Ivey Publishing

Introduction to Management Science: A Modeling and Case Studies Approach with Spreadsheets

Hillier, F.S.; Hillier, M.S.,5/e (United States, McGraw-Hill Irwin, 2014)
Prepared By Fabrizio Di Muro, Ph.D. Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction

CANADIAN FIREARMS PROGRAM
Derrick Neufeld, Zeying Wan

Product Number: 9B06E007
Publication Date: 2/16/2006
Revision Date: 9/17/2009
Length: 12 pages

The Canadian firearms program initially was established to set up a shared database. However, increasing costs of the firearms program is a concern for a number of Canadians. Should the federal government continue with the program, de-escalate or cancel the program. The case requires students to simultaneously evaluate the issues of the database design, software outsourcing, IS project management and change management. It can also be used to cover cost analysis, and political influences in decision-making.

Teaching Note: 8B06E07 (7 pages)
Industry: Public Administration
Issues: Politics; Cost Control; Information Systems; Project Management
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Linear Programming: Basic Concepts

MARS INCORPORATED: ONLINE PROCUREMENT
Peter C. Bell

Product Number: 9B05E004
Publication Date: 1/31/2005
Revision Date: 9/28/2009
Length: 5 pages

Mars Inc., one of the world's largest privately owned businesses, purchased over $4 billion of materials annually, and was aware that many major firms were achieving savings of around five per cent through the use of online procurement auctions. The vice-president for Business Solutions at Mars wondered whether an online auction could be designed that would meet the special needs of the Mars company while enabling Mars to achieve the savings necessary to allow the company to prosper and grow in its highly competitive markets.

Teaching Note: 8B05E04 (7 pages)
Industry: Manufacturing
Issues: Supplier Relations; Purchasing; E-Commerce; Linear Programming
Difficulty: 4 - Undergraduate/MBA



DOFASCO - FUEL MANAGEMENT
Peter C. Bell

Product Number: 9A98E025
Publication Date: 9/23/1999
Revision Date: 1/28/2010
Length: 4 pages

The Works Manager at Dofasco was faced with rapidly increasing market prices for fuel oil and natural gas. Anticipating that similar price increases were likely to continue for the foreseeable future, he wanted to be certain that the steel works was making the best use of its energy dollars and, in particular, that the fuels produced as by-products from plant operations were being efficiently utilized. (A Microsoft Excel model is available for use with this case, product 7A98E025.)

Teaching Note: 8A98E25 (6 pages)
Industry: Manufacturing
Issues: Resource Allocation; Linear Programming; Spread Sheet Application
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Linear Programming: Formulation and Applications

ACUSHNET CANADA INC.: THE BONDED WAREHOUSE INITIATIVE
Gregory S. Zaric, Ian Friedman

Product Number: 9B05E012
Publication Date: 9/22/2005
Revision Date: 9/30/2009
Length: 3 pages

Acushnet Canada Inc. is considering using Canada Customs Bonded Warehouses to store golf shoes, gloves, outerwear and club heads inventory purchased from overseas suppliers. ACI often has to procure inventory four to six months before they needs it in order to ensure they will be able to meet customer requirements during the busy season. The critical managerial issue is considering the tradeoff between the cash flow savings (through duty postponement) and the need to meet the demand schedule, while taking into account storage limitations imposed by the private facility and their storage costs. This case can be used as an introduction to linear programming as well as an introduction to the concept of bonded warehouses.

Teaching Note: 8B05E12 (5 pages)
Industry: Wholesale Trade
Issues: Inventory Planning/Control; Linear Programming; Spread Sheet Application; Procurement
Difficulty: 4 - Undergraduate/MBA



TALLINK: CONNECTING ESTONIA TO FINLAND, SWEDEN AND RUSSIA
Peter C. Bell, Jordan Mitchell

Product Number: 9B05E016
Publication Date: 10/28/2005
Revision Date: 9/30/2009
Length: 9 pages

The chairman of Tallink - a ferry and cargo service running between Estonia, Finland and Sweden - is considering purchasing a new ferry and redeploying older ferries among different routes. One of the proposed new routes is from Tallinn, Estonia through Helsinki, Finland to St. Petersburg in Russia. The chairman needs to decide whether or not he should buy the new ferry and the optimal use of his fleet.

