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service management operations strategy

Questions and Answers of Service Management Operations Strategy

Consider a supplier order allocation problem under multiple sourcing, where it is required to buy 2000 units of a certain product from three different suppliers. The fixed setup cost (independent of
Reformulate the problem in Exercise 3.3 under the assumption that both suppliers 1 and 3 offer “all units” discount, as described below:• Supplier 1 changes $10/unit for orders up to 300 units,
A company manufactures three products A, B, and C. Each unit of product A requires 1 hour of engineering service, 10 hours of direct labor, and 3 pounds of material.Producing one unit of product B
Explain how the following conditions can be represented as linear constraints using binary variables.a. Either x1 + x2 ≤ 3 or 3x1 + 4x2 ≥ 10b. Variable x2 can assume values 0, 4, 7, 10 and 12
Convert the following nonlinear integer program to a linear integer program. Minimize Subject to Z=x-xx + x x + x1x2 8 x 2 X2 7 x,x220 and integer
An M/M/1 queuing system has an arrival rate of 10 customers per hour. The average service time is 9 minutes.a. What is the system utilization?b. What is the average queue length?c. What is the
Using the birth–death model for the M/M/c queue, derive Equations 3.50 and 3.51.Equation 3.50:Equation 3.51: P = P" P. n! Por 1n
Customers arrive to a service center according to a Poisson process with a rate of 30 per hour. Service times are exponentially distributed with a mean of 12 minutes.a. What is the minimum number of
Make a plot of the probability that a customer has to wait for more than 2 minutes as a function of number of servers, starting from the c you found in 3a and going up to c + 5.
Repeat Exercise 3.10 if there are only 10 customers allowed in the system.Data From Exercise 3.10:Customers arrive to a service center according to a Poisson process with a rate of 30 per hour.
Suppose the service time is not exponentially distributed for Exercise 3.8, but is instead log-normally distributed with μ = 8 and σ = 0.015. Use the P–K formulas to estimate the average waiting
Consider a G/G/3 queuing system. Interarrival times are on average 5 minutes with a standard deviation of 6 minutes. Service times are on average 12 minutes with a standard deviation of 15 minutes.
Repeat Exercise 3.14 using the Whitt refinement given in Equations 3.73 through 3.80.Equations 3.73 through 3.80:Data From Exercise 3.14:Consider a G/G/3 queuing system. Interarrival times are on
The call volume data for Figure 3.13 is given in Table 3.7. Develop and solve an integer programing formulation to find the minimum number of service agents to staff the offered load. An agent
How would your answer to Exercise 3.16 differ if you were allowed to staff agents for less than 8 hours if they are paid 10% more per hour compared to permanent agents?Data From Exercise 3.16:The
Using the data in Table 3.7, determine the staffing levels required for each interval using the rule of thumb of β = 2. TABLE 3.7 Call Volume Data for Exercise 3.16 Time 7:00 a.m. 8:00 a.m. 9:00
For Exercise 3.18, what is the probability of delay using Equations 3.89 and 3.90?Equations 3.89 and 3.90:Data From Exercise 3.18:Using the data in Table 3.7, determine the staffing levels required
A call center has 300 calls (arrivals) per hour. Average service time for a call is 3 minutes. Assuming an M/M/c + M approximation, determine the service value β from Equation 3.91, if we want the
A call center has 600 calls (arrivals) per hour. Average service time for a call is 6 minutes. Management has determined that the cost to staff an agent is $9.50 per hour. In addition, the cost of
For Exercise 3.21, management estimates that the customer delay cost ranges from $120 to $160. How much difference will the estimate effect the staffing levels?Data From Exercise 3.21:A call center
List three or more equally important criteria that might be considered in each of the following decision situations:a. Choosing an apartment for rent.b. Purchase of a car.c. Selecting a university to
Discuss the differences between the following terms in MCDM:a. Efficient and ideal solutionsb. Decision space and objective spacec. Dominated and Pareto optimal solutionsd. Multiple-criteria
Discuss how elasticity meaningfully differs from the derivative in DEA.
