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Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

156 

 

Operations Management Service Learning Case Study: Using Optimization to Increase the 

Effectiveness of the SIFE Student Care Package Program 
 

Andrew Tiger, Union University 

Matthew Parker, Union University 
 

 

The Student Care Package program is a fundraising project conducted by a local chapter of Students in 
Free Enterprise (SIFE) at a private university in the southern United States. The most arduous aspect of 

the program is determining which products to purchase to meet demand requirements, while minimizing 
purchasing costs. To reduce the amount of time and effort, and to develop a sustainable process, SIFE 
students utilized computer optimization software. Incorporation of the Microsoft Excel add-in 

What’sBest! by LINDO Systems enabled students to reduce the time spent calculating materials and 
develop more efficient purchasing plans. Optimization is initially presented to students in a sophomore 

quantitative methods business course. Through optimization software, SIFE members are able to achieve 
higher levels of efficiency, sustainability, and profitability for the Student Care Package program.   
 

 

The international organization Students in Free Enterprise (SIFE) encourages students to seek ways to 

apply business lessons in the real world.  Each SIFE chapter brings business professionals and university 

student leaders together through work on various projects. These projects give student leaders 

opportunities to further explore the ideas they have encountered in their formal instruction and private 

study. With the help of seasoned business professionals, students plan and implement projects to improve 

their community, especially the lives of people in need. The students present reports on their chapter’s 

successful community outreach at a series of regional and national conferences, which recognize students 

for developing creative and beneficial projects and for presenting their results effectively and 

professionally (http://www.sife.org/). 

SIFE projects fall into the realm of service learning, and this paper presents a case study in which 

SIFE members applied mixed-integer linear programming to develop purchasing plans for their annual 

fund raising program. Below, relevant literature is summarized and focuses primarily on the nature and 

benefits of service learning in business schools. Service learning in business schools is gaining popularity; 

however, a gap exists in the field of operations management.  Following the literature review, the problem 

is presented, followed by the solution. A key part of the solution is its reproducibility for future SIFE 

members. Additionally, other organizations can use to teach students operations management techniques, 

while benefiting the organization. Finally, a reflection section discusses that students learned the 

appropriate modeling techniques by applying the techniques in later courses. 
 

LITERATURE REVIEW 
 

The literature supports the premise that service learning pedagogy is beneficial. Service learning is an 

instructional method used by academic disciplines to enhance students' involvement in the community by 

providing them with several opportunities to complement classroom instructions (Kenworthy-U'Ren and 

Peterson, 2005). Opportunities in the form of service learning projects not only enhance students' abilities 

in applying academic learning to community issues, but in several instances the projects also address 

unmet needs in communities (Anderson-Butcher, 2004; Peebles-Wilkins, 2004). Service learning 

programs contribute towards improving the educational and social fabric of a community (Anderson-

Butcher, 2004). 

Additionally, business schools have begun embracing service learning (Govekar and Rishi, 2007). 

Service-learning pedagogy that supports community involvement values and promotes leadership 

development offers more effectiveness and efficiency for management educators interested in 

incorporating real-world learning into their courses than traditional internships and cooperative education 

(Godfrey and Grasso, 2000). Real-world education in the business school classroom is based on imparting 



Tiger and Parker                                                                                                                                                            Advances in Business Research 
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"learnings that are dynamic, emergent, context-sensitive, and holistic" (Billimoria, 1998: 266). Some 
business school applications found are in the areas of marketing (Hagenbuch, 2006; Jakus, 1990; 
Chapman and Avila, 1991); management (Andrews, 2007); entrepreneurship (Shuman and Hornaday, 
1975); finance and banking (Govekar and Rishi, 2007). 

Still, service learning is still limited or seemingly nonexistent in certain business disciplines (Gujarathi 
and McQuade, 2002). Specifically, little evidence exists for the application of quantitative operations 
management in service learning activities. Since operations management overlaps with industrial 
engineering, some evidence was discovered in service learning in engineering (Dukhan et al., 2008) and 
computer science (Dahlberg, 2010). Neither offer a strong use of powerful analytics often used in 
planning and scheduling. 

