MBALN670 Supply Chain Management at Cruise International Inc Assignment There are 2 Assignment attached herewith, kindly go through them carefully and prov

MBALN670 Supply Chain Management at Cruise International Inc Assignment There are 2 Assignment attached herewith, kindly go through them carefully and provide them separately.Guidelines for assignment This is an individual assignment. Ground your answer in relevant theory. Plagiarism and reproduction of someone else’s work as your own will be penalized. Make use of references, where appropriate – Use Harvard or APA referencing method. Late submission implies a deduction of 10 marks per day Structural elements should include an introduction, main body, and a conclusionMaximum word count: 2000 words Essay each Assignment 1 – MBALN670 – Supply Chain Management
Assignment Brief:
Prior to attempting the assignment questions please read the following
material:

Welcome to Cruise International

Overview of Cruise International

Mission Statement which includes:
o Cruise Data
• North American Passenger Capacity
• Cruise Destination Data
• Cruise Destination Data (Seasonalized)
• Average Length of Cruise Data
• Length of Cruise Demand Data
• Average Capacity Utilization
Quality Survey Data
• Billing Errors Data
• Guest Survey Data
• Housekeeping Stateroom
• Cleaning Data
o Housekeeping Work Sampling Data
Hours Required to Accomplish Routine Maintenance Tasks
Cost Reports Processing Time Chart
 Departments
 Guest’s Survey Form
 Activities for Telemedicine System Implementation
 Embarkation Process
Guidelines for assignment
 This is an individual assignment
 Ground your answer in relevant theory
 Plagiarism and reproduction of someone else’s work as your own will be
penalized
 Make use of references, where appropriate – Use Harvard or APA referencing
method.
 Late submission implies a deduction of 10 marks per day
 Structural elements should include an introduction, main body, and a conclusion
 Weight – 50%
 All of the following questions are to be attempted.
 Maximum word count: 2000 words
 Type of assignment: Essay
 Start / Finish : Week 2
Learning Outcome Assessed: 1,2,3
CHAPTER 4: Supply Chain Management at Cruise International, Inc.
Bob Bristol, your boss at Cruise International, Inc., just called to tell you that he was
impressed with your progress thus far in familiarizing yourself with operations at CIIboth the strategic details pertaining to its mission, competitive priorities, etc. and the
specific details concerning its services and processes. He tells you that, with all the
buzz about supply chain management (SCM) that you hear these days, CII is actively
interested in exploring how different SCM concepts and techniques could be used in
their operations. Maintaining an adequate, assured supply of a variety of mechanical
equipment, entertainment equipment, retail merchandise, food products, and supplies
for maintaining the ship is critical to CII. Meghan Willoughby, Chief Purser aboard the
Friendly Seas I, has a couple of specific assignments that you will work on later. But for
now, Meghan would like a concise research report for the top management team
addressing SCM issues relevant to CII.
“Leila Jensen liked your write-up on the CII service package and delivery system.
Meghan Willoughby wants you to prepare a similar report addressing SCM issues
relevant to CII. Senior Administrators at CII are actively involved in exploring how SCM
concepts and techniques could be adopted in their operations. Prepare a concise report
addressing the specific questions that Meghan has put together for you. I look forward
to receiving your report, which I am sure will provide insight for SC applications at CII.”
1. Provide a comprehensive explanation of the essential concepts of SCM
and explain to what extent SCM is applicable to a service operation
such as CII.
2. Evaluate how partnering with some of the suppliers could benefit CII.
What issues should CII consider when developing partnerships?
3. Purchasing, a major function in SCM, is critical in the cruise line
industry. Critique the potential conflicts of interest or ethical issues
facing the purchasing function.
Toys (Cyprus) Ltd.
Toys Ltd. was established in 1990 in a provincial town close to Larnaca in Cyprus with the stated
objectives of producing high quality toys and educational equipment for principally, the Cyprus
market and later the middle-east. Over the period of 20 years it has seen various ups and downs in
fortune but has been facing increasing competition especially in the education segment of its
business.
Recently it has experienced a downturn in its profitability which its management ascribe to the
deteriorating economic markets in Europe and the ”knock on” effect in the Cyprus market. Various
strategies to overcome this deterioration in its sales and profits have been proposed and cuts in the
employee force and production techniques have been proposed. The management consider that
these strategies together with more stringent cost controls and cost cutting will produce the desired
results in the future.
One of the factors reported by the sales director, Kyriacos Dmitriou, is the increasing number of
returns being received by the goods returned department. This phenomenon he says, “….. is not
sustainable if the firm is to return to profitability. “
The production manager has suggested that if 100% of items produced are inspected at the end of
the production line then the problem of returns of defectives will be solved. This operation could be
achieved by moving 2 or 3 of the more experienced workers from the assembly line and onto final
quality inspection. Again, this strategy would not involve changes in staff numbers. It has also been
suggested by the production department that a higher degree of self assembly by the
customers/consumers could be used as this would again reduce production costs and place the onus
of the defectives issue on the consumers.
The Marketing Director, Stavrou Kiriacou, is concerned that so many items with working parts are
being returned due to erratic or non-working parts. He is concerned that this will affect the
reputation and image of the firm. His senior assistant has proposed that as a measure of good will
the firm agrees to receive faulty goods back and replace them with new items. This, he says, will
cure the image problems. He also suggests that the faulty units could be rebuilt and repaired then
sold in the outlet shop. These could be sold at a compensating discount. He believes also that this
would not detract from the sales of new items. Under this strategy no extra staff would be needed
as regular staff could carry out the functions during lulls in their regular work.
It has been suggested by the accountants that the company should be looking for cheaper
components even if they are considered lower quality as this would satisfy the company’s need for
cost reduction in production. With the change in staff organisation, cheaper components, cheaper
materials, rebuilding products and sales in outlets the returns problems and profit levels would be
addressed. The accountants have asked for more accurate figures of returns, defectives, fault points
and total production volume figures are provided to them. It could be they say, that the levels of
returns are at acceptable levels. After all they claim, the percentage “defectives” may well be within
the parameters laid down in industry standards and bench marks.
Additionally, the accountants have queried if the firm can afford to choose strategies other than
those they have proposed:
a)buying cheaper components and materials
b)working to industry norms on defectives and acceptance levels
c)”toughing” it out as far as returns are concerned by denying liability and resisting compensation by
replacement of defective products.
Operations Management – Assessment 2 – Toys (Cyprus) Ltd. – Case study
You have been requested to provide advice and justified recommendations, as a new graduate of
management studies, to the management of TOYS (Cyprus) Ltd. regarding their problems with their
products and processes. They are particularly interested in your observations regarding their
proposals to overcome their poor performance in the markets they are in.
They have asked that you provide them with justified reasons for recommendations.
You are to write your recommendations, findings and observations with fully justified arguments.
Guidelines for assignment









