In what businesses would you expect project management skills to be most important? In what businesses would you expect them to be least important?
> A company purchased 100 shares of its common stock at $50 per share. It then sells 35 of the treasury shares at $56 per share. The entry to sell the treasury stock includes a a. credit to Paid-in Capital, Treasury Stock for $210. b. debit to Retained E
> Susan Smith Exports, Inc., is located in Birmingham, Alabama. Smith is the only company with reliable sources for its imported gifts. The company does a brisk business with specialty stores such as Bloomingdales. Smith’s recent success has made the compa
> When treasury stock is sold for less than its cost, the entry could include a debit to: a. Paid-in Capital in Excess of Par. b. Retained Earnings. c. Gain on Sale of Treasury Stock. d. Loss on Sale of Treasury Stock.
> A company paid $24 per share to purchase 600 shares of its common stock as treasury stock. The stock was originally issued at $16 per share. The journal entry to record the purchase of the treasury stock is: a. Treasury Stock 14,400 Cash 14,400 b. Tr
> These account balances at December 31 relate to Sportworld, Inc.: Sportworlds net income for the period is $119,100 and beginning common stockholders equity is $681,500. Calculate Sportworlds return on common stockholders equity . a. 17.2% b. 16.4% c.
> These account balances at December 31 relate to Sportworld, Inc.: What is total stockholders equity for Sportworld, Inc.? a. $688,100 b. $641,345 c. $693,300 d. $698,500 e. None of the above $ 51,500 Paid-in Capital in Excess of Par-Common.. Pref
> These account balances at December 31 relate to Sportworld, Inc.: What is total paid-in capital for Sportworld, Inc.? a. $634,445 b. $622,000 c. $641,345 d. $693,300 e. None of the above $ 51,500 Paid-in Capital in Excess of Par-Common.. Preferre
> The paid-in capital portion of stockholders equity does not include a. Common Stock. b. Preferred Stock. c. Retained Earnings. d. Paid-in Capital in Excess of Par Value.
> Par value a. represents the original selling price for a share of stock. b. is established for a share of stock after it is issued. c. may exist for common stock but not for preferred stock. d. represents what a share of stock is worth. e. is an arb
> Spirit World, Inc., issues 280,000 shares of no-par common stock for $9 per share. The journal entry is: a. Cash 2,520,000 Common Stock 560,000 Paid-In Capital in Excess of Par 1,960,000 b. Сash 2,520,000 Common Stock 2,520,000 C. Cash 2,520,000 Comm
> On February 28, 2010, Marlin Corp. issues 8%, 10-year bonds payable with a face value of $900,000. The bonds pay interest on February 28 and August 31. Marlin Corp. amortizes bonds by the straight-line method. Requirements 1. If the market interest rat
> The board of directors of Monitors Plus authorizes the issue of $9,000,000 of 10%, five-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2010, at par. Requirements 1. Journalize the following
> Use the amortization table that you prepared for GITs bonds in Short Exercise 8-9 to answer the following questions: 1. How much cash did GIT borrow on March 31, 2010? How much cash will GIT pay back at maturity on March 31, 2022? 2. How much cash inter
> In 2002, Enron Corporation filed for Chapter 11 bankruptcy protection, shocking the business community: How could a company this large and this successful go bankrupt? This case explores the causes and the effects of Enrons bankruptcy. At December 31, 20
> Is it enough to just write down the business strategy of a firm? Why or why not? Conversely, what are the limitations of not writing down the strategy but rather depending on the firm’s actions to define the strategy?
> Do you think the process of mass customization is common practice in recent times? Can you think of an example from daily life?
> Can a company complete its material requirements plans before it does master scheduling? Explain.
> Yield management is a powerful tool in operations and supply chain management. It is commonly employed to handle highly perishable products and/or services. Do you agree? Give an example.
> One of your friends argues that EOQ has limitations, such as providing no consideration for the other supply chain members. Do you agree? Can you give an example?
> Competitive bidding is better applied when purchasing products and services with straightforward specifications, while negotiation is good for new and/or technically complex products and services with only vague specifications. Do you think they could be
> Do you think a company’s decision to emphasize one performance dimension (based on excellence) at the expense of others may cause conflict with the overall performance? Can you give an example from operations and supply chain management?
> Which of the waiting line systems shown in Figures 6S.1 through 6S.3 best represent a patient being sent to the accident and emergency ward of a hospital by the ambulance after a car crash? Why? Figure 6S.1: Figure 6S.3:
> Under the best of conditions, do you think it is possible to adopt a certain forecasting approach so that we are be able to predict (with 100 percent accuracy) the exact level of future demand, supply, or price according to the law of forecasting?
> McDonald’s brand mission is to “be our customers’ favorite place and way to eat and drink”. Do you think this is an effective mission statement? Discuss how McDonald’s can have an operations and supply chain strategy that is consistent with the mission s
> What is the difference between tolerance limits and control limits? Is it possible that a process can be in statistical control but still not meet the customer’s needs? Explain.
> Suppose that the actual range for a sample falls below the lower control limit for the R chart? Is this a good thing or a bad thing? Explain.
