Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.2, Problem 1P
Summary Introduction

Interpretation:Two functional and innovative products are to be identified.

Concept Introduction:Functional and innovative products are differentiated on the basis of the type of the product demand and the relative novelty of the product. The functional product is already in the maturity stage of the product life cycle while the innovative product is still in the introduction stage or may have just entered the growth stage of the product life cycle. This is not available in normal retail outlets but may be available at the company introducing the product or at a few select locations.The customer profile for the two types of products is totally different.

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Doing a value chain analysis is a fantastic way of following a process to review all of the ways you can generate value for your customers. Based on the following information, students are required to create/draw (infographic) value chain to the identified organization below. PIZZA HUTLet’s look at the value chain of Pizza Hut:PRIMARY ACTIVITIESInbound logistics: This includes all of the sourcing activities to procure and standardize all of the produce, ingredients and materials to bake pizza’s fast, consistently, and delicious – in house. They capitalize on economies of scale, and use massive global purchase orders to source the best prices on raw products for their restaurants.Operations: By targeting areas where there is an affinity for Italian food, Pizza Hut operates in a huge number of countries globally with a licensing model where stores are managed by a local franchise owner.Outbound logistics: There are two models that Pizza Hut capitalizes on, in store dining and their home…
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