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My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

Crowley Cheese Factory Semi-fictional Mini-case Problem for MGT 602 – Production & Operations
Management

Crowley Cheese has been in operation since 1824, and has been making cheese in its current location
since 1882 in Healdville, Vermont, (postal address of Mount Holly, which is in the Northeast part of the
United States). Crowley Cheese is located about “four hours from NYC and three hours from Boston”.
https://www.crowleycheese.com/ Along with the immediate vicinity in Vermont, New York City and
Boston are prime market areas for this high-quality award-winning all-natural artisan cheese. Additional
claims include that it is the “oldest continuously operating cheese factory in America”.
https://www.facebook.com/CrowleyCheeseVT

Cheeses currently produced by Crowley Cheese are hand-made American Colby styles of cheese.
Different flavorings and aging (“sharpness”) provide product variety for products produced at Crowley.
Crowley produces cheese with very little technology or automation. These cheeses are considered all-
natural with no additives or preservatives: “…the same recipe since 1827”. Because of its high quality
and all-natural production, this type of artisan cheese is in high-demand and commands higher retail
prices compared to mass-manufactured cheeses. The company website touts that their cheeses are “all
natural with no additives or preservatives” and “certified hormone free”. Currently, cheeses from
Crowley are available in nine (9) states in the northeastern United States (the “New England” states of
Connecticut, Main, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island,
and Vermont) plus remote retail locations in California, Florida, Georgia, Ohio, and Montana, where a
handful of select retailers have specific interest in carrying products from Crowley. Additionally,
Crowley sells cheese from its own website, and from a small variety of other online retailers. Additional
detailed information about retail locations and online sales are available at:
https://www.crowleycheese.com/retail.html , and https://store.crowleycheese.com/ .

Currently, all products are distributed directly from the main manufacturing facility in Healdville (Mount
Holly), Vermont, out to the various retail locations (and online retail outlets) shown on the Crowley
Cheese website. Please see the Appendix C materials for details about current weekly product demand
and distribution to these retailers.

Your consulting team has been hired to help evaluate operations at Crowley Cheese and assist
management in an investigation to optimize its current distribution efforts, expand operations and
distribution within its current sales region, and possibly expand distribution into the southeast and
midwest United States. Many of the current retailers (both online and traditional retailers) often stock-
out of the Crowley Cheese products, and so they receive inconsistent re-supply due to the high demand
for this high-quality product. Occasionally, demand orders from retailers exceed available supply at the
Crowley warehouse. During the 2020 Covid pandemic, some retail sales shifted to online retail, but this
was not a real change in overall production demand; this was a shift in distribution and retail channels
only.

Additionally, as part of your analysis and report to management at Crowley Cheese, you are expected to
map/flowchart and analyze the current production processes and discuss potential improvement

opportunities, with details following below. Another consulting team’s notes on their production
processes after visiting Crowley Cheese are included. Expectations for your written report to
management also are detailed below.

Case Notes from another analysis team

Details of the current production process:

Currently, the company operates one shift per day, six days per week. This current level of production
makes one batch of product per shift, with four employees providing direct labor. In one daily batch,
4000 pounds of milk is transformed into about 400 pounds of cheese (minus scrap, about 365 lbs
sellable), which is sold to various retailers for a total wholesale price of about $4106 per batch (approx.
$11.25 per pound, wholesale). During any one season of the year, Crowley produces their primary
product (mild Colby), and an additional five seasonal varieties (six varieties total, per season). The
seasonal varieties vary throughout the year. For six production batches per week, three batches are
dedicated to producing the primary product (mild Colby), which constitutes 50% of the demand for one
week. The remaining three batches of production are dedicated to one of the five other seasonal
products (one unique seasonal product per batch or per shift). On average, demand for the five seasonal
varieties is split evenly among the varieties available. Customers and retailers have requested a greater
variety of products throughout the year. Current annual cheese-related revenue for Crowley is
estimated at about: (48 weeks/year) * (six batches / week) * ($4106 revenue/ per batch) = $1,182,600
per year gross revenues .

The following describes the production process for a daily batch of cheese. Some cheese-making videos
exist on the internet, and could be helpful in understanding the processes. Please review this video for a
couple of the visual details related to the detailed written notes below:

If you rent or buy it from Amazon.com, the Crowley Cheese episode of Dirty Jobs with Mike Rowe is very
instructional. Season 1, Episode 12, at about 13:00 min into the episode. It is a good view of what your
other team members witnessed, when they visited Crowley Cheese. Data and analysis from their site
tour is below.

The Process:

1. At the beginning of each shift, all four workers thoroughly clean the steam-table vat, the curd sink,
and various fixtures with a chlorine solution: (requires 60 minutes). This requires all four employees.
After completion of cleaning, three of the employees attend to finishing the previous day’s batch of
cheese (see notes on the other process steps below, (e.g steps #4 and #19, 20, 21).

2. Next, the lead cheese artisan (Ken) pumps/pours about 4000 pounds of raw whole milk into the
steam-table vat from the dairy tank. Currently, Crowley receives one 4000 pound delivery per day. The
dairy tank can be unloaded in about 15 minutes to fill the steam table. One gallon of milk weighs about
8.6 lbs, so 4000 pounds of raw whole milk is approximately 465.1 gallons.

3. Ken turns-on the steam table to begin heating the milk up to 70 degrees F. This takes about 60
minutes.

4. Throughout the day, during wait times, and during product heating times (in parallel to the cheese
production process), three employees are dedicated to other tasks, such as: the cheese molds are
cleaned, prepped, and lined with cheesecloth. After the previous day’s cheese is un-molded, the “other
three employees” spend their time cleaning and prepping the reusable metal molds for the next batch
of cheese. This occurs in-parallel; these tasks occur while other processes are ongoing, such as while
waiting for the milk to warm, and etc. It takes about five minutes to clean and prep each mold, and
approximately 100 molds are prepped each day for one 400-lb batch of cheese. The cheese molds will
be packed with cheese curds toward the end of the cheese-making process. Each 2.5 lb cheese wheel
requires about one sq. foot of cheesecloth, for a total of about 250 sq. feet per batch. Other larger
molds do not use cheesecloth.

5a. When the mixture in the steam table reaches 70 degrees F, a bacterial culture (lactobacillus) is
added and raked (stirred) thoroughly into the mixture. This takes about 10 minutes to completely rake-
in the culture.

5b. It takes about 20 additional minutes after raking for the batch to reach 88 degrees F. When the
mixture reaches 88 degrees F, the steam to the steam table is shut-off.

6. After the steam table is turned-off, it takes about 15 more minutes for residual heat from the process
to slowly bring the mixture up to a final temperature of 90 degrees F.

7. When the mixture reaches 90 degrees F, 15 oz of liquid rennet (enzyme that promotes coagulation of
the proteins and fat) is added to the mixture and raked (stirred) again, thoroughly. This process
promotes solidification of the mixture, and thus the creation of curds. Adding the rennet and raking
takes about 10 minutes.

8. After raking the rennet into the mixture, the batch rests for about 40 minutes, and the mixture begins
congealing into a semi-solid, to approximately the consistency of custard or very soft tofu. A
visual/manual test verifies that the process is ready for the next step.

9. The lead cheese maker (Ken) begins separating the curds from the whey by slicing through the
mixture with the cheese knife made from a metal frame and fishing line. This takes about 10 minutes to
cut through all areas of the cheese mixture twice. The separation process is called syneresis.

10. After cutting, Ken allows the mixture to rest again, waiting 15 minutes to keep from damaging the
newly cut curds.

11. Then the steam is turned back “on”, and the lead worker (Ken) rakes the mixture continuously until
the mixture reaches 102 deg F. This takes about 45 minutes.

12. After the mixture reaches 102 degrees F, the steam table is turned off again, and the mixture is
allowed to rest again, this time for about 60 minutes, to allow the curds to toughen-up. The mixture is

raked occasionally during that hour. The curds strengthen from the consistency of a “jellyfish” to about
the strength of a “pencil eraser”.

13. After the curds are toughened, all four workers help drain away and save about ¾ of the remaining
whey (via a gravity drain), which takes about 30 minutes. Currently, this portion of the whey (about 323
gallons per batch) is stored and saved. Currently, this recovered whey is used to fertilize the pasture
land around the factory. Other uses have not yet been fully explored.