> Recall the total quality management (TQM) approach, and discuss the seven core ideas that a business philosophy should be centered around.
> Fireproof safes are designed to safeguard valuable possessions in case of fire, in addition to theft. They can be classified into different categories. For instance, a class-A fire-resistant safe could protect paper at 2,000 degrees for four hours. As
> Do you think the same product will differ in quality based on the perceptions of different customers? Justify your answer. What is its implication to the seller and/or the manufacturer?
> According to the Quality Handbook, edited by Joseph Juran, what are the four different types of costs related to the quality of products?
> In the chapter, we stated that “there are countless possible measures of process performance, many of which are derived from the four core measures” quality, cost, time, and flexibility. In the following table, identify how you think the three measures w
> Do you think we should measure the performances of an organization’s business processes? Justify your answer. Briefly describe the four key core measures that could produce more specific measures of business process performance.
> Use the P&G example described in the chapter to explain the benefits to the customer of adopting a business processes perspective. Why might a traditional functional perspective have “blinded” P&G to the problems with the old system?
> Many universities now offer Web-based courses in lieu of traditional classes. These courses often contain lecture notes, linkages to videos and other documents, and online testing capabilities. How are Web-based courses positioned vis-à-vis large lecture
> Go back and look at Hayes and Wheelwright’s four stages of alignment. Do firms actually have to develop and then exploit core competencies in the operations and supply chain areas in order to be successful? That is, do all firms need to reach Stage 4?
> A production worker seems to know nothing about the different levels of product customization. As his supervisor, briefly explain the four levels of customization starting from the least to greatest.
> Between 1964 and 1966, Ford made more than 1 million Mustangs. Today car collectors are spending tens of thousands of dollars to restore to “like new” vintage Mustangs that originally sold for around $3,000. What types of manufacturing processes do you t
> At many college athletic events, you can find plastic drink cups with the school logo printed on it. Twenty years ago, these cups came molded in a variety of colors. Now nearly all the cups are white with only the printed logos containing any color. Use
> What are the characteristics of make-to-stock products? Can you give one or two examples of this product from daily life?
> Do you think the manufacturing and service process decisions are critical to a firm’s operations and supply chain management? Justify your answer.
> What are some of the benefits of including suppliers in the product development process? Can you think of any risks?
> Which type of product development effort would be better suited to concurrent engineering: a radically new product involving cutting-edge technologies or the latest version of an existing product? Why?
> Consider the phases of product and service development shown in Table 15.1. Why is it important to include customers early in the development process? Table 15.1:
> Consider some of the dimensions of product design that we listed as important to operations and supply chain managers. Are these dimensions more or less important than whether the product or service meets the customers’ needs? Can you think of situations
> We talked about concurrent engineering as an alternative to sequential development. What are the advantages of concurrent engineering? Under what circumstances might sequential development be preferable?
> Different customers can perceive the value of the same product or service very differently. Explain how this can occur. What are the implications for developing successful operations and supply chain strategies?
> In this chapter, we described several approaches to product design, including parts standardization and modularity. How do these two approaches relate to the dimensions of product design described earlier in the chapter?
> Why do you think it is important for project planners to revisit the network diagram as time goes on?
> What are the main advantages of using a network-based approach to project management rather than a Gantt chart? Under what circumstances might a Gantt chart be preferable to a network-based approach?
> Visit the Web site for the Project Management Institute, at www.pmi.org. What types of educational material are available for project managers? What types of professional certification programs are available? What do you think a professional project mana
> In what ways might a firm’s suppliers improve or undermine the firm’s Lean efforts? Can you think of any examples from the chapter that illustrate this idea?
> We noted in the chapter that kanban is not a planning tool but a control mechanism. What did we mean by that? How does the MRP/kanban example in Example 13.4 illustrate the point?
> Comment on the relationship between quality management (Chapter 5) and Lean. Are they the same thing, or are there some differences?
> Even though waiting is a form of waste, does it always make sense to eliminate it? (Hint: Recall our discussion of waiting line theory in Chapter 6, and the relationship between resource levels and waiting times.)
> One of your friends asks you about the difference between necessary transportation and unnecessary transportation, based on the lean perspective on waste. Can you explain what they are? Illustrate your answer with examples.
> Go to the Web and see if you can find out the mission statement of a logistics and supply chain related company. From the said mission statement, can you find out why the organization exists? What are the core values that are important to the organizati
> Consider Figure 12S.1. Some people have argued that companies need to put in place information systems that address routine decision making and transactional requirements prior to tackling higher-level planning and decision making. Others strongly disagr
> What is the difference between an information flow and an information system? Do information systems always have to be computerized? Why?
> Explain in your own words how tools such as master scheduling, MRP, and DRP can be used to coordinate activity up and down a supply chain. For example, what information might we share with our customers? Our suppliers? What information might we want from
> What are the benefits of having a formal master scheduling process? What could happen to firms that don’t follow some of the basic rules of master scheduling?
> Master scheduling, MRP, and DRP have been around for a long time, but too many companies still do an inadequate job of using these tools. How can this be? In particular, what role do you think organizational discipline plays in making these tools work?
