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Queuing Theory to the Rescue: Managing Security Screening Lines at Logan Airport
Lines at airports, at the ticket counter, security screening or at the gate, make air travel a stressful experience. Queues are especially problematic during peak travel periods when space and processing capacity are constrained. These are the concerns on the mind of an Assistant Federal Security Director as she plans for the expansion of flights at one of Boston Logan Airport's terminals. Space limitations restrict the number of screening lanes. Moreover, adding staff on the existing lanes staff is costly and faces rapidly diminishing returns. Nevertheless the Director must meet screening throughput and wait time targets as well as keep the line from stretching from security out the door. The director applies queuing theory to determine the art of the possible and what is feasible at Logan. The reader is introduced to basic queuing modeling and challenged to determine the optimal number of lanes and staffing of those lanes at the Logan terminal. Case number 2049.0 -
American University of Beirut Medical Center: Patient Transport
The patient affairs coordinator is concerned about the rising number of complaints regarding the level of services offered by the transportation teams in the American University of Beirut Medical Center (AUBMC). The center's management team is determined to create an exemplary patient transportation service at AUBMC and consequently launches an investigation supported by a full-scale study to determine better ways of re-engineering these processes. The coordinator must consider the factors that contribute to patient and staff complaints as well as the types of data and tests required to provide evidence-based solutions for patient transportation in the hospital. -
David Berman Simplified Model Spreadsheet
Spreadsheet supplement for case 605081. -
Vistron Inc.: The Z Glass Project
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The Internet of Things (IoT): Shaping the Future of e-Commerce
In March 2015, Amazon unveiled to its selected Prime members a wi-fi connected Dash Button that could be attached to home appliances and allowed consumers to make online orders automatically by simply pushing the button. In April 2015, Alibaba, the Chinese e-commerce giant, established "smart living" business unit, taking another step in deeply exploiting the Internet of Things (IoT) business opportunities. Internet of Things was defined as a worldwide information infrastructure in which physical and virtual objects were uniquely identified and connected over the internet. These inter-connected devices would generate and communicate big data dynamically, enhance operational efficiency and create new business opportunities for various industries. The e-commerce sector was no exception to the booming IoT development trend. The IoT would expand the scope and depth of e-commerce by linking people, smart devices and objects that were offline in the current e-commerce business model, generating unprecedented big data on product performance and customer behavior and experience, involving more communication and action, and ultimately shaping the future of e-commerce. How would the IoT change the current e-commerce model? What business transformations could companies undergo to integrate the IoT with existing e-commerce platforms and create new business models and competitive advantage? -
TSG Hoffenheim: Football in the Age of Analytics
In 2015, Dietmar Hopp, owner of Germany's Bundesliga football team TSG Hoffenheim and co-founder of the global enterprise software company SAP, was considering how to ensure long-term sustainability and competitiveness for TSG Hoffenheim. While historically a small team from bottom rungs of the league, TSG Hoffenheim, with revenues of €60 million to €70 million, reached the top division of the Bundesliga in the 2008-2009 season thanks to a deliberate strategy focused on enhanced scouting, strong youth programs, and innovative technology and analytics that improved player development. In 2014 Hopp, who had personally invested €300 million in the club, built a "footbonaut," an automated training environment that collected data on players' skills and strengths. The tool, one of three in the world, helped scouts and coaches better assess and develop each player. Yet some managers felt the technology was a distraction, an investment too expensive for a team that was not yet cash-flow positive. The team finished the 2014-2015 season in eighth place, below the top division, and Hopp wondered whether the focus on technology and analytics was the right strategy to grow the club. He wondered if the "moneyball" approach-when a smaller team competed with wealthier teams by using statistical analysis to buy undervalued assets and sell overvalued assets-could work in football and if investments in technology could lead the team to financial independence. -
Growth Strategies in the Pharmaceutical Industry (A)
