Ivey Publishing

Quantitative Analysis for Management

Render, B., Stair Jr., R., Hanna, M.E.,9/e (United States, Pearson, 2006)
Prepared By Guoren Zhang, Ph.D. Candidate (Management Science)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction to Quantitative Analysis

OPION
Gregory S. Zaric, Shamir Allibhai

Product Number: 9B02E003
Publication Date: 8/14/2002
Revision Date: 11/30/2009
Length: 4 pages

Opion produced buzz scores for a number of stocks on the major United States indices. A buzz score was a combination of the total volume of postings to a number of Internet message boards and the credibility of those doing the posting. Opion claimed that rapid changes in buzz for a stock represented unusual activity or indicated possible trends. Opion's challenge, was scaling their buzz scores in such a way that the baseline or typical level of buzz would not influence the interpretation of a large change in buzz. This case can be used to introduce the concepts of variability, confidence limits and control limits.

Teaching Note: 8B02E03 (7 pages)
Industry: Other Services
Issues: Uncertainty; Statistical Analysis; Probability; Quality Control
Difficulty: 2 - Intro/Undergraduate


Chapter 2:
Probability Concepts and Applications

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

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

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

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


Chapter 3:
Decision Models and Decision Trees

HONG KONG CONVENTION AND EXHIBITION CENTRE
John S. Hulland

Product Number: 9A99E023
Publication Date: 7/21/1999
Revision Date: 1/15/2010
Length: 2 pages

Kandy Chan, the director of operations at the Hong Kong Convention and Exhibition Centre is trying to decide whether or not to purchase 2000 new chairs. As he looks ahead, Chan anticipates an occasional shortage of chairs during major events. He has a choice between purchasing the needed chairs outright, or signing an agreement to rent the chairs for the coming peak season with an option to rent them as well during the following season.

Teaching Note: 8A99E23 (4 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Equipment Investment; Decision Analysis; Decision Trees; Rental Decisions
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Regression Models

ORION BUS INDUSTRIES: CONTRACT BIDDING STRATEGY
Peter C. Bell, Paul Royal, Jay Hamilton

Product Number: 9B03E005
Publication Date: 6/26/2003
Revision Date: 10/19/2009
Length: 5 pages

Orion Bus Industries is a manufacturer of transit buses that are purchased by transit authorities across North America. The majority of Orion's sales are made through competitive bidding processes. The company's goal is to either increase margins while maintaining sales levels or to increase the total volume of sales. The chief executive officer would like to know whether historical contract bidding data can be used to improve the success of future bids for bus contracts.

Teaching Note: 8B03E05 (7 pages)
Industry: Manufacturing
Issues: Decision Analysis; Bidding; Linear regression; Risk Analysis; Regression Analysis
Difficulty: 4 - Undergraduate/MBA



ONLINE LOW-PRICE GUARANTEES - DOLLAR.COM (A)
Chris K. Anderson, Benjamin Marcus

Product Number: 9B04E016
Publication Date: 6/24/2004
Revision Date: 10/9/2009
Length: 10 pages

Dollar Thrifty Automotive Group is an automobile rental service and has just launched its latest marketing campaign. The campaign is designed to entice customers to book car rental reservations on their website versus booking on more expensive online channels. The campaign hinges on a low price guarantee: book on Dollar's website, if rates go down Dollar will rebate you. A cost out for the low price guarantee can be determined using both historical data and potential price models, and a breakeven analysis can be performed to determine how much reservations traffic must move to Dollar.com to justify the campaign.

Teaching Note: 8B04E16 (8 pages)
Industry: Other Services
Issues: Revenue Management; Simulation; Regression Analysis; Pricing
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Forecasting

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

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

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

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



NORTHERN NAPA VALLEY WINERY, INC
Peter C. Bell

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

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

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


Chapter 6:
Inventory Control Models

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

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

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

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


Chapter 7:
Linear Programming Models: Graphical and Computer Methods

MARS INCORPORATED: ONLINE PROCUREMENT
Peter C. Bell

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

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

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



DOFASCO - FUEL MANAGEMENT
Peter C. Bell

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

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

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


Chapter 8:
Linear Programming Modeling Applications and Computer Analyses

PRODUCTION PLANNING AT VIKTOR LENAC SHIPYARD
David M. Currie, Giorgio Sinkovic

Product Number: 9B04D019
Publication Date: 11/23/2004
Revision Date: 5/18/2017
Length: 6 pages

An executive wonders if it is possible to increase profits by changing the mix of products at a shipyard. The yard currently operates below the breakeven point, so must achieve profitability or default on loan payments.

