Front Matter
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| 6 pp.
| Preface
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1. Introduction
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| 16 pp.
| Text
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| 13 pp.
| Case CANADIAN FIREARMS PROGRAM
Author(s): Derrick Neufeld; Zeying Wan Publication Date: 2/16/2006 Revision Date: 7/19/2006 Product Type: Case Ivey ID: 9B06E007 Geographic Setting: Canada Industry Setting: Justice, Public Order and Safety Year of Event: 2006 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Cost Control; Information Systems; Politics; Project Management Major Disciplines: Management Science and Information Systems Product Description: The Canadian firearms program initially was established to set up a shared database. However, increasing costs of the firearms program is a concern for a number of Canadians. Should the federal government continue with the program, de-
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2. Linear Programming: Basic Concepts
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| 37 pp.
| Text
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| 5 pp.
| Case MARS INCORPORATED: ONLINE PROCUREMENT
Author(s): Peter C. Bell Ivey ID: 9B05E004 Publication Date: 1/31/2005 Revision Date: 9/28/2009 Product Type: Case Teaching Note: 8B05E04 Geographic Setting: United States Industry Setting: Food and Kindred Products Size: Large Year of Event: 2003 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Supplier Relations; Purchasing; E-Commerce; Linear Programming Major Disciplines: Management Science and Information Systems Product Description: Mars Inc., one of the worlds 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.
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| 4 pp.
| Case DOFASCO - FUEL MANAGEMENT
Bell PC 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 wasmaking 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.) Ivey Number: 9A98E025 Publication Date: 23/09/1999 Geographic Setting: Canada Industry Setting: Primary Metal Industries Company Size: Large organization Subjects: Linear Programming, Resource Allocation, Spread Sheet Application Functional Area: Management Science & Information Systems
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3. Linear Programming: Formulation and Applications
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| 61 pp.
| Text
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| 3 pp.
| Case ACUSHNET CANADA INC.: THE BONDED WAREHOUSE INITIATIVE
Author(s): Gregory S. Zaric; Ian Friedman Ivey ID: 9B05E012 Publication Date: 9/22/2005 Revision Date: 9/30/2009 Product Type: Case Teaching Note: 8B05E12 Geographic Setting: Canada Industry Setting: Wholesale Trade - Durable Goods Size: Large Year of Event: 2004 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Inventory Planning/Control; Linear Programming; Spread Sheet Application; Procurement Major Disciplines: Management Science and Information Systems Product Description: 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.
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| 9 pp.
| Case TALLINK: CONNECTING ESTONIA TO FINLAND, SWEDEN AND RUSSIA
Author(s): Peter C. Bell; Jordan Mitchell Ivey ID: 9B05E016 Publication Date: 10/28/2005 Revision Date: 9/30/2009 Product Type: Case Teaching Note: 8B05E16 Geographic Setting: Estonia Industry Setting: Water Transportation Size: Medium Year of Event: 2002 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Resource Allocation; Fleet Management; Linear Programming; Spread Sheet Application Major Disciplines: International; Management Science and Information Systems Product Description: The chairman of Tallink - a ferry and cargo service running between Estonia, Finland and Sweden - is considering purchasing a new ferry and redeploying older ferries among different routes. One of the proposed new routes is from Tallinn, Estonia through Helsinki, Finland to St. Petersburg in Russia. The chairman needs to decide whether or not he should buy the new ferry and the optimal use of his fleet.
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4. The Art of Modeling with Spreadsheets
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| 25 pp.
| Text
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| 3 pp.
| Case LANCO CATALOGUE SALES
Bell PC; Anderson C The issue before the directors meeting of LanCo Catalogue Sales was the high level of product returns that the company was experiencing. These product returns were eroding profitability at a remarkable rate, however the directors were split into twocamps over what to do about the problem. One camp believed that speeding up shipments would reduce the returned merchandise, while the other camp believed that this would merely increase shipping costs and reduce profits even further.LanCo management was determined that the returns problem must first be understood, then actions must be taken to reduce returns, in order to improve the profitability of the company. (A Microsoft Excel data file is available for use with thiscase, product 7A99E007.) Ivey Number: 9A99E007 Publication Date: 31/08/1999 Geographic Setting: USA Industry Setting: Miscellaneous Retail Company Size: Medium organization Subjects: Data Analysis, Statistical Analysis, Spread Sheet Application, Retailing Functional Area: Management Science & Information Systems
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| 6 pp.
| Case OHIO POLYMER, INC.
