CramX Logo
RegisterLog in
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Document preview page 1

Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 1

Document preview content for Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition

Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition

Need help with textbook exercises? Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition offers comprehensive solutions that make studying easier.

Nora Walker
Contributor
4.6
0
12 months ago
Preview (16 of 567 Pages)
100%
Log in to unlock
Page 1 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 1 preview imageOperations ManagementThirteenth EditionPrinciples of OperationsManagementEleventh EditionJay HeizerBarry RenderChuck MunsonSolutions Manual(Download only) forOperations Management, 13eand Principles of OperationsManagement 11e
Page 2 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 2 preview image
Page 3 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 3 preview image3ContentsChapter 1Operations and Productivity1Discussion Questions1Ethical Dilemma3American Car Battery Industry3End-of-Chapter Problems3Case Study7Uber Technologies, Inc.7Video Case Studies7Frito-Lay: Operations Management in Manufacturing7Hard Rock Cafe: Operations Management in Services8Additional Case Studies11National Air Express11Zychol Chemicals Corporation11Chapter 2Operations Strategy in a Global Environment13Discussion Questions13Ethical Dilemma15End-of-Chapter Problems16Case Study18Rapid-Lube18Video Case Studies19Strategy at Regal Marine19Hard Rock Cafe’s Global Strategy20Outsourcing Offshore at Darden20Additional Case Study21Outsourcing to TATA21Chapter 3Project Management22Discussion Questions22Ethical Dilemma24Active Model Exercise25ACTIVE MODEL 3.1: Gantt Chart25End-of-Chapter Problems26Video Case Studies41Project Management At Arnold Palmer Hospital41Managing Hard Rock’s Rockfest42Additional Case Studies44Shale Oil Company44Southwestern University: A46Chapter 4Forecasting48Discussion Questions48Ethical Dilemma51Active Model Exercises*51ACTIVE MODEL 4.1: Moving Averages51ACTIVE MODEL 4.2: Exponential Smoothing51ACTIVE MODEL 4.3: Exponential Smoothing with Trend Adjustment51ACTIVE MODEL 4.4: Trend Projections52End-of-Chapter Problems52Case Study82
Page 4 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 4 preview image4Southwestern University: B82Video Case Studies83Forecasting Ticket Revenue for Orlando Magic Basketball Games83Forecasting at Hard Rock Cafe84Additional Case Studies85The North-South Airlines85Digital Cell Phone, Inc.87Chapter 5Design of Goods and Services89Discussion Questions89Ethical Dilemma91Active Model Exercise92Active Model 5.1: Decision Tree92End-of-Chapter Problems92Case Study104De Mar’s Product Strategy104Video Case Studies105Product Design at Regal Marine105Celebrity Cruises Designs A New Ship 106Supplement 5Sustainability in the Supply Chain107Discussion Questions107End-of-Supplement Problems108Video Case Studies112Building Sustainability at the Orlando Magic’s Amway Center112Green Manufacturing And Sustainability at Frito-Lay113“Saving The Waves” At Celebrity Cruises 113Additional Case Study114Environmental Sustainability at Walmart114Chapter 6Managing Quality116Discussion Questions116Ethical Dilemma118Active Model Exercise*119ACTIVE MODEL 6.1: Pareto Charts119End-of-Chapter Problems119Case Study128Southwestern University: C128Video Case Studies131The Culture of Quality at Arnold Palmer Hospital131Quality Counts at Alaska Airlines132Celebrity Cruises: A Premium Experience133Additional Case Studies134Westover Electrical, Inc.134Quality at the Ritz-Carlton Hotel135Supplement 6Statistical Process Control137Discussion Questions137Active Model Exercises*139ACTIVE MODEL S6.1:-Xbar Chart139ACTIVE MODEL S6.2:p-Chart—with data139ACTIVE MODEL S6.3: Process Capability140End-of-Supplement Problems140Case Study160
Page 5 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 5 preview image5Bayfield Mud Company160Video Case Studies162Frito-Lay’s Quality-Controlled Potato Chips162Farm to Fork: Quality at Darden Restaurants162Additional Case Study163Green River Chemical Co.163Chapter 7Process Strategies164Discussion Questions164Ethical Dilemma166Active Model Exercise167ACTIVE MODEL 7.1: Crossover Chart167End-of-Chapter Problems167Case Study172Rochester Manufacturing’s Process Decision172Video Case Studies172Process Strategy at Wheeled Coach172Alaska Airlines 20-Minute BaggageProcess—Guaranteed!173Process Analysis at Arnold Palmer Hospital174Additional Case Study176Matthew Yachts, Inc.176Supplement 7Capacity and Constraint Management177Discussion Questions177Active