Give a practical example for when you believe constant returns to scale, increasing returns to scale, and decreasing returns to scale are appropriate.
Consider a DEA model for a university system. What do you believe are the five most important inputs? What are the three most important outputs? Discuss how you would measure them.
You have been asked to rank a set of universities using technical efficiency found from DEA. Discuss the main advantages and disadvantages of this approach.
Discuss the most limiting assumptions on allocative efficiency in DEA.
Prove which of the following problems is an MCDM problem. Justify your conclusion. i. Max Z = x + x; Max Z =2x + x Subject to 0x7 0x 10 ii. Max Z = x + x; Max Z =x-x Subject to 0x 5 0x 8
Consider the following bi-criteria LP model:a. Show graphically the decision space and the objective space.b. Show graphically the set of efficient solutions in both the decision space and the
XYZ company has an MCDM problem with six criteria—C1, C2, C3, C4, C5, and C6.The company, wishing to determine the order of importance of these criteria, uses the method of paired comparisons and
You just completed your PhD in Industrial Engineering, have job offers from six different universities, and are faced with the problem of choosing the right university to work for. You have collected
Consider the MCLP problem:Determine at least two properly efficient points to the above MCLP using Geoffrion’s theorem. Max Max Min Subject to: f(x) = -x + x f(x) = 10x f3(x)=2x - 3x -x1 + x 2 x7 x
Consider the MCLP problem:a. Show graphically the decision space and the objective space.b. Determine all efficient solutions to the MCLP problem.c. Explain what happens when you try to solve a Pλ
Consider the following bi-criteria problem:Prove whether or not the following solutions are efficient:a. X(1) = (0,0,2,18,0)b. X(2) = (0,0,8,0,12)c. X(3) = (0,4,0,20,0) Maximize Minimize Subject to:
The following bi-criteria problem is to be solved using compromise programming:a. Determine the ideal solution f1* and f2*. You can solve it graphically or use any LP software.b. Using the distance
Write the output-based VRS DEA model.
For the Cobb–Douglas production function given in Example 4.5, use A = 20, α = 0.7, and β = 0.5. Answer the following:a. What can you say about the returns to scale?b. What is the output and
Solve for the optimal inputs for Example 4.9.Example 4.9:Consider the Cobb–Douglas production function considered in Example 4.5. Suppose that a unit of x1 is $10 and a unit of x2 is $20. Further,
Expand the model given in Section 4.14 to include prices on the outputs.What key assumptions do you need to make?
Consider the data for six DMUs given in Table 4.10.a. Draw the input possibility set using the H–R construction for an output of 15.b. Repeat for an output of 8.c. Repeat for an output of 5. TABLE
Using the same data as given in Exercise 4.20:a. Scale the inputs by the output and apply the H–R construction.b. Draw the input possibility set for an output of 10 [you can directly use the
Consider the data for six DMUs given in Table 4.11.a. Formulate and solve as a VRS input-based DEA model for DMU 4.b. Formulate and solve as a VRS output-based DEA model for DMU 4.c. Will these
For Exercise 4.20, suppose the cost for input 1 is $15 per unit and that for input 2 is $10 per unit.a. Determine the overall efficiency for DMU 4.b. Determine the allocative efficiency for DMU 4.
For Exercise 4.20, suppose output 2 is stochastic. The mean is equal to the deterministic value, and the variance is equal to 10 for the first three DMUs and 20 for the next three. Determine the
Some people argue that shareholders can diversify their stockholdings and that there is no need for corporate diversification to reduce risk. The upshot is that any excess earnings (known as free
Product-unrelated diversification (conglomeration) is widely discredited in developed economies. However, in some cases it still seems to add value in emerging economies—think of Tata and Wanda. Is
As a CEO, you are trying to decide whether to acquire a foreign firm. The size of your firm will double after this acquisition to become the largest in your industry. On the one hand, you are excited
Multinational enterprises from emerging economies (EMNEs) have recently emerged as a new breed of acquirers around the world. In comparison with acquirers from developed economies, two unique and
As a Chinese MNE executive working in the United States or an American MNE executive working in China in 2020, you feel that the host-country government officials and media have become noticeably
From time to time, managers may be faced with the need to change the internal rules of the game within their MNE.What skills and capabilities may be useful in achieving this?
