Ivey Publishing

Operations Research

Taha, H.A.,9/e (United States, Pearson Education, 2011)
Prepared By CaseMate Reviewer,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
What is Operations Research?

WOMEN AND CHILDREN FIRST ON THE TITANIC
Chris A. Higgins, Crystal Ji

Product Number: 9B13E017
Publication Date: 6/20/2013
Revision Date: 6/20/2013
Length: 3 pages

The sinking of the Titanic in April 1912, with more than 1,500 lives lost, can be used to conduct interesting statistical analyses. Demographic information on the passengers includes age, gender, passenger class and point of embarkation. Both crosstabulations and logistic regression tables based on an available dataset provide interesting results about gender and class distinctions in place at that time in history.

Teaching Note: 8B13E017 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Crosstabs; Logistics regression; North Atlantic
Difficulty: 4 - Undergraduate/MBA



GOLFGAMEZ (A): FUNDING A DIGITAL STARTUP
Derrick Neufeld

Product Number: 9B13E010
Publication Date: 4/9/2013
Revision Date: 4/9/2013
Length: 5 pages

A budding entrepreneur wants to start a mobile software company by developing a golf scoring and playing app called Golfgamez. He has assembled some raw data related to market size, as well as start-up and development costs, but is unsure how to proceed. He must evaluate the revenue and cost estimates for this business idea and prioritize the issues he faces. He must also consider the costs and benefits of available funding options, such as debt, equity or accelerator funding; crowdfunding; government grants; or sweat equity funding. Should he quit his successful career in banking to pursue his dream, should he try to do this part time and risk failure or should he give up altogether? Golfgamex (B): Funding a Digital Startup, 9B13E011, is the supplement to this case.

Teaching Note: 8B13E010 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Information Technology; Entrepreneurial Finance; Spreadsheet Modeling; Sports; Canada
Difficulty: 4 - Undergraduate/MBA



DECISION-MAKING AT A-CAT CORP.
Jitendra R. Sharma

Product Number: 9B11D011
Publication Date: 9/19/2011
Length: 5 pages

The case describes the situation faced by the vice president of A-CAT Corp. The company was a mid-sized manufacturer and distributor of domestic electrical appliances, largely catering to the price-sensitive rural population. The firm operated two medium-sized facilities in a remote district in Vidarbha, India. A-CAT manufactured a wide range of electrical appliances including TV signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers, and voltage regulators. The focus was on its flagship product, the VR500 voltage regulator. The team planned to identify potential suppliers/vendors with their attendant strengths and weaknesses and to do so in a well-documented and structured manner. Analytical hierarchy process was a technique that could be used to meet this challenge.

Teaching Note: 8B11D011 (11 pages)
Industry: Manufacturing
Issues: Analytical Hierarchy Process (AHP); Cost-benefit Analysis; Decision Making; India
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Modeling with Linear Programming

INTEL ASIA-PACIFIC: THE CATCH & WIN CAMPAIGN
Peter C. Bell, John Lyons, Peter Dingle, Ash Supersad

Product Number: 9B13E023
Publication Date: 8/12/2013
Revision Date: 10/28/2014
Length: 9 pages

The head of Data Marketing Analytics and Mobile for Intel Asia-Pacific was reviewing the proposed media plan for the Catch & Win 2.0 campaign. The media purchase needed to be finalized quickly in order to be included in the current quarter’s budget, but he could not help feeling that the proposed spend across the markets and advertising types could be used more effectively. He thought that the key was to use the company’s own experience and data regarding social media engagement within their markets rather than to rely on the generalized industry metrics provided by the contracted media agency, and now he must improve the proposed media plan.

Teaching Note: 8B13E023 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Media Planning; Social Media; Optimization; Budget Allocation; Asia
Difficulty: 4 - Undergraduate/MBA



RED BRAND CANNERS AND ITS SUPPLY CHAIN
Christoph Haehling von Lanzenauer, Olaf Pohl

Product Number: 9B12E007
Publication Date: 8/10/2012
Revision Date: 10/6/2016
Length: 5 pages

Developed as a companion to the Red Brand Canners (RBC) case, the starting point in this case is the improvement in performance resulting from the optimization approach in the original case. However, RBC’s vice president of operations is concerned about the quality and quantity mix of the most recent tomato crop received from Greenfield Farms (GF). RBC’s preferred quality and quantity mixes differ significantly from the current harvest. To RBC, the issue is how to motivate the supplier to produce a crop more in line with RBC’s needs. Initially, both firms in the B2B section of the supply chain try to find a combination that would be mutually beneficial — an attempt that fails because of conflicts of interest. RBC’s objective might be accomplished by taking a supply chain approach and modifying the delivery contract by an appropriate pricing scheme. The task is to identify and calibrate a pricing scheme that will realize the supply chain’s maximum performance and lead to a stable win-win solution. The derivation of the supply chain optimal prices is carried out by developing and solving a linear optimization model.

Teaching Note: 8B12E007 (17 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Pricing; Linear Programming; Quantitative Analysis;Food Processing Industry
Difficulty: 4 - Undergraduate/MBA



TORONTO REHAB
Peter C. Bell, Fredrik Odegaard

Product Number: 9B09E016
Publication Date: 10/30/2009
Length: 4 pages

Due to continued budget shortfalls the project manager for the Spinal Cord Rehabilitation Program at the Toronto Rehabilitation Institute needed to provide proposals for immediate cost-saving measures. One of these measures included how to schedule the nursing staff. The problem involved meeting certain occupancy target levels while ensuring a minimum number and correct mix of available nurses.

Teaching Note: 8B09E016 (6 pages)
Industry: Health Care Services
Issues: Cost Minimization; Staff Schedule; Health Care; Optimization
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The Simplex Method and Sensitivity Analysis

EU HOLIDAYS
Yew Hoong Wong, Singfat Chu

Product Number: 9B13E003
Publication Date: 3/18/2013
Revision Date: 3/15/2013
Length: 4 pages

The profit margin for the travel agency industry in Singapore, which mostly offered travel packages to Asia and Europe, was very thin. An up-and-coming travel agency faced the dilemma of offering maximum customer satisfaction while keeping its operating cost (e.g., fees for its tour guides) low. Rather than simply assigning travel guides to tours by trial and error, a director of the travel agency decided to use an optimization template. This case requires the development of an optimization template to advise management on the optimal assignment of tour leaders (within constraints of their availability and required rest periods) and generate maximum satisfaction among the customers. Considerations for tour-guide assignment include tour guides’ customer satisfaction levels, expertise on particular tours, visas for specific countries, and employment plans.