This is an individual assignment
Plagiarism and reproduction of someone else’s work as your own will be penalized
Make use of references, where appropriate – Use Harvard referencing method.
Structural elements should include an introduction, main body, and a conclusion
Weight – 50%
All of the following questions are to be attempted.
Maximum word count: 2000 words
Type of assignment: Essay
Deadline : Week 6
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
Mission Statement
We are committed to serving our customers, both the guests
and travel agents who book and support our cruises. Every
service we provide must be of the highest quality whether it be
shipboard or shore side.
We constantly seek improvement and innovation as we strive to
reduce costs in order to maintain reasonable fares, further
enhancing the value of our service. All bookings are serviced
promptly and accurately with the highest respect and courtesy.
We recognize that our suppliers and distributors must have an
opportunity to make a fair profit.
Cruise International, Inc. is concerned about our staff, the men
and women who work with us, whether shipboard or shore side.
All employees are provided with clean, orderly, and safe
working conditions. Each employee is treated with respect and
recognized for his/her effort. Cruise International is committed to
providing competent management.
Our ultimate responsibility is to our parent company and its
stockholders. Our business must make a reasonable profit.
Data and Charts
Cruise Data
• North American Passenger Capacity
• Cruise Destination Data
• Cruise Destination Data (Seasonalized)
• Average Length of Cruise Data
• Length of Cruise Demand Data
• Average Capacity Utilization
Quality Survey Data
• Billing Errors Data
• Guest Survey Data
• Housekeeping Stateroom Cleaning
Data
Work Sampling Data Hours Required to
Accomplish
Routine Maintenance Tasks
Cost Reports Processing Time Chart
Activities for Telemedicine System
Implementation
CRUISE DATA
North American Passenger Capacity
Individual Cruise Line Detail at Year-End 2009
Cruise Line
Carnival Cruise Lines
Celebrity Cruises
Costa Cruise Lines
Cruise International, Inc.
Crystal Cruises
Cunard Line, Ltd.
Disney Cruise Line
Holland America Line
MSC Cruises USA
Norwegian Coastal Voyages
Norwegian Cruise Line
No. of Lower Berths
No. of Ships
47,908
14,762
17,265
13,120
2,014
4.411
3,508
16,929
9,073
5,923
20,950
21
9
10
12
2
2
2
12
7
13
11
Oceania Cruises, Inc.
Orient Lines, Inc.
Princess Cruises
Regent Seven Seas Cruises
Royal Caribbean International
Seabourn Cruise Lines
Silversea Cruises
Swan Hellenic
Windstar Cruises
Total
Cruise Destination Data
Cruise Destination Data (Seasonalized)
2,052
845
28,800
2,410
45,570
624
1,356
360
604
234,077
3
1
14
5
20
3
4
1
3
155
Average Length of Cruise
Length of Cruise Demand Data
Average Capacity Utilization
QUALITY SURVEY DATA
Billing Errors Data
Number of
Defective Bills
47
45
59
50
74
71
65
49
26
29
32
35
48
46
51
64
52
44
46
51
45
1029
Cruise Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Total
Guest Survey Data
Cruise
Number
1
2
3
4
5
6
7
8
9
10
11
12
Number of
Outstanding
Responses
14
13
15
14
18
10
26
8
17
12
13
14
13
14
15
Total
17
11
8
210
Housekeeping Stateroom Data
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Number of
Defects
108
104
94
105
88
150
85
98
145
95
105
65
77
82
90
98
116
113
88
94
2000
Housekeeping Work Sampling Data
Activity
Cleaning stateroom
Delivering room service
Removing room service dishes
Arranging laundry/dry cleaning service
Delivering clean garments
Evening turndown service
Assisting guests
Preparing for crew show
Other activity
Number of times observed
144
12
17
13
22
70
20
10
20
Unavailable for observation
38
Hours Required to Accomplish Routine Maintenance Tasks
Cost Reports Processing Time Chart
Report
Specialty Restaurant I
Specialty Restaurant II
Wine I
Wine II
Wine III
Bar Service I
Bar Service II
Bar Service III
Bar Service IV
Shore Excursions
Gift Shops
Salon/Spa