Experiential learning research does exist for operations management. Notably, MIT’s Beer Game is 
often used to study the bullwhip effect in supply chains (Tiger et al., 2006). Other simulation games exist 
such as the strategic Capstone by Capsim (http://www.capsim.com). However, none of these offer the 
benefits of service learning activities, which address unmet needs in communities. 
 

The SIFE Chapter 
 

The SIFE chapter operates out of a private university in the southern United States and has a rich 
history of activity. Each year, this chapter implements projects both on campus and in the local 
community. The chapter itself consists of business students as well as students studying other subjects, 
such as art and nursing. The university offers a unique opportunity for students to earn college credit 
through involvement in the chapter’s projects. Since 1993 when the chapter was established, its members 
have won awards at SIFE regional conferences fifteen times. The main reason for the consistent success 
of the chapter is that it is involved in numerous service projects each year. 

A major focus of SIFE is teaching concepts and principles of business to children and young adults. 
The chapter maintains a strong presence in the community’s elementary and secondary schools. Through 
its Kids Count financial literacy program, SIFE students teach second graders the importance of saving 
money. In the chapter’s World at Play program, sixth graders learn about product development and the 
free enterprise system by creating a business model from start to finish. The chapter’s Roadmap to 
Success program teaches high school students - mainly the ones who are at-risk - valuable skills necessary 
to acquire their first job. Back on the university campus, the SIFE chapter’s Freshman Financial Seminar 
teaches freshman basic financial management skills. 
 

The Student Care Package Fundraising Project 
 

SIFE programs are free to the participants. Rather than charging “tuition” fees for its programs, the 
chapter must finance its projects and conference trips in other ways. There are approximately seventy 
student organizations at the university, all competing for adequate funding through fund raising efforts on 
campus. Because the groups often vie for the same dollars, effective fundraising can be difficult. SIFE has 
taken a unique approach. Many other student groups sell goods and services to other students. In fact, 
projects that sell t-shirts or holiday grams to students have become so common that they are now 
considered to be staples of the student center on campus. The SIFE chapter recognized that students’ 
family members are often overlooked in many fundraising attempts by campus organizations. This is 
understandable since students’ parents, grandparents, uncles, aunts, etc., are seen on campus far less than 
students themselves. This realization led the SIFE chapter to focus its fundraising efforts off-campus.  

One such effort is the Student Care Package project, which gives parents whose children attend the 
university the opportunity to send their sons and daughters a care package prepared by the chapter. 
Students receive their care packages during finals week - a stressful time when encouragement is most 
needed. Since the project’s inception in 2004, SIFE has generated almost $60,000 in revenue. The Student 
Care Package project is valuable for several reasons. Parents can show love to their children in an easy 
way. The SIFE chapter raises money so that it can provide Kids Count, World at Play, Roadmap to 
Success, and Freshman Financial Seminar. The profits enable chapter members to attend regional and 



Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

158 

 

national conferences. Having one lucrative fundraiser allows the chapter to give greater focus to the true 

purpose of the organization, rather than being distracted by the ongoing need for money making projects 

throughout the year.  

Perhaps the greatest benefit of the Student Care Package project is the real-world experience that it 

provides to the chapter members who are involved with it. Through the project, students apply the 

knowledge they have learned in their classes. Granted, this application is limited and takes place within a 

controlled setting; nevertheless, students have the opportunity to use the principles of marketing, 

management, economics and accounting that they may have previously only grasped in theory.   

The project coordinator is exposed to a variety of business situations and is expected to make decisive 

decisions. Marketing the Student Care Packages begins months before assembly of the packages. To 

market the care packages, the project coordinator must determine the best way to reach the target market. 

He or she must commission and later approve the design of promotional materials, such as postcards and 

flyers. These tasks demand that the coordinator apply knowledge learned in his or her marketing courses. 

This student is also responsible for selecting the items to be included in the care packages. Such a 

decision calls for the project coordinator to price materials and analyze the benefits and costs of adding 

new items to the packages. To maximize fundraising dollars, the chapter must seek the right balance of 

quality and cost for the items in the care package and put a reasonable price on its product. The project 

coordinator must plan the production and assembly of the care packages carefully to ensure efficiency and 

consistency. Other tasks include scheduling workers and communicating with care package recipients. 