Teaching Note: 8B05E16 (10 pages)
Industry: Transportation and Warehousing
Issues: Resource Allocation; Fleet Management; Linear Programming; Spread Sheet Application
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
The Art of Modeling with Spreadsheets

LANCO CATALOGUE SALES
Peter C. Bell, Chris K. Anderson

Product Number: 9A99E007
Publication Date: 8/31/1999
Revision Date: 1/15/2010
Length: 3 pages

The issue before the directors meeting of LanCo Catalogue Sales was the high level of product returns that the company was experiencing. These product returns were eroding profitability at a remarkable rate, however the directors were split into two camps over what to do about the problem. One camp believed that speeding up shipments would reduce the returned merchandise, while the other camp believed that this would merely increase shipping costs and reduce profits even further. LanCo management was determined that the returns problem must first be understood, then actions must be taken to reduce returns, in order to improve the profitability of the company. (A Microsoft Excel data file is available for use with this case, product 7A99E007.)

Teaching Note: 8A99E07 (7 pages)
Industry: Retail Trade
Issues: Spread Sheet Application; Data Analysis; Statistical Analysis; Retailing
Difficulty: 4 - Undergraduate/MBA



OHIO POLYMER, INC.
Peter C. Bell

Product Number: 9A98E036
Publication Date: 8/31/1999
Revision Date: 1/28/2010
Length: 6 pages

Ohio Polymer is about to negotiate a contract with ProBut Hydrocarbon, Inc. for the purchase of ethylene gas. The contract will require Ohio to purchase a fixed daily quantity of the gas at a set price per ton. Ohio Polymer's senior management is looking for advice on how much gas they should try to obtain and what price they should be willing to pay. A companion case is ProBut Hydrocarbon, Inc., case 9A98E037, which presents the negotiation from ProBut's perspective.

Teaching Note: 8A98E36 (5 pages)
Industry: Manufacturing
Issues: Manufacturing Capacity; Spread Sheet Application; Simulation; Negotiation
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
What-If Analysis for Linear Programming

NEW ENGLAND FEED SUPPLY
Peter C. Bell, Drew Parker

Product Number: 9A98E034
Publication Date: 8/23/1999
Revision Date: 1/28/2010
Length: 4 pages

Jeff Smith, formulation analyst for New England Feed Supply Inc., was evaluating the following week's requirements for three animal feed mixes produced by the Burlington plant. A shortage of one ingredient, meat meal, meant that the company would find it difficult to meet the orders on hand. Smith needed to determine which, if any, of the mixture formulae should be altered, and in what way; alternately, he could elect to buy additional meat meal on the spot market, at a significantly higher price. (A Microsoft Excel model is available for use with this case, product 7A98E034.)

Teaching Note: 8A98E34 (5 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Linear Programming; Resource Allocation; Spread Sheet Application; Computer Applications
Difficulty: 4 - Undergraduate/MBA



NORTHWEST NEWSPRINT, INC. (A)
Peter C. Bell, John S. Hulland

Product Number: 9A98E035
Publication Date: 9/23/1999
Revision Date: 1/28/2010
Length: 8 pages

Northwest was a major producer of newsprint, with pulpmills in the Pacific Northwest and Canada, from which they supplied various North American markets. The assistant controller was reviewing which mill supplied which market, in an attempt to find some opportunities for cost savings, and planned to develop and use a model to investigate both the immediate newsprint allocation problem and also some longer-term strategic issues. (A Microsoft Excel model is available for use with this case, product 7A98E035.) The supplement, Northwest Newsprint, Inc. (B), product # 9B09E003 addresses the ability of price changes to mitigate supply chain issues and improve supply chain profitability.

Teaching Note: 8A98E35 (8 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Transportation; Spread Sheet Application; Resource Allocation; Linear Programming
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Network Optimization Problems

HIGHWIRED.COM: HARDWARE DECISIONS
Scott L. Schneberger, Ken Mark

Product Number: 9B00E023
Publication Date: 1/25/2001
Revision Date: 1/8/2010
Length: 11 pages

Highwired.com provided to high school students and teachers, a range of free services to enable school interaction on a personalized Web site. Highwired.com's network had grown from 1,000 member high schools to over 12,000 schools in 50 states and 72 countries, in only 13 months. Due to its blistering growth, it was approaching its peak load capacity in June, the end of the school year. The vice-president of product development expected that growth would continue at that pace and wanted to ensure that they struck the right balance between low response time and minimal downtime, and acceptable hardware costs. Any changes had to be made before school started in September. He wanted to confirm that his recommendation to use multiple servers with redundant network storage devices attached was the optimal solution. To do so, he examined site performance metrics, server configuration options and additional hardware.