Bell PC Ohio Polymer is about to negotiate a contract with ProBut Hydrocarbon, Inc. for the purchase of ethylene gas. The contract will require Ohio to purchase a fixed daily quantity of the gas at a set price per ton. Ohio Polymers senior management islooking for advice on how much gas they should try to obtain and what price they should be willing to pay. A companion case is ProBut Hydrocarbon, Inc., case 9A98E037, which presents the negotiation from ProButs perspective. (A model is availablefor use with this case, product 7A98E036.) Ivey Number: 9A98E036 Publication Date: 31/08/1999 Geographic Setting: USA Industry Setting: Chemicals and Allied Products Company Size: Large organization Subjects: Simulation, Negotiation, Manufacturing Capacity, Spread Sheet Application Functional Area: Management Science & Information Systems
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5. What-If Analysis for Linear Programming
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| 44 pp.
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| 4 pp.
| Case NEW ENGLAND FEED SUPPLY
Bell PC; Parker D Jeff Smith, formulation analyst for New England Feed Supply Inc., was evaluating the following weeks requirements for three animal feed mixes produced by the Burlington plant. A shortage of one ingredient, meat meal, meant that the company wouldfind 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 higherprice. (A Microsoft Excel model is available for use with this case, product 7A98E034.) Ivey Number: 9A98E034 Publication Date: 23/08/1999 Geographic Setting: USA Industry Setting: Agricultural Services Company Size: Medium organization Event Year Start: 1996 Subjects: Linear Programming, Resource Allocation, Spread Sheet Application, Computer Applications Functional Area: Management Science & Information Systems
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| 10 pp.
| Case NORTHWEST NEWSPRINT, INC.
Bell PC; Hulland JS 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.) Ivey Number: 9A98E035 Publication Date: 23/09/1999 Geographic Setting: Canada/USA Industry Setting: Forestry Company Size: Large organization Event Year Start: 1995 Subjects: Linear Programming, Resource Allocation, Transportation, Spread Sheet Application Functional Area: Management Science & Information Systems
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6. Network Optimization Problems
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| 35 pp.
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| 15 pp.
| Case Supply Chain Management at Wal-Mart
Author(s): P. Fraser Johnson Publication Date: 1/9/2007 Revision Date: 6/4/2008 Product Type: Case Teaching Note: 8B07D01 Ivey ID: 9B07D001 Geographic Setting: United States Industry Setting: General Merchandise Stores Size: Large Year of Event: 2006 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Supply Chain Management; Logistics; Retailing; Purchasing Major Disciplines: International; Production and Operations Management Product Description: In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The companys supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals are copying every aspect, from the way Wal-Mart cross-docks product in warehouses, to Wal-Marts use of a sophisticated database to capture, store and disseminate store-level information to suppliers. Wal-Mart's new executive vice-president, logistics was overseeing a handful of initiatives designed to improve the firm's supply chain. However, it was not certain that these initiatives were going to have a significant impact on Wal-Mart costs, and he needed to consider what the company should do to stay ahead of the competition.