Teaching Note: 8B13E003 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Travel Industry; Customer Satisfaction; Optimization; Decreasing Returns; Singapore
Difficulty: 4 - Undergraduate/MBA



AGGREGATE PLANNING AT GREEN MILLS
Owen Hall, Kenneth Ko

Product Number: 9B13D002
Publication Date: 3/14/2013
Revision Date: 3/12/2013
Length: 3 pages

Green Mills Inc. operates several lumber mills throughout the Northwestern United States that produce a variety of wood products. The company is currently considering expanding operations to Chile as a vehicle for reducing the costs of raw materials. In that regard, the management team is interested in analyzing the cost implications as a vehicle to properly assess this backward integration strategy. More specifically, management wishes to evaluate several different aggregate planning policies including level, chase and mixed policies.

Teaching Note: 8B13D002 (8 pages)
Industry: Manufacturing
Issues: Aggregate planning; sensitivity analysis; United States
Difficulty: 5 - MBA/Postgraduate



GOATS: THE GREEN ALTERNATIVE (A)
David M. Currie, Kyle S. Meyer

Product Number: 9B11B018
Publication Date: 11/23/2011
Length: 5 pages

The owner of a goat herd in Tennessee must decide whether to rent out his herd for a land-clearing project at a nearby resort. Goats are better suited to clearing the land than humans and machines, but the owner has never rented out his goats for such a purpose. The owner must identify costs associated with the project, then determine a price to charge for the service. Since the owner has no prior experience renting out livestock, he must come up with estimates of the incremental costs associated with the rental operation and prepare a bid with little knowledge of rates charged by competitors for goat rentals. This case provides a realistic example of the thought processes that business owners go through when evaluating whether to expand into complementary lines of business, as well as the considerations of entrepreneurs contemplating starting new businesses. See also Goats: The Green Alternative (B) 9B11B025 and Goats: The Green Alternative (C) 9B15D001.

Teaching Note: 8B11B018 (12 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Managerial Accounting; Modeling; Economics; Spreadsheet Application; Fixed and Variable Costs; Environmental Sustainability; Farms; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Duality and Post-Optimal Analysis

DHL SUPPLY CHAIN
Singfat Chu, David Ringrose

Product Number: 9B12E003
Publication Date: 4/19/2012
Revision Date: 4/24/2015
Length: 3 pages

The degradation of the environment has led many governments and customers to pressure businesses to make their operations more environmentally friendly. The case illustrates an effective example of corporate social responsibility. Specifically, it demonstrates how a small increase in a supply chain budget can drastically reduce carbon dioxide emissions in the transportation of LCD TVs from their manufacturing bases to a distribution centre.

Teaching Note: 8B12E003 (7 pages)
Industry: Transportation and Warehousing
Issues: Environmental Sustainability; Linear Programming; Logistics; Optimization Analysis; Spreadsheet Modeling; Corporate Social Responsibility; China
Difficulty: 4 - Undergraduate/MBA



TOTAL’S CARBON CAPTURE AND STORAGE PROJECT AT LACQ (A): RISK OPPORTUNITY IN PUBLIC ENGAGEMENT
Devin McDaniels, Frances Bowen

Product Number: 9B10M105
Publication Date: 10/24/2011
Length: 14 pages

This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France’s (TEPF) vice president of sustainable development, in designing and implementing a community engagement strategy. Case (A) begins with the approval of a pilot carbon capture and storage (CCS) system at TEPF’s Lacq facility in France, and outlines the strategic context for the community engagement process. Case (B) is positioned three years later.

The case includes a range of issues impacting the decision-making context, including the role of CCS in mitigating climate change; an outline of CCS technology; TEPF’s climate change strategy; the history of TEPF’s operations in the Lacq gas field, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS); and CCS regulatory uncertainty in France.


Teaching Note: 8B10M105 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Project Management; Stakeholder Analysis; Climate Change; Green Energy; Innovation; Risk Management; France
Difficulty: 4 - Undergraduate/MBA



TOTAL’S CARBON CAPTURE AND STORAGE PROJECT AT LACQ (B): GAINING PUBLIC ACCEPTANCE OF NEW TECHNOLOGY
Devin McDaniels, Frances Bowen

Product Number: 9B10M106
Publication Date: 10/24/2011
Length: 8 pages

This case is a supplement to Total’s Carbon Capture and Storage Project at LACQ (A).

Teaching Note: 8B10M105 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Project Management; Stakeholder Analysis; Climate Change; Green Energy; Innovation; Risk Management; France
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Transportation Model and Its Variants

SINOFERT HOLDINGS LIMITED: UREA DISTRIBUTION PLANNING
Peter C. Bell, Mehmet A. Begen, Duan Changshan, Fiona Yiu, Jeremy Cheng

Product Number: 9B13E027
Publication Date: 9/19/2013
Revision Date: 9/19/2013
Length: 6 pages

Sinofert Holdings Limited, the largest comprehensive fertilizer enterprise in China, is trying to improve the profitability of its urea business. The company has invested a great deal of time and money but still reported losses in 2007 and 2009 and only a small profit in 2008. Sinofert both manufactures urea and purchases it from external suppliers, as well as distributing it to the provinces. Manufacturing costs, transportation costs, market prices, demand forecasts and manufacturing constraints are all known. An optimal distribution plan using linear programming can be compared to the plan derived by Sinofert management. Substantial profitability increases are shown to be possible, although the optimization reveals some issues with contract constraints. If the company is to make its urea business profitable, it needs a fresh look and a change in the way of doing business. The company’s chief analytics officer has been asked to look at the urea business and to provide recommendations to increase profitability.

Teaching Note: 8B13E027 (3 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Optimization; transportation problem; supply chain; distribution planning; China
Difficulty: 4 - Undergraduate/MBA



MY SCHOOL BUS
Peter C. Bell, Sherry-Anne Bedminster, Robert Onianwah

Product Number: 9B13E016
Publication Date: 8/21/2013
Revision Date: 8/21/2013
Length: 4 pages

A small-scale school bus company was founded five years ago to facilitate the home-to-school transportation of high school and middle school students who were enrolled in specialized programs. The company was owned by a husband-and-wife team who worked full time to arrange private bus transportation to four schools within their neighbourhood school district. The company was operating below break-even, and the owners wondered how they might increase ridership or revenues.

Teaching Note: 8B13E016 (6 pages)
Industry: Educational Services
Issues: Pricing; Revenue Management; Optimization; Canada
Difficulty: 4 - Undergraduate/MBA



LOCATION PLANNING AT A.B. CORP.
Jitendra R. Sharma

Product Number: 9B12D008
Publication Date: 4/30/2012
Revision Date: 4/12/2012
Length: 3 pages

In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.

Teaching Note: 8B12D008 (8 pages)
Issues: Location Analysis; Centre of Gravity; Load Distance Factors; Factor Rating Method; Decision Making; Agriculture; India
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Network Models

PROJECT MANAGEMENT ANALYSIS IN THE INTERNET FORECASTING INDUSTRY
Owen Hall, Kenneth Ko

Product Number: 9B12E006
Publication Date: 5/25/2012
Revision Date: 5/17/2012
Length: 3 pages

B&W Systems designs and distributes a variety of management software products through the Internet and retail outlets such as Best Buy. The company is considering the development of an Internet-based forecasting system designed specifically for new start-up and small business owners. The company’s primary concern with the product is timing and the possibility of new market entrants. The director of operations has been tasked with reviewing the timely implementation of the new product, including estimated completion times and costs, and presenting his findings to the board.