14. The curds and the remaining whey are manually transferred from the steam table into the curd
sink/table (lined with cheesecloth) with large metal scoops. This takes four employees about 20 minutes
to transfer the curds to the curd sink. This curd sink is lined with about 150 sq. feet of cheesecloth.

15. All four employees continuously stir and crumble the curds in the curd sink by hand, to keep the
curds small, and to keep them from clumping together. To keep the curds separated, continuous stirring
and de-clumping by hand is required for about 30 minutes. A quality-check occurs (several times) as the
cheese is checked for acidity. Due to the previous biochemical reactions, acidity continuous to increase
until the cheese curds are rinsed.

16. When the cheese is at the correct acidity level, spring water is used to rinse the remaining whey
from the cheese curds. This combination of rinse-water and whey also is drained and saved separately.
Usually, this waste stream also is used to fertilize the pastureland around the factory.

Including the rinse time, additional manual stirring, handling, and de-clumping of the drained curds
continues for 30 minutes. During this time, salt is added as a natural preservative and flavor enhancer.
About ¼ pound of salt is added for each 10 pounds of cheese. Other additional flavors could be added at
this point in the process as well (such as chives, garlic, etc.) to produce the various seasonal flavored
cheeses.

17. Cheese curds are weighed and packed into molds, and the molds are loaded onto the cheese steam-
press. This requires about 60 minutes of total time. For the smallest cheese wheels, it takes 3 pounds of
cheese curds to produce a final product that will weigh 2.5 pounds. For a full production batch that
started with 4000 gallons of whole milk, and produced 400 pounds of cheese, the cheese is packed into:

 88 molds for the 2.5 lb wheels of cheese, plus
 3 molds to make 40 lb blocks of cheese, plus
 1 large mold to make one large 25 lb block of cheese.

Thus, the net sellable weight averages 365 lbs. The larger blocks of cheese are cut into smaller bricks of
various sizes, then sealed and packaged for retail sales or custom sales. The average difference between
actual final production weight and the initial weight: (400 – 365) = 35 lbs of cheese become scrap. This is
due to a combination of draining the remaining whey from the cheese molds during pressing, and
occasional accidental loss of curds during the production processes.

18. The cheese press equipment is adjusted properly and set for operation. The cheese press squeezes
the remaining extra moisture (whey) out of the cheese molds. After the press is turned on, the molds
will remain under pressure overnight, or for a minimum of approximately 8 hours.

19. The cheese molds are unpacked the next morning (beginning of the next shift) by three employees,
after prep operations for the next batch are completed (after the steam-table and other equipment has
been cleaned and sanitized). While the lead employee (Ken) starts production on the new batch of
cheese for the day (process step #2 above) the other three employees unpack the cheese wheels and
blocks from the molds, and move the new cheese to the drying room, where the cheese will rest and dry
for about four days, per batch. It takes about 120 minutes to unpack the cheese from the molds and
store it in the drying room. At this point, the empty molds need to be cleaned and prepped for the
current day’s batch of cheese production (which has already begun).

20. Each batch of cheese production rests in the drying room for four days.

21. After drying for four days, small wheels (2.5 lb wheels) are sealed in a melted mixture of paraffin and
bees wax (220 degrees F), in a manual dipping process. Larger blocks of cheese are cut into smaller
pieces and bricks, to be sold at various sizes / weights. These smaller pieces and bricks are either hand-
dipped in wax or vacuum sealed and labeled. Some pieces are custom-cut and vacuum sealed for
specific customer orders. It takes about 120 minutes to seal the entire batch, including cutting, blocking,
and sealing the larger pieces. At this point, cheese labeled as “mild Colby” or similar flavored varieties
are ready for immediate sale. Some varieties require additional aging to achieve “sharp” flavor variety
status (up to 3 ½ years). Each batch of cheese uses about 10 pounds of the paraffin/bees-wax mixture.
For the purposes of this case, we will not consider the additional production processes associated with
the aging time and processes for “sharp” varieties that are sold.

Currently, Crowley ships product to retailers twice per week, on Mondays and Thursdays.

Cost of Production & Distribution Overview

Currently, weekly production consists of six batches per week, at 365 pounds of sellable cheese per
batch. This currently produces a total of 2190 pounds per week, and a total of 105,120 lbs per year.
Spread across 12 months of sales per year, this is an average of 8760 lbs of sellable product per month.
Due to the high-demand from retailers, as well as back-orders from many retailers, upper management
guesses that the current network of retailers easily could receive and sell between 1.5 times to 2 times
the current volume of production. The first decision alternative is to do nothing (status quo) and not
expand capacity.

However, upper management estimates that the current facility could accommodate a two-shift
operation if a 2nd cheese press and a 2nd set of cheese molds were purchased and installed (and if four
additional employees were hired for a 2nd shift). Modifications to the existing building plus increased
steam capacity for the boiler system would expect to cost about $250,000. An additional set of cheese
molds is estimated to cost $3,500, with an additional cheese press priced at about $18,000. Basic cost of
labor and materials per batch should not change for a two-shift operation. The two-shift operation

would expect to produce a net sellable total of 4380 pounds of product per week (two batches daily, six
days per week), with an average monthly production of 17,520 pounds per month. Current product
demand, allocation and distribution of 9,285 pounds per month is shown with retailers and their
locations in Appendix C. Currently, not all retail demand is met. Crowley must allocate production to
retailer orders as best possible when demand is greater than supply. The allocation of scarce inventory is
a challenging decision and it has not been done in a consistent manner.

As a last alternative, management at Crowley also is considering the possibility of a significant expansion
of distribution along the East Coast of the U.S., to take advantage of current retail distribution in Georgia
and Florida, with likely expansion away from the New England states and into South Carolina, North
Carolina, Maryland, Delaware, Virginia, and the District of Columbia. This level of expansion would
require a significant increase in production capacity, likely greater than simply moving to a two-shift
production schedule in Healdville (Mount Holly). The management team estimates that significant
expansion would require construction of a new manufacturing facility, at a cost of $20,000,000 including
land, equipment, and start-up costs. Although variable materials and labor costs of production would
expect to remain similar with a new facility, overhead costs would expect to increase from $500 per
batch to $750 per batch due to costs associated with servicing the additional debt from construction and
start-up of the new facility. Based on the planned design of a new facility, Crowley would be able to
produce up to five batches per day, at 500 pounds of product per batch, for a total of up to 2500 pounds
per day. At this point, the current plan would be for the existing factory in Vermont to be
decommissioned and turned into a museum. However, upper management seems open to other
suggestions if you have any.

Environmental Challenge

A number of alternatives are available for economical disposal or re-use of the by-product whey.
Currently, (as noted above) the relatively low production volume of a single batch of cheese per day
produces only about 323 gallons of recoverable whey per batch. This is currently used for fertilizing
grasslands and pasture surrounding the Crowley Cheese facilities, and thus saves Crowley from a more
expensive upgrade to its waste-water disposal process. However, larger production volumes of cheese
(either from a 2nd shift production at the current facility, or from a new facility that could produce 5
batches per day) will produce significantly more excess whey, which will require appropriate processing
and/or proper disposal. The local waste-water plant is not currently equipped to handle this additional
(and unexpected) load of waste water. Upper management is interested in potential solutions or other
uses for this high-quality whey byproduct, as part of an overall solution to their growth challenges.
Luckily, your research staff (summer intern) has provided a jump-start on this challenge with a handful
of documents that could provide a head-start on possible solutions (see Appendix A materials below).

Your Client’s Expectations and Your Scope of Work

A. Prepare a one-to-three-page stand-alone Executive Summary of the full report that could be
understood both by savvy board members and by the Crowley shop-floor employees. This could serve as
the first several pages of your full report, but it should be able to stand on its own.

B. The complete full report should address the following challenges:

1. During conversations with upper management, it became evident that much of the knowledge of the
internal production process exists only in the memory of the lead cheese maker Ken and his employees,
and thus these processes are not well-documented. This is obviously an organizational risk. For that
reason, management has requested that you produce i) a process flow diagram, ii) a process chart
highlighting key process activities, and iii) a high-level value stream map. Additionally, these diagrams
should help identify improvement opportunities for all processes (waste elimination of all types) related
to the current production and delivery processes.

2. Evaluate the economic alternatives associated with three production and distribution scenarios: 1)
status quo with one shift per day, 2) expansion of the current location to a two-shift operation, and 3)
expansion to a new facility capable of producing five batches per day.

