Ivey Publishing

Quantitative Analysis for Management

Render, B., Stair, R.M., Hanna, M.E, Hale, T.S.,12/e (Canada, Pearson, 2015)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction to Quantitative Analysis

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



SPRINGBANK DRIVE
Gregory S. Zaric, Leo MacDonald

Product Number: 9B06E006
Publication Date: 12/15/2006
Revision Date: 9/17/2009
Length: 6 pages

The City of London was expropriating a portion of Springbank Drive as part of a project to widen the road between Wharncliffe Road and Wonderland Road. The owner of Canning Consultants Inc. was retained by the city to assess the resultant property value loss for the affected residents. The consultant had assembled a database of residential sales along with various property attributes, and had to determine how to proceed in calculating appropriate compensation for the taking. This case is appropriate in a module on multiple linear regression models.

Teaching Note: 8B06E06 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: Quantitative Analysis; Regression Analysis; Valuation; Real Estate; Linear regression
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Probability Concepts and Applications

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



UNDERSTANDING POLITICAL POLLS
Chris A. Higgins

Product Number: 9B07E016
Publication Date: 8/30/2007
Length: 2 pages

This case examines the interpretation of political polls. It discusses margin of error, confidence intervals and the relationship between sample size and margin of error. An Excel spreadsheet is included, Ivey product # 7B07E016, to help students understand the concepts.

Teaching Note: 8B07E16 (5 pages)
Issues: Politics; Probability; Statistical Analysis
Difficulty: 5 - MBA/Postgraduate



RELIABILITY LIFE DATA ANALYSIS FOR DECISION MAKING
Peter C. Bell, Sang-Won Kim

Product Number: 9B06E011
Publication Date: 6/21/2006
Revision Date: 9/17/2009
Length: 5 pages

A research institute has a concern with the reliability requirements of a military vehicle. Reliability is the probability that a system will accomplish its designated mission in a satisfactory manner or in more specific terms, the probability that it will perform in a satisfactory manner for a given period when used under specified operating conditions. Reliability of a weapon system is often expressed in terms of mean time between failure (MTBF). Two military vehicles were tested to obtain reliability life data for reliability evaluation. The objective of this case is to introduce reliability concept, MTBF, life data analysis and objective procedure for a decision making.

Teaching Note: 8B06E11 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Decision Making; Life Data Analysis and Estimation; Reliability
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Decision Analysis

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



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



LULULEMON ATHLETICA: PRIMED FOR GROWTH
Eric Morse, Ken Mark, Patrick A. Walsh

Product Number: 9B06M092
Publication Date: 10/25/2006
Revision Date: 9/23/2009
Length: 15 pages

The chairman and chief product designer of lululemon athletica is preparing to address an audience at an investor's conference. He describes lululemon's great success from 1998 to 2006 and analyses the growth opportunities it faces. This case helps students understand the concept of competitive advantage in relation to the functional and emotion marketing drivers. In addition, it underlines the importance of preserving brand equity and prioritizing strategic growth options.

Teaching Note: 8B06M92 (7 pages)
Industry: Manufacturing
Issues: Decision Theory; Decision Trees; Decision Support Systems; Decision Analysis
Difficulty: 4 - Undergraduate/MBA



SCHERING PLOUGH: REPLACING CLARITIN
Chris K. Anderson, Andre Mousseau

Product Number: 9B05E010
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 5 pages

Schering Plough is a large pharmaceutical company with over 22,000 employees worldwide, and over $6.8 billion in sales worldwide. The company is considering two options to replace its flagship drug, Claritin (an antihistamine), as Claritin's patent is soon to expire. One drug is targeted toward nasal congestion, the other towards asthma; however, each drug is at a different stage in the development process, one has greater market potential but was still in its early development stage, the other drug could be launched within the year but would appeal to a much smaller market. The company must decide which drug to pursue or whether to focus on both drugs or neither. The case allows students to do a traditional NPV analysis and decision analysis and the use of simulation.

