book

Operations Management: Creating Value Along the Supply Chain, 7th Edition

Name: Operations Management: Creating Value Along the Supply Chain, 7th Edition
ISBN: 9780470525906

by Roberta S. Russell, Bernard W. Taylor III

September 2010

Intermediate to advanced

829 pages

35h 34m

English

Wiley

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About the Authors
Preface
CHANGES IN THE SEVENTH EDITIONMAJOR TEXT THEMESOPERATIONS STRATEGY: CREATING VALUE ALONG THE SUPPLY CHAINGLOBAL OPERATIONSSUSTAINABILITYSERVICES AND MANUFACTURINGQUALITATIVE AND QUANTITATIVE PROCESSESTEACHING AND LEARNING SUPPORT FEATURESPEDAGOGY IN THE TEXTBOOK"Along the Supply Chain" BoxesOM Dialogue BoxesMarginal NotesExamplesSolved Example ProblemsSummary of Key FormulasSummary of Key TermsHomework Problems, Questions and CasesONLINE RESOURCES FOR STUDENTS, WWW.WILEY.COM/COLLEGE/RUSSELLEXCEL FILES OF EXHIBITSONLINE RESOURCES FOR INSTRUCTORSONLINE RESOURCES FOR INSTRUCTORS WWW.WILEY.COM/COLLEGE/RUSSELLWileyPLUSWhat do students receive with WileyPLUS?What do instructors receive with WileyPLUS?WileyPLUS. Learn More. www.wileyplus.com.
Acknowledgments
I. Operations Management
1. Introduction to Operations and Supply Chain Management
1.1. THE OPERATIONS FUNCTION1.2. THE EVOLUTION OF OPERATIONS AND SUPPLY CHAIN MANAGEMENT1.3. GLOBALIZATION1.3.1. THE CHINA FACTOR1.3.2. INDIA, THE WORLD'S SERVICE PROVIDER1.4. PRODUCTIVITY AND COMPETITIVENESS1.5. STRATEGY AND OPERATIONS1.5.1. PRIMARY TASK1.5.2. CORE COMPETENCIES1.5.3. ORDER WINNERS AND ORDER QUALIFIERS1.5.4. POSITIONING THE FIRM1.5.4.1. Competing on Cost1.5.4.2. Competing on Speed1.5.4.3. Competing on Quality1.5.4.4. Competing on Flexibility1.5.5. STRATEGY DEPLOYMENT1.5.5.1. Policy Deployment1.5.5.2. Balanced Scorecard1.5.6. OPERATIONS STRATEGY1.6. ORGANIZATION OF THIS TEXT1.7. LEARNING OBJECTIVES OF THIS COURSE1.8. SUMMARY1.9. SUMMARY OF KEY TERMS1.10. QUESTIONS1.11. PROBLEMS1.12. CASE PROBLEM 1.11.13. CASE PROBLEM 1.21.14. CASE PROBLEM 1.31.15. REFERENCES
S1. Operational Decision-Making Tools: Decision Analysis
S1.1. DECISION ANALYSIS WITH AND WITHOUT PROBABILITIESS1.1.1. DECISION MAKING WITHOUT PROBABILITIESS1.1.2. DECISION ANALYSIS WITH EXCELS1.1.3. DECISION ANALYSIS WITH OM TOOLSS1.1.4. DECISION MAKING WITH PROBABILITIESS1.1.5. EXPECTED VALUE OF PERFECT INFORMATIONS1.1.6. SEQUENTIAL DECISION TREESS1.2. SUMMARYS1.3. SUMMARY OF KEY FORMULASS1.4. SUMMARY OF KEY TERMSS1.5. SOLVED PROBLEMSS1.6. PROBLEMSS1.7. CASE PROBLEM S1.1S1.8. CASE PROBLEM S1.2S1.9. CASE PROBLEM S1.3S1.10. REFERENCES
2. Quality Management