 List and discuss the qualitative advantages and disadvantages that should be taken into
consideration among each of the three scenarios

 Determine and discuss profitability and financial concerns (costs and benefits) associated with
each scenario

 List and discuss long-term and short-term advantages and disadvantages, as well as challenges
or potential pit-falls, associated with each of the three scenarios

3. Currently, for the retailers in Vermont and in the immediately neighboring states, the costs of direct
distribution to the retailers are paid by Crowley Cheese. Flat-rate costs to these locations/retailers are
independent of distance because of their proximity to the Crowley Cheese manufacturing facility. For
these local retailers only, transportation costs are estimated at: $0.20 per pound to retail locations in
Vermont, and $0.50 per pound to retail locations in Maine, New Hampshire, Massachusetts, and New
York. Other retailers pay their own freight/shipping costs. For retailers outside of Vermont and the
neighboring states listed above, the transportation costs are proportional both to weight/load of the
distributed product and the distance to the production facility.

For meeting ever-growing demand, additional analysis is required. Crowley would like to outsource the
transportation and distribution to a 3rd-party logistics provider such as FedEx, UPS, or others. This should
be a separate analysis and decision, and not integrated with any capacity expansion decision.

 Given the current regional locations and shipping costs (immediately above), and shipping
volumes of product to various retailers in Vermont and the neighboring states: in order to not
increase current total shipping costs, what would be the maximum monthly fee that an
outsourced delivery service should charge Crowley Cheese for all deliveries to all customers in
those states? The relevant locations and order volumes (Vermont and its neighboring states) are
shown in Appendix C.

 Investigate and research: could a 3rd-party logistics provider such as FedEx or UPS be able to
provide this type of service at this price/cost, or would the expected outsourced cost exceed the
current estimated costs? Provide only a couple of “worst case” or “best case” examples that
verify or justify your decision.

 What qualitative criteria should be considered before outsourcing delivery of products to
retailers in these states (Vermont and its neighboring states)?

 If Crowley Cheese established a distribution center to service only the retailers outside of those
in Vermont and the neighboring states: ideally where should a new distribution center be
located based on the current product allocation to those retailers?

4. Suggest a strategy with tactics for expanding product sales & distribution down the East Coast of the
United States. This assumes the need for the significant manufacturing expansion (option #3) discussed
above with the construction of a new manufacturing facility.

 Research and identify likely retail outlets and locations (currently in existence) that could be
approached as possible retailers in the Crowley Cheese distribution network, in each of these
states where expansion is likely (see the previous case notes above). Review the current retailer
distribution network as a model for expansion into other potential market areas. Identify at
least 10 specific retailers in specific strategic locations (regions, cities) that you believe should
become part of the distribution network. Be careful to fit the brand with the locations.

 As a new separate page / sheet in Appendix C:
o Update the Appendix C spreadsheet to include the new distribution market locations,

and volumes. Be specific about the name and location of each retailer and probable
monthly distribution to each location (based on your knowledge of the existing Crowley
retail network). Explain any assumptions.

o Assume that the existing network of retailers (as shown in Appendix C) could receive
and sell twice their current allocation of monthly cheese production (this would be twice
the current daily production at the current facility, or 2/5 of daily maximum production
at the proposed new manufacturing facility).

o Based on your new and current existing retail locations for this planned expansion (your
updated Appendix C data), along with the proposed allocation of production to all of
those locations, what would be an ideal location for a new manufacturing facility?
(When optimizing the location, assume that the new monthly product allocations and
distance to the facility are proportional to transportation costs). Assume that all
retailers, including those in Vermont and neighboring states, would be serviced from
this new facility.

 Compared to current sales volumes, what would be increase in sales described above (new retail
locations and doubled sales at existing locations)?

o Could this increase in sales volume be handled by Crowley’s current online store? (and
why or why not?)

 Provide feedback to Crowley’s upper management about the qualitative
benefits and disadvantages of expanding physical distribution to additional
bricks-and-mortar retail, vs. additional sales via other online strategies and
options. (think a little about this product, including at least “how, why, when
and where” cheese is usually purchased by customers).

 Might there be different tactics for different Crowley product varieties?
(explain)

 Provide results of brainstorming to upper management on the appropriate mix
of bricks-and-mortar cheese sales vs online cheese sales.

o Compare and contrast the strengths and weaknesses of the Crowley online cheese store
(product variety, mix, prices, etc.) to the online retails sales presence a popular Kansas
competitor, Alma Creamery:

 https://www.facebook.com/almacreamery/
https://almacheese.com/pages/our-store

5. Design production schedules to accommodate demand from retailers and customers for more than
three flavored cheeses per season.

 As described above, approximately 50% of retailer demand is for the “mild Colby” variety, with
the remaining 50% of demand assumed to be split equally among the variety of five seasonal
flavored cheeses. The current production schedule for only five seasonal flavored cheeses looks
like this below, but some retail customers cannot get the specific flavor varieties that they
want:

Mon Tues Weds Thurs Fri Sat
Week #1 Mild Colby Flavor 1 Mild Colby Flavor 2 Mild Colby Flavor 3
Week #2 Mild Colby Flavor 4 Mild Colby Flavor 5 Mild Colby Flavor 1
Week #3 Mild Colby Flavor 2 Mild Colby Flavor 3 Mild Colby Flavor 4
Week #4 Mild Colby Flavor 5 Mild Colby Flavor 1 Mild Colby Flavor 2

 Crowley Cheese would like to be able to offer a greater variety of its seasonal flavored cheeses

at any time.
o For the current one-shift schedule (one batch per day), use lean systems concepts,

(including but not limited to Heijunka and mixed-model assembly), to develop a rotating
monthly (four week) production schedule for seven seasonal flavored cheeses.

o How many weeks of production need to be planned, to have a production schedule that
produces equal amounts of each of seven seasonal flavors?

 For a two-shift (two batches per day) schedule, use lean systems concepts to develop a rotating
monthly (four week) production schedule for seven seasonal flavored cheeses.

 For a five-batch per day schedule (potentially at a new manufacturing facility), use lean systems
concepts to develop a rotating weekly (four-week) production schedule for seven seasonal
flavored cheeses.

 For any proposed production schedule, assume that the objective is to minimize excess
inventory and balance supply with demand as best possible.

6. With respect to the expected environmental challenge of how to dispose-of or better utilize the whey
produced at a new manufacturing facility: propose a solution that achieves the best overall benefit for
Crowley Cheese, considering a triple-bottom-line approach. Be specific with either an estimated cost of
disposal or possible revenue from other possible solutions (possible revenue generation). List and
describe estimated non-monetary qualitative benefits and costs of your proposal as well.

7. Summary and conclusions:

 This section should include a summary of all important recommendations with justification.
 It also should include suggestions for further work that your consulting group could perform for

this client (to generate additional revenue for your consulting firm).

Important Notes:

Note #1: As noted previously, each 4000 lb batch of milk yields about 365 lbs of cheese (and 35 lbs of
cheese scrap), leaving 3600 lbs of liquid whey, of which ¾ (or 2700 lbs) of the whey is recovered in step
#13 in the cheese-making process described above. Whey has nearly the same density as water, which is
about 8.35 lbs per gallon, so about 323 gallons of whey is recovered from each 4000 lb batch of milk.
The remaining ¼ whey is rinsed away from the curds and is considered lost during step #16 of the
process. In current production, and in annual terms of one batch per shift (one shift per day), and six
shifts per week, for 48 weeks per year: 323 gallons per batch * six batches per week * 48 work-weeks
per year = 93,024 gallons of whey recovered per year, currently. Your calculations will have to be
modified if the plant expands to two shifts, or if Crowley constructs a new facility that has greater
capacity (five batches per day).

Note #2: Whey consists of about 93.5% water and about 6.5% solids (roughly 4.9% lactose and the
remaining 1.6% proteins and mineral salts). Whey can be converted into other products, such as
livestock feed, food supplements, and ethanol (ethanol only when economies of scale allow for mass
production of ethanol). Whey solids (whey that is concentrated and then dehydrated into a solid after
drying/evaporation) can be sold for about $0.40 per pound. Crowley currently does not own equipment
for whey concentration and dehydration. However, management is interested in logical proposals.