Teaching Note: 8B05E10 (6 pages)
Industry: Manufacturing
Issues: Net Present Value Method; Real Options; Simulation; Decision Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Regression Models

GETCLARITY INC. (A)
Xinghao Yan, Mathew MacFayden, Matthew Morden

Product Number: 9B14E015
Publication Date: 7/16/2014
Revision Date: 7/23/2014
Length: 4 pages

GetClarity Inc. is a start-up firm that specializes in the accumulation, analysis and sale of various types of data, including the firm’s own data, which has been attained through an exclusive contract. The company’s current job involves working for an auto-manufacturing client to identify a potential location for a new dealership. Two young analysts conduct data analysis on the age of the area and the market size, based on the customer demographic data. An Excel spreadsheet for students is available (see 7B14E015).

Teaching Note: 8B14E015 (6 pages)
Industry: Information, Media & Telecommunications
Issues: Data analysis; customer information; demographic data; hypothesis test; Canada
Difficulty: 4 - Undergraduate/MBA



ST. MARY MATERNITY HOSPITAL: INTRODUCTION TO SPSS AND STATISTICAL ANALYSIS
Satyendra Singh, Meera Kaur

Product Number: 9B12E009
Publication Date: 9/4/2012
Revision Date: 8/1/2012
Length: 3 pages

St. Mary Maternity Hospital, a nonprofit organization, had a mission to deliver healthy babies at normal weight and to offer medical care to expectant mothers regardless of their financial situation. This case demonstrates the value of staying focused on achieving a mission statement. To achieve the hospital’s mission, it was important to identify factors that could affect the weight and health of babies. This case demonstrates how a few factors related to birth could result in insightful and actionable recommendations for doctors, administrators, and policy makers.

Teaching Note: 8B12E009 (9 pages)
Industry: Health Care Services
Issues: Statistical Analysis; SPSS; Health Care; Non-profit Management; Performance Measurement; India
Difficulty: 2 - Intro/Undergraduate



THE PROFESSOR PROPOSES
Gregory S. Zaric, Michael Leff

Product Number: 9B06E017
Publication Date: 6/4/2007
Revision Date: 9/17/2009
Length: 13 pages

A professor is shopping for a diamond engagement ring. He finds one with certain specifications for a certain price, and wishes to determine if the price of the diamond is fair. He collects data on the prices and characteristics (cut, colour, clarity and carats) of several hundred diamonds from three Internet wholesalers. This case can be used for linear regression analysis with categorical variables as well as other statistical techniques.

Teaching Note: 8B06E17 (18 pages)
Industry: Retail Trade
Issues: E-Commerce; Commodity Pricing; Regression Analysis; Statistical Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Forecasting

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



A-CAT CORP.: FORECASTING
Jitendra R. Sharma

Product Number: 9B13D016
Publication Date: 9/13/2013
Revision Date: 9/6/2013
Length: 4 pages

A-CAT Corp., a company that produces domestic electrical appliances in a poor region of India, largely caters to the price-sensitive rural market. During the past several months, there has been an alarming dip in sales of its major product, a voltage regulator that is used for varied purposes but most commonly as a protective device for refrigerators and television sets, to protect the latter from the vagaries of load fluctuations and/or frequent power failures, which are a very common phenomenon in the region. At the same time, the production department has been complaining about shortages of spares and components. Placing orders beyond a certain limit for the vital transformers used in most of its products has also stretched the system — whereas the company previously had access to four suppliers of transformers, now there is only one. The vice president has asked the chief operations manager to look into the problem. The operations manager traces the production planning process and its reliance on accurate forecasts. The manager’s job is to collect the data, analyze the data patterns, use forecasting methods, carry out back-testing and submit recommendations to management to solve the problem.

Teaching Note: 8B13D016 (13 pages)
Industry: Manufacturing
Issues: Forecasting; back testing; errors; India
Difficulty: 4 - Undergraduate/MBA



WILKINS, A ZURN COMPANY: DEMAND FORECASTING
Carol Prahinski, Eric Olsen

Product Number: 9B06D006
Publication Date: 8/21/2006
Revision Date: 9/16/2009
Length: 11 pages

The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting the sales demand. Currently forecasts are based on the plant manager, sales/marketing manager and inventory manager's knowledge of industry trends, competitive strategies and sales history. He must decide if using statistical forecasting methods would ease the forecasting process and make the forecast more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression and time series. The data characteristics include seasonality, trend and random fluctuations.

