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business
service management operations strategy
Questions and Answers of
Service Management Operations Strategy
What is capacity strategy?
how much capacity should an operation have?
how many separate sites should an operation have?
What issues are important when changing capacity levels?
Where should capacity be located?
how does total quality management fit into operations strategy?
how do lean operations fit into operations strategy?
how does business process reengineering fit into operations strategy?
how does Six Sigma fit into operations strategy?
what place do these new approaches have in operations strategy?
What is purchasing and supply strategy?
What should we ‘do’ and what should we ‘buy’?
how do we buy; what is the role of contracts and/or relationships?
how do we manage supply dynamics?
how do we manage suppliers over time?
how do we manage supply chain risks?
What are the differences between managing large ‘breakthrough’ improvement and managing continuous improvement?
how do the needs of the market direct the ongoing development of operations processes?
how can the ongoing management and control of operations be harnessed to develop their capabilities?
What can operations do to deploy their capabilities into the market?
Why is operations excellence fundamental to strategic success?
What is operations strategy?
how should operations strategy reflect overall strategy?
how can operations strategy learn from operational experience?
how do the requirements of the market influence operations strategy?
how can the intrinsic capabilities of an operation’s resources influence operations strategy?
What is the ‘content’ of operations strategy?
What is the ‘process’ of operations strategy?
how can operations performance ‘make or break’ the organisation?
What are operations performance objectives?
Do the role and key performance objectives of operations stay constant or vary over time?
are trade-offs between operations performance objectives inevitable, or can they be overcome?
What are the advantages and disadvantages of focused operations?
What is ‘process’ technology strategy?
What are suitable dimensions for characterising process technology?
how do market volume and variety influence process technology?
What are some of the challenges of information technology?
how can process technology be evaluated strategically?
Why is the way in which companies develop their products and services so important?
What process do companies use to develop products and services?
how should the effectiveness of the product and service development process be judged in terms of fulfilling market requirements?
What operations resource-based decisions define a company’s product and service development strategy?
What is the ‘formulation’ of operations strategy?
What is the role of ‘alignment’ in formulation?
What is meant by strategic sustainability?
What analysis is needed for formulation?
how do we know that formulation is complete?
Who is responsible for implementation?
how can participation affect implementation?
What are the differences between operational and strategic monitoring and control?
how is progress towards strategic objectives tracked?
What are the dynamics of monitoring and control?
how can the monitoring and control process attempt to control risks?
how does learning contribute to strategic control?
how does stakeholder management contribute to strategic control?
Recall Example 5.6 discussed in Section 5.3.7. Determine the ranking of the suppliers using the following methods:a. L1 norm to scale the criteria values and L1 metric to rankb. L2 norm to scale the
Solve the quadratic programming model (Equations 11.1 through 11.3) formulated for Example 11.2. What is the optimal investment policy for the Lion County Bank?Equations 11.1 through 11.3:Example
Jill Smith has joined recently as the forecasting manager for a consumer electronic retailer BigBuy. She is interested in developing quarterly sales forecasts for one of the company’s key products.
Visit the stores or websites of the retailers you studied in Exercise 9.1 and observe the following for any specific category of products:a. In each of the stores, compare the four elements of the
Discuss at least two differences among the strategic, tactical, and operational decisions in a supply chain. Give two examples of each type of decision.
Discuss the differences between the two key criteria of supply chain performance—efficiency and responsiveness. Identify three measures for each criterion.
Describe the four major drivers of supply chain performance. For each driver, identify one efficiency measure and one responsiveness measure.
What is supply chain risk? Discuss the differences between hazard risks and operational risks.
A typical supply chain manager has to make the decisions listed below. Categorize each decision as strategic, tactical, or operational and briefly justify your choice.a. Number of warehouses needed
Sales of cars at a local auto dealer total 3000 cars per year. The dealer reports inventory turns of 30 per year. Computea. Average inventory in the dealer’s lotb. The length of time the average
XYZ company’s annual sales for its products is 5000 units and its average inventory is 500 units.a. Compute the company’s inventory turns.b. If XYZ decides to increase its inventory turns, how
State whether each of the following statements is true or false, or whether the answer ultimately depends on some other factors(which you should identify).a. Speed of delivery is an efficiency
Discuss the pros and cons of single sourcing and multiple sourcing.
Why is scaling of criteria values necessary in supplier ranking?
Discuss the similarities and differences between Lp metric and AHP for ranking suppliers.