Note #3: Each batch of sellable cheese (about 365 pounds) sells for about $4106. Each ounce of rennet is
available commercially for about $2.00 per ounce. Whole milk costs are about $20 per 100 pounds.
Employee direct labor costs (including benefits) are about $19/hour. Cheese-salt costs are about $1.50
per pound. Lactobacillus bacterial colony can be kept, nurtured, maintained and stored by the cheese
maker at basically no recurring costs. Wax/paraffin mix costs are about $0.75 per pound. Cheesecloth
costs about $0.20 pe

My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

Checklist – Fall 2021 – Crowley Cheese mini-case

Deliverables – Checklist – Crowley Cheese mini-case COMMENTS Points Points
Possible

A. Executive Summary
B. Complete Full Report
1. Process Analysis requested by client
i) Process flow diagram
ii) process chart
iii) value stream map
iv) Identification of improvement opportunities (waste
elimination)

2. Economic analysis: qualitative factors, profitability &
financial concerns, and long-term vs. short-term
advantages, challenges for each of the three scenarios

i) status quo with one shift
ii) expansion to two shifts at current location
iii) expansion to a new facility, five shifts per day

3. Distribution cost analysis in Vermont and adjoining
states

i) What is the max that an outsourced delivery service
should charge for all of these deliveries?

ii) investigate 3rd party logistics providers and potential
costs

iii) what qualitative criteria should be considered if
outsourcing logistics?

iv) If a new distribution center would distribute outside of
Vermont and surrounding states, where should it be
located?

4. Expansion with respect to option c: new facility and five
shifts production

i) research likely outlets for new retailers, with specific
locations: at least 10 specific retailers

ii) update forecast and location spreadsheet with new
retailers, and update demand forecast if current retailers
could sell twice their current demand, [estimate demand
for each of the new retailers]

iii) ideal location of a new manufacturing facility given the
locations and demands from all of the new and old retail
locations

5. Production schedules
i) for the current one-shift schedule
ii) for a two-shift schedule at current facility
iii) for a five batch per day schedule at new facility

6. Whey-related environmental cost/benefit challenge
i) “propose a solution that achieves the best overall
benefit… considering a triple-bottom-line approach”

ii) specifics of tangible costs and benefits
iii) specifics of qualitative (non-monetary) costs and
benefits

7. Summary and conclusions
i) summary of important recommendations and
conclusions

ii) suggestions for further work to help this client

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My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

Operations Management
Processes and Supply Chains
THIRTEENTH EDITION

Lee J. Krajewski • Manoj K. Malhotra

GLOBAL
EDITION

Operations
Management
PROCESSES AND SUPPLY CHAINS

Thirteenth Edition

Global Edition

LEE J. KRAJEWSKI
Professor Emeritus at

The Ohio State University
and the University of Notre Dame

MANOJ K. MALHOTRA
Case Western Reserve University

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Dedicated with love to our families.

Judie Krajewski
Christine and Gary; Gabrielle

Selena and Jeff; Alex
Lori and Dan; Aubrey, Madeline, Amelia, and Marianna

Carrie and Jon; Jordanne, Alaina, and Bradley
Virginia and Jerry
Virginia and Larry

Maya Malhotra
Jayne and Vivek

Pooja
Neha

Santosh and Ramesh Malhotra
Indra and Prem Malhotra; Neeti, Neil, Niam, and Nivin Ardeshna;

Deeksha Malhotra and Maniesh Joshi
Sadhana Malhotra

Leela and Mukund Dabholkar
Aruna and Harsha Dabholkar; Aditee

Mangala and Pradeep Gandhi; Priya and Medha

A01_KRAJ9863_13_GE_FM.indd 3 18/05/21 6:27 PM

4

Brief Contents
1 USING OPERATIONS TO CREATE VALUE 21
SUPPLEMENT A DECISION MAKING 55

PART 1 Managing Processes 73

2 PROCESS STRATEGY AND ANALYSIS 73
3 QUALITY AND PERFORMANCE 123
4 LEAN SYSTEMS 163
5 CAPACITY PLANNING 197
SUPPLEMENT B WAITING LINES 221
6 CONSTRAINT MANAGEMENT 239
7 PROJECT MANAGEMENT 273

PART 2 Managing Customer Demand 313

8 FORECASTING 313
9 INVENTORY MANAGEMENT 357
SUPPLEMENT C SPECIAL INVENTORY MODELS 401
10 OPERATIONS PLANNING AND SCHEDULING 415
SUPPLEMENT D LINEAR PROGRAMMING 451
11 RESOURCE PLANNING 479

PART 3 Managing Supply Chains 529

12 SUPPLY CHAIN DESIGN 529
13 SUPPLY CHAIN LOGISTICS NETWORKS 557
14 SUPPLY CHAIN INTEGRATION 589
15 SUPPLY CHAIN SUSTAINABILITY 629

Appendix NORMAL DISTRIBUTION 653

Selected References 654

Glossary 661

Name Index 671

Subject Index 675

ONLINE SUPPLEMENTS

SUPPLEMENT E SIMULATION E-1

SUPPLEMENT F FINANCIAL ANALYSIS F-1

SUPPLEMENT G ACCEPTANCE SAMPLING PLANS G-1

SUPPLEMENT H MEASURING OUTPUT RATES H-1

SUPPLEMENT I LEARNING CURVE ANALYSIS I-1

SUPPLEMENT J OPERATIONS SCHEDULING J-1

SUPPLEMENT K LAYOUT K-1

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5

Decision Trees 63
Learning Objectives in Review 65 Key Equations 66
Key Terms 66 Solved Problems 66 Problems 68

PART 1 Managing Processes 73

2 PROCESS STRATEGY
AND ANALYSIS 73

CVS Pharmacy 73

Process Structure in Services 77
Customer-Contact Matrix 77
Service Process Structuring 78

Process Structure in Manufacturing 78
Product-Process Matrix 78
Manufacturing Process Structuring 79
Production and Inventory Strategies 80
Layout 81

Process Strategy Decisions 81
Customer Involvement 81
Resource Flexibility 82
Capital Intensity 83

Strategic Fit 84
Decision Patterns for Service Processes 85
Decision Patterns for Manufacturing

Processes 85
Gaining Focus 86
Managerial Practice 2.1 Plants-Within-a-Plant at Ford

Camacari 86

Strategies for Change 87
Process Reengineering 88
Process Improvement 88
Managerial Challenge Marketing 88
Process Analysis 89

Defining, Measuring, and Analyzing the Process 90
Flowcharts 91
Work Measurement Techniques 92
Process Charts 95
Data Analysis Tools 96

Redesigning and Managing Process
Improvements 101

Questioning and Brainstorming 101
Benchmarking 102
Implementing 102

Learning Objectives in Review 104 Key Terms 105
Solved Problems 105 Discussion Questions 108
Problems 109 Active Model Exercise 116

Case Custom Molds, Inc. 117
Case José’s Authentic Mexican Restaurant 119
Video Case Process Strategy and Analysis at Cleveland

Clinic 120

Contents
Preface 11

1 USING OPERATIONS
TO CREATE VALUE 21

Apple Inc. 21

Role of Operations in an Organization 23
Historical Evolution and Perspectives 24

A Process View 24
How Processes Work 25
Nested Processes 25
Service and Manufacturing Processes 25

A Supply Chain View 27
Core Processes 27
Support Processes 27
Supply Chain Processes 28

Operations Strategy 28
Corporate Strategy 29
Market Analysis 31

Competitive Priorities and Capabilities 32
Managerial Practice 1.1 Zara 33
Order Winners and Qualifiers 34
Using Competitive Priorities: An Airline Example 35
Identifying Gaps Between Competitive Priorities and

Capabilities 35

Trends and Challenges in Operations Management 37
Productivity Improvement 37
Global Competition 38
Ethical, Workforce Diversity, and Environmental

Issues 40

Fourth Industrial Revolution (Industry 4.0) 41
The Internet of Things 42
Additive Manufacturing 44

Developing Skills for Your Career 46
Adding Value with Process Innovation 47

Learning Objectives in Review 48 Key Equations 49
Key Terms 49 Solved Problems 49 Discussion Questions 50
Problems 51

Case Chad’s Creative Concepts 53
Video Case Using Operations to Create Value at Crayola 54

SUPPLEMENT A Decision Making 55
Break-Even Analysis 55

Evaluating Services or Products 56
Evaluating Processes 58

Preference Matrix 59
Decision Theory 60

Decision Making Under Certainty 61
Decision Making Under Uncertainty 61
Decision Making Under Risk 63

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6 CONTENTS

Value Stream Mapping 180
Current State Map 180
Future State Map 184

Operational Benefits and Implementation Issues 186
Organizational Considerations 186
Process Considerations 186
Inventory and Scheduling 187