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| 4 pp.
| Case CANADIAN PHARMACEUTICAL DISTRIBUTION NETWORK
Johnson PF With revenues of over US$1 billion, UPS Logistics Group was a wholly owned subsidiary of United Parcel Service, which offered a full range of supply chain services in North America, Europe, Asia and Latin America. UPS Logistics was responsible fordistribution in Eastern Canada for the Canadian Pharmaceutical Distribution Network, an association of pharmaceutical manufacturers that jointly distribute products to hospital pharmacies. Members of this association are unhappy with the currentperformance of the supply chain, and have asked UPS Logistics general manager for operations to establish a set of key performance indicators for the networks distribution operations. The general manager must determine how the logistics would bemeasured before setting specific improvement targets. Ivey Number: 9B01D014 Publication Date: 28/03/2002 Geographic Setting: Canada Industry Setting: Health Services Company Size: Large organization Event Year Start: 2001 Subjects: Logistics, Distribution, Outsourcing, Performance Measurement Functional Area: Production/Operations Management
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| 13 pp.
| Case HIGHWIRED.COM: HARDWARE DECISIONS
Schneberger SL; Mark K Highwired.com provided to high school students and teachers, a range of free services to enable school interaction on a personalized Web site. Highwired.coms network had grown from 1,000 member high schools to over 12,000 schools in 50 states and72 countries, in only 13 months. Due to its blistering growth, it was approaching its peak load capacity in June, the end of the school year. The vice-president of product development expected that growth would continue at that pace and wanted toensure that they struck the right balance between low response time and minimal downtime, and acceptable hardware costs. Any changes had to be made before school started in September. He wanted to confirm that his recommendation to use multipleservers with redundant network storage devices attached was the optimal solution. To do so, he examined site performance metrics, server configuration options and additional hardware. Ivey Number: 9B00E023 Publication Date: 25/01/2001 Geographic Setting: United States Industry Setting: Business Services Company Size: Small organization Event Year Start: 2000 Subjects: E-Commerce, System Design, Capacity Analysis, Action Planning and Implementation Functional Area: Management Science & Information Systems
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7. Using Binary Integer Programming to Deal with Yes-or-No Decisions
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| 34 pp.
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| 5 pp.
| Case CRAGGIER NATIONAL PARK
Author(s): Anderson CK; Marcus B Description: Craggier National Park is a typical game reserve located in South Africa. The game reserves 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 huntingpackages to promote to potential clients. Ivey Number: 9B03E001 Publication Date: 2/27/2003 Geographic Setting: South Africa Industry Setting: Hotels, Rooming Houses, Camps Company Size: Medium organization Event Year Start: 2002 Subjects: Optimization; Revenue Management; Integer Programming Level of Difficulty: MBA
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8. Nonlinear Programming
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| 51 pp.
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| 5 pp.
| Case CANNING CONSULTANTS: THE OPAC ASSESSMENT
Author(s): Gregory S. Zaric Ivey ID: 9B05E006 Publication Date: 2/16/2006 Revision Date: 9/30/2009 Product Type: Case Teaching Note: 8B05E06 Geographic Setting: Canada Industry Setting: Real Estate Industry Size: Small Year of Event: 2001 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Linear Programming; Real Estate; Regression Analysis; Valuation Major Disciplines: Management Science and Information Systems Product Description: A real estate appraiser has been hired to provide an alternate assessment on a set of office buildings in London, Ontario. Real estate assessments are often based on comparisons versus similar properties. However, because the set of comparison properties is small he cannot rely on standard quantitative techniques like linear regression. Instead he uses a technique called quality point in which the property valuation problem can be formulated as a quadratic program.
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| 4 pp.
| Case FOUR STAR MOTORSPORTS
Author(s): Bell PC; Rosenshein I Description: Four Star Motorsports is a family owned and operated garage specializing in rally cars and the sale of rally tires. In the winter, the business would have sales on tires if there was excess inventory, however, the owner was recently made aware ofnew pricing concepts through associates. The owner must investigate various pricing options during the upcoming selling season to increase revenue and to develop a plan that will allow adjustments for customers who are unhappy with the new pricingpolicy or an excess of tire inventory. Ivey Number: 9B03E006 Publication Date: 4/2/2003 Geographic Setting: Canada Industry Setting: Automotive Dealers & Gas Service Company Size: Small organization Event Year Start: 2002 Subjects: Pricing; Regression Analysis; Uncertainty; Demand Analysis Level of Difficulty: Undergraduate/MBA
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9. Decision Analysis
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| 66 pp.