This case illustrates different growth strategies in the pharmaceutical industry. R&D management is a critical component of growth strategies, and the case demonstrates the importance of using a holistic framework for R&D when expanding the firm's business footprint. The case serves the purpose of comparing organic and inorganic growth strategies, and identifying the steps that are critical for the execution of these strategies. -
Zoetis, Pfizer's Animal Health Spin-Off (B)
This case illustrates different growth strategies in the pharmaceutical industry. R&D management is a critical component of growth strategies, and the case demonstrates the importance of using a holistic framework for R&D when expanding the firm's business footprint. The case serves the purpose of comparing organic and inorganic growth strategies, and identifying the steps that are critical for the execution of these strategies. -
Ashmark Corporation: Dealing with a Supply Disruption
When Ashmark Corporation's largest supplier, Red Star Castings (Red Star), was forced to declare bankruptcy, Ashmark had to develop and implement a contingency plan, while also appeasing its customers, who were growing increasingly impatient for their parts to arrive. Since Red Star closed, Ashmark had been late on 200 units of production due to missing components. Although this figure represented less than 1 per cent of the company's total monthly shipments, things were likely to get more difficult, especially with the loss of key employees due to the stressful situation. In addition, the new supplier was having trouble bringing the tooling online, there were delays in the qualification and testing process, and the modest amount of inventory built up in advance of the bankruptcy had diminished. As Ashmark looked to move forwards, it would need to develop a much better sense of how to manage supply chain risk. -
Ashmark Corporation: Dealing with a Supply Disruption
When Ashmark Corporation’s largest supplier, Red Star Castings (Red Star), was forced to declare bankruptcy, Ashmark had to develop and implement a contingency plan, while also appeasing its customers, who were growing increasingly impatient for their parts to arrive. Since Red Star closed, Ashmark had been late on 200 units of production due to missing components. Although this figure represented less than 1 per cent of the company’s total monthly shipments, things were likely to get more difficult, especially with the loss of key employees due to the stressful situation. In addition, the new supplier was having trouble bringing the tooling online, there were delays in the qualification and testing process, and the modest amount of inventory built up in advance of the bankruptcy had diminished. As Ashmark looked to move forwards, it would need to develop a much better sense of how to manage supply chain risk. -
Spartan Building Products
The logistics analyst at Spartan Building Products, a large, national distributor of building materials, needs to prepare a report analyzing the company’s logistics practices. Management is particularly concerned about the high cost of servicing customer deliveries. Students are asked to evaluate factors contributing to the logistics problems at Spartan, including freight costs and the sales mix. Students will analyze the cost implications of supporting a broad product line and servicing customer orders that have a small dollar value. -
Eastman Tritan: Product Development and Launch
In 2007, Eastman Chemical (Eastman), a global specialty chemicals company based in Kingsport, Tennessee, was set to launch Tritan, Eastman's latest specialty plastic. The development team was excited about Tritan because it demonstrated heat resistance and durability properties that might allow Eastman to compete in the lucrative polycarbonate plastics market. But the decision had not been made regarding which applications Eastman should target first with Tritan. -
Reducing Delinquent Accounts Receivable
In April 2014, the accounts receivable exceeding 90 days were causing a cash-flow problem for Wolf Distributing, which distributes the Berserker Rage energy drink in the Chicagoland area. Christine Taylor, the company's chief operating officer, had tried a number of traditional methods to monitor and address this problem, but she had made little progress. She decided to use three basic statistical analysis tools-Pareto diagrams, scatter plots, and run charts-to help her better grasp the problem. -
Reducing Delinquent Accounts Receivable, Spreadsheet
Spreadsheet for KEL904. -
Preventing Another Madoff: Reengineering the SEC's Investigation Process
Bernard Madoff perpetrated a $60 billion fraud that lasted for more than a decade. The fallout ruined the lives of many of his investors and significantly damaged the reputation of the Securities and Exchange Commission (SEC). How did the federal agency entrusted to protect investors fail to discover the Ponzi scheme? The question is more salient because a financial expert alerted the SEC to the likely fraud and was ignored, not just once, but many times over a multiyear period. The case provides the context to explore questions such as: What was the SEC's investigation process? Why did it fail to uncover the fraud? What was the role of organizational structure and culture in the debacle? How could the SEC reengineer its processes to prevent such schemes? Case number 1950 -