Learning Objectives in Review 187 Key Equations 188
Key Terms 188 Solved Problems 188 Discussion Questions 191
Problems 191

Case Copper Kettle Catering 194
Video Case Lean Systems at Autoliv 195

5 CAPACITY PLANNING 197
3M 197

Planning Long-Term Capacity 199
Measures of Capacity and Utilization 200
Economies of Scale 200
Diseconomies of Scale 201

Capacity Timing and Sizing Strategies 201
Sizing Capacity Cushions 201
Timing and Sizing Expansion 202
Linking Capacity and Other Decisions 203
Managerial Challenge Operations 204

A Systematic Approach to Long-Term Capacity
Decisions 204

Step 1: Estimate Capacity Requirements 204
Step 2: Identify Gaps 206
Step 3: Develop Alternatives 206
Step 4: Evaluate the Alternatives 207

Tools for Capacity Planning 208
Managerial Practice 5.1 Capacity Planning at

PacifiCorp 208
Waiting-Line Models 209
Simulation 209
Decision Trees 210

Learning Objectives in Review 210 Key Equations 211
Key Terms 211 Solved Problems 211 Discussion Questions 213
Problems 213
Case Fitness Plus, Part A 219
Video Case Gate Turnaround at Southwest Airlines 219

SUPPLEMENT B Waiting Lines 221
Structure of Waiting-Line Problems 222

Customer Population 222
The Service System 223
Priority Rule 224
Probability Distributions 225
Arrival Distribution 225
Service Time Distribution 225

Using Waiting-Line Models to Analyze Operations 226
Single-Server Model 227
Multiple-Server Model 229
Little’s Law 230
Finite-Source Model 231

Waiting Lines and Simulation 232
SimQuick 232

3 QUALITY AND
PERFORMANCE 123

Lego 123

Costs of Quality 125
Prevention Costs 125
Appraisal Costs 126
Internal Failure Costs 126
External Failure Costs 126
Ethical Failure Costs 126

Total Quality Management and Six Sigma 127
Total Quality Management 127
Managerial Practice 3.1 Improving Quality Through

Employee Involvement at Santa Cruz Guitar Company 129
Six Sigma 130

Acceptance Sampling 131
Managerial Challenge Accounting 132

Statistical Process Control 132
Variation of Outputs 133
Control Charts 135
Control Charts for Variables 136
Control Charts for Attributes 140

Process Capability 143
Defining Process Capability 143
Using Continuous Improvement to Determine the

Capability of a Process 145

International Quality Documentation Standards and
Awards 146

The ISO 9001:2015 Documentation Standards 146
Malcolm Baldrige Performance Excellence Program 146

Systems Approach to Total Quality Management 147

Learning Objectives in Review 147 Key Equations 148
Key Terms 149 Solved Problems 149 Discussion Questions 152
Problems 152 Active Model Exercise 160
Experiential Learning 3.1 Statistical Process Control with a

Coin Catapult 160
Video Case Quality at Axon 162

4 LEAN SYSTEMS 163
Nike, Inc. 163

Continuous Improvement Using a Lean Systems
Approach 166

Managerial Challenge Finance 166

Strategic Characteristics of Lean Systems 168
Supply Chain Considerations in Lean Systems 168
Process Considerations in Lean Systems 169
Managerial Practice 4.1 Alcoa 171
Toyota Production System 174

Designing Lean System Layouts 175
One Worker, Multiple Machines 176
Group Technology 176

The Kanban System 177
General Operating Rules 178
Determining the Number of Containers 178
Other Kanban Signals 180

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CONTENTS 7

Learning Objectives in Review 296 Key Equations 297
Key Terms 298 Solved Problems 298 Discussion Questions 302
Problems 302 Active Model Exercise 310

Case The Pert Mustang 310
Video Case Project Management at Choice Hotels

International 312

PART 2 Managing Customer Demand 313

8 FORECASTING 313
Starbucks 313

Managing Demand 315
Demand Patterns 315
Demand Management Options 316

Key Decisions on Making Forecasts 318
Deciding What to Forecast 318
Choosing the Type of Forecasting Technique 318
Managerial Challenge Information Technology 319

Forecast Error 319
Cumulative Sum of Forecast Errors 319
Dispersion of Forecast Errors 320
Mean Absolute Percent Error 321
Computer Support 322

Judgment Methods 322
Causal Methods: Linear Regression 323
Time-Series Methods 325

Naïve Forecast 325
Horizontal Patterns: Estimating the Average 325
Trend Patterns: Using Regression 328
Seasonal Patterns: Using Seasonal Factors 330
Criteria for Selecting Time-Series Methods 332

Big Data and the Forecasting Process 333
Big Data 334
Managerial Practice 8.1 Big Data and Health Care

Forecasting 335
A Typical Forecasting Process 336

Learning Objectives in Review 338 Key Equations 339
Key Terms 340 Solved Problems 340 Discussion Questions 344
Problems 345
Experiential Learning 8.1 Forecasting a Vital Energy

Statistic 353
Case Yankee Fork and Hoe Company 354
Video Case Forecasting and Supply Chain Management at

Deckers Outdoor Corporation 355

9 INVENTORY MANAGEMENT 357
Ford’s Smart Inventory Management System (SIMS) 357

Inventory Trade-Offs 359
Pressures for Small Inventories 360
Pressures for Large Inventories 360
Managerial Challenge Finance 361

Types of Inventory 362
Accounting Inventories 362
Operational Inventories 363

Inventory Reduction Tactics 365
Cycle Inventory 365

Decision Areas for Management 233

Learning Objectives in Review 234 Key Equations 234
Key Terms 235 Solved Problem 235 Problems 236

6 CONSTRAINT MANAGEMENT 239
Microsoft Corporation 239

Managerial Challenge Marketing 241

The Theory of Constraints 242
Key Principles of the TOC 243

Managing Bottlenecks in Service Processes 244
Managing Bottlenecks in Manufacturing Processes 245

Identifying Bottlenecks 246
Relieving Bottlenecks 247
Managerial Practice 6.1 Theory of Constraints (TOC) and

Drum-Buffer-Rope (DBR) at Steelo Limited 248

Applying the Theory of Constraints to Product Mix
Decisions 249
Managing Constraints in Line Processes 251

Line Balancing 251
Rebalancing the Assembly Line 255
Managerial Considerations 256

Learning Objectives in Review 256 Key Equations 257
Key Terms 257 Solved Problems 257 Discussion Questions 259
Problems 259
Experiential Learning 6.1 Min-Yo Garment Company 266
Video Case Managing Constraints for Caregivers and Patients

at Cleveland Clinic During COVID-19 270

7 PROJECT MANAGEMENT 273
Burj Khalifa 273

Defining and Organizing Projects 276
Defining the Scope and Objectives of a Project 276
Selecting the Project Manager and Team 277
Recognizing Organizational Structure 277
Managerial Challenge Marketing 278

Constructing Project Networks 278
Defining the Work Breakdown Structure 278
Diagramming the Network 280
Managerial Practice 7.1 Cleveland Clinic 282

Developing the Project Schedule 283
Critical Path 283
Project Schedule 283
Activity Slack 286

Analyzing Cost–Time Trade-Offs 286
Cost to Crash 287
Minimizing Costs 287

Assessing and Analyzing Risks 290
Risk-Management Plans 290
Statistical Analysis 291
Analyzing Probabilities 292
Near-Critical Paths 293
Risk Caused by Changing Requirements: Scrum 294

Monitoring and Controlling Projects 295
Monitoring Project Status 295
Monitoring Project Resources 295
Controlling Projects 296

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8 CONTENTS

Safety Stock Inventory 365
Anticipation Inventory 365
Pipeline Inventory 365

ABC Analysis 366
Economic Order Quantity 367

Calculating the EOQ 368
Managerial Insights from the EOQ 370

Continuous Review System 371
Selecting the Reorder Point When Demand and Lead

Time Are Constant 371
Selecting the Reorder Point When Demand Is

Variable and Lead Time Is Constant 372
Selecting the Reorder Point When Both Demand and

Lead Time Are Variable 376
Systems Based on the Q System 377
Calculating Total Q System Costs 377
Advantages of the Q System 378

Periodic Review System 378
Selecting the Time Between Reviews 379
Selecting the Target Inventory Level When Demand

