SECTION ONE STRATEGY AND ANALYTICS 1
1 OPERATIONS AND SUPPLY CHAIN MANAGEMENT 2
Strategy，Processes，and Analytics 3
What Is Operations and Supply Chain Management？ 4
Operations and Supply Chain Processes 7
Differences between Services and Goods 8
The Goods-ServicesContinuum 9
Product-Service Bundling 10
Efficiency，Effectiveness，and Value 10
How Does Wall Street Evaluate Efficiency？ 11
Careers in Operations and Supply Chain Management 15
Chief Operating Officer 17
Historical Development of Operations and Supply Chain Management 17
Current Issues In Operations and Supply Chain Management 20
Key Terms 21
Review and Discussion Questions 22
Analytics Exercise：Comparing Companies Using Wall Street Efficiency Measures 22
Super Quiz 22
Selected Bibliography 23
Footnotes 23
2 STRATEGY AND SUSTAINABILITY 24
Mission Statements with Aspirations Beyond Making a Profit 25
A Sustainable Operations and Supply Chain Strategy 26
What Is Operations and Supply Chain Strategy？ 28
Competitive Dimensions 30
The Notion of Trade-Offs 32
Order Winners and Order Qualifiers：The Marketing-Operations Link 32
Strategies Are Implemented Using Operations and Supply Chain Activities—IKEA’S Strategy 33
Assessing The Risk Associated with Operations and Supply Chain Strategies 35
Risk Management Framework 36
Productivity Measurement 37
Summary 39
Key Terms 40
Solved Problem 40
Review and Discussion Questions 40
Problems 41
Case：The Tao of Timbuk2 43
Super Qulz 44
Selected Bibliography 45
Footnote 45
3 FORECASTING 46
From Bean to Cup：tarbucks Global Supply Chain Challenge 47
Types of Forecasting 50
Components of Demand 50
Time Series Analysis 52
Simple Moving Average 53
Weighted Moving Average 54
Exponential Smoothing 55
Linear Regression Analysis 59
Decomposition of a Time Series 63
Forecast Errors 69
Sources of Error 69
Measurement of Error 70
Causal Relationship Forecasting 72
Multiple Regression Analysis 74
Qualitative Techniques in Forecasting 75
Market Research 75
Panel Consensus 75
Historical Analogy 76
Delphi Method 76
Web-Based Forecasting：Collaborative Planning，Forecasting，and Replenishment（CPFR） 76
Summary 78
Key Terms 79
Formula Review 79
Solved Problems 80
Review and Discussion Questions 85
Problems 85
Analytics Exercise：Forecasting Supply Chain Demand—Starbucks Corporatin 93
Super Quiz 94
Selected Bibliography 95
Footnotes 95
4 STRATEGIC CAPACITY MANAGEMENT 96
Shouldice Hospital：Hernia Surgery Innovation 97
Capacity Management in Operations 98
Capacity Planning Concepts 99
Economies and Diseconomies of Scale 99
Capacity Focus 100
Capacity Flexibility 101
Capacity Planning 102
Considerations in Changing Capacity 102
Determining Capacity Requirements 103
Using Decision Trees to Evaluate Capacity Alternatives 105
Planning Service Capacity 108
Capacity Planning in Services versus Manufacturing 108
Capacity Utilization and Service Quality 109
Summary 110
Key Terms 111
Formula Review 111
Solved Problem 111
Review and Discussion Questions 113
Problems 113
Case：Shouldice Hospital—A Cut Above 115
Super Quiz 117
Selected Bibliography 117
4A Learning Curves 118
Key Terms 124
Formula Review 124
Solved Problems 124
Problems 125
5 PROJECTS 130
India Project to Create IDs for 1.1 Billion Citizens 131
What is Project Management？ 133
Structuring Projects 133
Pure Project 133
Functional Project 135
Matrix Project 135
Work Breakdown Structure 136
Project Control Charts 138
Earned Value Management（EVM） 138
Network-Planning Models 143
Critical Path Method （CPM） 143
CPM with Three Activity Time Estimates 147
Time-Cost Models and Project Crashing 150
Managing Resources 155
Tracking Progress 156
Summary 156
Key Terms 156
Formula Review 157