If you were a CEO or a business unit head, under what conditions would you consider moving your headquarters overseas?
You are head of the best-performing subsidiary in an MNE. Because bonus is tied to subsidiary performance, your bonus is the highest among managers of all subsidiaries. Now headquarters is organizing
Working in pairs or small groups, review a high-profile case of an MNE moving its headquarters out of your country and the media and political outcry surrounding this move. Pick your role as either a
You are a Peruvian national who serves as head of the Brazilian subsidiary of a large US multinational.While Brazil is theoretically attractive, the going has been tough and chances for becoming
Leveraging excellent engineering, German machine toolmakers are world leaders in their industry. As China’s industrialization takes off, they are often sought after in newly built factories that
You are 30 years old and obtained your MBA from a top business school two years ago. You are being promoted to be CEO of a multibillion-dollar firm that is publicly listed in your country. There is
Starting from Berle and Means (1932), some argue that the Anglo-American style separation of ownership and control is an inevitable outcome in corporate governance for large firms. Others contend
How do you participate in the debate on state ownership versus private ownership?
If you grabbed a Burger King for lunch, did some shopping at Neiman Marcus, munched at Outback Steakhouse for dinner, enjoyed a Budweiser, checked into a Hilton hotel, took a ride on an elevator made
Between the two opposing views of stakeholder capitalism and shareholder capitalism, which view do you support? Why?
Your CPA firm is organizing a one-day-long CSR activity using company time such as cleaning up a dirty road or picking up trash on the beach. A colleague tells you: “This is so stupid. I already
As the CEO of a leading bank in the City of London, you have decided to directly meet protestors in the Occupy London movement. What will you say?
In the landmark Dodge v. Ford case in 1919, the Michigan State Supreme Court determined whether Henry Ford could withhold dividends from the Dodge brothers (and other shareholders of Ford Motor
The California Public Employees’ Retirement System (CalPERS) is one of the world’s largest pension funds and one of the earliest to divest stocks of firms that did not meet its ESG criteria. For
Hypothetically, your MNE is the largest foreign investor in (1) Vietnam, where religious leaders are being prosecuted; (2) Estonia, where ethnic Russian citizens are being discriminated against by
First reported in 1976 in Sudan and Zaire (now called the Democratic Republic of the Congo [DRC]), Ebola has been a known virus for more than four decades. Yet, there is still no effective vaccine or
Many strategy students are interested in consulting— specifically, strategy consulting. Therefore, a deep understanding of the five forces affecting the consulting industry is a must. Before
From India to New Zealand, from Indonesia to Japan, the airline industry in the Asia Pacific region is vast. It carries 30% of the world’s passenger traffic and 40% of the cargo traffic and is
LEGO is everywhere—toys, games, books, magazines, competitions, retail stores, theme parks, and now movies.If all of the approximately 400 billion colorful interlocking bricks ever produced by LEGO
In 2016, BMW celebrated its 100th anniversary. With changes in digital technology, lifestyles, and regulatory requirements, the car industry faces the challenge that people of the future may no
In 1956, when Armand Hammer took over as CEO of a small company, Occidental Petroleum (Oxy), he had a vision for the future that involved multiple businesses and dramatic growth. By the early 1980s,
“You quit Paris, so I quit you.” It may sound like a part of the conversation pertaining to travel or airline industries that debate about the stop of service to Paris, France. However, this is
Since Uber officially launched online taxi reservation in San Francisco in October 2010, many ride-hailing companies have emerged in China, such as Didi Chuxing (hereafter “Didi”), Kuaidi, Yidao
Outsourcing to India—especially in information technology (IT)—has been going on for several decades. This case is on the final frontier of outsourcing to India—commercial surrogacy. Surrogacy
On September 18, 2015, the Volkswagen Group (VW) was served with a notice of violation of the US Clean Air Act by the US Environmental Protection Agency (EPA). The EPA had discovered that VW had