Cost Reports Process Time (minutes)
Review Time
12
14
17
20
12
10
25
22
16
30
24
18
Data Entry Time
10
16
18
22
15
15
32
28
20
35
30
25
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
An Overview of Cruise International, Inc.
Cruise International has been in business for more than two decades. The organization competes in all
aspects of the cruise industry. They provide cruises with small ships (fewer than 500 passengers), medium
ships (between 500 and 1,500 passengers), and large ships (over 1,500 passengers), as well as several
different luxury levels.
Cruise International, Inc. currently uses the following port cities for embarkation and disembarkation.
Amsterdam, Holland
Auckland, New Zealand
Barcelona, Spain
Beijing, China
Buenos Aires, Argentina
Cape Liberty, Bayonne, New Jersey
Ensenada, Mexico
Ft. Lauderdale, Florida
Harwich, England
Hong Kong, China
Honolulu, Oahu, Hawaii
Los Angeles, California
Miami, Florida
Rome, Italy
San Diego, California
San Francisco, California
San Juan, Puerto Rico
Seattle, Washington
Seward, Alaska
Singapore
Southampton, England
Stockholm, Sweden
Sydney, Australia
Valparaiso, Chile
Vancouver, British Columbia
Venice, Italy
Corporate headquarters for Cruise International, Inc. are located in Miami, Florida.
The cruise ships used by CII have a number of departments and services. The Administration basically handles the
paper work during the cruise. The Deck and Engine members are responsible for the operation and maintenance of
the ship. Entertainment Services provide the onboard entertainment. Food and Beverage Services are responsible
for dining and drinking aboard the ship. The Hotel function is responsible for the staterooms for guests and crew.
Housekeeping cleans the public areas of the ship as well as the staterooms. Information Technology is responsible
for the operation and maintenance of all areas of the cruise ship’s onboard computer system. The Cruise Staff is
responsible for maintaining guest relations.
Clicking on the underlined department allows you to find out more about the department or simply go to the Cruise
International, Inc. Departments and Services Page.
The descriptions of job positions were taken from http://www.cruiseservices.co.uk and
http://www.cruiseshipjobs.biz.
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
The following virtual service case has been developed as an
interactive supplement to the Reid & Sanders Operations
Management textbook. The case requires you, the student, to
assume the role of an intern working for Cruise International,
Inc. (CII). Cruise International operates cruise ships globally.
During your internship you will be working at corporate
headquarters on both strategic and tactical issues as well as on
board one or more of our cruise ships. While Cruise
International is a fictional company, much of the data used with
regard to the cruise industry is real. There has been some
manipulation of the data to include Cruise International as part
of the industry. Much of the data has been adapted from an annual report done by the Cruise Lines
International Association, Inc. The style and format of this virtual case draws heavily from the previous
Virtual Company Consulting Case developed by Ted Helmer of Theodore Helmer and Associates, Inc. and
Jon Ozmun of Northern Arizona University.
An Overview of the Cruise Industry
In 2006, the size of the worldwide cruise market was approximately 12 million passengers. Of those 12
million passengers, 10 million passengers embarked on cruise voyages from ports in North America. The
U.S. cruise passengers, representing approximately 78% of the worldwide cruise passengers, have about 9
million passenger embarkations.
The total economic impact of the cruise lines, passengers, and their U.S. suppliers reached $35.7 billion
according to a study done by the Business Research and Economic Advisors (BREA). In the BREA report,
it shows the following U.S. industries that most benefited from the cruise industry.






