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: fEstablish fpolicy fguidelines fand fpricing, ffield fagent/representative fand
ffacility fnetwork, fdevelop fInternet fservice fcapabilities, festablish fpreferred fvehicle
frepair fservicefnetwork
Deliver: fMeet fwith fand fadvise fclients, fwrite fpolicies, fprocess fand fpay
fclaimsfReturn: f refund fof foverpayments
2. Define fthe fservice fpackage fof fyour fcollege for funiversity. fWhat fis fits fstrongest felement?
fWhat fisfits fweakest fone?
The fcategories fwith fexamples fare:
Supporting ffacility f- flocation, fbuildings, flabs, fparking
fFacilitating fgoods f– fclass fschedules, fcomputers, fbooks,
fchalk
Explicit fservices f– fclasses fwith fqualified finstructors, fplacement
fofficesfImplicit fservices f– fstatus fand freputation f(e.g., fIvy fLeague
fschools)
At fIndiana fUniversity fand fthe fUniversity fof fSouthern fCalifornia, famong ftheir fstrongest
felements fare ftheir fbusiness fschools fand ftheir fOperations fManagement fprograms f(of
fcourse).fBoth falso fhave fvery fdedicated falumni fnetworks. fA fweak felement fof fIndiana
fUniversity fis fits fweak ffootball fprogram; ffor fUSC, fweak felements fare fon-campus fparking
fand fhousing.
3. What fservice findustry fhas fimpressed fyou fthe fmost fwith fits finnovativeness?
Our fvote fgoes fto fcruise flines fwhich fhave fintroduced fsuch fonboard finnovations fas fwave
fmachines ffor fbelly fboarding fand frock fclimbing fwalls, fas fwell fas fall fsorts fof fother
famenities ftofkeep fcruisers finvolved. f The findustry fis fdoing frecord fbusiness fas fwell.
Some fof fthe fstandout fcompanies fin fless finnovative findustries fare fBank fof fAmerica f(has fa
fformalized fresearch fprogram fto ftry fout fnew fcustomer fservices/amenities fsuch fas fvideo
fscreensfin fnext fto fteller flines), fIntuit f(e.g., fputting fQuicken fmoney fmanagement fsoftware
fonline), fIkea,fJetBlue fAirlines, fand fProgressive fInsurance f(discussed flater fin fthe fbook).
4. What fis fproduct-service fbundling fand fwhat fare fthe fbenefits fto fcustomers?
Product-service fbundling fis fadding fValue-added fservices fto fa ffirm’s fproduct fofferings fto
fcreatefmore fvalue ffor fthe fcustomer. fThis fprovides fbenefits fin ftwo fareas. fFirst, fthis
fdifferentiates ftheforganization ffrom fthe fcompetition. fSecondly, fthese fservices ftie
fcustomers fto fthe forganizationfin fa fpositive fway. fAlternatively, fbundling fcan falso finvolve
fadding fproducts fto fa fservice, ffor fexample, fadding fthe fsale fof fconvenience fitems fand
fsnacks fat fa fhotel.
5. What fis fthe fdifference fbetween fa fservice fand fa fgood?
A fservice fis fan fintangible fprocess f(you fcan’t fhold fit fin fyour fhands), fwhile fa fgood fis fthe
fphysicalfoutput fof fa fprocess.
6. Look fat fthe fjob fpostings fat fhttp://www.indeed.com fand fevaluate fthe fopportunities
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: fEstablish fpolicy fguidelines fand fpricing, ffield fagent/representative fand
ffacility fnetwork, fdevelop fInternet fservice fcapabilities, festablish fpreferred fvehicle
frepair fservicefnetwork
Deliver: fMeet fwith fand fadvise fclients, fwrite fpolicies, fprocess fand fpay
fclaimsfReturn: f refund fof foverpayments
2. Define fthe fservice fpackage fof fyour fcollege for funiversity. fWhat fis fits fstrongest felement?
fWhat fisfits fweakest fone?
The fcategories fwith fexamples fare:
Supporting ffacility f- flocation, fbuildings, flabs, fparking
fFacilitating fgoods f– fclass fschedules, fcomputers, fbooks,
fchalk
Explicit fservices f– fclasses fwith fqualified finstructors, fplacement
fofficesfImplicit fservices f– fstatus fand freputation f(e.g., fIvy fLeague
fschools)
At fIndiana fUniversity fand fthe fUniversity fof fSouthern fCalifornia, famong ftheir fstrongest
felements fare ftheir fbusiness fschools fand ftheir fOperations fManagement fprograms f(of
fcourse).fBoth falso fhave fvery fdedicated falumni fnetworks. fA fweak felement fof fIndiana
fUniversity fis fits fweak ffootball fprogram; ffor fUSC, fweak felements fare fon-campus fparking
fand fhousing.
3. What fservice findustry fhas fimpressed fyou fthe fmost fwith fits finnovativeness?
Our fvote fgoes fto fcruise flines fwhich fhave fintroduced fsuch fonboard finnovations fas fwave
fmachines ffor fbelly fboarding fand frock fclimbing fwalls, fas fwell fas fall fsorts fof fother
famenities ftofkeep fcruisers finvolved. f The findustry fis fdoing frecord fbusiness fas fwell.
Some fof fthe fstandout fcompanies fin fless finnovative findustries fare fBank fof fAmerica f(has fa
fformalized fresearch fprogram fto ftry fout fnew fcustomer fservices/amenities fsuch fas fvideo
fscreensfin fnext fto fteller flines), fIntuit f(e.g., fputting fQuicken fmoney fmanagement fsoftware
fonline), fIkea,fJetBlue fAirlines, fand fProgressive fInsurance f(discussed flater fin fthe fbook).
4. What fis fproduct-service fbundling fand fwhat fare fthe fbenefits fto fcustomers?
Product-service fbundling fis fadding fValue-added fservices fto fa ffirm’s fproduct fofferings fto
fcreatefmore fvalue ffor fthe fcustomer. fThis fprovides fbenefits fin ftwo fareas. fFirst, fthis
fdifferentiates ftheforganization ffrom fthe fcompetition. fSecondly, fthese fservices ftie
fcustomers fto fthe forganizationfin fa fpositive fway. fAlternatively, fbundling fcan falso finvolve
fadding fproducts fto fa fservice, ffor fexample, fadding fthe fsale fof fconvenience fitems fand
fsnacks fat fa fhotel.
5. What fis fthe fdifference fbetween fa fservice fand fa fgood?
A fservice fis fan fintangible fprocess f(you fcan’t fhold fit fin fyour fhands), fwhile fa fgood fis fthe
fphysicalfoutput fof fa fprocess.
6. Look fat fthe fjob fpostings fat fhttp://www.indeed.com fand fevaluate fthe fopportunities
1-4