Model Exercises178ACTIVE MODEL S7.1: Productivity178ACTIVE MODEL S7.2: Break-even Analysis179End-of-Supplement Problems179Video Case Study191Capacity Planning at Arnold Palmer Hospital191Additional Case Study192Southwestern University: D192Chapter 8Location Strategies194Discussion Questions194Ethical Dilemma196Active Model Exercise196ACTIVE MODEL 8.1: Center of Gravity196End-of-Chapter Problems196Case Study209Southern Recreational Vehicle Company209Video Case Studies210Locating the Next Red Lobster Restaurant210Where to Place the Hard Rock Cafe210Additional Case Study214Southwestern University: E214Chapter 9Layout Strategies216Discussion Questions216Ethical Dilemma219Active Model Exercise219ACTIVE MODEL 9.1: Process Layout219End-of-Chapter Problems219
Page 6 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 6 preview image6Case Study243State Automobile License Renewals243Video Case Studies245Laying out Arnold Palmer Hospital’sNew Facility245Facility Layout at Wheeled Coach246Additional Case Study247Microfix, inc.247Chapter 10Human Resources, Job Design, and Work Measurement248Discussion Questions248Active Model Exercise250ACTIVE MODEL 10.1: Work Sampling250Ethical Dilemma250End-of-Chapter Problems250Case Study270Jackson Manufacturing Co.270Video Case Studies271The “People” Focus: Human Resources at Alaska Airlines271Hard Rock’s Human Resource Strategy272Additional Case Studies272Chicago Southern Hospital272The Fleet that Wanders273Chapter 11Supply Chain Management274Discussion Questions274Ethical Dilemma276End-of-Chapter Problems276Video Case Studies279Darden’s Global Supply Chains279Supply Chain Management at Regal Marine280Arnold Palmer Hospital’s Supply Chain280Supplement 11Supply Chain Management Analytics282Discussion Questions282End-of-Supplement Problems284Chapter 12Inventory Management293Discussion Questions293Ethical Dilemma295Active Model Exercises295ACTIVE MODEL 12.1: Economic Order Quantity (EOQ) Model295ACTIVE MODEL 12.2: Production Order Quantity Model296End-of-Chapter Problems296Case Study312Zhou Bicycle Company312Video Case Studies313Managing Inventory at Frito-Lay313Inventory Management At Celebrity Cruises 314Inventory Control at Wheeled Coach315Additional Case Studies315Southwestern University: F315Laplace Power and Light317
Page 7 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 7 preview image7Chapter 13Aggregate Planning and S&OP319Discussion Questions319Ethical Dilemma321Active Model Exercise321ACTIVE MODEL 13.1: Aggregate Planning321End-of-Chapter Problems322Case Study339Andrew-Carter, Inc.339Video Case Study340Using Revenue Management to Set Orlando Magic Ticket Prices340Additional Case Studies340Cornwell Glass340Southwestern University: (G)342Chapter 14Material Requirements Planning (MRP) and ERP344Discussion Questions344Ethical Dilemma347Active Model Exercise347ACTIVE MODEL 14.1: Order Releases347End-of-Chapter Problems347Video Case Studies372When 18,500 Orlando Magic Fans Come to Dinner372MRP At Wheeled Coach374Additional Case Studies374IKON’S Attempt at ERP374Hill’s Automotive, Inc.375Chapter 15Short-Term Scheduling376Discussion Questions376Ethical Dilemma377Active Model Exercise377ACTIVE MODEL 15.1: Job Shop Sequencing377End-of-Chapter Problems 378Case Study398Old Oregon Wood Store398Video Case Studies400From the Eagles to The Magic: Converting the Amway Center400Scheduling at Hard Rock Cafe401Additional Case Study402Payroll Planning, Inc.402Chapter 16Lean Operations403Discussion Questions403Ethical Dilemma404End-of-Chapter Problems404Video Case Studies407Lean Operations at Alaska Airlines407JIT at Arnold Palmer Hospital408Additional Case Studies408JIT After a Catastrophe408Mutual Insurance Company of Iowa409
Page 8 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 8 preview image8Chapter 17Maintenance and Reliability411Discussion Questions411Ethical Dilemma413Active Model Exercises413ACTIVE MODEL 17.1: Series Reliability413ACTIVE MODEL 17.2: Redundancy413ACTIVE MODEL 17.3: Parallel Systems413End-of-Chapter Problems414Video Case Study417Maintenance Drives Profits at Frito-Lay417Additional Case Studies418Cartak’s Department Store418Worldwide Chemical Company418Business Analytics Module ADecision-Making Tools420Discussion Questions420End-of-Module Problems421Case Study433Tom Thompson’s Liver Transplant433Additional Case Studies433Arctic, Inc.433Ski Right Corp.434Warehouse Tenting At The Port OfMiami435Business Analytics Module BLinear Programming436Discussion Questions436Active Model Exercise437ACTIVE MODEL B.1: LP Graph437End-of-Module Problems438Case Study460Quain Lawn and Garden Inc.460Video Case Study461Using LP to Meet Scheduling Challenges atAlaska Airlines461Additional Case Studies462Chase Manhattan Bank462Coastal States Chemical464Business Analytics Module CTransportation Models466Discussion Questions466End-of-Module Problems467Case Study480Custom Vans, Inc.480Additional Case Study482Consolidated Bottling: B482Business Analytics Module DWaiting-Line Models484Discussion Questions484Active Model Exercises488ACTIVE MODEL D.1: Single Server Model488ACTIVE MODEL D.2: Multiple Server Systemwith Costs488