Teaching Note: 8B00E23 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: E-Commerce; Action Planning and Implementation; System Design; Capacity Analysis
Difficulty: 4 - Undergraduate/MBA



SUPPLY CHAIN MANAGEMENT AT WAL-MART
P. Fraser Johnson, Ken Mark

Product Number: 9B07D001
Publication Date: 1/9/2007
Revision Date: 5/30/2017
Length: 15 pages

In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The company's supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals are copying every aspect, from the way Wal-Mart cross-docks product in warehouses, to Wal-Mart's use of a sophisticated database to capture, store and disseminate store-level information to suppliers. Wal-Mart's new executive vice-president, logistics was overseeing a handful of initiatives designed to improve the firm's supply chain. However, it was not certain that these initiatives were going to have a significant impact on Wal-Mart costs, and he needed to consider what the company should do to stay ahead of the competition.

Teaching Note: 8B07D01 (9 pages)
Industry: Retail Trade
Issues: Purchasing; Retailing; Supply Chain Management; Logistics
Difficulty: 4 - Undergraduate/MBA



CANADIAN PHARMACEUTICAL DISTRIBUTION NETWORK
P. Fraser Johnson

Product Number: 9B01D014
Publication Date: 3/28/2002
Length: 4 pages

With revenues of over US$1 billion, UPS Logistics Group was a wholly owned subsidiary of United Parcel Service, which offered a full range of supply chain services in North America, Europe, Asia and Latin America. UPS Logistics was responsible for distribution in Eastern Canada for the Canadian Pharmaceutical Distribution Network, an association of pharmaceutical manufacturers that jointly distribute products to hospital pharmacies. Members of this association are unhappy with the current performance of the supply chain, and have asked UPS Logistics' general manager for operations to establish a set of key performance indicators for the network's distribution operations. The general manager must determine how the logistics would be measured before setting specific improvement targets.

Teaching Note: 8B01D14 (14 pages)
Industry: Health Care Services
Issues: Performance Measurement; Outsourcing; Logistics; Distribution
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Using Binary Integer Programming to Deal with Yes-or-No Decisions

CRAGGIER NATIONAL PARK
Chris K. Anderson, Benjamin Marcus

Product Number: 9B03E001
Publication Date: 2/27/2003
Revision Date: 10/19/2009
Length: 4 pages

Craggier National Park is a typical game reserve located in South Africa. The game reserve's management is trying to determine the optimal mix of animal species to stock a game reserve. Jointly they are trying to determine the mix of hunting packages to promote to potential clients.

Teaching Note: 8B03E01 (7 pages)
Industry: Accommodation & Food Services
Issues: Integer Programming; Optimization; Revenue Management
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Nonlinear Programming

CANNING CONSULTANTS: THE OPAC ASSESSMENT
Gregory S. Zaric

Product Number: 9B05E006
Publication Date: 2/16/2006
Revision Date: 9/30/2009
Length: 5 pages

A real estate appraiser has been hired to provide an alternate assessment on a set of office buildings in London, Ontario. Real estate assessments are often based on comparisons versus similar properties. However, because the set of comparison properties is small he cannot rely on standard quantitative techniques like linear regression. Instead he uses a technique called quality point in which the property valuation problem can be formulated as a quadratic program.

Teaching Note: 8B05E06 (6 pages)
Industry: Real Estate and Rental and Leasing
Issues: Linear Programming; Real Estate; Regression Analysis; Valuation
Difficulty: 4 - Undergraduate/MBA



FOUR STAR MOTORSPORTS
Peter C. Bell, Ilana Rosenshein

Product Number: 9B03E006
Publication Date: 4/2/2003
Revision Date: 10/19/2009
Length: 3 pages

Four Star Motorsports is a family owned and operated garage specializing in rally cars and the sale of rally tires. In the winter, the business would have sales on tires if there was excess inventory, however, the owner was recently made aware of new pricing concepts through associates. The owner must investigate various pricing options during the upcoming selling season to increase revenue and to develop a plan that will allow adjustments for customers who are unhappy with the new pricing policy or an excess of tire inventory.

Teaching Note: 8B03E06 (7 pages)
Industry: Retail Trade
Issues: Demand Analysis; Pricing; Regression Analysis; Uncertainty
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Decision Analysis

BRILUX: THE FOT-320 DECISION
Peter C. Bell

Product Number: 9B04E018
Publication Date: 5/14/2004
Revision Date: 10/9/2009
Length: 4 pages

BriLux develops early-stage high-speed data networking equipment. In recent month, BriLux customers have hinted that combining ARTRAN, the company's flagship optical data service platform, with a new fiber optic transportation product (tentatively referred to as FOT-320) would increase the market appeal of the company's portfolio. The research and development director must decide whether to support the development of this new product. Excel files are available upon request, products 7B04E018A, 7B04E018B and 7B04E018C.