Teaching Note: 8B12E006 (7 pages)
Industry: Manufacturing
Issues: Information Systems; Project Management; Critical Path; Linear Programming; Forecasting
Difficulty: 5 - MBA/Postgraduate



AMERICAN CONSTRUCTORS INC.: WORLD OUTREACH EXPANSION PROJECT
Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D016
Publication Date: 1/21/2011
Revision Date: 7/26/2013
Length: 11 pages

The project manager for American Constructors Inc. (ACI) sat down with his team on September 24, 2009, to evaluate the progress of its building expansion project in Murfreesboro, Tennessee. The team had been working on the World Outreach Church expansion project for over a year already and it was nearing completion. Originally scheduled for completion by March 2010, the project deadline was pushed ahead to December 14, 2009, at the request of the client, who desired to use the property for the Christmas season. In an effort to maintain the reputation of ACI, which had grown to be known as a premier contractor in Tennessee, the project manager and his team needed to determine if the December 14 deadline was feasible.

Teaching Note: 8B10D016 (14 pages)
Industry: Construction
Issues: Scheduling; Project Design/Development; Project Management; Critical Path
Difficulty: 4 - Undergraduate/MBA



TORONTO SUN AND CARIBANA
Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D002
Publication Date: 6/10/2010
Length: 7 pages

It was June 5, 2008 and the senior promotions coordinator was beginning to feel the pressure of managing a major sponsorship event for the Toronto Sun, a daily newspaper publication in Ontario, Canada. She had recently been hired and had received the responsibility of organizing the Toronto Sun's presence in the city's annual Caribana Parade after her colleague failed to make any progress following months of handling the assignment. With only eight weeks until parade day (August 2), she felt challenged to make the company's float a success. The Toronto Sun earned its place in the parade as the primary print media sponsor for the event. Pulling the company's float from the biggest parade event in the city would mean forfeiting valuable marketing exposure. This case was designed for use in an undergraduate or MBA operations management or introductory project management course. Developed to aid instructors in facilitating discussions of key project management concepts, the case content allows for an analytical approach to covering the basic skills in planning a project, including precedence relationships, critical path, due dates, uncertainty (PERT tasks), crashing, etc. It can be used to teach students MS Project or other project management software. It can also be used for a less analytic, more managerial discussion of project management.

Teaching Note: 8B10D02 (13 pages)
Industry: Manufacturing
Issues: Media; Scheduling; Project Design/Development; Project Management; Critical Path
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Advanced Linear Programming

PGA GOLF: IS SUNDAY MADE FOR TV?
Chris A. Higgins

Product Number: 9B12E008
Publication Date: 10/23/2012
Revision Date: 10/26/2012
Length: 3 pages

In 2011, two avid golfers were having a debate over whether scores were lower on Sundays. One of the golfers believed that courses were made easier on Sunday for viewers who wanted to see low scores. The other golfer countered that all the pressure on the golfers on Sunday would surely raise their scores and, in fact, the television coverage would make things worse.

Using a dataset from the 2011 season, various questions about golfers and golf tournament can be addressed. These include: Are scores different from the first day to the last day? Are scores different across the four rounds? Are young people doing better than those who are older? Do long hitters have lower scores? How important is driving accuracy in determining one’s score? Do people putt for dough and drive for show?

The dataset is available from the case author.

The dataset contains over 1,000 responses across the four generations (Veterans, Boomers, Gen X, Gen Y). It also contains enough responses to deal with the question of whether there were three sub-generations of Boomers.


Teaching Note: 8B12E008 (16 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Descriptive Statistics; T-tests; ANOVA; Repeated Measures; United States
Difficulty: 4 - Undergraduate/MBA



DELOITTE RECOMMENDS CLIENT SELECTION TO REGENCY BANK
Mehmet A. Begen, Stacey Yue

Product Number: 9B11E005
Publication Date: 6/22/2011
Length: 4 pages

A large financial institution has acquired a sizable portfolio of new clients of travel (corporate expense) cards. The bank must decide on the optimal mix of clients to retain in order to achieve the goals of maximizing profitability, entering a new product market successfully, and maintaining reputation. The optimal mix depends on a number of different factors, including annual account spending level, complexity of serving the account, the number of cards in each account, account risk, and account retention level. The selection and number of clients chosen will affect the bank’s future profitability and long-term strategy. The bank is limited by attempting to achieve a three-year payback, and facing costs that can vary significantly and are not in the bank’s control.

Teaching Note: 8B11E005 (6 pages)
Issues: Data Analysis; Portfolio Selection; Simulation; Sensitivity Analysis; Profit/Loss Variability; Investment Payback Selection; Banking
Difficulty: 4 - Undergraduate/MBA



YANGARRA RESOURCES LIMITED
Peter C. Bell, Grant Evaskevich, Dean Leesui, Caterina von Maydell, Sachin Gupta

Product Number: 9B11E003
Publication Date: 6/21/2011
Length: 3 pages

Yangarra Resources Limited, a Calgary-based junior oil and gas company, had several properties throughout Alberta comprising both solely controlled and joint ventures. The president and chief executive officer (CEO) was involved in the construction of a well on the Ferrier property — a joint venture between three companies, each holding roughly one-third of the stake. As part of the joint venture, Yangarra had signed an agreement that committed Yangarra to cover all expenses proportional to its working stake of 31.875 per cent. The well had been drilled at a higher cost than expected, with many charges not yet recorded or incurred. As a result of the cost overruns, Yangarra had been asked to provide more funding to the project. In deciding whether to commit additional resources to the Ferrier well, the CEO had to consider several factors including an existing gross overriding royalty revenue (GORR) agreement, uncertainty in estimating the recoverable quantity of oil, crown royalties, and a current legal dispute.

Teaching Note: 8B11E003 (3 pages)
Issues: Valuation; Net Present Value; Risk Analysis; Natural Resources; Oil and Gas; Alberta, Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Goal Programming

UPPER CANADA INSURANCE
David Wood

Product Number: 9B10D012
Publication Date: 12/13/2010
Revision Date: 6/2/2014
Length: 5 pages

Deborah McDonald of Upper Canada Insurance (Upper Canada) was reviewing several pieces of data she and her team had spent the last month collecting. McDonald and her team had been asked to address the inefficiencies in the life insurance application process, largely due to the high numbers of applicants withdrawing from the system (known as wastage) in the midst of the process. Upper Canada had determined that the most common reason for clients abandoning the application process was the long time required to get a response, followed by lack of communication and poor customer service. It was thought that by solving these problems, Upper Canada could meet or exceed industry wastage levels and improve the efficiency of the sales team. McDonald was assigned the task of analyzing the data and making recommendations to resolve the issues of the application process, but was not certain where to begin.