Is Variable and Lead Time Is Constant 380
Selecting the Target Inventory Level When Demand

and Lead Time Are Variable 381
Calculating Total P System Costs 381
Advantages of the P System 381
Systems Based on the P System 382
Managerial Practice 9.1 Inventory Management at

IKEA 382

Learning Objectives in Review 383 Key Equations 384
Key Terms 385 Solved Problems 386 Discussion Questions 390
Problems 391 Active Model Exercise 396
Experiential Learning 9.1 Swift Electronic Supply, Inc. 397
Case Parts Emporium 398
Video Case Inventory Management at Crayola 400

SUPPLEMENT C Special Inventory Models 401
Noninstantaneous Replenishment 401
Quantity Discounts 404
One-Period Decisions 406

Learning Objectives in Review 409 Key Equations 409
Key Term 409 Solved Problems 410 Problems 412

10 OPERATIONS PLANNING AND
SCHEDULING 415

Cooper Tire and Rubber Company 415

Levels in Operations Planning and Scheduling 418
Level 1: Sales and Operations Planning 418
Level 2: Resource Planning 420
Level 3: Scheduling 420

S&OP Supply Options 421
Managerial Challenge Human Resources 422

S&OP Strategies 422
Chase Strategy 422
Level Strategy 422
Constraints and Costs 423
Sales and Operations Planning as a Process 423

Spreadsheets for Sales and Operations Planning 425
Spreadsheets for a Manufacturer 425
Spreadsheets for a Service Provider 426

Workforce and Workstation Scheduling 429
Workforce Scheduling 429

Managerial Practice 10.1 Scheduling Major League
Baseball Umpires 430

Job and Facility Scheduling 433
Sequencing Jobs at a Workstation 434
Software Support 436

Learning Objectives in Review 437 Key Terms 437
Solved Problems 438 Discussion Questions 441
Problems 441 Active Model Exercise 448

Case Memorial Hospital 448
Video Case Sales and Operations Planning at Starwood 450

SUPPLEMENT D Linear Programming 451
Characteristics of Linear Programming Models 451
Formulating a Linear Programming Model 452
Graphic Analysis 454

Plot the Constraints 454
Identify the Feasible Region 456
Plot the Objective Function Line 457
Find the Visual Solution 458
Find the Algebraic Solution 459
Slack and Surplus Variables 460
Sensitivity Analysis 460

Computer Analysis 461
Simplex Method 461
Computer Output 461

The Transportation Method 464
Transportation Method for Sales and Operations

Planning 464

Learning Objectives in Review 468 Key Terms 468
Solved Problems 468 Discussion Questions 471
Problems 471

11 RESOURCE PLANNING 479
Philips 479

Material Requirements Planning 481
Dependent Demand 481
Managerial Challenge Operations 483

Master Production Scheduling 483
Developing a Master Production Schedule 484
Available-to-Promise Quantities 486
Freezing the MPS 487
Reconciling the MPS with Sales and Operations

Plans 487

MRP Explosion 487
Bill of Materials 487
Inventory Record 489
Planning Factors 491
Outputs from MRP 494
MRP and the Environment 497
MRP, Core Processes, and Supply Chain

Linkages 498

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CONTENTS 9

Enterprise Resource Planning 499
How ERP Systems Are Designed 499
Managerial Practice 11.1 ERP Implementation at Valle

del Lili Foundation 500

Resource Planning for Service Providers 501
Dependent Demand for Services 501
Bill of Resources 502

Learning Objectives in Review 505 Key Terms 506
Solved Problems 506 Discussion Questions 511
Problems 512 Active Model Exercise 523

Case Wolverine, Inc. 524
Video Case Resource Planning at Cleveland Clinic 527

PART 3 Managing Supply Chains 529

12 SUPPLY CHAIN DESIGN 529
Amazon.com 529

Creating an Effective Supply Chain 531
Managerial Challenge Operations 533

Measuring Supply Chain Performance 534
Inventory Measures 534
Financial Measures 536

Strategic Options for Supply Chain Design 537
Efficient Supply Chains 537
Responsive Supply Chains 538
Designs for Efficient and Responsive Supply

Chains 539
Autonomous Supply Chains 540

Mass Customization 541
Competitive Advantages 542
Supply Chain Design for Mass Customization 542

Outsourcing Processes 543
Managerial Practice 12.1 Outsourcing in the Food

Delivery Business 543
Outsourcing and Globalization 544
Vertical Integration 545
Make-or-Buy Decisions 546

Learning Objectives in Review 547 Key Equations 547
Key Terms 548 Solved Problem 548 Discussion Questions 549
Problems 549
Experiential Learning 12.1 Sonic Distributors 552
Case Brunswick Distribution, Inc. 553
Video Case Supply Chain Design at Crayola 555

13 SUPPLY CHAIN LOGISTICS
NETWORKS 557

Airbus SAS 557

Factors Affecting Location Decisions 560
Dominant Factors in Manufacturing 560
Dominant Factors in Services 562
Managerial Challenge Human Resources 563

Load–Distance Method 563
Distance Measures 564
Calculating a Load–Distance Score 564
Center of Gravity 565

Break-Even Analysis 567
Transportation Method 569

Setting Up the Initial Tableau 569
Dummy Plants or Warehouses 569
Finding a Solution 570

Geographical Information Systems 571
Using a GIS 571
Managerial Practice 13.1 Fast-Food Site Selection

Using GIS 572
The GIS Method for Locating Multiple

Facilities 573

Warehouse Strategy in Logistics Networks 573
Inventory Placement 573
Autonomous Warehouse Operations 574

A Systematic Location Selection Process 575

Learning Objectives in Review 576 Key Equations 577
Key Terms 577 Solved Problems 577 Discussion Questions 580
Problems 580 Active Model Exercise 586

Case R.U. Reddie for Location 586
Video Case Continental Tire: Pursuing a Winning Plant

Decision 588

14 SUPPLY CHAIN INTEGRATION 589
Oasis of the Seas 589

Supply Chain Disruptions 592
Causes of Supply Chain Disruptions 592
Supply Chain Dynamics 593
Integrated Supply Chains 594
Managerial Challenge Information Technology 595

Supply Chain Risk Management 596
Operational Risks 596
Managerial Practice 14.1 Coronavirus and the Supply

Chain: Where Is the Toilet Paper? 597
Financial Risks 597
Security Risks 598

Cloud Computing and Blockchains 600
Cloud Computing 600
Blockchains 601

New Service or Product Development Process 604
Design 604
Analysis 605
Development 605
Full Launch 605

Supplier Relationship Process 606
Sourcing 606
Design Collaboration 609
Negotiation 609
Buying 611
Vendor-Managed Inventories 611
Key Performance Measures for the Supplier

Relationship Process 612

Order Fulfillment Process 612
Customer Demand Planning 612
Supply Planning 612
Production 612
Logistics 613
Key Performance Measures for the Order

Fulfillment Process 615

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10 CONTENTS

Customer Relationship Process 615
Marketing 615
Order Placement 616
Customer Service 616
Key Performance Measures for the Customer

Relationship Process 617

Learning Objectives in Review 617 Key Equations 618
Key Terms 618 Solved Problems 618 Discussion Questions 620
Problems 620

Case Wolf Motors 625
Video Case Integrating the Supply Chain at Cleveland Clinic 626

15 SUPPLY CHAIN
SUSTAINABILITY 629

Coca-Cola 629

The Three Elements of Supply Chain
Sustainability 631
Reverse Logistics 633

Supply Chain Design for Reverse Logistics 633
Managerial Challenge Operations and Logistics 635

Energy Efficiency 635
Transportation Distance 635
Freight Density 638
Transportation Mode 640

Disaster Relief Supply Chains 641
Organizing for Disaster Relief 641
Managing Disaster Relief Operations 642
Managerial Practice 15.1 Using Drones in Disaster

Relief 643

Supply Chain Ethics 644
Buyer–Supplier Relationships 644
Facility Location 645
Inventory Management 646

Managing Sustainable Supply Chains 646

Learning Objectives in Review 647 Key Equation 647
Key Terms 647 Solved Problems 648 Discussion Questions 649
Problems 649
Video Case Supply Chain Sustainability at Clif Bar &

Company 651

Appendix NORMAL DISTRIBUTION 653

Selected References 654

Glossary 661

Name Index 671

Subject Index 675

Online Supplements
Supplement E SIMULATION E-1

Supplement F FINANCIAL ANALYSIS F-1

Supplement G ACCEPTANCE SAMPLING
PLANS G-1

Supplement H MEASURING OUTPUT RATES H-1

Supplement I LEARNING CURVE ANALYSIS I-1

Supplement J OPERATIONS SCHEDULING J-1

Supplement K LAYOUT K-1

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11

It does not take a genius to know that the world, in particular the business world, is changing.
Although the Twelfth Edition was successful at bringing current practice in operations manage-
ment, in an easy-to-understand format, to a broad brush of business students, it became clear
that much has happened since it was published. We began the Thirteenth Edition by obtaining
feedback from instructors, reviewers, practicing managers, and students and diligently wove these
inputs into the fabric of each chapter. However, before we could actually start the revision, the
COVID-19 coronavirus pandemic struck the world. While it brought economic ruin to hundreds
of millions of people worldwide, and death to many across the globe, it afforded an extraordinary
opportunity to demonstrate how business operations can respond when an unexpected disaster
presents itself. In the Thirteenth Edition you will see many examples of the effects of the corona-
virus on business operations and how they were handled. We offer one final thought: If you are a
business major taking operations management as a required course but you are not an operations
major, we have made a special effort to show you how the principles of operations management
will be useful to you regardless of your chosen career path.