Page 9 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 9 preview image9ACTIVE MODEL D.3: Constant Service Times489End-of-Module Problems489Case Studies505New England Foundry505The Winter Park Hotel506Additional Case Study506Pantry Shopper506Business Analytics Module ELearning Curves508Discussion Questions508Active Model Exercise509ACTIVE MODEL E.1: Unit Curve, Cumulative Curve, and Costs508End-of-Module Problems509Case Study515SMT’S Negotiation with IBM515Business Analytics Module FSimulation516Discussion Questions516End-of-Module Problems518Case Study531Alabama Airlines Call Center531Additional Case Study533Saigon Transport533Business Analytics Module GApplying Analytics to Big Data in Operations Management534Discussion Questions534End-of-Module Problems535Online Tutorial 1Statistical Tools for Managers538Discussion Questions538End-of-Tutorial Problems538Online Tutorial 2Acceptance Sampling543Discussion Questions543End-of-Tutorial Problems543Online Tutorial 3The Simplex Method of Linear Programming 545Discussion Questions545End-of-Tutorial Problems545Online Tutorial 4The MODI and VAM Methods of Solving Transportation Problems 551Discussion Questions551End-of-Tutorial Problems551Online Tutorial 5Vehicle Routing and Scheduling 557Discussion Questions557End-of-Tutorial Problems 558Case Study559Routing And Scheduling Of Phlebotomists559
Page 10 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 10 preview image111CHAPTEROperations and ProductivityDISCUSSIONQUESTIONS1.The text suggests four reasons to study OM. We want to understand (1) how people organize themselves for productive enterprise,(2) how goods and services are produced, (3) what operations managers do, and (4) this costly part of our economy and most enterprises.LO 1.1:Define operations managementAACSB:Application of knowledge2.With some 40% of all jobs being in the OM field, the career opportunities are prolific. The text suggests many career opportunities. OMstudents find initial jobs throughout the OM field, including supply chain, logistics, purchasing, production planning and scheduling, plant layout,maintenance, quality control, inventory management, etc.LO 1.3:Identify career opportunities in operations managementAACSB:Application of knowledge3.Possible responses include: Adam Smith (work specialization/ division of labor), Charles Babbage (work specialization/division of labor),Frederick W. Taylor (scientific management), Walter Shewart (statistical sampling and quality control), Henry Ford (moving assembly line),Charles Sorensen (moving assembly line), Frank and Lillian Gilbreth (motion study), Eli Whitney (standardization).LO 1.1:Define operations managementAACSB:Application of knowledge4.See references in the answer to Question 3.LO 1.1:Define operations managementAACSB:Application of knowledge5.The actual charts will differ, depending on the specific organization the student chooses to describe. The important thing is for studentsto recognize that all organizations require, to a greater or lesser extent, (a) the three primary functions of operations, finance/accounting,and marketing; and (b) that the emphasis or detailed breakdown of these functions is dependent on the specific competitive strategyemployed by the firm.LO 1.1:Define operations managementAACSB:Application of knowledge6.The answer to this question may be similar to that for Question 5. Here, however, the student should be encouraged to utilize a moredetailed knowledge of a past employer and indicate on the chart additional information such as the number of persons employed to performthe various functions and, perhaps, the position of the functional areas within the overall organization hierarchy.LO 1.1:Define operations managementAACSB:Application of knowledge
