th Edition
by F. Robert Jacobs and Richard Chase
Chapters 1 - 22 | Complete
, TABLE OF CONTENTS
76 76
Chapter761:76Introduction
Chapter762:76Strategy
Chapter763:76Design76of76Products76and76Ser
vices76Chapter764:76Projects
Chapter765:76Strategic76Capacity76Managem
ent76Chapter766:76Learning76Curves
Chapter767:76Manufacturing76Processes76Ch
apter768:76Facility76Layout
Chapter769:76Service76Processes
Chapter7610:76Waiting76Line76Analysis76and76Simu
lation76Chapter7611:76Process76Design76and76Ana
lysis7 6 Chapter7612:76Quality76Management
Chapter7613:76Statistical76Quality76Control76
Chapter7614:76Lean76Supply76Chains
Chapter7615:76Logistics76and76Distribution76Manage
ment76Chapter7616:76Global76Sourcing76and76Procu
rement76Chapter7617:76The76Internet76of76Things76a
nd76ERP7 6 Chapter7618:76Forecasting
Chapter7619:76Sales76and76Operations76Plan
ning76Chapter7620:76Inventory76Managemen
t7 6 Chapter7621:76Material76Requirements76Pl
anning
,Chapter7622:76Workcenter76Scheduling
CHAPTER761
OPERATIONS76AND76SUPPLY76CHAIN76MANAGEMENT
Discussion76Questions
1. Using76Exhibit761.376as76a76model,76describe76the76source-make-
deliver-return76relationships76in76thefollowing76systems:
a. An76airline
Source:76Aircraft76manufacturer,76in-
flight76food,76repair76parts,76computer76systems76Make:76Aircraft76and76flight76cre
w76scheduling,76ground76services76provided76at76airports,
aircraftmaintenance76and76repair
Deliver:76Outbound76and76arriving76passenger76service,76baggage76
handling76Return:76Resolve76any76post-
service76issues76such76as76lost76or76damaged76luggage
b. An76automobile76manufacturer
Source:7 6 Suppliers76of76components76and76raw76materials
Make:76Manufacturing76of76vehicles76and76components76or76subassemblies76to
76be76sold76as76spareparts
Deliver:76Delivery76to76and76sales76from76dealerships,76delivery76of76spare76part
s76to76the76wholesalesystem
Return:76 Warranty76and76recall76repairs,76trade-ins
c. A76hospital
Source:76Medical76supplies,76cleaning76services,76disposal76services,76food76servi
ces,76qualifiedpersonnel
Make:7 6 Inpatient76rooms,76outpatient76clinics,76emergency76room,76operating7
6rooms76Deliver:76Scheduling76patients,76providing76treatment,76ambulance76s
ervice,76family76counselingReturn:76Billing76errors,76follow76up76visits
d. An76insurance76company
Source:7 6 Supplies76needed76for76the76office,76underwriters,76legal76authority76to76operate
, Make:76Establish76policy76guidelines76and76pricing,76field76agent/representativ
e76and76facility76network,76develop76Internet76service76capabilities,76establish76p
referred76vehicle76repair76servicenetwork
Deliver:76Meet76with76and76advise76clients,76write76policies,76process76and76pay7
6claimsReturn:7 6 refund76of76overpayments
2. Define76the76service76package76of76your76college76or76university.76What76is76its76stron
gest76element?76What76isits76weakest76one?
The76categories76with76examples76are:
Supporting76facility76-
76location,76buildings,76labs,76parking76Facilitating76goods7
6–76class76schedules,76computers,76books,76chalk
Explicit76services76–
76classes76with76qualified76instructors,76placement76officesImplicit
76services76–
76status76and76reputation76(e.g.,76Ivy76League76schools)
At76Indiana76University76and76the76University76of76Southern76California,76among76
their76strongest76elements76are76their76business76schools76and76their76Operations
76Management76programs76(of76course).Both76also76have76very76dedicated76alum
ni76networks.76A76weak76element76of76Indiana76University76is76its76weak76football76
program;76for76USC,76weak76elements76are76on-campus76parking76and76housing.
3. What76service76industry76has76impressed76you76the76most76with76its76innovativeness?
Our76vote76goes76to76cruise76lines76which76have76introduced76such76onboard76inn
ovations76as76wave76machines76for76belly76boarding76and76rock76climbing76walls,7
6as76well76as76all76sorts76of76other76amenities76tokeep76cruisers76involved.7 6 The76i
ndustry76is76doing76record76business76as76well.
Some76of76the76standout76companies76in76less76innovative76industries76are76Bank76of76A
merica76(has76a76formalized76research76program76to76try76out76new76customer76service
s/amenities76such76as76video76screensin76next76to76teller76lines),76Intuit76(e.g.,76putting
76Quicken76money76management76software76online),76Ikea,JetBlue76Airlines,76and76Pro
gressive76Insurance76(discussed76later76in76the76book).
4. What76is76product-service76bundling76and76what76are76the76benefits76to76customers?
Product-service76bundling76is76adding76Value-
added76services76to76a76firm’s76product76offerings76to76createmore76value76for76the76
customer.76This76provides76benefits76in76two76areas.76First,76this76differentiates76the
organization76from76the76competition.76Secondly,76these76services76tie76customers76t
o76the76organizationin76a76positive76way.76Alternatively,76bundling76can76also76involv
e76adding76products76to76a76service,76for76example,76adding76the76sale76of76convenie
nce76items76and76snacks76at76a76hotel.