Teaching Note: 8B10D012 (8 pages)
Industry: Finance and Insurance
Issues: Capacity Utilization; Customer Service; Inventory; Process Flow Development; Create Value
Difficulty: 4 - Undergraduate/MBA



THE CLONLARA HOTEL
John G. Wilson

Product Number: 9B09E002
Publication Date: 3/11/2009
Length: 4 pages

The manager of an upscale hotel in the heart of London, Ontario - The Clonlara - wanted to apply revenue management techniques to increase revenue at the hotel. Specifically, she wanted to apply quantitative analysis to determine how many rooms to discount for a Saturday night stay.

Teaching Note: 8B09E02 (9 pages)
Industry: Accommodation & Food Services
Issues: Modeling; Revenue Management; Statistical Analysis; Simulation
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Integer Linear Programming

MODERN AGRICULTURAL FARM: BUDGETING FOR CONTROL
Muntazar Bashir Ahmed

Product Number: 9B13B025
Publication Date: 1/10/2014
Revision Date: 4/7/2014
Length: 8 pages

In May 2011, the managing partner of the Modern Agricultural Farm in rural Pakistan was reviewing the set of performance reports for the previous month sent by the farm accountant. These reports had been designed by a management analysis and research consultant to convert the farm system to that used by the head office of the Alamgir Group of businesses, of which the farm was a part. There were two concerns: how to handle the fluctuations in the farm’s monthly cash flow and how to plan the right combination of plantings and crops to ensure a profit. A computer-based accounting software program had been purchased to help expedite accounting and reporting, and an annual master budget plan had been established to control operations. Given the special risks faced in agriculture where the portfolio of crops was dependent on uncontrollable factors, such as the weather, the managing director wondered how he could develop a workable budget for the coming year.

Student spreadsheet 7B13B025 with data is available.


Teaching Note: 8B13B025 (6 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Budget; farm risks; portfolio of crops; control; Pakistan
Difficulty: 4 - Undergraduate/MBA



PROFESSIONAL MEDIA INC.
Peter C. Bell

Product Number: 9B13E004
Publication Date: 2/26/2013
Revision Date: 2/26/2013
Length: 4 pages

A media planner at a specialized media buying firm was in the process of planning the spring 2012 television campaign for a customer with a recognizable brand name. The campaign budget of $7 million was to be spent on seven weeks of advertising during the first 20 weeks of the year. Each week of advertising involved a carefully selected series of advertisements on network and local television, and each week of advertising cost $1 million. Which seven of the 20 weeks should the planner choose? Is the $7 million budget the correct amount?

Teaching Note: 8B13E004 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Media Buying; Modelling; Deterministic Simulation; Integer Optimization; Canada
Difficulty: 4 - Undergraduate/MBA



DD TRADERS: SOURCING FOR DEMDACO
Peter C. Bell, Carolyn Glasow, Julia Ho

Product Number: 9B11E035
Publication Date: 1/16/2012
Revision Date: 5/19/2017
Length: 6 pages

DD Traders was the Asian branch of DEMDACO, a privately held company that wholesaled unique gift products that were marketed and distributed to the specialty retail channel in the United States and some international markets. Carolyn Glasow recognized an opportunity to leverage a quantitative approach to sourcing future allocations across vendors that would also improve the short-term demand transparency that was provided to the company’s key business partners, which could in turn lead to increased bargaining power for price negotiations and production lead times. This was a recurring issue for Glasow and her sourcing team: how should she allocate product purchases among the various manufacturers that bid for the opportunity to supply products to DD Traders?

Teaching Note: 8B11E035 (5 pages)
Industry: Retail Trade
Issues: Optimization; Purchasing; Integer Programming; Procurement; China
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Heuristic Programming

MORE SCHOOL OR LESS TAX: OPTIMIZING THE NEGOTIATION RESULTS
Joo Y. Jung, Young S. Cho, Allan Beck

Product Number: 9B13D012
Publication Date: 5/28/2013
Revision Date: 5/28/2013
Length: 8 pages

In response to a 22 per cent growth rate in their city over a 10-year period, the members of the McAllen Independent District School Board form a committee to research and analyze several potential expansion projects that would accommodate the growing number of students in the area. The committee discovers certain funding opportunities that may represent attractive options for discharging financial responsibilities to the city’s residents, but in order for these funding options to be considered, the residents will first need to be convinced that the selected option is sound. This process will require a series of careful steps on the part of the committee, including thoughtful negotiation.

Teaching Note: 8B13D012 (9 pages)
Industry: Educational Services
Issues: Negotiation; optimization; pareto chart; principled negotiation; United States
Difficulty: 4 - Undergraduate/MBA



CENTRE FOR CELLULAR AND MOLECULAR BIOLOGY: THE COMMERCIALIZATION CHALLENGE
Nita Sachan, Prasad Vemuri, Anand Nandkumar, Charles Dhanaraj

Product Number: 9B11M064
Publication Date: 7/28/2011
Length: 17 pages

This case deals with the commercialization challenges that a premier research institute in an emerging economy faces despite conducting cutting-edge research. The case is set in 2009 in Hyderabad, India, soon after the appointment of CCMB’s new director, Dr. Mohan Rao. Rao has to decide how to proceed with incentivizing the scientists to find potential applications for their research when most scientists are merely interested in doing basic research and when, at the same time, the government is increasing its emphasis on the use of public science for societal good. The case also deals with the role of commercialization and technology transfer, publishing versus patenting, basic versus translation sciences, and incentives.

Teaching Note: 8B11M064 (7 pages)
Industry: Health Care Services
Issues: Commercialization; Technology Transfer; R&D; Translational Science; Incentives; India; Ivey/ISB
Difficulty: 4 - Undergraduate/MBA



CHALLENGE OF ACCESS TO ONCOLOGY DRUGS IN CANADA
Gregory S. Zaric, Chander Sehgal

Product Number: 9B09E020
Publication Date: 12/11/2009
Length: 17 pages

In recent years, many countries with publicly funded healthcare have started using cost-effectiveness analysis (CEA) along with review of clinical data as a tool to assess the overall benefit of a new drug to the society and set priorities with regards to health care budget. Cost effectiveness was formally incorporated into the Ontario drug review system in 1993 and the Canadian drug-review system in 2003. The issue of using cost effectiveness has become increasingly contentious in recent years: some newly approved cancer drugs cost $3,000 to $6,000 or more for one treatment cycle, but their high prices means that they were often classified as being not cost effective. This note reviews many of the competing interests in debates over drug funding and dilemmas about healthcare financing decisions in the presence of limited budgets.