Solved Problems 157
Review and Discussion Questions 161
Problems 161
Advanced Problem 167
Analytics Exercise：Product Design Project 167
Super Quiz 169
Selected Bibliography 169
Footnote 169
SECTION TWO MANUFACTURING AND SERVICE PROCESSES 171
6 MANUFACTURING PROCESSES 172
Toshiba：Producer of the First Notebook Computer 173
Production Processes 174
Production Process Mapping and Little’s Law 177
How Production Processes Are Organized 180
Designing a Production System 181
Project Layout 181
Workcenters 182
Manufacturing Cell 182
Assembly Line and Continuous Process Layouts 183
Assembly-Line Design 185
Splitting Tasks 189
Flexible and U-Shaped Line Layouts 189
Mixed-Madel Line Balancing 189
Summary 191
Key Terms 191
Formula Review 192
Solved Problems 192
Review and Discussion Questions 195
Problems 196
Advanced Problem 199
Analytics Exercise：Designing a Manufacturing Process 199
Super Quiz 202
Selected Bibliography 203
6A Break-Even Analysis 204
Salved Problems 205
Problems 206
7 SERVICE PROCESSES 208
Taco Bell and the Golden Age of Drive-Thru 209
An Operational Classification of Services 210
Designing Service Organizations 211
Structuring the Service Encounter：Service-System Design Matrix 211
Virtual Service：The New Role of the Customer 213
Service Blueprinting and Fail-Safing 213
Economics of the Waiting Line Problem 216
The Practical View of Waiting Lines 216
The Queuing System 218
Customer Arrivals 218
Distribution of Arrivals 219
The Queuing System：Factors 222
Exiting the Queuing System 225
Waiting Line Models 225
Computer Simulation of Waiting Lines 230
Summary 232
Key Terms 232
Formula Review 232
Solved Problems 233
Review and Discussio Questions 234
Problems 235
Analytics Exercise Processing Cusromer Orders 240
Super Quiz 242
Selected Bibliography 243
Footnote 243
8 SALES AND OPERATIONS PLANNING 244
What is Sales and Operations Planning？ 246
Overview of Sales and Operations Planning Activities 246
The Aggregate Operations Plan 248
Production Planning Environment 249
Relevant Costs 251
Aggregate Planning Techniques 252
A Cut-and-Try Example：The JC Company 252
Aggregare Planning Applied to Services：Tucson Parks and Recreation Department 257
Yield Management 260
Operating Yield Management Systems 262
Summary 263
Key Terms 263
Solved Problem 264
Review and Discussion Questions 267
Problems 267
Analytics Exercise：Developing an Aggregate Plan—Bradford Manufocturing 270
Super Quiz 271
Selected Bibliography 271
Footnotes 271
9 MATERIAL REQUIREMENTS PLANNING 272
Inside the iPad 273
Where MRP Can Be Used 275
Master Production Scheduling 276
Time Fences 277
Material Requirements Planning System Structure 278
Demand for Products 279
Bill of Materials 280
Inventory Records 281
MRP Computer Program 282
An Example Using MRP 283
Forecasting Demand 283
Developing a Master Production Schedule 284
Bill of Materials （Product Structure） 284
Inventory Records 285
Performing the MRP Calculations 286
Lot Sizing in MRP Systems 289
Lot-for-Lot 289
Economic Order Quantity 290
Least Total Cost 291
Least Unit Cost 292
Choosing the Best Lot Size 293
Summary 293
Key Terms 293
Solved Problems 294
Review and Discussion Questions 297
Problems 297
Analytics Exercise：An MRP Explosion—Brunswick Motors 300
Super Quiz 302
Selected Bibliography 303
10 QUALITY MANAGEMENT AND SIX SIGMA 304
GE Six Sigma Supply Chain Processes 305
Total Quality Management 306
Quality Specifications and Quality Costs 308
Developing Quality Specifications 308
Cost of Quality 310
ISO 9000 and ISO 14000 312
Six Sigma Quality 313
Six Sigma Methodology 314
Analytical Tools for Six Sigma 315
Statistical Quality Control 318
Variation Around Us 320