Consider a supply chain network with three potential sites for warehouses and eight retailer regions.The fixed costs of locating warehouses at the three sites are given below:Site 1: $100,000 Site 2:
Consider the following design proposals and financial performance measures for Mighty Manufacturing given in Table 5.39. Both sets of numbers are for 2017 with all possible markets open and plants
A company needs two parts, A and B, for its product. It can either buy them from another company, or can make them in its own plant, or do both. The costs of each alternative and the in-house
Consider a supplier selection problem where the five most important criteria are identified as follows.C1—Risk C2—Delivery time C3—Quality C4—Price C5—Business Performancea. Using the Borda
Suppose you are planning to use single sourcing and have narrowed down the choices to four suppliers A, B, C and D. Your criteria for selection are price (min), company size in market capitalization
Consider an order allocation problem under multiple sourcing, where it is required to buy 2000 units of a certain product from three different suppliers. The fixed setup cost (independent of the
In this case study, you will be working on a supplier ranking problem. It is an actual application for a manufacturing company located in Tijuana, Mexico. Because of confidentiality issues, the data
Suppose backorders are allowed in the EOQ model that was discussed in Section 5.4.3. Each item backordered results in some cost of b per item per year backordered. Derive the new EOQ formula.Economic
In Example 5.8, suppose the lead time is reduced from 1 week to 4 days.What R should be used? What would the resulting safety stock be?Example 5.8 A retail outlet orders item A1 from a regional DC.
In Example 5.8, sketch a plot of safety stock versus service level. Useα values of 0.01, 0.02, 0.03, 0.05, 0.075, 0.10, 0.125, and 0.150. What can you conclude from the graph?Example 5.8 A retail
Demand is normally distributed with a mean of 500 and a standard deviation of 200. Newsvendor assumptions hold. The selling price per unit is $400, cost per unit is $200, and salvage per unit is
Suppose a distributor faces an annual demand for a car horn for small cars that is normally distributed with a mean of 2300 items and a standard deviation of 300.The cost of placing an order is $150
The bookstore orders Penn State Volleyball shirts once for a selling season from a manufacturer in Malaysia. They estimate that the demand is according to a triangular distribution with a = 1500, b =
Suppose for Exercise 5.24, there is a second car horn for medium-sized cars with demand that is normally distributed with a mean of 1500 and a standard deviation of 200.All other information from
Techtronic operates a single DC in St. Louis. Annual demand for a product they carry is normally distributed with a mean of 80.6 and a standard deviation of 58.81. There is a 3-week lead time and the
Demands over time for two products (D1 and D2) are given in Table 5.45. Determine the correlation between them. TABLE 5.45 Data for Exercise 5.28 Time D1 D2 1 100 100 2 130 80 3 90 100 4 150 110 5
For Exercise 5.26 (c), what would the answer be if the correlation between the two horns is −0.6? What would it be if the correlation is 0? What would it be if the correlation is 0.4? Exercise
Demand for an item over the next five periods is forecasted to be 10, 20, 15, 16, and 18.There are currently 20 items on hand. The order cost is $100 per order, and each item costs $50. The time
Distance from a DC to two customers is 130 and 70 miles, respectively.Demands from each are 150 and 260 cases, respectively. Find the best mode of delivery from among the three choices:a. Contract
In Example 5.7, consider the addition of two more locations: (12, 12)with a demand of 13, and (3, 11) with a demand of 5.a. Ignore capacity (and demands) and solve the TSP using the nearest neighbor
For Exercise 5.32, use the Savings Method to solve (using the truck capacities given in Example 5.7). Comment on your solution.Data From Exercise 5.32:In Example 5.7, consider the addition of two
The Gap sells seven T-shirts of different colors. U.S. demand for each color is independent and normally distributed with a mean of 100,000 per year and a standard deviation of 34,000. They want a
In and Out burger in Los Angeles orders their beef from a Canadian supplier. The supplier ships directly to the 12 different restaurants in the LA area. In and Out wants to determine if it makes
Consider a two-stage supply chain (A supplies B that supplies customer demand). Customer demand is uniformly distributed between 500 and 1000. The cost to make a unit at A is $100. They sell the item
Search the Web to find estimates of the breakdown of warehouse costs into its components (e.g., labor, equipment, space). Make sure to define your source(s).
Choose an item that you regularly buy at the grocery store. Find what the different handling units are for that item.
Pick a company from the S&P500. Find all of their DC/warehouse locations. Comment on what you find.
Consider a 100% cotton T-shirt sold by Walmart. From the cotton farm to the final customer, list all of the types of warehouses and DCs that would be used.
Go online and pick a men’s clothing store (e.g., Brooks Brothers) and select a style of shirt. List all the SKUs that would exist for that style.
Consider the following items to be stored in a unit load (pallet) storage area, stacked 1-high. Determine the number of pallet locations required for dedicated, randomized, and class-based storage
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