Teaching Note: 8B06D06 (23 pages)
Industry: Manufacturing
Issues: Sales Forecasting; Demand Analysis; Planning Information; Uncertainty
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Inventory Control Models

ELIZABETH ARDEN: EXECUTING GLOBAL SUPPLY CHAIN RE-ENGINEERING
David Wood, Norman Gao

Product Number: 9B13D017
Publication Date: 11/8/2013
Revision Date: 10/20/2016
Length: 12 pages

In mid-2008, the senior vice-president of Global Supply Chain at Elizabeth Arden in New York City was troubled with the challenges that lay before him. He had been hired to make sweeping changes to the company’s management of its supply chain, and he had already made a significant impact in forecasting, inventory control and service performance. His next move would require a radical consolidation of suppliers, make dramatic changes to inventory management, have a far-reaching impact on product development and require major lead time reductions. Given such a disruptive move, would current suppliers be able to meet expectations? Could the company’s current employees keep up with the pace of change expected? How many would have to be let go, and what would this do the morale of the workforce? Were significant results to shareholders really achievable? How much money would be saved, where would the savings come from and when would they be realized? The senior vice-president was determined to execute the re-engineering in a manner that would best address all these concerns.

Teaching Note: 8B13D017 (14 pages)
Industry: Retail Trade
Issues: Strategy; design; restructuring; impact of supply chain innovation; United States
Difficulty: 4 - Undergraduate/MBA



PROGISTIX-SOLUTIONS INC. - THE CRITICAL PARTS NETWORK
P. Fraser Johnson, Alison Woodcock

Product Number: 9B05D002
Publication Date: 1/28/2005
Revision Date: 9/28/2009
Length: 8 pages

The president and chief executive officer of Progistix-Solutions Inc. has asked an analyst to prepare an annual review of the Xerox Critical Parts Network for presentation to management in two weeks. The president expected the analyst to review the performance of the network and establish an improvement plan for the coming year, supported by specific goals and objectives. Although Xerox and Progistix had been satisfied with their relationship, after five years, both parties were interested in exploring ways to improve the network, particularly as competitors adopted similar approaches. In preparation for the meeting, the analyst wanted to explore opportunities in three specific areas. First, identify opportunities to improve depot operations. Second, he believed that opportunities existed to make additional improvements in the area of inventory management and he wondered how and where Progistix could work together with Xerox on such an initiative. Third, was to improve system-wide inventory turn performance by re-examining the cut-off point for filling the technicians' trunks with inventory. This case provides an opportunity for students to analyse a rapid-response supply chain and make recommendations for improvements. Class discussion can include issues related to supply chain partnerships, outsourcing, inventory management and demand forecasting. Data provided in the case allow students to develop implementation plans and set specific performance targets.

Teaching Note: 8B05D02 (9 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Logistics; Inventory Planning/Control; Outsourcing
Difficulty: 4 - Undergraduate/MBA



NECANKO, INC.
Carol Prahinski

Product Number: 9B04D020
Publication Date: 9/12/2004
Revision Date: 10/9/2009
Length: 2 pages

Necanko Inc. is a large international food manufacturer. A buyer-scheduler for the company must forecast sales demand to determine production planning, inventory management and distribution for the year. Sales were normally predictable and stable, but the company has just come back from a three month layoff due to slow sales and they are now experiencing a sales increase three times greater than usual. The buyer-scheduler is uncertain why the sales are spiking and must decide what action to take.

Teaching Note: 8B04D20 (9 pages)
Industry: Manufacturing
Issues: Production Scheduling; Bullwhip Effect; Uncertainty; Marketing Channels
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Linear Programming Models: Graphical and Computer Methods

LANDHILLS WINERY: DEVELOPING AN OPTIMAL BLENDING PLAN
Owen P. Hall, Kenneth Ko

Product Number: 9B14E006
Publication Date: 5/21/2014
Revision Date: 5/12/2014
Length: 3 pages

A senior vintner at Landhills Winery (Landhills) has been put in charge of developing an optimal blending plan for the upcoming season. This assignment is the result of a recent Landhills board meeting where the chief executive officer presented her ideas regarding the use of analytics for enhancing profits while at the same time not affecting quality. Specifically, the use of resource optimization could significantly improve Landhills’s profitability. Industry reports have indicated that a growing number of major wineries are using analytics to assist in the wine-blending process. The board meeting concluded with the CEO tasking the senior vintner with developing an analysis and reporting back his findings to the board at next month’s meeting.