Teaching Note: 8B04E18 (10 pages)
Industry: Manufacturing
Issues: Probability; Risk Analysis; Decision Analysis; Simulation
Difficulty: 4 - Undergraduate/MBA



RESEARCH AND DEVELOPMENT AT ICI: ANTHRAQUINONE
Peter C. Bell

Product Number: 9A98E029
Publication Date: 9/30/1999
Revision Date: 1/28/2010
Length: 2 pages

ICI's research division had discovered a new use for anthraquinone and had to decide whether to accelerate research on a process to synthesize anthraquinone and develop the commercial application, or to terminate the modest R&D effort. (A Microsoft Excel model is available for use with this case, product 7A98E029.)

Teaching Note: 8A98E29 (6 pages)
Industry: Manufacturing
Issues: Simulation; Risk Analysis; Probability; Decision Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Forecasting

ESTIMATING DEMAND FOR KODAK FILM
David M. Currie, Ilan Alon

Product Number: 9B04D015
Publication Date: 11/23/2004
Revision Date: 10/9/2009
Length: 7 pages

An executive must estimate the demand for rolls of film in various countries based on demographic data about the counties. She must determine the process and develop a spreadsheet model that will provide the results based on data (GNP per capita, population, income distribution) from the various countries. The purposes of the case are to show the relation between national statistics and company decisions and to provide training in advanced spreadsheet skills, conceptualizing a problem and modelling.

Teaching Note: 8B04D15 (15 pages)
Industry: Manufacturing
Issues: Marketing Research; International Business; Spread Sheet Application; Operations Management
Difficulty: 4 - Undergraduate/MBA



BABCOCK AND WILCOX: CONSOLIDATED FORECASTING
Peter C. Bell, Matt Brudzynski

Product Number: 9A98E023
Publication Date: 2/16/2000
Revision Date: 1/22/2010
Length: 6 pages

The marketing services manager at Babcock and Wilcox had determined that: Despite being quite sophisticated in our analysis, we are not quite getting the information we need for our shop-load planning and scheduling. Our sales projections also drive our accounting and business forecasts, so we need to improve the way we develop our basic forecasts. How can Babcock and Wilcox improve its forecasting? (A Microsoft Excel data file is available for use with this case, product 7A98E023.)

Teaching Note: 8A98E23 (6 pages)
Industry: Construction
Issues: Risk Analysis; Spread Sheet Application; Simulation; Forecasting
Difficulty: 4 - Undergraduate/MBA



NORTHERN NAPA VALLEY WINERY, INC
Peter C. Bell

Product Number: 9A98E046
Publication Date: 4/30/1999
Revision Date: 12/31/2015
Length: 3 pages

The CEO of Northern Napa Valley Winery must forecast aggregate sales of red table wine for the product year, as well as month-by-month sales for the same period. This case provides the student with the opportunity to try to forecast a time series characterized by distinct trend and seasonality with almost nine years of monthly data available. (A Microsoft Excel data file is available for use with this case, product 7A98E046.)

Teaching Note: 8A98E46 (8 pages)
Industry: Manufacturing
Issues: Data Analysis; Statistical Analysis; Regression Analysis; Forecasting
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Queuing Models

TOTALLINE TRANSPORT
Larry Menor, Ken Mark, Jordan Mitchell

Product Number: 9B05D001
Publication Date: 6/14/2005
Revision Date: 9/28/2009
Length: 18 pages

The vice-president and general manager of Totalline Transport wants to eliminate late appointment fees in delivering to one of Canada's premier electronic shops - Electronics International. Totalline Transport is hired by suppliers of electronics goods to deliver to retailers. The vice-president sees an opportunity to solve the problem of congestion in the parking lot of Electronics International's warehouse and eliminating unnecessary soft costs such as missed appointment fees and detention charges. The bottleneck in the process is the waiting time for all of the trucks to unload. If the carrier arrives late, the retailer will charge the carrier $1,000. If the carrier is waiting in line due to a backlog at the warehouse, the carrier will levy a charge of $50 to $60 per hour. Beyond these costs, the vice-president realizes that suppliers and retailers are spending one day per week investigating problems with shipments. He is eager to make his customers (suppliers) successful. He sees three central options in cutting down traffic: to request two dedicated doors at the warehouse; cut down on time for Electronics International by applying stickers at Totalline's consolidation point on all the deliveries so that Electronics International could immediately accept shipments into inventory without handling; or deliver direct to Electronics International stores.