Process Capability 321
Process Control Procedures 326
Process Control with Attribute Measurements：Using p-Charts 328
Process Control with Attribute Meosurements：Using c-Charts 329
Process Control with Variable Measurements：Using X- and R-Charts 330
How to Construct X- and R-Charts 331
Acceptance Sampling 334
Design of a Single Sampling Plan far Attributes 334
Operating Characteristic Curves 336
Summary 338
Key Terms 338
Formula Review 339
Solved Problems 340
Review and Discussion Questions 341
Problems 341
Advanced Problem 345
Analytics Exercise：Quality Management—Toyota 346
Super Quiz 348
Selected Bibliography 348
Footnotes 349
SECTION THREE SUPPLY CHAIN PROCESSES AND ANALYTICS 351
11 INVENTORY MANAGEMENT 352
Direct to Store—The UPS Vision 353
The UPS Direct Approach 354
Definition of Inventory 357
Purposes of Inventory 357
Inventory Costs 358
Independent Versus Dependent Demand 359
Inventory Systems 360
A Single-Period Inventory Model 360
Multiperiod Inventory Systems 364
Fixed-Order Quantity Models 365
Establishing Safety Stock Levels 368
Fixed-Time Period Models 373
Fied-Time Period Model with Safety Stock 373
Inventory Control and Supply Chain Management 375
Price-Break Models 376
ABC Inventory Planning 378
ABC Classification 379
Inventory Accuracy and Cycle Counting 380
Summary 382
Key Terms 383
Formula Review 383
Salved Problems 385
Review and Discussion Questions 386
Problems 387
Analytlcs Exercise：Inventory Management at BiglOS weaters.com 395
Super Quiz 398
Selected Bibliography 398
Footnotes 399
12 LEAN SUPPLY CHAINS 400
For Lean Factories，No Buffer 401
Lean Production 402
Lean Logic 404
The Toyota Production System 404
Elimination of Waste 404
Respect for People 405
Lean Supply Chains 405
Value Stream Mapping 407
Lean Supply Chain Design Principles 410
Lean Concepts 411
Lean Production Schedules 413
Lean Supply Chains 417
Lean Services 418
Summary 420
Key Terms 421
Formula Review 421
Solved Problems 421
Review and Discussion Questions 423
Problems 426
Case：Quality Parts Company 426
Case：Value Stream Mapping 428
Case：Pro Fishing Boats—A Value Stream Mapping Exercise 428
Super Quiz 430
Selected Bibliography 431
Footnotes 431
13 GLOBAL SOURCING AND PROCUREMENT 432
Clarity Is Missing Link in Supply Chain 433
Strategic Sourcing 434
The Bullwhip Effect 436
Supply Chain Uncertainty Framework 437
Outsourcing 440
Logistics Outsourcing 440
Framework for Supplier Relationships 442
Green Sourcing 444
Total Cost of Ownership 448
Measuring Sourcing Performance 450
Summary 452
KeyTerms 453
Formula Review 453
Review and Discussion Questions 453
Problems 454
Analytics Exercise ：Global SourcingDecisions—Grainger：Reengineering the China/U，S，Supply Chain 455
Super Quiz 457
Selected Bibliography 457
Footnotes 457
14 LOCATION，LOGISTICS，AND DISTRIBUTION 458
CEMEX UK：Logistics Has Major Impact on Sustainability Goals 459
Logistics 460
Decisions Related to Logistics 461
Transportation Modes 461
Warehouse Design 462
Issues in Facitity Location 463
Plant Location Methods 465
Factoy-Rating Systems 466
Transportation Method of Linear Programming 466
Centroid Method 469
Locating Service Facilities 471
Summary 473
Key Terms 474
Formula Review 474
Solved Problem 474
Review and Discussion Questions 475
Problems 475
Analytics Exercise：Distribution Center Location 477
Super Quiz 479
Selected Bibliography 479
Footnote 479
APPENDICES 481
A Linear Programming Using the Excel Solver 481
B Answers to Selected Problems 503
C Present Value Table 505
D Negative Exponential Distribution：Values of -x 506
E Areas of the Cumulative Standard Normal Distribution 507
Photo Credits 509
Name Index 511
Subject Index 512