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• Operations and Supply Chain Management, 15th Edition by F. Robert Jacobs and Richard Chase (100) Preview the textbook, purchase or get a FREE instructor-only desk copy.
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• General Objectives of The Course Develop a basic understanding of Production and Operations Management (POM), and to use critical thinking and the problem-solving skills in analysis of topics through assignments, quizzes and exams. Specific Objectives of The Course Chapter 1 - Introduction LO 1-1 Identify the elements of operations and supply chain management (OSCM).

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Operations and Supply Chain Management

15th edition

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Details about Operations and Supply Chain Management:

Resourceful companies today must successfully manage the entire supply flow, from the sources of the firm, through the value-added processes of the firm, and on to the customers of the firm. The fifteenth edition of Operations and Supply Chain Management provides well-balanced coverage of managing people and applying sophisticated technology to operations and supply chain management.Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that your class time is more engaging and effective.

Sample questions asked in the 15th edition of Operations and Supply Chain Management:

A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing. (Answer in Appendix D) a. Should this inspection position be eliminated? b. What is the cost to inspect each unit? c. Is there benefit (or loss) from the current inspection process? How much?

Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location. Bindley has three plants that can produce the motors. The plants and production capacities are Due to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.) Given profit maximization as a criterion, Bindley would like to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination. a. Develop a transportation grid for this problem. b. Find the optimal solution using Microsoft Excel.

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Analytics Exercise: Distribution Center Location Grainger: Reengineering the China/U.S. Supply Chain W. W. Grainger, Inc., is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico, with an expanding presence in Japan, India, China, and Panama. The company works with more than 3,000 suppliers and runs an extensive Website ( www.grainger.com ) where Grainger offers nearly 900,000 products. The products range from industrial adhesives used in manufacturing, to hand tools, janitorial supplies, lighting equipment, and power tools. When something is needed by one of its 1.8 million customers, it is often needed quickly, so quick service and product availability are key drivers to Grainger’s success. Your assignment involves studying U.S. distribution in Grainger’s supply chain. Grainger works with over 250 suppliers in the China and Taiwan region. These suppliers produce products to Grainger’s specifications and ship to the United States using ocean freight carriers from four major ports in China and Taiwan. From these ports, product is shipped to U.S. entry ports in either Seattle, Washington, or Los Angeles, California. After passing through customs, the 20- and 40-foot containers are shipped by rail to Grainger's central distribution center in Kansas City, Kansas. The containers are unloaded and quality is checked in Kansas City. From there, individual items are sent to regional warehouses in nine U.S. locations, a Canadian site, and Mexico. Grainger: U.S. Distribution In the United States, approximately 40 percent of the containers enter in Seattle, Washington, and 60 percent at the Los Angeles, California, port. Containers on arrival at the port cities are inspected by federal agents and then loaded onto rail cars for movement to the Kansas City distribution center. Variable costs for processing at the port are $5.00 per cubic meter (CBM) in both Los Angeles and Seattle. The rate for shipping the containers to Kansas City is $0.0018 per CBM per mile. In Kansas City, the containers are unloaded and processed through a quality assurance check. This costs $3.00 per CMB processed. A very small percentage of the material is actually sent back to the supplier, but errors in quantity and package size are often found that require accounting adjustments. Items are stored in the Kansas City distribution center, which serves nine warehouses in the United States. Items are also sent to warehouses in Canada and Mexico, but for the purposes of this study we focus on the United States. The nine warehouses each place orders at the distribution center that contains all the items to be replenished. Kansas City picks each item on the order, consolidates the items onto pallets, and ships the items on 53-foot trucks destined to each warehouse. Truck freight costs $0.0220 per CBM per mile. The demand forecasts for the items purchased from China/Taiwan for next year in cubic meters, as well as the shipping distances, are given in the following table. Although a high percentage of demand was from warehouses either south or east of Kansas City, the question has surfaced concerning the 18 percent that will be shipped to Kansas City and then shipped back to the Los Angeles warehouse. This double-transportation could potentially be eliminated if a new distribution center were built in Los Angeles. The idea might be to ship material arriving at the Seattle port by rail to a new Los Angeles distribution center, which would be located at the current location of the Los Angeles warehouse. It is estimated that the Los Angeles facility could be upgraded at a one-time cost of $1,500,000 and then operated for $350,000 per year. In the new Los Angeles distribution center, containers would be unloaded and processed through a quality assurance check, just as is now done in Kansas City. The variable cost for doing this would be $5.00 per CBM processed, which includes the cost to move the containers from the Los Angeles port to the distribution center. After the material is processed in Los Angeles, the amount needed to replenish the Los Angeles warehouse (approximately 18 percent) would be kept and the rest sent by rail to Kansas City. It would then be directly stocked in the Kansas City distribution center and used to replenish the warehouses. Grainger expects that very little would need to be shipped back to the Los Angeles warehouse after the new system has been operating for six months. Grainger management feels that it may be possible to make this change, but it is not sure if it would actually save any money and whether it would be a good strategic change. Is this strategically something that Grainger should do? What has the company not considered that may be important?

Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his fixed costs per year—such as taxes, insurance, and depreciation—are $2,052. The direct or variable costs—such as gas, oil, and maintenance—average about 14.4 cents per mile. How many miles must he drive to break even?

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