Teaching Note: 8B09E20 (5 pages)
Industry: Health Care Services
Issues: Insurance; Cost/Benefit Analysis; Formulary; Pharmaceuticals; Health Administration
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Travelling Salesperson Problem (TSP)

SCHOOL CHALEY HUM: OPTIMIZING STUDENTS' COMMUTE TO KPS
Omkarprasad S. Vaidya, David Sparling, Rohit Bhagat

Product Number: 9B13D011
Publication Date: 5/14/2013
Revision Date: 4/27/2016
Length: 11 pages

A privately managed school in Raipur, India, is faced with concerns from parents regarding long commutes faced regularly by students. The school has grown from a modest 89 students and 12 faculty members in 1993 to more than 2,700 students. Today, student commutes range from a few steps to several kilometres on school buses of varied capacities. While the transportation manager has been making adjustments to bus routes and capacity at the beginning of each term, the issue has become too large for one person to manage. In response, management decides to hire a consulting firm specializing in supply chain modeling to find a solution that would reduce not only students’ travel times but also fuel consumption and greenhouse gases emitted by the buses, thereby reducing the school’s carbon footprint.

Teaching Note: 8B13D011 (12 pages)
Industry: Educational Services
Issues: Vehicle routing problems; TSP; short distance haul; India
Difficulty: 4 - Undergraduate/MBA



SIGA TECHNOLOGIES: PROFITING FROM UNCERTAINTY
Mehmet A. Begen, Can Cui

Product Number: 9B11E014
Publication Date: 5/30/2011
Length: 8 pages

An equity analyst at Nova Funds, an investment firm, is in the process of analyzing an investment in SIGA Technologies (SIGA), and potentially its competitor, PharmAthene Inc. (PIP). SIGA is currently the only company in the world that has developed a treatment for smallpox, with its ST-246. In late 2010, the U.S. Department of Health and Human Services (HHS) announced the intention to award SIGA a contract valued at up to $2.8 billion, which significantly exceeds SIGA’s current market value, making the company potentially an excellent investment. However, SIGA is prevented from realizing the profit on this contract due to two uncertainties. First, PIP, a partner throughout the development of the ST-246, has sued SIGA over the rights of the ST-246, with the payout of the lawsuit unknown. Second, since the HHS announcement is for the intention to award the contract, the actual contract for SIGA may take on various possibilities. Given these uncertainties, the equity analyst needs to find ways to invest in the situations that produce the most attractive outcome. She may potentially invest by buying or shorting the stocks of the companies involved or through the use of options. Moreover, she may do this over multiple timeframes, if that is justified.

Teaching Note: 8B11E014 (21 pages)
Industry: Finance and Insurance
Issues: Decision Trees; Simulation; Uncertainty; Optimization; Evaluating Alternatives; Investments
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Deterministic Dynamic Programming

MATERIAL REQUIREMENTS PLANNING AT A-CAT CORP.
Jitendra R. Sharma, Tinu Agrawal

Product Number: 9B12D003
Publication Date: 4/12/2012
Revision Date: 4/11/2012
Length: 5 pages

Material requirements planning (MRP) systems have been widely used by manufacturing firms to maintain an optimum flow of inputs for the best production results. By using an MRP system, a firm can prepare a production plan that specifies the number of sub-assemblies that go into a final product along with the exact timeline of an order, from placement to completion.

In the case, an A-CAT employee is assigned the task of preparing an operating plan for the next eight weeks for a product. She has to decide how much to produce to be able to meet the requirements economically, taking into account the forecasted demand. The case examines the intricacies of procurement, warehousing, and processing costs of various material components by critically evaluating different techniques in practice. Using situational scenarios, the case presents lot-sizing techniques — including lot for lot, economic order quantity, least total cost and least unit cost — for balancing costs such as set-up costs, ordering costs, and inventory-holding costs.


Teaching Note: 8B12D003 (8 pages)
Industry: Manufacturing
Issues: Material Requirements Planning; Inventory Management; Lot-sizing Techniques; Bill of Materials; Electrical Appliances; India
Difficulty: 4 - Undergraduate/MBA



CRAIG MANUFACTURING
Peter C. Bell, Benjamin Craig, Andrew Weston, Sachin Gupta

Product Number: 9B11E004
Publication Date: 4/8/2011
Length: 5 pages

The general manager of Craig Manufacturing Cambridge Branch felt that there was room to improve top-line growth through better utilization of plant capacity. The company was losing out on sales due to the highly seasonal nature of demand; the plant was fully loaded four months of the year, but it had unused capacity during the remaining months. The general manager had just attended a lecture where a more flexible approach to pricing had been suggested as a way to better manage supply chain and capacity issues. An idea began to emerge: Could Craig Manufacturing use pricing to better match demand to plant capacity? If so, would this practice boost profitability, or would it merely reduce revenues?

Teaching Note: 8B11E004 (11 pages)
Industry: Manufacturing
Issues: Pricing; Capacity Planning; Optimization; Revenue Management; Seasonal Demand
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Deterministic Inventory Model

HARMONIZING DEMAND FORECASTING AND SUPPLY AT MAHINDRA & MAHINDRA LTD.
Alok Yadav, Sunil Ashra

Product Number: 9B13D019
Publication Date: 1/13/2014
Revision Date: 1/10/2014
Length: 6 pages

Mahindra & Mahindra Ltd., a US$15.4 billion company in 2012, has been the number one tractor manufacturer in India for the last 30 years. The agriculture tractor sale market in India is seasonal in nature and growing. To meet demand, the company has four manufacturing plants and 26 sales offices across the country; their main job is to coordinate supplies between its 800 dealers and the company. The sales offices provide a rolling tractor demand forecast for the current month plus two months in the future; it is used to determine the number and models of tractors to manufacture and to enable placing parts supply orders in advance. The deputy general manager of sales in the company’s Farm Division has been receiving an increasing number of complaints from irate dealers about the irregular and short supply of tractors from the company’s stockyards. This has created stress and low dealer satisfaction. The deputy general manager has decided to improve the demand forecasting of agriculture tractor sales and hence supply management.

Student spreadsheet 7B13D019 with data is available.


Teaching Note: 8B13D019 (10 pages)
Industry: Manufacturing
Issues: Sales forecasting; tractor sales; excel spreadsheet; time series; India
Difficulty: 4 - Undergraduate/MBA



UPGRADING THE SUPPLY CHAIN MANAGEMENT STRATEGY AT SICHUAN TELECOM
Xu Chen, Zhang Du, Li Zheng, Ding Yichao, Liu Ying

Product Number: 9B12D013
Publication Date: 8/21/2012
Revision Date: 8/20/2012
Length: 7 pages

In the process of business development, many enterprises have to deal with issues from all dimensions of operations management including inventory management, distribution management, and network design. Sichuan Telecom, a branch of China Telecom Co. Ltd, which was a Fortune Global 500 company, had achieved its highest market share in its broadband business and maintained strong growth momentum in this segment. However, there was a serious inventory management problem concerning ADSL modems, a component that most broadband users required. The problem was that Sichuan Telecom's ADSL modem inventory was either too high or insufficient. To reduce inventory costs and improve the service level, the procurement manager conducted a comprehensive analysis of the company's sales and demand forecasting, procurement and suppliers, distribution management, warehouse management, and inventory management. This case follows the procurement manager in analyzing the company's existing operational management system for ADSL modems in order to discover the cause of the inventory problem and develop an effective plan to improve operations management.