SF Express: From Delivery to E-Commerce
Shunfeng Express (SF), China's leading express delivery firm, in May 2014 opened the first 500 of several thousand Heike stores, which allowed consumers to buy and try out SF's own e-commerce offerings, in addition to other services. As an example of China's "online-to-offline" trend in e-commerce, Heike stores allowed SF to leverage its logistics and IT expertise to differentiate itself from its rivals in express delivery. As yet unclear was whether Heike stores offered consumers an irresistible value proposition. -
Toffee Inc.: Demand Planning for Chocolate Bars
The inventory manager of sales and distribution for Toffee Inc., a confectionery company, had just concluded a meeting with all relevant personnel. The meeting had not been entirely positive. The words of the production manager still echoed in his ears: “If the ingredient inventory is not re-examined and re-worked to the firm’s advantage then [soon] the final products based on these ingredients will cease to yield the kind of profits that the firm expects.” The inventory manager needed to prepare a comprehensive forecasting and inventory management plan with a view to minimize the cost of managing the supply chain by judicious use of resources, better forecasting, and improvement in the ingredient inventory purchasing and management systems. -
Amagi: Creating Value in the TV Broadcasting Industry
This case traces the growth of Amagi and the various challenges faced by it as it has grown to develop its own niche in the TV broadcasting industry in India, and is now slowly growing in markets outside India. Amagi, founded by three entrepreneurs, has come a long way from its initial days of trying to sell its standalone broadcast signal splitting technology to television (TV) broadcasting channels. From what was supposed to be a technology company, it has metamorphosed into a full-fledged media company managing advertising airtime for some of India's biggest broadcasting channels and advertisers. Outside of India, Amagi has positioned itself as a broadcast playout management company helping channels provide customized content to multiple countries using a single stream. Although, the underlying technology of Amagi has not changed radically over the years, the innovations in Amagi's offerings to the market have helped it become the success that it is today. The case outlines all the steps taken by Amagi to address each of the challenges that it has faced in its journey to success, clearly highlighting the various capabilities that it had to develop or acquire over the various time-periods. The case shows how while a firm may believe that it is providing a suitable value proposition, the customers may not see value in this value proposition. The case shows how the firm has to interject at various points of the value chain to establish its presence, and as a consequence of having established its presence and having developed various capabilities, what could be its growth strategy, and how its activities and capabilities will influence the same. -
How to Negotiate with Powerful Suppliers
In many industries the balance of power has shifted from buyers to suppliers. Companies that have gotten into a weak position need to tackle the problem strategically, the authors argue. They should consider the following actions and implement the least risky one that is feasible for their organization: (1) Bring new value to the supplier. This is the easiest approach. Companies can provide new value in several ways--for example, by serving as a gateway to new markets or reducing the supplier's risks. (2) Change how they buy. Companies can consolidate their purchase orders, rethink purchase bundles, or decrease purchase volume. (3) Create a new supplier. This is a high-risk option, but it can transform a company's prospects. Firms have essentially two paths: They can bring in a supplier from an adjacent market or vertically integrate to become their own supplier. (4) Play hardball. As a last resort, companies can cancel current orders and future business or threaten litigation. Whatever option firms choose, they need to clearly understand the problem, work on it across functions, and think analytically and outside the box. -
Singapore Changi Airport: Check-In to a World Class Experience
Set in 2013, Hamidah Hassan works at SATS, a provider of gateway services at Changi Airport in Singapore. SATS has a symbiotic relationship with Changi Airport Singapore and Singapore Airlines in ensuring a smooth travel experience for customers. Hamidah is in charge of the operations at the check-in counter. As passenger traffic at Changi Airport increases, the lengthening waiting lines threaten to impair customer perceptions of the airline and airport. In order to implement an efficient solution, she has to balance her cost of operations against the cost of waiting for passengers and the terms of the service level agreement with the airport authority. This case analyses the problem and solves it using an integer linear program and simulation analysis.