2.1. WHAT IS QUALITY?2.1.1. QUALITY FROM THE CUSTOMER'S PERSPECTIVE2.1.2. DIMENSIONS OF QUALITY FOR MANUFACTURED PRODUCTS2.1.3. DIMENSIONS OF QUALITY FOR SERVICES2.1.4. QUALITY FROM THE PRODUCER'S PERSPECTIVE2.1.5. A FINAL PERSPECTIVE ON QUALITY2.2. QUALITY MANAGEMENT SYSTEM2.2.1. THE EVOLUTION OF QUALITY MANAGEMENT2.3. QUALITY TOOLS2.3.1. PROCESS FLOWCHARTS2.3.2. CAUSE-AND-EFFECT DIAGRAMS2.3.3. CHECKSHEETS AND HISTOGRAMS2.3.4. PARETO ANALYSIS2.3.5. SCATTER DIAGRAMS2.3.6. PROCESS CONTROL CHARTS AND STATISTICAL QUALITY CONTROL2.4. TQM AND QMS2.5. THE FOCUS OF QUALITY MANAGEMENT—CUSTOMERS2.5.1. QUALITY MANAGEMENT IN THE SUPPLY CHAIN2.5.2. MEASURING CUSTOMER SATISFACTION2.6. THE ROLE OF EMPLOYEES IN QUALITY IMPROVEMENT2.6.1. KAIZEN AND CONTINUOUS IMPROVEMENT2.6.2. QUALITY CIRCLES2.6.3. PROCESS IMPROVEMENT TEAMS2.7. QUALITY IN SERVICES2.7.1. QUALITY ATTRIBUTES IN SERVICES2.8. SIX SIGMA2.8.1. THE SIX SIGMA GOAL—3.4 DPMO2.8.2. THE SIX SIGMA PROCESS2.8.3. IMPROVEMENT PROJECTS2.8.4. THE BREAKTHROUGH STRATEGY: DMAIC2.8.5. BLACK BELTS AND GREEN BELTS2.8.6. DESIGN FOR SIX SIGMA2.8.7. LEAN SIX SIGMA2.8.8. THE BOTTOM LINE—PROFITABILITY2.9. THE COST OF QUALITY2.9.1. THE COST OF ACHIEVING GOOD QUALITY2.9.2. THE COST OF POOR QUALITY2.9.3. MEASURING AND REPORTING QUALITY COSTS2.9.4. THE QUALITY–COST RELATIONSHIP2.10. THE EFFECT OF QUALITY MANAGEMENT ON PRODUCTIVITY2.10.1. PRODUCTIVITY2.10.2. MEASURING PRODUCT YIELD AND PRODUCTIVITY2.10.3. THE QUALITY–PRODUCTIVITY RATIO2.11. QUALITY AWARDS2.11.1. THE MALCOLM BALDRIGE AWARD2.11.2. OTHER AWARDS FOR QUALITY2.12. ISO 90002.12.1. STANDARDS2.12.2. CERTIFICATION2.12.3. IMPLICATIONS OF ISO 9000 FOR U.S. COMPANIES2.12.4. ISO REGISTRARS2.13. SUMMARY2.14. SUMMARY OF KEY FORMULAS2.15. SUMMARY OF KEY TERMS2.16. SOLVED PROBLEMS2.17. QUESTIONS2.18. PROBLEMS2.19. CASE PROBLEM 2.12.20. CASE PROBLEM 2.22.21. CASE PROBLEM 2.32.22. CASE PROBLEM 2.42.23. REFERENCES
3. Statistical Process Control
3.1. THE BASICS OF STATISTICAL PROCESS CONTROL3.1.1. SPC IN QUALITY MANAGEMENT3.1.2. QUALITY MEASURES: ATTRIBUTES AND VARIABLES3.1.3. SPC APPLIED TO SERVICES3.1.4. WHERE TO USE CONTROL CHARTS3.2. CONTROL CHARTS3.3. CONTROL CHARTS FOR ATTRIBUTES3.3.1. p-CHART3.3.2. C-CHART3.4. CONTROL CHARTS FOR VARIABLES3.4.1. MEAN (-) CHART3.4.2. RANGE (R-) CHART3.4.3. USING - AND R-CHARTS TOGETHER3.5. CONTROL CHART PATTERNS3.5.1. SAMPLE SIZE DETERMINATION3.6. SPC WITH EXCEL AND OM TOOLS3.7. PROCESS CAPABILITY3.7.1. PROCESS CAPABILITY MEASURES3.7.2. PROCESS CAPABILITY WITH EXCEL AND OM TOOLS3.8. SUMMARY3.9. SUMMARY OF KEY FORMULAS3.10. SUMMARY OF KEY TERMS3.11. SOLVED PROBLEMS3.12. QUESTIONS3.13. PROBLEMS3.14. CASE PROBLEM 3.13.15. CASE PROBLEM 3.23.16. CASE PROBLEM 3.33.17. REFERENCES
S3. Operational Decision-Making Tools: Acceptance Sampling
S3.1. SINGLE-SAMPLE ATTRIBUTE PLANS3.1.1. PRODUCER's AND CONSUMER's RISKSS3.2. THE OPERATING CHARACTERISTIC CURVES3.3. DEVELOPING A SAMPLING PLAN WITH OM TOOLSS3.4. AVERAGE OUTGOING QUALITYS3.5. DOUBLE- AND MULTIPLE-SAMPLING PLANSS3.6. SUMMARYS3.7. SUMMARY OF KEY TERMSS3.8. SOLVED PROBLEMS3.9. QUESTIONSS3.10. PROBLEMS