The project coordinator and the other workers must rely on many aspects of their business education to 

successfully raise funds for the chapter. Organization and communication skills are vital. 

While the project coordinator has ample opportunity to employ his or her knowledge and gain 

practical experience, the students in other positions have similar possibilities. For instance, students who 

input information about customer orders use various software programs, and students who handle 

consumer questions use customer service skills. Students who prepare the Student Care Packages must 

follow a standardized production plan to assure that their work is consistently high quality. During 

distribution, students can develop communication skills as they interact with the recipients of the care 

packages. 
 

The Problem 

 

From one semester to the next, the Student Care Package project’s success has varied. Turnover of 

students due to graduation can create challenges. Of all the project coordinator’s responsibilities, the 

acquisition of input materials is generally the most arduous task. He or she must calculate the quantity of 

materials required to fulfill each order, while also considering the profit margin. Prior to using computer 

optimization, these calculations were performed by hand, and a student can expect to spend more than 

five hours working them. 

Calculating the cost of raw material takes so much time for two reasons. The first is that input 

materials are purchased in bulk at a wholesaler such as Costco or Sam’s. The second is the variety of care 

packages offered. The fundraiser offers four types of packages - known as Standard, Premium Standard, 

Healthy, and Premium Healthy. Each care package contains 25 to 30 items. Some items, such as Animal 

Crackers and Kraft Easy Mac, are included whether the package is non-Healthy or Healthy. Other items, 

such as trail mix and Nerds Rope, are only included in the Healthy and non-Healthy packages 

respectively. Since the items are purchased in bulk at wholesale prices to minimize expense, the number 

of items purchases may not match the quantity required to fill the orders. This leads to a materials surplus. 

For example, as shown in Figure 1, assume that 60 Standard Packages and 40 Premium Packages have 

been ordered. Bags of popcorn and Cheez-It crackers are in both packages; therefore 100 bags of popcorn 

and 100 bags of Cheez-It crackers are needed to fill the orders. Popcorn is purchased in 30-bag bundles 

and Cheez-It crackers in 36-bag bundles. When purchasing popcorn, one can acquire four bundles (120 

bags in total) or three bundles (90 bags in total). The first option results in an excess of 20 bags; the 

second option results in a shortage of 10 bags. In this example, the better solution is to simply purchase 



Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

159 

 

more popcorn than required to ensure that each package has the right one bag. When purchasing Cheese-

It crackers, the same problem exists. The orders call for 100 bags, but an excess or a shortage is the result 

of the two best purchasing options available. But if the popcorn could be substituted for the Cheese-It 

crackers in 20 packages, then the overall waste could be reduced. The problem arises in complexity due to 

the many different items that are used to assemble a packages and the allowance of equivalent 

substitutions. 
 

Figure 1: Equivalent Substitution Example 
 

 
 

The Solution 
 

Part I:  Using Optimization to Minimize Purchasing Costs 
 

In an undergraduate sophomore-level “Quantitative Methods for Business” course, SIFE chapter 

members first considered using computer spreadsheets to model their project. Such tools can help with 

purchasing decisions that yield the maximum output or profit, or minimum cost, waste, or production 

time (What’sBest!, User’s Manual, 2005). Computer optimization modeling traditionally uses linear 

programming to find the optimal solution to a problem. The students hoped the program would achieve 

three main goals: reduce the time spent calculating, increase the profit margin, and establish consistent 

decision-making approach to ensure continuity for new project coordinators in the future. The SIFE 

chapter was directed to use the Microsoft Excel add-in What’sBest! by Lindo Systems for the Student 

Care Package program. 

In math modeling, there are three kinds of inputs. Sometimes called the ABCs of modeling, these 

kinds of inputs are known as decision variables, the objective function and constraints. In What’sBest!  

nomenclature, these three inputs are called the ABC’s of modeling and are the  adjustable cells, best cells, 

and constraints. Table 1 lists the decision variables; Table 2 lists the objective function and constraints; 

and Table 3 lists the inputs. The What’sBest! model is available upon request.   
 