Teaching Note: 8B04D19 (6 pages)
Industry: Manufacturing
Issues: linear programming; spreadsheet application, strategy
Difficulty: 4 - Undergraduate/MBA



PETRO PIPE LINES CORPORATION
Peter C. Bell, Sulaiman Al-Hudhaif

Product Number: 9A98E038
Publication Date: 4/30/1999
Revision Date: 1/28/2010
Length: 7 pages

A management scientist was asked by the president of a gas production company to develop a model for allocating the gas supplied to the Petro Pipe Lines Corporation gas plant among the various suppliers, according to the terms of the gas supply contracts. The intent of the model was to minimize the penalties imposed at the end of each month on the gas suppliers as a result of daily differences between production (supply) and nomination (demand) for each contract. (A Microsoft Excel data file is available for use with this case, product 7A98E038.)

Teaching Note: 8A98E38 (6 pages)
Industry: Manufacturing
Issues: Resource Allocation; Linear Programming; Spread Sheet Application
Difficulty: 4 - Undergraduate/MBA



NEW ENGLAND FEED SUPPLY
Peter C. Bell, Drew Parker

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

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

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


Chapter 9:
Linear Programming: The Simplex Method

VYTEC CORPORATION: BALANCING SILO DEMAND
Peter C. Bell, James Van Brenk

Product Number: 9B03E010
Publication Date: 5/28/2003
Revision Date: 10/19/2009
Length: 4 pages

Vytec Corporation is a subsidiary of Owens Corning, and manufactures extruded vinyl residential siding. In order to maximize the quantity and quality of the product, the operations analyst had to decide how best to use the available silos and extruder. He must determine the best way to configure the extruders to their respective material silos in order to ensure that each silo faced a similar demand for material. An Excel spreadsheet containing data and solver solutions is available (product 5B03E10).

Teaching Note: 8B03E10 (5 pages)
Industry: Manufacturing
Issues: Linear Programming; Spread Sheet Application; Operations Analysis; Resource Allocation
Difficulty: 4 - Undergraduate/MBA



VYTEC CORPORATION: WAREHOUSE LAYOUT PLANNING
Peter C. Bell, James Van Brenk

Product Number: 9B03E013
Publication Date: 5/28/2003
Revision Date: 10/19/2009
Length: 4 pages

Vytec Corporation is a subsidiary of Owens Corning and is a leading manufacturer of vinyl siding. The operations analyst wanted to determine if there was a more efficient way to organize the company's warehouse. After finding some high demand products being stored a long distance from the shipping dock, his first reaction was to move the product closer to the shipping area, reducing the time and distance required to retrieve the product for shipping. Doing so, however, would displace another product that should also be near the docks. Further research into the problem revealed many other issues. Two files are available - the case data file, product 7B03E013 and the solver model 5B03E13.

Teaching Note: 8B03E13 (13 pages)
Industry: Manufacturing
Issues: Resource Allocation; Linear Programming; Spread Sheet Application; Operations Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Transportation and Assignment Models

GROCERY GATEWAY: CUSTOMER DELIVERY OPERATIONS
P. Fraser Johnson

Product Number: 9B02D003
Publication Date: 3/28/2002
Revision Date: 1/17/2006
Length: 7 pages

As Canada's largest direct online grocer, Grocery Gateway provided home delivery to approximately 125,000 customers in the Greater Toronto area, which covered a territory of approximately 3,200 square kilometres. Grocery Gateway's management staff was concerned that the company had been met only 67 per cent of its target of making four deliveries per hour. Consequently, the vice-president of industrial engineering and operations had been asked to make some recommendations aimed at improving delivery operations. These recommendations would be presented at Grocery Gateway's next weekly management meeting. There are a number of options that were worth considering. The vice-president's job was to pinpoint those options and assess how each one might affect the company's existing operation. The final choice would have to reflect and maintain Grocery Gateway's focus on low cost and high service.