New to This Edition
Video Cases—Cleveland Clinic In addition to the existing
selection of real-world video cases throughout the text,
this edition features the world-renowned Cleveland Clinic,
headquartered in Cleveland, Ohio. Cleveland Clinic is a
global-leading U.S.-based hospital group whose expertise
is in specialized medical care. In addition to its 165-acre
campus near downtown Cleveland, it has 11 regional
hospitals throughout Northeast Ohio; 5 hospitals in Florida;
a hospital in Abu Dhabi, UAE; and facilities in Las Vegas,
Nevada, and Toronto, Canada. We have added four videos
and cases that demonstrate the outstanding level of operations
at Cleveland Clinic and how the coronavirus pandemic has
affected them. You will first learn how Cleveland Clinic has
addressed process-design challenges in Chapter 2, “Process
Strategy and Analysis,” to set the stage. Then, in subsequent
chapters, you will see managerial responses to operations issues related to managing constraints in
Chapter 6, “Constraint Management,” planning for resources in Chapter 11, “Resource Planning,”
and the coordination of supply chain activities and information flows throughout the organization
in Chapter 14, “Supply Chain Integration.” It’s the first time we have woven a single organizational
focus into the text. After reading the cases and watching the videos, we hope you will agree that
such an emphasis provides the opportunity to really appreciate how broad the brush of operations
management reaches in supporting the success of world-class organizations.

Chapter Opening Vignettes Each chapter opens with a real-world example
of a company addressing the topic of that chapter. In this edition, we have
introduced seven new vignettes highlighting the operations at Apple, Lego,
Nike, 3M, Starbucks, Oasis of the Seas, and Coca-Cola, Inc.

New Technologies In the Thirteenth Edition, we have taken care to
include the latest technologies being used to improve business operations.
Here are some of those technologies you can look forward to:

▪▪ Fourth Industrial Revolution (Industry 4.0). Chapter 1, “Using Operations
to Create Value,” describes Industry 4.0, which is the ongoing automation
of traditional manufacturing and industrial practices using modern smart
technology. The discussion categorizes the Industry 4.0 technologies into
four groups: Smart Manufacturing, Smart Products, Smart Supply, and
Base Technologies.

▪▪ Autonomous Supply Chains. Chapter 12, “Supply Chain Design,” dis-
cusses the concept of autonomous supply chains, which is a digital transformation in which
the latest in digital technology is used to facilitate and automate decision making up and
down the supply chain and thereby transform the way supply chains operate.

Preface

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12 PREFACE

Detailed Chapter-by-Chapter Changes
We have meticulously revised the text to enhance its readability and update all the references and
business examples. Here are the major changes in each chapter.

Chapter 1: Using Operations to Create Value We added a new opening vignette featuring Apple that
explains how its superior operations and supply chain capabilities are the reasons for its success.
The 10 decision areas of operations management that Apple uses to maximize its operational
efficiency and build strategic capabilities provide a nice entrée to the remainder of the text. We
added a new section titled “Fourth Industrial Revolution (Industry 4.0),” which defines the four
distinct categories of modern technologies: Smart Manufacturing, Smart Products, Smart Supply,
and Base Technologies. We also put the Internet of Things (IoT) and additive manufacturing
under this umbrella to make a succinct, but comprehensive, overview of modern technologies
for improved operations. A new learning objective was added to cover this important material.

PART 1: Managing Processes The first part of the text lays the foundation for why a process view
is critical for utilizing operations management as a strategic weapon by showing how to design
and manage the internal processes in a firm, regardless of the functional area.

Chapter 2: Process Strategy and Analysis In addition to updating the opening vignette on CVS
and the Managerial Practice on Ford Camacari, we added a Managerial Challenge focusing on
the vice president of marketing and sales for Templeton’s Packaging Products Division, who
must figure out why machine repai

My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

BBA WRITTEN DOCUMENT ASSESSMENT RUBRIC

CONTENT/RESEARCH

Does Not

Meet

Expectations

0 – 6

Meets

Expectations

7 – 8

Exceeds

Expectations

9 – 10

Breadth/Scope

Student uses multiple and diverse sources. (n/a for this report)

Quality

Student uses legitimate/relevant sources and tools, as appropriate. � 0 � 1 � 2
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Builds an adequate argument for recommendations (evidence of

inductive thinking)

� 0 � 1 � 2

Student appropriately targets level and needs of audience / client. � 0 � 1 � 2
ORGANIZATION

Introduction

Introduces topic and objectives of the report / document. � 0 � 1 � 2
Addresses/explains significance of topic. � 0 � 1 � 2

Body/Content

Relevance – inclusion of key information/data. � 0 � 1 � 2
Correctness – adequate presentation of current and correct

information/data. Data used addresses client’s needs.

� 0 � 1 � 2

Appropriate use of graphical information/data (e.g., charts, diagrams). � 0 � 1 � 2
Succinct but thorough presentation of information. � 0 � 1 � 2

Synthesis

Develops appropriate theme / approach to the solution. � 0 � 1 � 2
Demonstrates appropriate/logical sequences of ideas/facts/data. � 0 � 1 � 2
Clarity of ideas/argument; succinct and accurate. � 0 � 1 � 2

Conclusion

Summarizes key points/facts/data. � 0 � 1 � 2
Derives logical conclusions based on information/data gathered

(evidence of deductive thinking).

� 0 � 1 � 2

PRESENTATION

Format

Has effective structure/layout (e.g., headings, headers and footers, page

numbers).

� 0 � 1 � 2

Uses appropriate fonts and font sizes… readable, clear, etc. � 0 � 1 � 2
Has uniform and appropriate spacing. � 0 � 1 � 2
Has expected components (e.g., title page, References, Executive

Summary).

� 0 � 1 � 2

Complies with assignment requirements (client’s questions). � 0 � 1 � 2
Language

Is free from grammatical errors. � 0 � 1 � 2
Is free from punctuation errors. � 0 � 1 � 2
Is free from colloquialisms/slang. � 0 � 1 � 2
Displays appropriate word choice. � 0 � 1 � 2
Has appropriate sentence structure. � 0 � 1 � 2
Is inclusive (appropriate gender-neutral approach). � 0 � 1 � 2
Appropriate use of business terminology � 0 � 1 � 2

Objective

Document achieves its objective (e.g., exposition, description,

persuasion, narrative, analysis, synthesis).

� 0 � 1 � 2

OVERALL ASSESSMENT

Overall assessment of the written document � 0 � 1 � 2

My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

BBA WRITTEN DOCUMENT ASSESSMENT RUBRIC

CONTENT/RESEARCH

Does Not

Meet

Expectations

0 – 6

Meets

Expectations

7 – 8

Exceeds

Expectations

9 – 10

Breadth/Scope

Student uses multiple and diverse sources. (n/a for this report)

Quality

Student uses legitimate/relevant sources and tools, as appropriate. � 0 � 1 � 2
Documentation

If used, sources cited correctly with accepted format(s) � 0 � 1 � 2
ANALYSIS

Builds an adequate argument for recommendations (evidence of

inductive thinking)

� 0 � 1 � 2

Student appropriately targets level and needs of audience / client. � 0 � 1 � 2
ORGANIZATION

Introduction

Introduces topic and objectives of the report / document. � 0 � 1 � 2
Addresses/explains significance of topic. � 0 � 1 � 2

Body/Content

Relevance – inclusion of key information/data. � 0 � 1 � 2
Correctness – adequate presentation of current and correct

information/data. Data used addresses client’s needs.