Table 1: Decision Variables 
 

Decision Variables Location (Cell Range) Variable Type 

bulk packages to purchases =Main!M4:M103 integer 

individual items used in each final product =Main!N4:N103 continuous, naturally integer 

equivalent substitutions matrix =Substitutions!C4:CW103 continuous, naturally integer 

logic variables forcing substitutions to be only given or taken, not both =Substitutions!DA4:DA103 binary 

 

Table 2: Objective Function and Constraints 
 

Item Location (Cell Range) Description 

Objective Function =Main!AC1 minimize total purchasing costs 

Constraint =Main!AB4:AB103 meet demand (either through product or equivalent substitutions) 

Constraint Main!U4:AA103 Minimum quality, i.e., all products cannot be replaced by the cheapest substitute 

Constraint =Substitutions!DB4:DD103 Supporting binary variables which force substitutions to be either givers or takers 

 



Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

Table 3: Inputs 
 

Input Location (Cell Range) 

List of bulk products to purchase =Main!B4:B103 

Quantity per bulk package =Main!C4:C103 

Cost per bulk package =Main!D4:D103 

Bill of materials =Main!I4:J103 

Product demand =Main!I1:J2 
 

Currently, each Care Package contains 29 different products. In anticipation of future demand for 

additional items, the optimization model was built to accommodate up to 50 different products per Care 

Package. If 21 more items were added to the Care Packages, the model would have over 10,000 

adjustable cells, and about 500 constraints. With a platform for expansion, the Student Care Package 

program is positioned to continue meeting the needs of students. 
 

Part II: Care Packages Assembly 
 

Once the orders have been received and the optimal mix of materials has been determined, the 

materials are purchased and assembly begins. To accommodate the different types of Student Care 

Packages, SIFE utilizes a three stage production process known as general fill, type fill, and shirt fill. See 

Figure 2. 
 

Figure 2: Care Package Assembly Plan 

160 

 

 
 

All types of Care Packages contain some of the same items such as a bottled drink and animal 

crackers. In the first stage of production known as general fill, the packs are filled with items that are 

common to all Care Packages. At the end of this stage, the identical Care Packages are divided into two 

groups, “healthy” and “standard”. In the second stage of production known as type fill, the healthy items 

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the standard and 

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finished.



Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

161 

 

are placed into the “healthy” packs, while the “standard” packs are filled with standard items. Packs from 

both groups are then designated as premium (Premium H and Premium S) and segregated to enter the 

third processing stage known as shirt fill. In this stage, each premium pack receives a t-shirt and is sealed.  

The packs which are not designated as premium (Standard and Healthy) do not include shirts and only 

need to be sealed in the third stage of production. 

Approximately 16 SIFE students work together to assemble the Student Care Packages. In each of the 

three stages of production (general fill, type fill, and shirt fill), there are several stations where SIFE 

members place about three items in each Care Package.  Each SIFE member follows a detailed production 

plan that provides instructions regarding the type and quantity of items to be placed in each Care Package. 

Included in the detailed production plan are the equivalent substitutions instructions. 
 

CONCLUSION 
 

The Realized Benefits of the Working Model 
 

Before the final model was ready for operation, there were seven versions created, tested, and edited. 

Building a spreadsheet optimization model as complex as this one takes time. The development process 

was validated by comparing model solutions to solutions generated by experts, including the current 

project coordinator. 

After validation, the SIFE students realized some of the benefits of their efforts. For instance, the easy-

to-use model could make calculations and recommend a purchasing plan in mere seconds; whereas, the 

students spent hours with pencil, paper, and calculator arriving at similar results. Furthermore, the 

computer optimization approach could be used in future projects, bringing some consistency to the work 

of all project coordinators - present and future. In theory, the model’s optimized purchasing plan should 

increase the project’s profit margin. However, it is difficult for the chapter to determine whether this 

actually happened this semester because some of the SIFE chapter’s records from past fundraising 

projects were not available.  But thanks to the spreadsheet optimization model, the chapter can maintain 

better records in the future. 
 