> What are the benefits of using material requirements planning (MRP)?
> The JIT/lean production movement has long argued that firms should: a. Maximize their process flexibility so that ordering costs are minimized; b. Stabilize demand levels; c. Shrink lead times as much as possible; and d. Assign much higher holding co
> In a supply chain, what are the pros and cons of pushing inventory downstream, closer to the final customer? How might modular product designs (Chapter 15) make it more profitable for companies to postpone the movement of inventory down the supply chain?
> Early in the chapter, we argued that “no single trend has done more to change the nature of business than the Internet.” Can you think of an example about how the Internet and its resources can be used in operations or supply chain management?
> Which of the following are independent demand inventory items? Dependent demand inventory items? a. Ice cream at McDonalds b. Bicycle seats in a bicycle factory c. An iPhone 6 Plus at an Apple store d. French fries at KFC e. Potatoes at a plant that
> In your own words, what is an inventory driver? What is the difference between a controllable inventory driver and an uncontrollable inventory driver? Give examples.
> You hear someone comment that any inventory is a sign of waste. Do you agree or disagree? Can managers simultaneously justify holding inventories and still seek out ways to lower inventory levels?
> What are the advantages to a firm of coordinating its S&OP process with key supply chain partners? What are the potential drawbacks?
> Why has the implementation of S&OP been described as a three-phase process? Briefly explain the three different phases.
> Services, in general, cannot put “products” in inventory to be consumed at some later time. How does this limit service firms’ S&OP alternatives?
> In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?
> How does S&OP differ from strategic capacity planning? From detailed planning and control? What role does S&OP play in the overall planning activities of an organization?
> Some people have argued that the process of developing a sales and operations plan is as important as the final numbers. How could this be?
> If forecasting is so important, why do firms look to approaches such as CPFR as a way to reduce the need for forecasting?
> In this chapter, we defined a supply chain as a network of manufacturers and service providers that work together to create products or services needed by end users. What are some of the different supply chains that support a product such as the Apple iP
> Explain the differences in using linear regression to develop a time series forecasting model and a causal forecasting model.
> What are the advantages of having computer-based forecasting packages handle the forecasting effort for a business? What are the pitfalls?
> Are time series forecast techniques such as moving average and exponential smoothing models well suited to developing forecasts for multiple periods into the future? Why or why not?
> What is a hub-and-spoke system? How does it differ from consolidation and cross-docking?
> Can you think of the different challenges that a company may face when incorporating a reverse logistics system into the overall logistics strategy?
> What are landed costs? Should we consider landed costs in more detail when participating in international supply chain management?
> Can a shipping company that does not actually own a ship deliver cargoes on behalf of their shippers? Explain.
> A colleague tells you that the inventory is incurring extra costs and hence all inventories and warehouses need to be removed. Do you agree? Justify your answer.
> “Transportation and warehousing are the two major functions of logistics.” Do you agree with this proposition? Explain.
> In the chapter, we suggested that advanced information systems will automate some of the more routine purchasing activities. What are the implications for purchasing professionals? Is this a good time to join the purchasing profession? Explain.
> One of your co-workers tells you that operations and supply chain management are both related to freight movement, and has nothing to do with passenger transportation. Do you agree? Justify your answer.
> Under what conditions might a company prefer to negotiate rather than use competitive bidding to select a supplier?
> Consider the cafeteria services available at a university. In many cases, these services are outsourced to a private firm. Use Tables 7.6 and 7.7 as guides to explain why this is the case. In what quadrant would such services be positioned when determini
> Though simulations are used to imitate the operation of a real-world process or system over time, they have a number of disadvantages. Identify their advantages as well as their disadvantages.
> Is it true to say that the waiting line for a bank with constant service time will have a longer waiting time than a bank with irregular service time, assuming all other things, including time between arrivals, are the same? Why or why not?
> A manufacturer takes raw material from a supplier, processes it using a single manufacturing step, and then sells it to its customers. Suppose the manufacturer decides to double the capacity of the manufacturing step. Under what conditions will throughpu
> What are the relationships among learning, productivity, and effective capacity? What are the pros and cons of using learning curves to estimate future resource requirements?
> Assume that you are the operations manager of a department store. Is it logical for cashiers to be fully engaged all the time in order to keep the customers’ waiting time to a minimum when the latter usually arrive at random intervals? Explain your answe
> Who do you think would benefit more from a “virtual supply chain” capacity strategy—a small start-up firm with few resources or an older, more established company? Why? What are the risks associated with such a strategy?
> What kind of capacity strategy—lead, lag, or match— would you expect a toy targeted for the Christmas period to adopt? What about a public employment agency? Why?
> “As a matter of fact, an environment supporting standardized products will usually have an easier time managing capacity than an environment supporting customized products.” Is this proposition true? Justify your answer.
> Consider the simplified Anheuser-Busch supply chain shown in Figure 1.2. Is Alcoa really the first entity in the supply chain? What other suppliers would AnheuserBusch have? What information should be shared among companies in the supply chain?
> The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3: The balance in Yost’s capital account includes an additional investm
> The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3: The balance in Yost’s capital account includes an additional investm
