Using Exhibit 1.3 as a model, describe the source-make-deliver-return relationships in the following systems:

a. An airline

b. An automobile manufacturer

c. A hospital

d. An insurance company

Exhibit 1.3 for Reference:


Source: Source refers to a place or thing that helps in initiating some work. It refers to the supplier who helps in creation and delivery of goods and services required by the firm to make its product.

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Make : Making refers to the step where the product get started and required equipment are obtained. The processing and scheduling of materials critical for the products are done in this stage.

Deliver : In the step of delivering, the products are moved to the warehouses and customers. The movement of goods to the customers by the carriers and placement and storage of goods in the warehouses are done in this step.

Return : Return refers to receipt of goods from the customers for any damage or obsolescence to the firm. It refers to the process of services provided by the firm when customer observe defect in the product.

Step 2 of 2

The following explains the source-make-deliver-return relationship for each industry:

Source: For an airline, source would mean the aircraft manufacturer who supplies required equipment.

Make- The services provided by the airport to its customers.

Deliver- this would mean delivering the passengers to the port of destination.

Return- Providing services like resolving issues, luggage problems, damaged goods etc.

Source- For automobile manufacturer the source would be the supplier of raw material and automobile equipment.

Make- The major facilities provided like physical movement and making od automobile parts.

Deliver- After manufacturing the product, the cars must be sent to the dealers inn cars who would help the cars reach the audience.

Return- Providing the warranty and guarantee certificates and repair of ant damaged parts.

Source- For hospitals, source would mean suppliers of medical equipment.

Make- Making of required rooms in the hospitals like operation room, general ward, check-up rooms, storage rooms.

Deliver- Providing facilities like ambulance pick up and drop facilities for family members of patients.

Return- Monthly check up, follow up results, and resolving any issues relating to patients billing or reports.

Source- For an insurance company, sources like suppliers for brokers, underwriters etc.

Make- providing facilities to clients.

Deliver- Agents who would help in delivery of required documents and papers.

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Return- It refers to refund or repayment of excess payments by the insurer, resolving payment issues.