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| 4 pp.
| Case BRILUX: THE FOT-320 DECISION
Author(s): Bell PC Description: BriLux develops early-stage high-speed data networking equipment. In recent month, BriLux customers have hinted that combining ARTRAN, the companys flagship optical data service platform, with a new fiber optic transportation product (tentativelyreferred to as FOT-320) would increase the market appeal of the companys portfolio. The research and development director must decide whether to support the development of this new product.Excel files are available upon request, product 7B04E018. Ivey Number: 9B04E018 Publication Date: 5/14/2004 Geographic Setting: Canada Industry Setting: Chemicals and Allied Products Company Size: Large organization Event Year Start: 2002 Subjects: Decision Analysis; Simulation; Risk Analysis; Probability Level of Difficulty: Undergraduate/MBA Functional Area: Management Science & Information Systems
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| Case RESEARCH AND DEVELOPMENT AT ICI: ANTHRAQUINONE
Bell PC ICIs research division had discovered a new use for anthraquinone and had to decide whether to accelerate research on a process to synthesize anthraquinone and develop the commercial application, or to terminate the modest R&D effort. (A Microsoft Excel model is available for use with this case, product 7A98E029.) Ivey Number: 9A98E029 Publication Date: 30/09/1999 Geographic Setting: Canada Industry Setting: Chemicals and Allied Products Company Size: Large organization Subjects: Decision Analysis, Simulation, Risk Analysis, Probability Functional Area: Management Science & Information Systems
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10. Forecasting
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| 49 pp.
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| 7 pp.
| Case ESTIMATING DEMAND FOR KODAK FILM
Author(s): Currie DM; Alon I Publication Date: 11/23/2004 Industry: Chemicals and Allied Products Abstract: An executive must estimate the demand for rolls of film in various countries based on demographic data about the counties. She must determine the process and develop a spreadsheet model that will provide the results based on data (GNP per capita,population, income distribution) from the various countries. The purposes of the case are to show the relation between national statistics and company decisions and to provide training in advanced spreadsheet skills, conceptualizing a problem andmodelling. Ivey Number: 9B04D015 Geographic Location: United States Company Size: Large organization Year of Event: 2004 Level of Difficulty: Undergraduate/MBA Functional Area: Production/Operations Management Subjects: Operations Management; Marketing Research; International Business; Spread Sheet Application
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| 6 pp.
| Case BABCOCK AND WILCOX: CONSOLIDATED FORECASTING
Bell PC; Brudzynski M 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 alsodrive 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.) Ivey Number: 9A98E023 Publication Date: 16/02/2000 Geographic Setting: USA/Canada Industry Setting: Construction other than Building Company Size: Large organization Event Year Start: 1997 Subjects: Forecasting, Risk Analysis, Simulation, Spread Sheet Application Functional Area: Management Science & Information Systems
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| 3 pp.
| Case NORTHERN NAPA VALLEY WINERY, INC.
Bell PC 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 seriescharacterized 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.) Ivey Number: 9A98E046 Publication Date: 30/04/1999 Geographic Setting: USA Industry Setting: Food and Kindred Products Company Size: Medium organization Event Year Start: 1996 Subjects: Forecasting, Data Analysis, Regression Analysis, Statistical Analysis Functional Area: Management Science & Information Systems
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11. Queueing Models
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| 54 pp.
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| 18 pp.