Page 11 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 11 preview image2CHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T Y7.The basic functions of a firm are marketing, accounting/ finance, and operations. An interesting class discussion: “Do all firms/organizations(private, government, not-for-profit) perform these three functions?” The authors’ hypothesis is yes, they do.LO 1.1:Define operations managementAACSB:Application of knowledge8.The 10 strategic decisions of operations management are product design, quality, process, location, layout, human resources, supply-chainmanagement, inventory, scheduling (intermediate and short-term), and maintenance. We find this structure an excellent way to help studentsorganize and learn the material.LO 1.1:Define operations managementAACSB:Application of knowledge9.Four areas that are important to improving labor productivity are (1) basic education (basic reading and math skills), (2) diet of the laborforce, (3) social overhead that makes labor available (water, sanitation, transportation, etc.), and (4) maintaining and expanding the skillsnecessary for changing technology and knowledge, as well as for teamwork and motivation.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Application of knowledge10.Productivity is harder to measure when the task becomes more intellectual. A knowledge society implies that work is moreintellectual and therefore harder to measure. Because the U.S. and many other countries are increasingly “knowledge” societies,productivity is harder to measure. Using labor-hours as a measure of productivity for a postindustrial society versus an industrial oragriculture society is very different. For example, decades spent developing a marvelous new drug or winning a very difficult legal case onintellectual property rights may be significant for postindustrial societies, but not show much in the way of productivity improvementmeasured in labor-hours.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Analytical thinking11.Productivity is difficult to measure because precise units of measure may be lacking, quality may not be consistent, and exogenousvariables may change.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Reflective thinking12.Mass customization is the flexibility to produce to meet specific customer demands, without sacrificing the low cost of a product-orientedprocess. Rapid product development is a source of competitive advantage. Both rely on agility within the organization.LO 1.1:Define operations managementAACSB:Application of knowledge13.Labor productivity in the service sector is hard to improve because (1) many services are labor intensive and (2) they are individually(personally) processed (the customer is paying for that service—the haircut), (3) it may be an intellectual task performed by professionals,(4) it is often difficult to mechanize and automate, and (5) it is often difficult to evaluate for quality.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Reflective thinking14.Taco Bell designed meals that were easy to prepare; with actual cooking and food preparation done elsewhere; automation to savepreparation time; reduced floor space; manager training to increase span of control.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Application of knowledge
Page 12 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 12 preview imageCHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T Y315.Bureau of Labor Statistics (stats.bls.gov) is a good place to start. Results will vary for each year, but overall data for the economy willrange from 0.9% to 4.8%, and mfg. could be as high as 5% and services between 1% and 2%. The data will vary even more for months orquarters. The data are frequently revised, often substantially.LO 1.7:Compute multifactor productivityAACSB:Application of knowledgeETHICALDILEMMAAMERICAN CAR BATTERY INDUSTRYYou may want to begin the discussion by asking how ethical it is for you to be in the lead battery business when you know that any batteriesyou recycle will very likely find their way to an overseas facility (probably Mexico) with, at best, marginal pollution containment. Then after alikely conclusion of “Well someone has to provide batteries,” you can move to the following discussion.(a)As owner of an independent auto repair shop trying to dispose of a few old batteries each week, your options may be limited. But asan ethical operator, your first option is to put pressure on your battery supplier to take your old batteries. Alternatively, shop for abattery supplier who wants your business enough to dispose of your old batteries. Third, because there is obviously a market for thelead in old batteries, some aggressive digging may uncover an imaginative recycler who can work out an economical arrangement forpickup or delivery of your old batteries. Another option is, of course, to discontinue the sale of batteries. (This is a problem for manysmall businesses; ethical decisions and regulation may be such that they often place an expensive and disproportionate burden on asmall firm.)