Teaching Note: 8B14E006 (5 pages)
Industry: Accommodation & Food Services
Issues: Analytics; wine blending; United States
Difficulty: 4 - Undergraduate/MBA



AGGREGATE PLANNING AT GREEN MILLS
Owen P. 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



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


Chapter 8:
Linear Programming Applications

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



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


Chapter 9:
Transportation, Assignment, and Network Models

DENKA CHEMICALS
Elly Miaw Ling Chia, Singfat Chu

Product Number: 9B14E007
Publication Date: 6/27/2014
Revision Date: 6/27/2014
Length: 5 pages

A manufacturer of over 75 grades of styrenic resins — used to make DVD cases, refrigerator trays, packaging materials and auto parts — faces a “transition loss” each time it switches production from one grade to another. A transition loss for each grade arises from the initial 16 metric tons produced, which are sub-standard and unsuitable for usage by customers. To the company, this implies a loss of resources (raw material and production cost) and a disposal fee ($10,000) to remove each sub-standard production.

The case illustrates a sample of 15 grades for which data on their requirements for machine time usage, raw materials and labour hours are provided, as well as their production cost, selling price and market demand. Some of these grades must also be sold jointly in specific ratios. A newly hired sales executive must present an optimization template that would meet the company’s production constraints and maximize its profitability. Which grades of styrenic resins should be produced? Furthermore, how much of each grade should be produced?


Teaching Note: 8B14E007 (6 pages)
Industry: Manufacturing
Issues: Optimization; production; yield; Singapore
Difficulty: 4 - Undergraduate/MBA



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



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



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



DESIGNING OPTIMAL CAPACITY PLANNING STRATEGIES
Owen P. Hall, Charles McPeak

Product Number: 9B08D003
Publication Date: 4/1/2008
Length: 4 pages

Mapleleaf Corporation is a mid-size player in the paper products industry. The firm has recently become aware that growing demand will soon outstrip its present production capacity. The primary objective of this case is to introduce students to the world of capacity planning and optimization.

Teaching Note: 8B08D03 (5 pages)
Industry: Manufacturing
Issues: Capacity Planning; Multi-source, Multi-demand Optimization Analysis; Net Present Value Method; Forecasting
Difficulty: 5 - MBA/Postgraduate


Chapter 10:
Integer Programming, Goal Programming, and Nonlinear Programming

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



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 11:
Project Management

GLAXOSMITHKLINE: REBALANCING EXCESSIVE WORKLOADS
Ronald Kleer, Singfat Chu

Product Number: 9B14E022
Publication Date: 11/21/2014
Revision Date: 11/20/2014
Length: 4 pages

End-of-month account closure at many firms often requires long work hours, which may lead to staff fatigue and attrition that will affect productivity and quality of work. This is true for GlaxoSmithKline’s Record to Report Finance team in Kuala Lumpur, Malaysia in August 2014. The company is a science-led global business that researches and develops a broad range of innovative products in three primary areas: pharmaceuticals, vaccines and consumer health care. The team in Malaysia has 40 employees who provide services including month-end accounts closure, financial reporting and analytics to business units operating in the Philippines, Malaysia, Brunei, Singapore, Australia, New Zealand, Indonesia, Thailand and Vietnam. At the end of every month, the team must perform within five days a sequence of 17 activities requiring varying man-hours. The activities must follow a specific flow according to information availability and must, for internal efficiency and quality control reasons, start and end on the same day. Is there a method by which management can help the team achieve work balance or minimize the number of work hours per day?

Teaching Note: 8B14E022 (7 pages)
Industry: Health Care Services
Issues: Work balance; project management; optimization; operations; Malaysia
Difficulty: 4 - Undergraduate/MBA



CONVOCATION AT THE NATIONAL INSTITUTE OF MANAGEMENT'S CENTRAL INDIA CAMPUS (A)
Srinivasan Maheswaran, Jitendra R. Sharma, John S. Haywood-Farmer

Product Number: 9B13D003
Publication Date: 2/25/2013
Revision Date: 2/22/2013
Length: 10 pages

The (A) case involves managing the planning and execution of the first convocation held at one of the campuses of a business school in Nagpur, India, at fairly short notice. The school’s chairperson of post-graduate studies in management programs has been appointed as the chief co-ordinator of the event. Leveraging his operations-management background and working in collaboration with other faculty, he sets about identifying the required activities and their precedence relationships in order to ascertain the time required to complete these activities.