Teaching Note: 8B02D03 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Transportation; Distribution; E-Business; Logistics
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Integer Programming, Goal Programming, and Nonlinear Programming

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 12:
Network Models

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

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

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

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


Chapter 13:
Project Management

ZHOU JIANGLIN, PROJECT MANAGER
Michael Parent, Ken Mark

Product Number: 9B02E010
Publication Date: 10/29/2002
Revision Date: 12/1/2009
Length: 3 pages

Ji'nan Broadcasting Corporation is a public television broadcaster in one of China's provinces. The company is working on a new market opportunity to provide data and voice telecommunication services to the majority of the province's businesses and inhabitants. Currently, no data services are provided in this province and only one competitor offers voice services. The project is behind schedule, over budget and under specification. The project manager must decide which steps to take next in order for the project to succeed.

Teaching Note: 8B02E10 (4 pages)
Industry: Information, Media & Telecommunications
Issues: China; Telecommunication Technology; Management Information Systems; Project Management
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Waiting Lines and Queuing Theory Models

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 15:
Simulation Modeling

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



DOLLAR THRIFTY AUTOMOTIVE GROUP: ONLINE DISCOUNTING
Chris K. Anderson, Benjamin Marcus

Product Number: 9B05E008
Publication Date: 6/14/2005
Revision Date: 9/30/2009
Length: 4 pages

Dollar Thrifty Automotive Group (DTAG) is considering offering a price guarantee to entice consumers to use their web site. Students will be introduced to break-even analysis and general spreadsheet modeling. This is an abridged version of Online Low Price Guarantees - Dollar.com, product # 9B04E016.

Teaching Note: 8B05E08 (3 pages)
Industry: Other Services
Issues: Pricing; Models; Simulation
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Markov Analysis

GILBERT & GILBERT
Peter C. Bell

Product Number: 9A98E027
Publication Date: 9/7/1999
Revision Date: 1/28/2010
Length: 3 pages

The proprietor of a retail store has been advised by her lawyer to offer a former employee $5,000 to drop a racial discrimination claim. Should she follow this advice? (A Microsoft Excel model is available for use with this case, product 7A98E027.)

Teaching Note: 8A98E27 (6 pages)
Industry: Retail Trade
Issues: Contingency Planning; Probability; Decision Theory; Decision Analysis
Difficulty: 4 - Undergraduate/MBA


Chapter 17:
Statistical Quality Control

LONGXI MACHINERY WORKS - QUALITY IMPROVEMENT (A)
Robert Klassen, Larry Li, Tom Gleave

Product Number: 9A98D001
Publication Date: 4/27/1998
Revision Date: 1/27/2010
Length: 17 pages

The assistant engineer in the Thermal Treatment Department of a state-owned enterprise in China has received approval for the formation of a new quality control group to reduce the high defect rate of a critical part. The total quality concept is presented within the context of a specific quality problem, which encourages students to both assess the company's quality system and apply quality improvement tools to this particular problem. This case is the first of a three part series that applies the principles and tools of total quality management in a Chinese setting. This case can either be used independently or in combination with the (B) case, 9A98D002 and (C) case, 9A98D003.

Teaching Note: 8A98D01 (16 pages)
Industry: Manufacturing
Issues: China; International Business; Quality Management; Production Processes; Operations Management
Difficulty: 4 - Undergraduate/MBA



LONGXI MACHINERY WORKS - QUALITY IMPROVEMENT (B)
Robert Klassen, Larry Li, Tom Gleave

Product Number: 9A98D002
Publication Date: 4/27/1998
Revision Date: 1/27/2010
Length: 6 pages

After selecting the quality control group members, the assistant engineer and his group begin data collection and need to construct a cause-and-effect diagram to develop an action plan. This case should be used in conjunction with case (A), 9A98D001.

Teaching Note: 8A98D01 (16 pages)
Industry: Manufacturing
Issues: China; Quality Management; Production Processes; Operations Management; International Business
Difficulty: 4 - Undergraduate/MBA



LONGXI MACHINERY WORKS - QUALITY IMPROVEMENT (C)
Robert Klassen, Larry Li, Tom Gleave

Product Number: 9A98D003
Publication Date: 4/27/1998
Revision Date: 1/27/2010
Length: 3 pages

The quality control group has implemented several countermeasures, and the results have been monitored and reported. A final examination is necessary to assess whether this type of problem is likely to recur, and where further improvement can be made in the company's quality systems. This case is designed to be used in conjunction with the (A) case, 998D001 and the (B) case, 998D002.

Teaching Note: 8A98D01 (16 pages)
Industry: Manufacturing
Issues: China; International Business; Quality Management; Production Processes; Operations Management
Difficulty: 4 - Undergraduate/MBA