(b)As manager of a large retailer responsible for disposal of thousands of used batteries each week, you should have little trouble findinga battery supplier with a reverse supply chain suitable for disposal of old batteries. Indeed, a sophisticated retailer, early on in anysupply-chain development process, includes responsible disposal of environmentally dangerous material as part of the negotiations.Disposal of old batteries should be a minor issue for a large retailer.(c)For both a small and large retailer, the solution is to find a “sustainable” solution or get out of the battery business. Burying the batteriesbehind the store is not an option.Supplement 5: Sustainability in the Supply Chainprovides some guidelines for a deeper classdiscussion.END-OF-CHAPTERPROBLEMS120 boxes(a)= 3.0 boxes/hour40 hours1.1125 boxes(b)= 3.125 boxes/hour40 hours(c) Change in productivity = 0.125 box/hour(d)0.125 boxPercentage change == 4.167%3.01.2(a)Labor productivity is 160 valves/80 hours = 2 valves per hour(b)New labor productivity = 180 valves/80 hours = 2.25 valves per hour(c)Percentage change in productivity = .25 valve/2 valves = 12.5%1.3So,57,600== 200(160)(12)(0.15)Llaborers employed57,6000.15 =, wherenumber of laborers(160)(12)()employed at the plantLL=
Page 13 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 13 preview image4CHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T YUnits produced100 pkgs(a)== 20 pkgs/hourInput51.4133 pkgs(b)= 26.6 pkgs per hour56.6(c) Increase in productivity == 33.0%201.5ResourceLast YearThis YearChangePercentage ChangeLabor1, 000 = 3.333001, 000 = 3.642750.310.31 = 9.3%3.33Resin1, 000 = 20501, 000 = 22.22452.222.22 = 11.1%20Capital1, 000= 0.110, 0001, 000= 0.0911, 000–0.010.01 =10.0%0.1−−Energy1, 000 = 0.333, 0001, 000 = 0.352, 8500.020.02 = 6.1%0.331.6Last YearThis YearProduction1,0001,000Labor hr. @ $10$3,000$2,750Resin @ $5250225Capital cost/month100110Energy1,5001,425$4,850$4,510[(1,000 / 4,510)(1,000 / 4,850)](1,000 / 4,850)−=−0.2220.2060.016== 7.8% improvement*0.2060.206*with rounding to 3 decimal places.OutputProductivity =Input1.76565(a) Labor productivity ==(520 × 13)$6,760= .0096 rug per labor $65Multifactor(b)=productivity(520 × $13) + (100 × $5) + (20 × $50)65== .00787 rug per $$8, 260
Page 14 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 14 preview imageCHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T Y51.8(a) Labor productivity = 1,000 tires/400 hours = 2.5 tires/hour.(b) Multifactor productivity is 1,000 tires/(400 × $12.50 + 20,000 × $1 + $5,000 + $10,000) = 1,000 tires/$40,000 = 0.025 tire/dollar.(c) Multifactor productivity changes from 1,000/40,000 to 1,000/39,000, or from 0.025 to 0.02564; the ratio is 1.0256, so the changeis a 2.56% increase.1.9Last YearThis YearChangePercentageChangeLabor hrs.1,500 = 4.293501,500 = 4.623250.334.29= 7.7%Capital invested1,500= 0.1015, 0001,500= 0.0818, 0000.020.1−= –20%Energy (btu)1,500 = 0.503, 0001,500 = 0.552, 7500.050.50= 10%Productivity of capital did drop; labor productivity increased as did energy, but by less than the anticipated 15%.1.10Multifactor productivity is:375 autos/[($20 × 10,000) + ($1,000 × 500) + ($3 × 100,000)] = 375/(200,000 + 500,000 +300,000) = 375/1,000,000= .000375 auto per dollar of inputs1.11(a) Before: 500/20 = 25 boxes per hour;1.121,500 × 1.25 = 1,875 (new demand)≅≅Outputs = ProductivityInputs1,875= 2.344Labor-hours1,875New process =800 labor-hours2.344800 = 5 workers1601,500Current process == 2.344labor-hours1,500 = labor-hours6402.344640 = 4 workers160Add one worker.After, 650/24 = 27.08(b) 27.08/25= 1.083, or an increase of 8.3% in productivity(c) New labor productivity = 700/24 = 29.167boxes per hour
Page 15 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 15 preview image6CHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T Y1.13(a) Labor change:1,5001,500== .293 loaf/$(640 × $8)5,1201,875= 0.293 loaf/$(800 × $8)(b) Investment change:1,5001,500== .293 loaf/$(640 × $8)5,1201,8751,875== .359 loaf/$(640 × 8) + (100)5,220.293 – .293(c) Percentage change := 0 (labor).293.359 – .293Percentage change := .225.293= 22.5% (investment)The better option is to purchase a new blender because it generates more loaves per dollar.1,500Old process = (6408) + 500 + (1,5000.35)1,500== 0.244 loaf/$6,1451,875New process = (8008) + 500 + (1,8750.35)1,875== 0.248 loaf/$7,556.250.248 – 0.244Percentage change == 1.6%0.244××××41.1labor-hourslabor-hours6,600 vans(a)= 0.10= 66,000xx1.15There are 300 laborers. So,66,000 labor-hours = 220 labor-hours/laborer300 laborerson average, per month$ output52($90) + 80($198)labor-hours8(45)$20,520 = $57.00 per labor-hour3601.16====6,600 vans(b) Now= 0.11, so60,000 labor-hourslabor-hours60,000 labor-hoursso,200 labor-hours/laborer300 laborerson average, per monthxx
