Category Archives: 10 OM Decisions


Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, animals, equipment and liquids, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in logistics for import and export. Read more

Supply & Demand

In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium for price and quantity.

The four basic laws of supply and demand are:

  1. If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.
  2. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.
  3. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.
  4. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.

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Bullwhip Effect


Examples of some of the largest Retailers:

Latitude and Longitude

Center of Gravity Analysis

Euclidean in Science Expand

Relating to geometry of plane figures based on the five postulates (axioms) of Euclid, involving the derivation of theorems from those postulates. The five postulates are: 1. Any two points can be joined by a straight line. 2. Any straight line segment can be extended indefinitely in a straight line. 3. Given any straight line segment, a circle can be drawn having the line segment as radius and an endpoint as center. 4. All right angles are congruent. 5. (Also called the parallel postulate.) If two lines are drawn that intersect a third in such a way that the sum of inner angles on one side is less than the sum of two right triangles, then the two lines will intersect each other on that side if the lines are extended far enough.

Our Classroom is Latitude: 39.392718 / Longitude: -76.605912

What is the location of Baltimore City? Click here


Location, Location, Location

…that’s what they say in Real Estate

Federal Express


Take a look at the $255 million (phase 1 costs) NEW Exelon Tower under construction in Baltimore City.


The headquarters for Baltimore Gas & Electric / Constellation Energy has gained support from Mayor Stephanie Rawlings-Blake as part of a project to build a new bridge to the site along Central Avenue and will erect a public plaza that will showcase the Exelon Tower.  Read more


Hard Rock Café Video (see MyOMLab multimedia – 8:36 minutes)
The Senior Director for Worldwide Café Development has a significant amount of personal authority to determine future locations.  Although the firm certainly performs a significant amount of analysis, the Hard Rock approach seems to be somewhat less scientific and based partly on a “feeling” for the right city to go to and the right part of town in which to locate. The firm also carefully considers how the city is evolving and what it might look like in 10-15 years, because the leases are usually signed for that length of time. For Hard Rock, location begins with a global view of which country to go into (the U.S. market seems to be fairly well saturated from Hard Rock’s point of view). Hard Rock considers country factors such as political risk, currency risk, social norms, brand fit, social costs, and business practices. After good potential countries are identified, Hard Rock then focuses on regions, followed by cities. Important city factors include population, disposable income, visitor income, and whether it would be good to locate in the city center (which Hard Rock usually prefers) or the suburbs. Once potential cities are identified, Hard Rock performs breakeven analysis to determine if purchase and construction or remodel will be profitable.

Ask students, “have you eaten at any Hard Rock Cafés? If so, in what part of the city were they located? Was the location chosen primarily to attract tourists or local residents? Compare the factors that are important for Hard Rock with your perception of another well-known international restaurant chain: McDonald’s. Would a McDonald’s typically be located next to a Hard Rock? If not, why not? A different discussion stream could focus on Hard Rock’s list of country factors. Under what circumstances do the students think that political risk might play a factor? Also, what did the Senior Director mean by “social costs?”

KSFs affecting Location

Statistical Process Control

In industrial statistics, the X-bar chart is a type of Shewhart control chart that is used to monitor the arithmetic means of successive samples of constant size, n. This type of control chart is used for characteristics that can be measured on a continuous scale, such as weight, temperature, thickness etc. For example, one might take a sample of 5 shafts from production every hour, measure the diameter of each, and then plot, for each sample, the average of the five diameter values on the chart.

For the purposes of control limit calculation, the sample means are assumed to be normally distributed, an assumption justified by the Central Limit Theorem.

The X-bar chart is always used in conjunction with a variation chart such as the \bar x and R chart or \bar x and s chart. The R-chart shows sample ranges (difference between the largest and the smallest values in the sample), while the s-chart shows the samples’ standard deviation. The R-chart was preferred in times when calculations were performed manually, as the range is far easier to calculate than the standard deviation; with the advent of computers, ease of calculation ceased to be an issue, and the s-chart is preferred these days, as it is statistically more meaningful and efficient. Depending on the type of variation chart used, the average sample range or the average sample standard deviation is used to derive the X-bar chart’s control limits.

Statistical Tools for Managers – On-line Tutorial: Click here



“Save our Ship” and “Send out Succour “(help & aid)

SOS is the Morse code distress signal (· · · – – – · · ·).  Three dits form the letter S, and three dahs make the letter O.  These may be regarded as mnemonics, but SOS does not actually stand for anything and is not an abbreviation. However, if you have trouble remembering names and the “10 Operations Management Decisions“, mnemonics can be a useful technique.  I make associations all the time to help me remember people names and it is a proven strategy.

It has come to my attention that some students need a refresher in Algebra.  Many of the EBTM 365 calculations assume you understand basic arithmetic.  For example, in Chapter 5 we need to calculate the break even point comparing two vehicles using the Tottal Life Cycle Cost formula


This is a very common question today in our society when trying to decide on purchasing a hybrid or a standard gas guzzler. Generally, consumers pay more for the innovation and the cost of the battery.  Since I am planning to purchase a new car very soon, this is a real question I can apply in my own life… how many miles do I need to drive before the purchase price evens out?

I currently lease a 2012 Hyundai Elantra and was considering either purchasing another (2015 upgraded model) or perhaps the Toyota Prius would be a better alternative which costs $24,200 and gets 51 mpg.  What do you think?  Help me do the research at

Remember our #1 Goal? Have fun. So is Math =>

In order to solve for x (mileage) using the above formula, you will need to understand linear equations.

tex2html_wrap_inline575          Solution

SOS can also mean “Save our Souls”.

Hope this helps.  Brooks

Goods and Services

Have you thought about new products and/or services you would like to see in the market?

What detergent do you use for laundry? dishes?

Have you noticed beer bottles & cans keep changing?  Not only the manufactured product, but the marketing and packing, as well.  Think about the commercials you see during the Super Bowl.  Companies like Anheuser-Busch and Coca-Cola have huge advertising budgets to keep their products fresh on your mind.

But, operations management also applies to service industry as well.  Besides restaurants, any company that wants to have repeatable success and consistency must document the steps they took to deliver a quality experience for the customer.  For example, telemarketing industry has the product design communicated to production personnel in the form of a telephone script.

Example #1 | Example #2 | Example #3