Teaching Note: 8B12D013 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Supply Chain Management; Inventory Planning Control; Distribution Design; Telecommunications; Service Industry; China; Ivey/CMCC
Difficulty: 5 - MBA/Postgraduate



CRP PRODUCTS
David Wood, Robert Klassen

Product Number: 9B11D015
Publication Date: 11/10/2011
Revision Date: 6/29/2012
Length: 7 pages

Bruce Ballantyne had recently joined C.R.P. Products (CRP), a furniture manufacturer in Stratford, Ontario, to help review the company’s operations and assess what changes were necessary to keep up with demand. Although it was early 2011 and the peak season was still four months away, Ballantyne knew that he would have to determine what equipment was needed over the next three weeks to ensure it was delivered and installed before the peak season. Jamie Bailey, the owner of CRP, had also concluded that CRP did not have the financing available for both the new equipment needed to make its unique design of outdoor furniture and the seasonal working capital required to support inventory and accounts receivable. He had turned to Ballantyne to develop a solution that would keep up with demand, keep inventory low, and work within the available financing.

Teaching Note: 8B11D015 (13 pages)
Industry: Manufacturing
Issues: Capacity Management; Inventory, Batch Size and Free Capacity; Economic Order Quantity; Process Design; Plant Layout; Furniture; Ontario, Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Review of Basic Probability

THE FAB FOUR OF TENNIS
Srinivas Krishnamoorthy, Jonathan Pinto

Product Number: 9B13E022
Publication Date: 7/18/2013
Revision Date: 7/19/2013
Length: 4 pages

In recent years, men’s tennis has been dominated by Roger Federer, Rafeal Nadal, Novak Djokovic and Andy Murray. The question is whether their performance depends on the type of court surface.

Teaching Note: 8B13E022 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Sports Analytics; Hypothesis Testing; Contingency Table; Goodness of Fit
Difficulty: 4 - Undergraduate/MBA



OLGC FINDS ITS MATCH (A)
Chris K. Anderson, John G. Wilson

Product Number: 9B09E014
Publication Date: 12/11/2009
Revision Date: 8/25/2017
Length: 3 pages

The case illustrates a sports betting product offered by the Ontario Lottery and Gaming Commission. The particular game involved has odds that favour the bettor over the game provider under certain settings. The supplement B case, product 9B09E015, summarizes the results from a series of bets made and provides an email response from the game provider following the discontinuation of this particular game. The case provides an interesting introduction into probability or simulation and expected value calculations.

Teaching Note: 8B09E14 (2 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Expected Value; Probability; Simulation
Difficulty: 4 - Undergraduate/MBA



OLGC FINDS ITS MATCH (B)
Chris K. Anderson, John G. Wilson

Product Number: 9B09E015
Publication Date: 12/11/2009
Revision Date: 8/25/2017
Length: 2 pages

This supplement to OLGC Finds Its Match (A), product # 9B09E014, summarizes the results from a series of bets and provides the email response from the game provider following the discontinuation of this particular game.

Teaching Note: 8B09E14 (2 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Probability; Expected Value; Simulation
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Decision Analysis and Games

BAFFINLAND IRON MINES CORPORATION
Craig Dunbar, David Wood, Ken Mark

Product Number: 9B12N029
Publication Date: 12/17/2012
Revision Date: 12/17/2012
Length: 24 pages

Partners in Nunavut Iron Ore Acquisition Inc. (Nunavut), an entity that had been set up to bid for control of Baffinland Iron Mines Corporation (Baffinland), are forced to respond to a rival bid. Baffinland owned the Mary River project, one of the most significant iron ore reserves in Canada, and had been trying to develop the project since 2004, but the number of prospective mining and financing partners declined following the onset of the global financial crisis in 2007. Baffinland’s share price tumbled as a result of its inability to move the project forward, falling from over $4.68 in October 2007 to $0.17 cents in 2008. In September 2010, sensing an opportunity to pick up an asset at a distressed price, Nunavut, backed by a private equity firm in the United States, had sparked a bidding war for Baffinland against ArcelorMittal, a Belgium-based steel company.

Teaching Note: 8B12N029 (15 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Valuation; Synergies; Mergers and Acquisitions; Game Theory; Canada
Difficulty: 4 - Undergraduate/MBA



SEOUL NATIONAL BANK: THE CHIEF CREDIT OFFICER’S DILEMMA
Mehmet A. Begen, Jon Jhun

Product Number: 9B11E013
Publication Date: 5/30/2011
Length: 5 pages

The chief credit officer (CCO) at Seoul National Bank has recently faced numerous defaults on its corporate loans. To address this problem, the CCO must re-evaluate how the bank responds to defaults and determine a default strategy. The CCO must evaluate the payouts and risk profiles of 1) collecting on collateral, 2) partially settling, and 3) waiting and seeing. Further, the CCO must determine a systematic way to approve loans from companies. Analyzing both qualitative and quantities factors, the CCO must determine which companies to approve for loans given a certain size of its loan portfolio. Also, the CCO must determine whether or not to increase or shrink the size of the bank’s loan portfolio based on the expected outcomes and/or simulated results.

Teaching Note: 8B11E013 (8 pages)
Industry: Finance and Insurance
Issues: Simulation; Decision Trees; Optimization; Loan Default; Loan Portfolio; Banking; South Korea
Difficulty: 4 - Undergraduate/MBA



OAKVILLE HYDRO OPTIMUM ENGINE SELECTION
Peter C. Bell, Xinghao Yan, Scott Mudie, Mark Visscher, Aman Raina

Product Number: 9B10E025
Publication Date: 6/22/2011
Revision Date: 11/8/2011
Length: 5 pages

The president of Oakville Hydro Energy services needed to make a decision on the installation of an electricity-generating engine at the regional municipal Wastewater Treatment Plant in Burlington, Ontario. This engine installation was in support of the production of green power, and the Ontario Power Authority (OPA) had introduced a feed-in tariff that paid a premium for the generation of this type of green power. One of three specific engines would be purchased and installed to generate electricity from the combustible gases produced during wastewater treatment. The president had to decide which engine generator would produce the most favourable output and the best return for Oakville Hydro and the municipality. The president also needed to decide whether or not to integrate the existing on-site gas storage tank into the controls of the generator system.

Teaching Note: 8B10E025 (7 pages)
Industry: Utilities
Issues: Decision Analysis; Energy From Waste; Empirical Distributions; Simulation; Green Energy
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Probabalistic Inventory Models

ATHLETIC KNIT
David Wood, Dina Ribbink

Product Number: 9B12D020
Publication Date: 8/31/2012
Revision Date: 7/17/2017
Length: 7 pages

This case investigates issues of obsolescence and inventory control in a local sportswear company that is competing on the global stage with both multinational corporations and foreign, low-cost distributors. Athletic Knit, a family-owned company in Toronto, faces the need to balance peak-season demand during the third quarter of the year with the available knitting production capacity. Inventory, if it serves a purpose, can be an asset to a company, but too much inventory can be a liability. Trade-offs between capacity, inventory, and flexibility to meet custom orders must be met to support corporate strategy. Given the competitive nature of the industry, tighter inventory controls are essential, but the company must weigh endangering its reputation for fast responses to custom orders with managing inventory to prevent stock-outs and/or overruns of stock that cannot be sold.

