Operations and Supply Chain Management: The Core 5th Edition by F. Robert Jacobs Solution manual

leaves them unable to compete successfully. The 2011 tsunami in Japan and the 2015 LA ports
closure have also brought to the forefront how important supply chains are, as well as the
negative economic impact that disruptions in the supply chain can cause.
11. As the field of OSCM has advanced, new concepts have been applied to help companies
compete in a number of ways, including the advertisement of the firm’s products or services.
One recent concept to gain the attention of companies is promoting sustainability. Discuss
how you have seen the idea of sustainability used by companies to advertise their goods or
services.
There of course will be a number of examples that students will bring up, though they may
need some prodding to jog their memories. Some examples to start with might be IBM’s “I’m
an IBMer” campaign where they advertise how they are “building a smarter planet.” Bottled
water manufacturers have reduced the amount of plastic used in many of their products, thus
saving production and distribution costs, but also allowing them to advertise how the new
bottles are better for the environment because they result in less waste.
Chapter 01 - Operations and Supply Chain Management
Copyright ©2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education.
Objective Questions
1. What are the three elements that require integration to be successful in operations and
supply chain management?
Strategy, Processes, and Analytics
2. Operations and supply chain management is concerned with the design and management of
the entire system that has what function?
Produces a product or delivers a service
3. Consider the following financial data from the past year for Midwest Outdoor Equipment
Corporation.
Gross Income  $25,240,000
Total Sales  24,324,000
Total Credit Sales  18,785,000
Net Income  2,975,000
Cost of Goods Sold  12,600,000
Total Assets  10,550,000
Average Inventory  2,875,000
Average Receivables  3,445,000
a. Compute the receivable turnover ratio.
$18,785,000
$3,445,000
= 5.453
b. Compute the inventory turnover ratio.
$12,600,000
$2,875,000
= 4.383
c. Compute the asset turnover ratio.
$24,324 $10,550,000
= 2.306
Chapter 01 - Operations and Supply Chain Management
Copyright ©2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
4. A manufacturing company has entered into a new contract with a major supplier of raw
materials used in the manufacturing process. Under the new arrangement, called vendor
managed inventory, the supplier manages their raw material inventory inside the
manufacturer’s plant, and only bills the manufacturer when the manufacturer consumes the
raw material. How is this likely to affect the manufacturer’s inventory turnover ratio?
This will reduce the average amount of money the firm has invested in raw material, so the
inventory turnover ratio should increase.
5. What is the name of the process in which one company studies the processes of another firm
in order to identify best practices?
Benchmarking
6. A company has recently implemented an automated online billing and payment processing
system for orders it ships to customers. As a result, it has reduced the average number of
days between billing a customer and receiving payment by 10 days. How will this affect the
receivables turnover ratio?
Quicker payments will reduce the average amount of accounts receivables, so the receivables
turnover ratio will increase.
7. Match the following OSCM job titles with the appropriate duties and responsibilities.
C
Plant manager
A: Plans and coordinates staff activities such as new product
development and new facility location
D
Supply chain manager
B: Oversees the movement of goods throughout the supply
chain
A
Project manager
C: Oversees the workforce and resources required to produce
the firm’s products
E
Business process
improvement analyst
D: Negotiates contracts with vendors and coordinates the flow
of material inputs to the production process
B
Logistics manager
E: Applies the tools of lean production to reduce cycle time
and eliminate waste in a process
8. What high-level OSCM position manager is responsible for working with the CEO and company
president to determine the company’s competitive strategy?
Chief Operating Officer
Chapter 01 - Operations and Supply Chain Management