Instructions
Read provided text: Chapters 1 and 2
Review provided PowerPoint Slides: Chapters 1 & 2
Provide all answers directly below questions and cite the provided text as necessary
Ch. 1 Business Textbook Supply Chain Case Study Questions 1-5 (pg. 22):
- Draw a diagram that illustrates the textbook supply chain from the publisher’s point of view.
- Who are the various customers for textbooks? What do these customers want in terms of goods and services related to textbooks? From the publisher’s point of view, who is the key customer?
- Who are the major players in the supply chain? What operational roles do they play in terms of creating value for the key customers?
- Given the anticipated changes in the market and in product and process technologies, how do you envision each supply chain player’s role changing in the future?
- What advice would you give to Dave Eisenhart regarding long-term op
Ch. 2 Discussion Questions 1, & 7 (pg. 45):
- Why should the firm never outsource its core capabilities? What happens if the firm is approached by a supplier who is willing to supply goods and services based on these core capabilities at a significantly lower price? What should the firm do?
- Fit is critical to the development and maintenance of a successful operations strategy. Suppose that we are faced with a firm in which there is a lack of fit between the outcomes desired by the critical customer, the value proposition, and the firm’s capabilities. What options are available to the firm in the short term when dealing with this lack of fit? What is the impact of the lack of fit? What are the implications of the firm trying to improve the fit?
Ch. 2 Problem 3 (pg. 47-48):
You are the operations manager for a small kayak and canoe manufacturer (Valley Kayaks) located on the Pacific Northwest (Oregon). Lately your company has experienced product quality problems. Simply put, the kayaks that you produce occasionally have defects and require rework. Consequently, you have decided to assess the impact of introducing a total quality management (TQM) program. After discussing the potential effects with representatives from marketing, finance, accounting, and quality, you arrive at a set of estimates (contained in the following table).
Category Current Values Estimated Impact of TQM
Sales $2,000,000 5% + (improvement)
Cost of goods sold $1,500,000 0%
Variable expenses $300,000 8.25% – (reduction)
Fixed expenses $100,000 0%
Inventory $300,000 25% –
Accounts receivable $100,000 0%
Other current assets $500,000 0%
Fixed assets $400,000 0%
Top management has told you that it will accept any proposal that you come up with, provided that it improves the return on assets measure by at least 15 percent.
– Would you go forward with this proposal to improve quality?
