12. Research a supply chain for an organization of 14.

Research and write a paper on the risks associated

interest to you and draw a flowchart of its key with global supply chains.
components similar to Exhibit 9.2. Describe and 15. Research and write a paper on green and/or ethi-
explain the location of the push-pull boundary. cal supply chains similar to the box “Sneakers with
13. How can satellite-based global positioning systems a Conscience—Veja’s Supply Chain.” Do these
improve the performance of supply chains in the supply chains incorporate all three dimensions of
following industries: (a) trucking, (b) farming and sustainability?
food distribution, (c) manufacturing, and (d) ambu-
lance service?

Boston Red Sox Spring Training Decision Case Study

“Whew, I’m glad the town hall meeting is over. The generate $25 to $40 million annually to the local econ-
audience was hostile!” Tom Bourbon commented as he omy and support thousands of jobs in airports, hotels,
was escorted by a police officer to his car in the high restaurants, and retail stores.
school parking lot. The officer replied. “There were The four possible locations were described as follows:
over 1,000 people in the gymnasium sir, and they were
in an uproar. Let’s get you out r

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of here safely.” and is big enough to build
a sports village, and is
Tom and the other City
located next to a shopping
Council members had just fin-
mall (denoted as 1
ished a town hall meeting open in Exhibit 9.7) and within
to the public to discuss four al- 4 miles of Florida Gulf
ternative locations for a new Coast University and an
$80 million baseball stadium 8,000-seat indoor arena
in Lee County, Florida. The for events such as hockey
City Council originally evalu- and basketball games in
ated 16 sites and had arrived a second shopping mall
at the final four locations. The (denoted as 2 in Exhibit
new 10,000-seat ballpark also 9.8.) The land cost to the
ZUMA Press/Newscom

includes practice fields, batting City Council is $18 million.

cages, and weight rooms. The r

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stadium facility design and and is located between
layout is to mimic the regular the two shopping malls 1
and 2. The site is about
season Fenway Park in Boston, Economic impact studies indicated the stadium
2 miles from Florida Gulf
Massachusetts. However, the would generage $25 to $40 million annually to
Coast University. The land
new park planned on “go- the local economy. cost to the City Council is
ing green” by reducing energy $22 million.
consumption, allocating a carpooling parking lot close
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to the stadium to reduce patron traffic congestion and animals. The area is within 3 miles of shopping mall 2
transportation costs and fuel use, and changing some of and Florida Gulf Coast University. The developer
its work practices. planned to donate 100 acres to the city, so the stadium
The five board members of City Council have to land cost is free. The developer also offered to place
make a location decision in three weeks if they are to 20 acres in a nature preserve for every acre that is
meet the contractual requirements of previous agree- developed for commercial purposes.
ments. Once the stadium for spring training was com- r
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plete, the Red Sox would sign a 30-year lease. Two and about 8 miles from the shopping mall 2 and
economic impact studies indicated the stadium would Florida Gulf Coast University. The airport also includes

202 OM4 Part 2: Designing Operating Systems

 a research park that
hopes to attract high-
Exhibit 9.8 Location Grid for Boston Red Sox Spring Training Stadium Finalists
tech industries and
jobs. The land cost
12 miles
to the City Council is
I-75
$22 million.
Population Population
Exhibit  9.8 pro- 11 Center 1 Center 2
vides the coordinates
in miles for the four 10 Site D
possible locations. The
populations for the five
9 Airport
population centers are
as follows: 1 (290,000),
Population
2 (95,000), 3 (145,000), 8 Center 3
4 (80,000), and 5
(120,000). Exhibit  9.9
7 Site A
summarizes the cost
and judgments of the
North Shopping
five City Council mem- 6 Mall 1
bers for each site. It was
thought that locating
5
the Red Sox stadium
close to the existing re-
4 Site B
tail malls, restaurants,
hotels, Florida Gulf
Coast University, and
3 FGCU
the 8,000-seat indoor
arena would create a
Shopping Population
retail and leisure ser- 2

© Cengage Learning 2013

Mall 2 Center 5
vice cluster where all
could benefit. In the 1
Population
Site C
Center 4
10-month off-season
for the Red Sox sta-
dium, for example, 0 1 2 3 4 5 6 7 8 9 10 11 12 miles
local, regional, and na-
tional baseball clinics
and tournaments could
be played using this
cluster of assets. Another viewpoint argued that locat- that scores, weights, and evaluates each quantitative
ing the stadium next to the airport would encourage and qualitative criterion and arrives at a summary score
commercial development in this area, including the air- for each stadium site. To organize your analysis you de-
port’s research park. cide to answer the following questions:
1. Using the center-of-gravity model, compute the
Case Study Questions for Discussion center of gravity for the population of the county.
You just finished your college’s spring semester and Show all computations, explain, and justify. Based
have been working for the City Council as a summer in- solely on this criterion, where is the best stadium
tern. Your major is Information Systems & Operations location?
Management (ISOM), and you want to earn a good 2. Using a weighted scoring model of your own design,
recommendation from your summer intern boss. Your what are the summary scores for each stadium site
boss asks you to build an electronic spreadsheet model for the qualitative criteria in Exhibit 9.9? (You must

OM4 Chapter 9: Supply Chain Design 203

Exhibit 9.9 Site Cost Estimates and Rankings for Boston Red Sox Spring Training Stadium Finalists

Cost/Criteria Site A Site B Site C Site D

Stadium land cost $18 million $22 million $0 million $22 million

Additional utility cost $1 million $0.5 million $3 million $0.5 million

New road cost $2 million $0.5 million $15 million $2 million

Gain environmental group(s) endorsement Almost No No Yes

Traffic access and congestion Good Poor Poor Moderate

© Cengage Learning 2013

Utility, road, environment, and construction permits Ready Mostly Ready Not Ready Ready
ready to go (shortest permit time)

Long-term economic growth and development around 4 3 4 5

site (1 lowest to 5 highest/best)

Chance to preserve a huge area of the county Moderate Low High Low

decide how to scale and weight each criterion and 4. Research and explain at least three ways a sports
whether to include or not include cost estimates.) stadium can “go green,” including at least one
Show all computations, explain, and justify. work practice for stadium employees. Do jobs
3. How will you combine these results (your center-of and processes have to change too? Explain the
gravity results, cost, and qualitative criteria analy- role of OM.
ses)? How might you compute a summary score for 5. What is your final stadium recommendation?
each site using all three criteria? Explain and justify. Explain and justify.

204 OM4 Part 2: Designing Operating Systems