This industry dates back thousands of years, is visible in TV news, is global in nature, and has annual sales of $100 billion. Yet participants do not even agree on how to label it, and most
“The best trick this season won’t be done on skis or a board, it will be worn.” SnowSports Interactive (SSI) executives felt that phrase appropriately described the new technology they were
“The Chinese economy slows down” is one of the leading themes in global business news. Foreign firms interested in the legendary “one billion customers” are advised to adjust their
In the early 1900s, Danish firms rushed to invest in czarist Russia, building engine factories, cement plants, and slaughterhouses. Their advanced technologies gave them competitive advantages in the
If you are a college student in the United States or Canada, you may have heard of (or taken a ride on) Megabus. Its website announces that it is “the first, low-cost, express bus service to offer
Founded in 2003 and based in Abu Dhabi, Etihad Airways is both inspired by Emirates Airlines and a direct competitor of Emirates, which is based in Dubai, a fellow emirate in the United Arab Emirates
Barny Köpf had just returned from Spoga, the international trade fair for outdoor equipment and furniture held in Germany. Despite the global economic crisis, the results achieved at the fair had
OPEC The Organization of the Petroleum Exporting Countries (OPEC) was founded by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela in 1960. Headquartered in Vienna, Austria, since 1965, OPEC currently
Although most readers of this book probably have never heard of AGRANA, virtually everybody has heard of Coca-Cola, Danone, Hershey Foods, Nestlé, PepsiCo, and Tyson Foods. Headquartered and listed
The Opportunity of a Lifetime In September 2008, Lehman Brothers went bankrupt. Britain’s Barclay Capital bought Lehman’s North America operations for $3.75 billion. Lehman’s assets in Asia and
On June 27, 2017, a malware infection—NotPetya—began spreading from Ukraine. It affected firms in many countries, although the greatest impact was in Ukraine. As a result of this malware
On June 16, 2016, the world’s biggest Disneyland opened in Shanghai with a great deal of fanfare. It features a supersized 200-foot-tall castle. In comparison, the height for similar castles in
Founded in 1938, Samsung Group is South Korea’s leading conglomerate. It has 320,000 employees in 510 units in 80 countries, with more than $300 billion in annual revenues in 2019. The flagship
Founded in 1939 in a garage, Hewlett-Packard is the original Silicon Valley company. The “HP Way” is the legendary culture of innovation and creativity that the iconic company had codified and
While corporate social responsibility (CSR) is always a voluntary activity, the Indian government has mandated that CSR is a must—among the first such government actions in the world. Specifically,
Wolves are the planet’s most widespread land-based large mammals. They used to be humans’ most direct competitors for meat. As a result, the Big Bad Wolf occupied a center stage in our psyche as
Some argue that globalization has gone too far. Others argue that globalization, despite its imperfections, makes the world better. What are the ethical dilemmas in each position? What do you think?
Critics argue that MNEs, through FDI, both exploit the poor in poor countries and take jobs away from rich countries. If you were the CEO of an MNE from a developed economy or from an emerging
The 2020 coronavirus crisis has been devastating. However, not all industries and not all firms have suffered. Some may have profited from these events. Why have some industries and some firms
As the CEO of a fast-moving firm (such as Zoom), use the strategy tripod to analyze what the leading challenges for your firm’s internationalization will be.
What are some of the darker sides associated with globalization? Why are negative attitudes toward globalization growing in some parts of the world?Since the swing of the pendulum is likely to move
Two scenarios about the future of the global economy in 2050 have emerged. Known as “continued globalization,” the first scenario is a (relatively) rosy one. Spearheaded by Goldman Sachs, whose
Why do price wars often erupt in certain industries (such as the automobile industry) but less frequently in other industries (such as the diamond industry)? What can firms do to discourage price
Compare and contrast the five forces affecting the cruise industry, fashion industry, airline industry, and automobile industry(1) on a worldwide basis (2) in your country.Which industry holds more
As a manager, is it ethical to threaten your suppliers? Your buyers?

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