� 0 � 1 � 2

Appropriate use of graphical information/data (e.g., charts, diagrams). � 0 � 1 � 2
Succinct but thorough presentation of information. � 0 � 1 � 2

Synthesis

Develops appropriate theme / approach to the solution. � 0 � 1 � 2
Demonstrates appropriate/logical sequences of ideas/facts/data. � 0 � 1 � 2
Clarity of ideas/argument; succinct and accurate. � 0 � 1 � 2

Conclusion

Summarizes key points/facts/data. � 0 � 1 � 2
Derives logical conclusions based on information/data gathered

(evidence of deductive thinking).

� 0 � 1 � 2

PRESENTATION

Format

Has effective structure/layout (e.g., headings, headers and footers, page

numbers).

� 0 � 1 � 2

Uses appropriate fonts and font sizes… readable, clear, etc. � 0 � 1 � 2
Has uniform and appropriate spacing. � 0 � 1 � 2
Has expected components (e.g., title page, References, Executive

Summary).

� 0 � 1 � 2

Complies with assignment requirements (client’s questions). � 0 � 1 � 2
Language

Is free from grammatical errors. � 0 � 1 � 2
Is free from punctuation errors. � 0 � 1 � 2
Is free from colloquialisms/slang. � 0 � 1 � 2
Displays appropriate word choice. � 0 � 1 � 2
Has appropriate sentence structure. � 0 � 1 � 2
Is inclusive (appropriate gender-neutral approach). � 0 � 1 � 2
Appropriate use of business terminology � 0 � 1 � 2

Objective

Document achieves its objective (e.g., exposition, description,

persuasion, narrative, analysis, synthesis).

� 0 � 1 � 2

OVERALL ASSESSMENT

Overall assessment of the written document � 0 � 1 � 2

My part is basically working on the highlighted parts (5 &6). 1500 words in total. DUE IN 7 HOURS. I have provided the required documents related to the case study, rubric, and even the textbook.

Sheet1

Current allocation of monthly production to retail locations:
Crowley Cheese
Production Location Healdville, Vermont -72.83 43.45
(near Mt. Holly)
Distribution & Sales Average Monthly
Retail Locations Longitude Latitude Demand
State City X Y (in lbs)
California Calistoga -122.58 38.58 45
Connecticut Bloomfield -72.74 41.84 70
Darien -73.47 41.08 70
Fairfield -73.26 41.14 70
New Hartford -72.98 41.88 70
New Haven -72.93 41.31 70
Norwalk -73.41 41.18 70
Southington -72.88 41.61 70
Stamford -73.54 41.05 70
Westport -73.36 41.14 70
Wilton -73.44 41.20 70
Woodstock -72.02 41.97 70
Florida Gainsville -82.32 29.65 45
Indian Harbor Beach -80.59 28.15 45
Georgia Atlanta -84.39 33.75 45
Maine Bangor -68.78 44.80 60
East Waterboro -70.68 43.63 60
Ellsworth -68.42 44.54 60
Scarborough -70.33 43.59 60
Southwest Harbor -68.32 44.28 60
Massachusetts Acton -71.43 42.49 70
Amherst -72.52 42.37 70
Brewster -70.08 41.76 70
Cambridge -71.11 42.37 70
Falmouth -70.61 41.55 70
Great Barrington -73.36 42.20 70
Greenfield -72.60 42.59 70
Jamaica Plain -71.11 42.31 70
Lenox -73.28 42.36 70
Pittsfield -73.25 42.45 70
Marlborough -71.55 42.35 70
Newburyport -70.88 42.81 70
Oak Bluffs -70.56 41.45 70
South Dennis -70.16 41.70 70
Westport -71.05 41.64 70
Worcester -71.80 42.26 70
Montana Bozeman -111.05 45.68 45
New Hampshire Amherst -71.63 42.86 70
Concord -71.54 43.21 70
Durham -70.93 43.13 70
Hanover -72.29 43.70 70
Lebanon -72.25 43.64 70
Milford -71.65 42.84 70
Newport -72.17 43.37 70
North Conway -71.13 44.05 70
South Effington -70.98 43.70 70
Walpole -72.43 43.08 70
New Jersey South Colts Neck -74.17 40.29 60
Hoboken -74.03 40.74 60
Paramus -74.08 40.08 60
Princeton -74.67 40.38 60
Wall -74.07 40.16 60
New York Astoria -73.93 40.76 70
Brooklyn (1) -73.96 40.65 70
Brooklyn (2) -73.96 40.65 70
Brooklyn (3) -73.96 40.65 70
Cross River -73.61 41.26 70
Greenvale -73.63 40.81 70
Harlem -73.94 40.81 70
Holley -78.03 43.23 70
Hoosick -73.33 42.86 70
New York City -74.01 40.71 70
Pelham -73.81 40.91 70
Plainview -73.47 40.78 70
Red Hook -73.88 42.00 70
Upper West Side NYC -73.97 40.79 70
Salem -73.33 43.17 70
Water Mill -72.35 40.92 70
Whitehall -73.40 43.56 70
Ohio Cincinnati -84.51 39.10 45
Fairfield -84.56 39.35 45
Columbus -83.00 39.96 45
Pennsylvania Gettysburg -77.23 39.83 45
Rhode Island Newport -71.31 41.49 45
Providence -71.41 41.82 45
Tiverton -71.21 41.63 45
Vermont Arlington -73.15 43.07 70
Ascutney -72.41 43.40 70
Barnard -72.62 43.73 70
Bellows Falls -72.44 43.13 70
Belmont -72.82 43.41 70
Bennington -73.20 42.88 70
Brandon -73.09 43.80 70
Brattleboro -72.56 42.85 70
Burlington -73.21 44.48 70
Castleton -73.19 43.63 70
Charlotte -73.26 44.31 70
Chester -72.60 43.26 70
Cuttingsville -72.88 43.49 70
Dorset -73.10 43.25 70
Dorset -73.10 43.25 70
Essex Junction -73.11 44.49 70
Fairlee -72.17 43.94 70
Hardwick -72.35 44.52 70
Hyde Park -72.62 44.59 70
Jamaica -72.79 43.10 70
Killington -72.79 43.66 70
Londonderry -72.81 43.21 70
Ludlow -72.70 43.40 70
Manchester -73.07 43.16 70
Mendon -72.93 43.65 70
Mt. Snow -72.92 42.96 70
Newbury -72.12 44.10 70
Newfane -72.66 42.99 70
Norwich -72.30 43.73 70
Pittsford -73.03 43.71 70
Pownal -73.23 42.79 70
Proctorsville -72.64 43.38 70
Putney -72.52 43.00 70
Quechee -72.42 43.65 70
Reading -72.60 43.49 70
Rutland -72.97 43.61 70
Shelburne -73.22 44.39 70
South Burlington -73.17 44.47 70
South Royalton -72.52 43.82 70
South Woodstock -72.53 43.57 70
Stowe -72.70 44.48 70
St. Johnsbury -72.02 44.42 70
Stratton -72.90 43.06 70
Taftsville -72.47 43.63 70
Waitsfield -72.81 44.19 70
Warren -72.86 44.11 70
Waterbury -72.76 44.34 70
Waterbury Center -72.72 44.38 70
West Arlington -73.21 43.10 70
West Brattleboro -72.60 42.86 70
Westminster -72.46 43.07 70
Weston -72.79 43.30 70
White River Junction -72.32 43.65 70
Wilmington -72.87 42.87 70
Winhall -72.91 43.16 70
Woodstock -72.52 43.62 70
Online
Home store online https://store.crowleycheese.com/ -72.83 43.45 125
Rutland, VT www.BestofVermont.com -72.97 43.61 80
PO Box 130 Sandgate, VT 05250 www.FortunaSausage.com -73.20 43.15 80
NYC www.thedairywagon.com -74.01 40.71 80
Scranton, PA www.igourmet.com -75.66 41.41 80
Total average demand per month 9285
Monthly Production: 8760
# of current distribution locations: 137
Average load per location per month: 63.9416058394

http://www.fortunasausage.com/
http://www.bestofvermont.com/
http://www.thedairywagon.com/
http://www.igourmet.com/
https://store.crowleycheese.com/

Sheet2

Sheet3