Reflection 
 

The Student Care Package project has given SIFE students the opportunity to utilize some of the 

concepts they have learned in the classroom. They identified a problem that involved purchase 

calculations, and with the assistance of faculty, they found a solution using the optimization model. 

Students were active participants in developing this solution, rather than being passive observers. Such 

participation reinforces what they have learned in the classroom.   

In addition to improving the Student Care Package project, the successful use of the software program 

has also inspired students to utilize it in other areas. In general, it encourages students to apply what they 

have learned in class to solve real life problems using business models before they graduate from college. 

Of all the fundraisers implemented by student groups, the Student Care Package project is uniquely 

complex. SIFE has been motivated to incorporate advanced technology to solve the problems that arise in 

making and selling a product with variable and multiple components. Successful utilization of 

optimization software demonstrates the members’ degree of competency and commitment to excellence 

in business. 
 

REFERENCES 
 

Anderson-Butcher, D. 2004. Transforming schools into 21st century community learning centers. 

Children & Schools, 26: 248-252. 
 

Andrews, C. 2007. Service learning: Applications and research in business. Journal of Education for 

Business, 83: 19-26. 
 



Tiger and Parker                                                                                                                                                            Advances in Business Research 

2011, Vol. 2, No. 1, 156-162 

 

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Billimoria, D. 1998. From classroom learning to real-world learning: A diasporic shift in management 

education. Journal of Management Education, 22: 265-268. 
  

Chapman, J., & Avila, R. 1991. Sales training for students: An experiential approach. Marketing 

Education Review, 1: 54-59. 
  

Dahlberg, T., Barnes, T., & Bean, K. 2010. Applying service learning to computer science: Attracting and 

engaging under-represented students. Computer Science Education, 20: 169-180. 
 

Dukhan, N., Schumack, M., & Daniels, J. 2008. Implementation of service-learning in engineering and its 

impact on students' attitudes and identity. European Journal of Engineering Education, 33: 21-31. 
 

Godfrey, P., & Grasso, E. 2000. Introduction. In P. Godfrey, & E. Grasso, (Eds.), Service-learning in the 

disciplines: Management (1-10). Washington, D. C.: American Association for Higher Education. 
 

Govekar, M., & Rishi, M. 2007. Service learning: Bringing real-world education into the B-school 

classroom. Journal of Education for Business, 83: 3-10. 
  

Gujarathi, M., & McQuade, R. 2002. Service learning in business schools: A case study in an 

intermediate accounting course. Journal of Education for Business, 77: 144-150. 
  

Hagenbuch, D. 2006. Service learning inputs and outcomes in a personal selling course. Journal of 

Marketing Education, 28: 26-34. 
 

Jakus, J. 1990. The use of client-sponsored projects in university professional salesmanship classes. In D. 

Good, (Ed.,), Professional sales and sales management practices leading towards the 21st century. 

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Kenworthy-U'Ren, A., & Peterson, T. 2005. Service-learning and management education: Introducing the 

"WE CARE" approach. Academy of Management Learning & Education, 4: 272-277. 
 

Peebles-Wilkins, W. 2004. The full-service community school model. Children & Schools, 26: 131-133. 
 

Shuman, J., & Hornaday, J. 1975. Experiential learning in an entrepreneurial course. Collegiate News and 
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Tiger, A., Benco, D., & Fogle, C. 2006. Teaching the importance of information, supply chain 

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113. 
 

What'sBest! User's Manual. 2005. Chicago, IL: LINDO Systems. 
 

 

Andrew Tiger is a professor of management at Union University. He received his Ph.D. in industrial 

engineering from the University of Houston.  His current research interests include analytics, golf pace of 

play modeling, and service learning activities in the field of operations management. He has published in 

Journal of Hospitality and Leisure Management, Academy of Information and Management Science 

Journal, Issues in Information Systems, and others. 
 

Matthew Parker is a senior business administration major at Union University. He is involved with 

Students in Free Enterprise where he serves as president. He also serves as secretary and treasurer of 

Union’s Student Activities Council. Upon graduation Parker hopes to peruse a career in management or 

operations. 