The (B) case 9B13D004 presents a situation that arises about three weeks into the project that necessitates some replanning in midstream.


Teaching Note: 8B13D003 (10 pages)
Industry: Educational Services
Issues: critical path; project management; India
Difficulty: 4 - Undergraduate/MBA



PROJECT MANAGEMENT ANALYSIS IN THE INTERNET FORECASTING INDUSTRY
Owen P. 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


Chapter 12:
Waiting Lines and Queuing Theory Models

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



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 13:
Simulation Modeling

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



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



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


Chapter 14:
Markov Analysis

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


Chapter 15:
Statistical Quality Control

ASTERAND: LEARNING FROM FAILURE
Anne Snowdon, Hannah Standing Rasmussen, David Maslach

Product Number: 9B12D018
Publication Date: 10/29/2012
Revision Date: 10/26/2012
Length: 11 pages

This case chronicles the challenges of establishing an innovative tissue bank service to accelerate the research and development processes of biotechnology and pharmaceutical companies worldwide. Asterand’s two major challenges involved achieving a standardized approach to collecting tissue samples in hospitals all over the world and achieving the highest possible quality of tissue samples shipped to their primary customer, Amgen. Despite the identified need for high-quality tissue samples, Asterand was experiencing multiple quality control problems in their processes and procedures. Tissue samples were being packaged poorly, labeled incorrectly or delivered at the wrong time or to the wrong place. Additionally, there were quality issues with the RNA analysis of the samples, which was a critical factor in the usability of the tissue sample for research and development of new therapies and drugs.

The head of pathology at Amgen’s California facility was threatening to terminate their existing order and communicate the failure of Asterand to all company employees, which would have a devastating ripple effect across the industry and likely destroy opportunities for any future orders with Asterand. If this happened, Asterand would not be able to secure contracts with customers and was at risk of losing investors and going bankrupt.


Teaching Note: 8B12D018 (11 pages)
Industry: Health Care Services
Issues: Health sector; medical products; product quality; customer relationship; United States
Difficulty: 4 - Undergraduate/MBA



QUALITY MANAGEMENT IN THE OIL INDUSTRY: HOW BP GREASES ITS MACHINERY FOR FRICTIONLESS SOURCING
Martin Lockstrom, Shen Li, Shengrong (Linda) Zhang

Product Number: 9B12D006
Publication Date: 3/28/2012
Revision Date: 3/28/2012
Length: 9 pages

In the winter of 2010 in Shanghai, Dr. Zeb Feng, procurement director for Asia at British Petroleum (BP), was acutely aware of the growing burden that quality control imposed over his company’s global operations. Chinese suppliers were masters of cost-cutting, but quality often suffered as a result, which led in turn to an increased need for inspection and development efforts. Almost five years ago, Feng’s company had established an international procurement office (IPO) in Shanghai, which served as a shared service centre for internal customers throughout BP worldwide. Since that time, the IPO had been mainly sourcing non-hydrocarbon goods and services.

After a corporate board meeting with Christina De Luca, the vice president of procurement and supply chain management for BP’s downstream operations, it had been decided that the company would start to enhance its global competitive sourcing. As the number-one supplier market in the world, China was a high priority for further oil exploration. The pressing point that concerned Feng was whether Chinese suppliers were sufficiently ready to supply mission-critical supplies for oil drilling, extraction, and refining. During a recent conference call, De Luca had reiterated, “Zeb, our competitors are way ahead of us in their sourcing operations, and they have achieved much lower costs. We’ve got to do something!” Feng had to gather his team for a planning meeting. He knew that supply quality was the key issue, but how could it be resolved?


Teaching Note: 8B12D006 (6 pages)
Industry: Other Services
Issues: International Procurement Office (IPO); Quality Management; China; CEIBS
Difficulty: 5 - MBA/Postgraduate



VIADROME
Chris A. Higgins, David Wiskel

Product Number: 9B07E015
Publication Date: 8/30/2007
Length: 2 pages

This case looks at an in-house experiment conducted by a plant manager to determine whether his quality control machines are functioning properly. The case can be used to help students understand the concept of variation and sources of variation. It is also useful for illustrating the effective use of descriptive statistics, single sample tests, paired tests and their non-parametric equivalents.

Teaching Note: 8B07E15 (9 pages)
Industry: Manufacturing
Issues: Statistical Analysis
Difficulty: 5 - MBA/Postgraduate