Teaching Note: 8B12D020 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Inventory Analysis; Economic Order Quantity; Aggregate Planning; Cost; Canada
Difficulty: 4 - Undergraduate/MBA



IEC IN SPORTS
Singfat Chu, Josh Burack

Product Number: 9B11E039
Publication Date: 2/3/2012
Length: 3 pages

A Stockholm-based sports broadcasting firm with five international offices is facing uncertain contract renewals by its current clients from several geographic territories. It must determine the likelihood of profitability if it purchases the global broadcasting rights of the Portuguese Soccer League (Liga Zon Sagres) for the upcoming 2011-2012 season.

Teaching Note: 8B11E039 (11 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Probabilistic and Statistical Modeling; Revenue Management; Risk Management; Sensitivity Analysis; Simulation; Sports Marketing; Sweden; Thailand; Ivey/NUS
Difficulty: 5 - MBA/Postgraduate



THE UNIVERSITY OF WYOMING MEN’S BASKETBALL TEAM
John G. Wilson, Craig Sorochuk

Product Number: 9B11E034
Publication Date: 10/7/2011
Length: 4 pages

At the University of Wyoming, home games played by the men’s basketball team generated significant revenues for the athletics department through ticket and concession sales. With the 2009-2010 season ending, it was time to forecast revenues for the upcoming season. Even though ticket prices were already set, providing a revenue forecast was difficult, as the schedule of home games for the 2010-2011 season was not yet known, and both ticket and concession sales for each game were uncertain. A director of business operations for the athletics department needed to review data from the four most recent seasons and determine the best way to forecast revenues for the upcoming season.

Teaching Note: 8B11E034 (14 pages)
Industry: Other Services
Issues: Revenue Forecasting; Demand Uncertainty; Linear Regression
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Markov Chains

TRAVEL TIME ON US-202 SOUTH (A)
Fredrik Odegaard

Product Number: 9B12E011
Publication Date: 5/22/2015
Revision Date: 10/10/2012
Length: 5 pages

An eight-mile stretch of the US-202 South near Philadelphia, USA, exhibits classic day-dependent traffic congestion problems. During certain parts of the day, traffic flows freely and without delays. During other parts of the day, however, traffic can be highly congested, and significant delays occur. This case and the subsequent (B) case center on trying to determine (1) what data to collect, and (2) what modeling approach to use in order to estimate the expected total travel time.

Teaching Note: 8B12E011 (4 pages)
Industry: Transportation and Warehousing
Issues: Markov Chain; Travel Time; Traffic Congestion; Stochastic Process; United States
Difficulty: 4 - Undergraduate/MBA



TRAVEL TIME ON US-202 SOUTH (B)
Fredrik Odegaard

Product Number: 9B12E012
Publication Date: 5/22/2015
Revision Date: 10/10/2012
Length: 3 pages

Supplement case to Travel Time on US-202 South (A), product 9B12E011.

Teaching Note: 8B12E011 (4 pages)
Industry: Transportation and Warehousing
Issues: Markov Chain; Travel Time; Traffic Congestion; Stochastic Process; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 18:
Queuing Systems

AMBULANCE DIVERSION AND EMERGENCY DEPARTMENT FLOW AT THE SAN FRANCISCO GENERAL HOSPITAL
Gregory S. Zaric, Lesley Meng

Product Number: 9B13E005
Publication Date: 3/11/2013
Revision Date: 3/11/2013
Length: 13 pages

The emergency department of any large hospital is frequently subject to substantial patient crowding, a result of arrivals by foot and ambulance, and limited resources. The San Francisco General Hospital is particularly crowded due to its prominence as the only trauma centre in the city. As a result, it is on ambulance diversion almost 25 per cent of the time, more than any other hospital in the area. Hospital managers are looking for ways to alleviate emergency department crowding and ambulance diversion.

Teaching Note: 8B13E005 (10 pages)
Industry: Health Care Services
Issues: Hospital; Simulation; Emergency Department; Health Care; United States
Difficulty: 4 - Undergraduate/MBA



SUNSET GRILL AT BLUE
John S. Haywood-Farmer, Dina Ribbink, Jason Melhuish

Product Number: 9B10D015
Publication Date: 2/3/2011
Length: 13 pages

A partner and owner of the Sunset Grill at Blue Mountain in the ski village at Blue Mountain, Ontario, had very mixed emotions. The restaurant had just finished its first year of operation and had broken even, and had been named as the Business of the Year in the counties of Simcoe and Grey. Yet the owner knew that operations were still far from perfect. Queues of waiting customers were very long, food orders were delivered slowly, and tensions were rising. What could be done to improve the situation?

Teaching Note: 8B10D015 (11 pages)
Industry: Accommodation & Food Services
Issues: Aggregate Planning; Wait Lines; Franchising; Breakfast Restaurant; Seasonality; Capacity and Demand
Difficulty: 4 - Undergraduate/MBA



PROCESS MANAGEMENT STRATEGY FOR XYZ LIMITED - KLTD DIVISION
Srinivasan Maheswaran

Product Number: 9B09D007
Publication Date: 10/14/2009
Length: 4 pages

The case describes the situation faced by the vice-president of operations at Konkan Leaf Tobacco Development, the tobacco processing unit of XYZ Limited. This unit is in charge of procurement and processing of different varieties and grades of tobacco grown in southern India. The tobacco leaves are categorized into different varieties on the basis of quality and location of the crop. The company has two processing plants with varying processing capacities. Due to the seasonal and agricultural nature of the commodity, the company is finding it difficult to maintain efficiencies between the inflow of the tobacco and the requirement of the processing line capacity, resulting in frequent start-stop situations for the processing lines. This case enables students to develop strategies for the process management to achieve the optimum process schedule, which will result in the fewest stoppages of the process lines and optimization of both the utilization of the processing lines and the inflow patterns among the processing units.

Teaching Note: 8B09D07 (8 pages)
Issues: Mapping Inflow and Processing Line Capacity; Process Management; Capacity Utilization; Forecasting
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Simulation Modeling

MOBIALS
Srinivas Krishnamoorthy, Marit van den Berg

Product Number: 9B13E021
Publication Date: 10/30/2013
Revision Date: 6/18/2019
Length: 5 pages

Two business-school grads are the co-founders of a technology startup that provides a mobile-based solution for automotive reviews. The case focuses on customer validation and on fitting a demand model to the aggregate sales data from the test versions of their product.