Teaching Note: 8B05D001 (9 pages)
Industry: Transportation and Warehousing
Issues: Services; Operations Management; Service Operations; Supplier Relations
Difficulty: 4 - Undergraduate/MBA



CAFÉ D. POWND
Victor Siu, Chris K. Anderson, Stephan Vachon

Product Number: 9B00D007
Publication Date: 5/2/2000
Revision Date: 1/8/2010
Length: 7 pages

An assistant manager of a university student residence is aware that there are capacity and service problems in the cafeteria. Long waits in line were common, and he hoped to propose some improvements to residence management, preferably ones with no major investments or disbursements involved.

Teaching Note: 8B00D07 (9 pages)
Industry: Accommodation & Food Services
Issues: Service Operations; Queuing Theory; Simulation
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Computer Simulation: Basic Concepts

NORMAL DISTRIBUTION AND THE NCAA TOURNAMENT
Chris K. Anderson, Gregory S. Zaric

Product Number: 9B04E020
Publication Date: 6/14/2005
Revision Date: 7/22/2014
Length: 5 pages

This case presents some information on the NCAA college basketball tournament and suggests a method for estimating the outcomes of games. The probability of winning is modeled as a normal distribution where the mean is based on a team's ratings. Students will be introduced to the normal distribution, sums of normal random variables and event simulations.

Teaching Note: 8B04E20 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Probability; Sports; Simulation; Spread Sheet Application
Difficulty: 4 - Undergraduate/MBA



SUPERIOR GRAIN ELEVATOR, INC.
Peter C. Bell

Product Number: 9A98E040
Publication Date: 4/30/1999
Revision Date: 1/28/2010
Length: 4 pages

The manager of port facilities for Superior Grain Elevator, Inc. in Thunder Bay, Ontario, must decide whether to construct a third wharf at a cost of $1.5 million. Superior Grain Elevator, Inc. has just negotiated a grain sale to Poland that will increase the number of shipments from the Thunder Bay facility. (A Microsoft Excel model is available for use with this case, product 7A98E040.)

Teaching Note: 8A98E40 (7 pages)
Industry: Transportation and Warehousing
Issues: Computer Applications; Spread Sheet Application; Simulation; Risk Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Computer Simulation with Risk Solver Platform

CPSIM2: THE CRITICAL PATH SIMULATOR (WINDOWS VERSION)
Chris J. Piper

Product Number: 9B06D002
Publication Date: 1/11/2006
Revision Date: 9/16/2009
Length: 6 pages

CPSim2 is a Critical Path Simulator that runs under MS Windows. Participants use the simulator to manage the construction of an automated factory - a fairly complex, 43-activity project that must be completed in 107 days if penalties are to be avoided. As project manager, students must make effective trade-offs between the costs incurred by crashing (speeding up) activities, and the financial penalties for late completion. Unforeseen delays and speedups occur during the project, which require timely response. Although these appear random, each user of the simulator is exposed to the same events during the project. This allows performances and strategies to be compared within a class and between classes. CPSim2 maintains a current display of the project's CPM network, as well as the critical path(s) and activity slacks. The time required to complete the exercise is controlled by CPSim2, and does not exceed 60 minutes. This product provides the student instructions on the running of the simulation; the software itself is distributed with a site license for an additional annual license fee (product 7B06D002) - contact Ivey Publishing for pricing and distribution information.

Teaching Note: 8B06D02 (14 pages)
Issues: Critical Path; Computer Assisted Cases; Simulation; Project Management
Difficulty: 4 - Undergraduate/MBA



ANI JEWELLERS: SNOWFALL PROMOTION
Peter C. Bell

Product Number: 9B05E021
Publication Date: 2/6/2006
Revision Date: 9/30/2009
Length: 5 pages

The owners of a retail jewellry store must decide whether to continue to offer a snowfall promotion that gave customers a 100 per cent cash refund for all November and December purchases if there was more than 15 centimetres of snow on the following January 7.

Teaching Note: 8B05E21 (4 pages)
Industry: Retail Trade
Issues: Marketing Planning; Insurance; Risk Analysis; Probability
Difficulty: 4 - Undergraduate/MBA