| Case TOTALLINE TRANSPORT
Author(s): Larry Menor; Ken Mark; Jordan Mitchell Ivey ID: 9B05D001 Publication Date: 6/14/2005 Revision Date: 9/28/2009 Product Type: Case Geographic Setting: Canada Industry Setting: Motor Freight Transportation Size: Medium Year of Event: 2002 Level of Difficulty: 4 - Undergraduate/MBA Subjects: Services; Operations Management; Service Operations; Supplier Relations Major Disciplines: Production and Operations Management Product Description: The vice-president and general manager of Totalline Transport wants to eliminate late appointment fees in delivering to one of Canadas premier electronic shops - Electronics International. Totalline Transport is hired by suppliers of electronics goods to deliver to retailers. The vice-president sees an opportunity to solve the problem of congestion in the parking lot of Electronics Internationals warehouse and eliminating unnecessary soft costs such as missed appointment fees and detention charges. The bottleneck in the process is the waiting time for all of the trucks to unload. If the carrier arrives late, the retailer will charge the carrier $1,000. If the carrier is waiting in line due to a backlog at the warehouse, the carrier will levy a charge of $50 to $60 per hour. Beyond these costs, the vice-president realizes that suppliers and retailers are spending one day per week investigating problems with shipments. He is eager to make his customers (suppliers) successful. He sees three central options in cutting down traffic: to request two dedicated doors at the warehouse; cut down on time for Electronics International by applying stickers at Totalline's consolidation point on all the deliveries so that Electronics International could immediately accept shipments into inventory without handling; or deliver direct to Electronics International stores.
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| 7 pp.
| Case CAFE D. POWND
Siu V; Anderson CK; Vachon S 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 nomajor investments or disbursements involved. Ivey Number: 9B00D007 Publication Date: 2/5/2000 Geographic Setting: Canada Industry Setting: Eating and Drinking Places Company Size: Small organization Event Year Start: 1999 Subjects: Queuing Theory, Simulation, Service Operations Functional Area: Production/Operations Management
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12. Computer Simulation: Basic Concepts
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| 38 pp.
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| 5 pp.
| Case NORMAL DISTRIBUTION AND THE NCAA TOURNAMENT
Author(s): Anderson CK; Zaric GS Publication Date: 6/14/2005 Product Type: Case Ivey ID: 9B04E020 Geographic Setting: United States Industry Setting: Amusement and Recreation Services Year of Event: 2004 Level of Difficulty: Undergraduate/MBA Subjects: Sports; Spread Sheet Application; Simulation; Probability Functional Area: Management Science & Information Systems Product Description: 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 teams ratings.Students will be introduced to the normal distribution, sums of normal random variables and event simulations.
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| 5 pp.
| Case SUPERIOR GRAIN ELEVATOR, INC.
Bell PC The manager of port facilities for Superior Grain Elevator, Inc. in Thunder Bay, Ontario, must decide whether to construct a third wharf at a cost of $1.5 million. Superior Grain Elevator, Inc. has just negotiated a grain sale to Poland that willincrease the number of shipments from the Thunder Bay facility. (A Microsoft Excel model is available for use with this case, product 7A98E040.) Ivey Number: 9A98E040 Publication Date: 30/04/1999 Geographic Setting: Canada Industry Setting: Water Transportation Company Size: Medium organization Event Year Start: 1996 Subjects: Simulation, Risk Analysis, Spread Sheet Application, Computer Applications Functional Area: Management Science & Information Systems
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13. Computer Simulation with Crystal Ball
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| 66 pp.
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| 7 pp.
| Case CPSIM2: THE CRITICAL PATH SIMULATOR (WINDOWS VERSION)
Author(s): Piper CJ Publication Date: 1/11/2006 Product Type: Case Ivey ID: 9B06D002 Level of Difficulty: Undergraduate/MBA Subjects: Project Management; Computer Assisted Cases; Critical Path; Simulation Functional Area: Production/Operations Management Product Description: 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 beavoided. 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, whichrequire 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 acurrent display of the projects 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 provided the student instructions onthe 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.
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14. Solution Concepts for Linear Programming
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| 86 pp.
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15. Transportation and Assignment Problems
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| 70 pp.
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16. PERT/CPM Models for Project Management
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| 83 pp.
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17. Goal Programming
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| 30 pp.
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18. Inventory Management with Known Demand
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| 62 pp.
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19. Inventory Management with Uncertain Demand
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| 68 pp.
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Back Matter
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| 4 pp.
| Appendix A: Using the Solver Table
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| 7 pp.
| Appendix B: Tips for Using Microsoft Excel for Modeling
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| 4 pp.
| Appendix C: Partial Answers to Selected Problems
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| 10 pp.
| Index
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