Teaching Note: 8B13E021 (2 pages)
Industry: Other Services
Issues: Startup revenue model; customer validation; discrete choice analysis; Canada
Difficulty: 4 - Undergraduate/MBA



SAP LABS: STAFF REQUIREMENTS
Ajith J. Kumar, Amit Kumar Pansari

Product Number: 9B13E015
Publication Date: 5/14/2013
Revision Date: 5/1/2013
Length: 10 pages

The associate project manager for the Indian branch of SAP Labs, a multinational enterprise that provides software and software-related services, has been meeting with his manager to discuss ways to estimate staff requirements across shifts for the company’s provisioning team. The team works three shifts, 24 hours a day, seven days a week and services multiple types of requests in the form of tasks, which have one of seven priorities assigned to them. Service level agreements with customers require that the initial reaction time of the team meet specific requirements, which differ across priorities. Employing service agents involves costs for the organization. The project managers must identify a shift schedule that minimizes the number of staff used in a service setting while meeting the service level agreement expectations.

Teaching Note: 8B13E015 (21 pages)
Industry: Information, Media & Telecommunications
Issues: Discrete-event simulation; staff scheduling; service operations; optimization; India
Difficulty: 5 - MBA/Postgraduate



HEALTHWAY MEDICAL
Noel Yeo, Singfat Chu

Product Number: 9B13E007
Publication Date: 4/9/2013
Revision Date: 4/4/2013
Length: 5 pages

A small publicly listed company is entertaining the idea of adding nursing home management to its medical value chain, which is currently focused on consultation. Management must rely on simulation in order to determine the feasibility of operating a nursing home according to admissions protocol and subsidies granted by a governmental agency.

Teaching Note: 8B13E007 (7 pages)
Industry: Health Care Services
Issues: Nursing home management; simulation; revenue management; Singapore
Difficulty: 4 - Undergraduate/MBA


Chapter 20:
Classical Optimization Theory

C. R. PLASTICS
David Wood, Mary Gillett

Product Number: 9B11D016
Publication Date: 1/3/2012
Revision Date: 9/11/2018
Length: 10 pages

Jamie Bailey, owner and president of C. R. Plastics, had successfully grown his business every year since 1994 when he began producing recycled plastic outdoor furniture. This rapid growth had provided its own challenges in terms of constrained financing and by summer 2010, Bailey was desperate for a new source of cash. He subsequently auditioned to be on Dragon’s Den, a television show where entrepreneurs could pitch their business to a group of venture capitalists, who could then choose to invest their own cash in exchange for a share of the business. With a week remaining before he had to present his final pitch, Bailey had to make a difficult prediction: How much money would he need to meet the growing demand into 2011? Complicating his analysis were competing proposals to fundamentally change how production was managed. In addition to reconfiguring labour allocation, one method required significant investment in equipment, while the other increased inventory during the off-season. Which alternative would allow the company to retain a greater share of the equity when Bailey pitched his business to the Dragon’s Den panel?

Teaching Note: 8B11D016 (8 pages)
Industry: Manufacturing
Issues: Cash Flow Projections; Financing; Valuation; Seasonal Working Capital Management; Furniture; Canada
Difficulty: 4 - Undergraduate/MBA



M2 UNIVERSAL COMMUNICATIONS
Srinivas Krishnamoorthy, Peter C. Bell, Ankur Bansal, Peter Vaz

Product Number: 9B09E013
Publication Date: 10/21/2009
Length: 5 pages

Teleco Inc. (Teleco), an established telecom conglomerate with a significant position in the Canadian wireless business, had engaged M2 to plan its digital media spending strategy for the upcoming quarter. The vice-president at M2 would have to help Teleco decide on the ideal investment strategy for its $1.5 million digital media advertising budget and wondered how this would affect M2's strategic recommendations.

Teaching Note: 8B09E13 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Internet; Advertising Media; Advertising Strategy; Optimization
Difficulty: 4 - Undergraduate/MBA



ARTHUR HILL & COMPANY REALTY SERVICES
Peter C. Bell, Srinivas Krishnamoorthy

Product Number: 9B09E012
Publication Date: 9/24/2009
Revision Date: 8/4/2011
Length: 4 pages

The chief leasing officer (CLO) of Arthur Hill & Company was preparing Sunrise Atrium (a commercial property currently in the company's portfolio) for sale. Currently, many of the tenants of the building had signed long-term leases that still had time to run but were significantly below market rates. The CLO believed that the majority of potential buyers of Sunrise Atrium would use the cap rate method of valuation, which made the future net operating income (NOI) a key component of the valuation and hence the sale price. To improve the value of the building, the CLO was considering offering a rent holiday to selected tenants as a way of raising some leases to market rates. To determine if it made business sense, the CLO identified the key success factors to be the choice of tenants eligible for the holiday and the duration of the holiday. His goal was to develop a lease reconfiguration plan that would add value to investors.

Teaching Note: 8B09E12 (4 pages)
Issues: Present Value; Optimization; Private Placement; Real Estate
Difficulty: 4 - Undergraduate/MBA


Chapter 21:
Nonlinear Programming Algorithms

NATIONAL PHARMACEUTICAL PRICING AUTHORITY (NPPA): INFLUENCING CUSTOMER BEHAVIOUR
K.R. Jayasimha, Srabanti Mukherjee

Product Number: 9B12A016
Publication Date: 5/25/2012
Revision Date: 5/17/2012
Length: 14 pages

Since its inception in 1997, the National Pharmaceutical Pricing Authority (NPPA) had been trying to control drug prices through various supply-side initiatives, which had yielded limited success. This time around, NPPA had announced a new initiative, which was aimed at educating consumers about the inexpensive alternatives for medicines prescribed by doctors. By giving consumers information about various brands and their prices, NPPA hoped to offer customer self-selection of drugs through short message service (SMS, or “texting”). NPPA appeared to be operating on the premise that customer self-selection could result in self-regulation of consumption, thereby giving greater control of health care expenses to customers. Given the huge penetration of mobile phones in India and the gradual reduction of various mobile service charges, text-based service looked feasible. However, the proposed system had met with strong opposition from other stakeholders, such as doctors and chemists. Besides, the large-scale adoption of the proposed service was being questioned as the decision-making process for medicines was very complex.

Teaching Note: 8B12A016 (10 pages)
Industry: Health Care Services
Issues: Decision-making Process; Decision-making Unit; Moral Hazard; Consumption; Health Care; India
Difficulty: 5 - MBA/Postgraduate



BRAND EQUITY
Chris A. Higgins, Jodie Whelan

Product Number: 9B10E023
Publication Date: 2/1/2011
Length: 3 pages

A market research company has collected a large dataset on brand equity for the fast food and travel sectors. It has come up with a way of measuring brand equity. Various statistical techniques are used to assess the concept of brand equity. These include descriptive statistics, crosstabs, ANOVA, and MANOVA.

Teaching Note: 8B10E023 (10 pages)
Industry: Arts, Entertainment, Sports and Recreation, Manufacturing
Issues: ANOVA/MANOVA; Brand Equity; Measuring Intangible Constructs
Difficulty: 4 - Undergraduate/MBA