Professional & Technical Services $4.0 billion
Nondurable Goods Manufacturing $4.8 billion
Travel Services $3.9 billion
Financial Services $2.3 billion
Airline Transportation $2.1 billion
Wholesale Trade $1.8 billion
Direct spending of the cruise lines and their passengers on goods and services produced in the United
States in 2006 was $17.6 billion. This spending resulted in 348,000 U.S. jobs paying $14.7 billion in wages.
In 2006, the top ten U.S. cruise port cities, ranked by number of embarkations, were Miami, Port Canaveral,
Port Everglades, Galveston, Los Angeles, New York, Tampa, Long Beach, Seattle, and Honolulu. Florida
remains the center of the U.S. cruising industry, accounting for almost 56% of the embarkations. California’s
cruise ports represented nearly 14% of all U.S. embarkations. Texas is the highest growth market. New
York increased embarkations to 536,000 with the opening of the Brooklyn Cruise Terminal. U.S. ports of call
had approximately five million cruise ship visits in 2006. Most of the visits were to Alaska, Hawaii, and Key
West.
Following are some fast facts about the cruise industry.









On average, a 2000-passenger cruise ship with 950 crew members generates approximately
$322,700 in offshore spending in a U.S. homeport city.
Approximately 40% of embarking cruise ship passengers stay one or more nights in a port city
either before or after the cruise. Each of these visitors spends an average of $289 per visit on retail,
dining, local transit, and lodging.
According to the Cruise Lines International Association (CLIA), the industry has had an average
annual growth rate of 8.5% per annum.
The cruise industry is relatively young. Since 1980, over 100 million passengers have taken a deepwater cruise. Of this number, almost 60% have done their cruise within the past ten years.
The market potential is large. More than 50 million North Americans expressed an intent to cruise
within three years. Of those, 31 million expressed a strong intent to cruise within three years. At this
point in time, only 17% of the U.S. population has ever cruised.
The industry continues to add new destination ports, new ship design concepts, new onboard
and/or onshore activities, new cruise themes, and new cruise lengths to reflect the changing
vacation patterns of today’s market.
The cruise experience consistently exceeds passengers’ expectations. Cruising consistently
receives top marks.
Cruising allows passengers to sample destination areas to which passengers may return for a
future vacation.
The North American cruise market is strong across all 50 states and Canada.

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