Instructor Manual For OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & CASES, 8th Edition by Roger Schroeder and Susan Goldstein
Instructor Manual For OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & CASES, 8th Edition by Roger Schroeder and Susan Goldstein
Instructor Manual For OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & CASES, 8th Edition by Roger Schroeder and Susan Goldstein
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INSTRUCTOR MANUAL FOR OPERATIONS
MANAGEMENT IN THE SUPPLY CHAINS DECISIONS
& CASES, 8th Edition Chapter 1-18 A+
Chapter 1
The Operations Function
Answers to Questions
1. Operations and supply chain management is ubiquitous, that is present in every
organization. Daily, we come in contact with various goods and services produced by the
transformation of inputs to outputs under the control of operations managers. Operations and
supply chain management is a core business function along with marketing and finance. All
decisions are cross-functional in nature. You will be interacting with the operations function no
matter what career you choose. Much of what is learned related to operations and supply chain
management can be applied to other functions.
2. Operations management is a broader term than production management, encompassing
service organizations as well as manufacturing. Operations management is also a more recent
term replacing the earlier term production management.
3. The difference between operations and supply chain management is operations
management focuses on decisions to manage the transformation process that converts inputs into
desired finished goods or services within a single firm. Operations management occurs within
and across multiple facilities in an organization. Supply chain management relates to the network
of manufacturing and service operations that supply each other from raw materials through
manufacturing to the ultimate customer. The supply chain consists of the flows of materials,
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money, and information along the entire chain of sourcing, production, and distribution. The
supply chain links the operations of many different organizations in order to satisfy customer
needs.
4. Responsibilities differ among operations, marketing and finance managers. A marketing
manager identifies demand for goods or services and develops the market, whereas the
operations manager assures supply of the products or services. The finance manager acquires and
allocates the capital resources for the other functions. Similarities in the three functions include
managerial decision making and shared organizational goals.
5. Operations, marketing, and finance are primary functions of the organization. Human
resources, information systems, and accounting are supporting functions that provide resources
and services for the three primary functions. The operations manager applies resources, analysis
and information provided by supporting functions and integrates them into decision making. The
focus of the operations manager is on decision making rather than on analytic methods.
6. a. The purpose of a college library is to make information available to students and
faculty for research and studying. The output is the bundle of services provided along with
facilitating goods: buildings, computers, books, catalogs and indices.
Process -- facility layout considering book stacks, reference rooms, computer access on-site and
from off-site, degree of computer use and procedures for
accessing and circulating information. They must not only select the appropriate process, but
manage the flow of users and information.
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Quality -- standards of the college library profession are adopted; quality measures include: ratio
of consulting staff hours to students, rate of new book and other material purchases, number of
complaints, student satisfaction.
Capacity -- forecasting of library user needs contributes to decisions on building size, volume of
space for study and materials, print acquisitions, computer work stations, staff hiring and
scheduling of shifts.
Inventory -- decisions concerning the number of books, periodicals, etc. to stock.
Supply Chain – decisions about sourcing of materials and information. Also, decisions are made
about best to distribute printed and online materials, along with moving materials and
information into the library.
b. The purpose of a hotel is to attract and satisfy conventioneers and overnight guests. The
output is the bundle of services and goods provided: overnight accommodations, maid service,
room service, television, pool, bar, coffee shop.
Process -- a set of processes for reserving and payment of rooms, housekeeping, restaurant,
recreation services, and ongoing study of service methods; the people who implement these
processes including receptionists, accountants, housekeepers, and maintenance workers.
Quality -- hotel industry standards and the market positioning of the hotel (first class vs. budget)
determine standards; quality measures include number of return visitors, conventions booked,
and ratings by industry evaluators.
Capacity -- number of units and beds; appropriate size for restaurant, bar and convention halls;
staffing for housekeeping, restaurant and office. Scheduling of the workforce is also included.
Inventory -- goods to meet requirements for room upkeep (towels, sheets, etc.), convention
catering (glasses, dishes, food), restaurant and bar.
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Supply chain – decisions about sourcing the various materials and services used by the hotel.
Logistics is about moving materials and services to the hotel and then return and recycling of
goods.
c. The purpose of a small manufacturing firm is to provide customers with a quality product
at a reasonable price. The output consists of not only the physical good but also any services that
accompany the good, such as assistance in selecting the good (the shopping process) or a
warranty.
Process -- the process of securing the raw materials, transforming and assembling them into a
finished good, packaging the product, and arranging for its delivery to customers.
Quality -- definition of quality standards for the manufactured goods, measurement of deviations
from design standards, inspection and control of quality of input materials, prevention of defects.
Capacity -- number of units the facility is capable of producing per unit time, size of inventory
storage, hiring of workers and scheduling of shifts.
Inventory -- raw material inputs, work-in-process, and finished goods, used to smooth production
and meet customer needs.
Supply chain – Sourcing of materials and services used in the manufacturing process. The
distribution and storage to and from the manufacturing plant.
7. a. Operation -- college library
Inputs -- librarians, staff, library facilities and equipment, energy, capital.
Transformation process -- organizing information, arranging materials for access, interacting
with library users.
Outputs -- students and faculty provided with research and study materials.
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