Page 16 of 16
Solution Manual for Operations Management: Sustainability and Supply Chain Management, 13th Edition - Page 16 preview imageCHAPTER 1OP E R A T I O N S A N DPR O D U C T I V I T Y711,500Last year = (3508) + (15,0000.0083) + (3,0000.6)1.17×××=++1,5002,800124.501,800==1,5000.317 doz / $4,724.5×××1500This year = (3258) + (18,0000.0083) + (2,7500.6)0.341 doz / $=0.3410.317Percentage change =0.3170.076, or 7.6% increase−=CASESTUDYUBER TECHNOLOGIES, INC.1.First, some drivers (maybe most) may not require a wage that equals those fully engaged in the “taxi” business. It truly could be asupplemental income. . . . “I’m going that way anyhow so let’s make a few dollars while on the way.” Similarly, the capital investment costapproaches zero as the car is going that direction anyhow. These are idle or underutilized resources.From society’s perspective, Uber and its like competitors are desirable because both idle or wasted labor and capital resources are beingutilized. At the same time, as a bonus, Uber is reducing traffic and auto pollution while speeding up the transport of individuals and localcommerce.As a competitor for the traditional taxi service, Uber seems to be an enhancement in efficiency.For those faculty who what to spend some time on the larger productivity message, this case provides such an opportunity. Uber, asJoseph Schumpeter would suggest, has developed a disruptive technology (creative destruction, in a Schumpeterian translation).Innovations such as this are exactly how economic efficiency is enhanced. The traditional taxi services, with some imagination, could havedeveloped and adopted this technology, but most were ensconced in their own regulatory cocoon. As is often the case, it takes an outsider,such as Uber et al. to be creative by putting unused resources to use and providing society greater efficiency.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Analytical thinking2.Perhaps a business model similar to Uber’s can be applied to the trucking industry. And, indeed, Uber has established an Uber app for thetrucking industry. An estimated 30% of trucking backhauls are empty. However, the number of independent truckers or truckers with the latitudeto alter their route may be very small. And this number must be a tiny fraction of independent automobile drivers. So, the ability to “Uberize”trucking may be very difficult, but utilizing that idle 30% would be huge benefit to society.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Analytical thinking3.Perhaps the Uber model can be used for package delivery, documents, and everything from flowers to groceries. Airbnb (www.airbnb.com)is applying a similar model to short-term rentals of rooms, apartments, and homes—competing with more traditional bed and breakfast facilitiesand hotels.LO 1.8:Identify the critical variables in enhancing productivityAACSB:Analytical thinkingVIDEOCASESTUDIESFRITO-LAY: OPERATIONS MANAGEMENT IN MANUFACTURINGThis case provides a great opportunity for an instructor to stimulate a class discussion early in the course about the pervasiveness of the 10decisions of OM with this case alone or in conjunction with the Hard Rock Cafe case. There is a short video (7 minutes) available in MyLabOperations Management that is filmed specifically for this text and supplements this case.
Preview Mode

This document has 567 pages. Sign in to access the full document!

Study Now!

X-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat

Document Details

Subject
Operations Management
Textbook
Principles Of Operations Management...

Related Documents

View all
Exam Guides

Test Bank for Principles Of Operations Management: Sustainability And Supply Chain Management, 11th Edition

4.4
00
Solved Assignments

Space Age Furniture Problem

4.3
00
Solved Assignments

Inventory Analysis and Optimizing Staffing

4.5
00
Solved Assignments

Value Chain Management and Outsourcing in Operations

5.0
00
Solved Assignments

Inventory Management and Aggregate Planning in Operations

4.3
00
Solved Assignments

Operations Management: Key Concepts and Core Principles

4.9
00
Solved Assignments

Forecasting and Production Planning Module 3

4.5
00
Solved Assignments

Performance Measures and Quality Management in Operations

5.0
00
Solved Assignments

Technology Systems and Innovations in Operations Management

4.4
00
Solved Assignments

Operations Management and Decision Theory: A Comprehensive Analysis

4.4
00