4. Product Design
4.1. THE DESIGN PROCESS4.1.1. IDEA GENERATION4.1.2. FEASIBILITY STUDY4.2. RAPID PROTOTYPING AND CONCURRENT DESIGN4.2.1. FORM DESIGN4.2.2. FUNCTIONAL DESIGN4.2.3. RELIABILITY4.2.4. MAINTAINABILITY4.2.5. USABILITY4.2.6. PRODUCTION DESIGN4.2.7. FINAL DESIGN AND PROCESS PLANS4.3. TECHNOLOGY IN DESIGN4.3.1. COLLABORATIVE PRODUCT DESIGN SYSTEMS4.4. DESIGN QUALITY REVIEWS4.5. DESIGN FOR ENVIRONMENT4.5.1. GREEN SOURCING4.5.2. GREEN MANUFACTURE4.5.3. GREEN CONSUMPTION4.5.4. RECYCLING AND RE-USE4.6. QUALITY FUNCTION DEPLOYMENT4.7. DESIGN FOR ROBUSTNESS4.8. SUMMARY4.9. SUMMARY OF KEY TERMS4.10. SUMMARY OF KEY FORMULAS4.11. SOLVED PROBLEMS4.12. QUESTIONS4.13. PROBLEMS4.14. CASE PROBLEM 4.14.15. CASE PROBLEM 4.24.16. REFERENCES
5. Service Design
5.1. THE SERVICE ECONOMY5.2. CHARACTERISTICS OF SERVICES5.3. THE SERVICE DESIGN PROCESS5.3.1. THE SERVICE-PROCESS MATRIX5.4. TOOLS FOR SERVICE DESIGN5.4.1. SERVICE BLUEPRINTING5.4.2. FRONT OFFICE AND BACK-OFFICE ACTIVITIES5.4.3. SERVICESCAPES5.4.4. QUANTITATIVE TECHNIQUES5.5. WAITING LINE ANALYSIS FOR SERVICE IMPROVEMENT5.5.1. ELEMENTS OF WAITING LINE ANALYSIS5.5.1.1. Elements of a Waiting Line5.5.1.2. The Calling Population5.5.1.3. The Arrival Rate5.5.1.4. Service Times5.5.1.5. Queue Discipline and Length5.5.1.6. Basic Waiting Line Structures5.5.2. OPERATING CHARACTERISTICS5.5.3. TRADITIONAL COST RELATIONSHIPS IN WAITING LINE ANALYSIS5.5.4. THE PSYCHOLOGY OF WAITING5.5.5. WAITING LINE MODELS5.5.5.1. The Basic Single-Server Model5.5.5.2. Service Improvement Analysis5.5.5.3. Solution of the Single-Server Model with Excel5.5.5.4. Advanced Single-Server Models5.5.6. MULTIPLE-SERVER MODEL5.5.6.1. The Basic Multiple-Server Model5.6. SUMMARY5.7. SUMMARY OF KEY TERMS5.8. SUMMARY OF KEY FORMULAS5.9. SOLVED PROBLEMS5.10. QUESTIONS5.11. PROBLEMS5.12. CASE PROBLEM 5.15.13. CASE PROBLEM 5.25.14. CASE PROBLEM 5.35.15. CASE PROBLEM 5.45.16. REFERENCES
6. Processes and Technology
6.1. PROCESS PLANNING6.1.1. OUTSOURCING6.1.2. PROCESS SELECTION6.1.3. PROCESS SELECTION WITH BREAKEVEN ANALYSIS6.1.4. PROCESS PLANS6.2. PROCESS ANALYSIS6.2.1. PROCESS FLOWCHARTS6.3. PROCESS INNOVATION6.3.1. STEPS IN PROCESS INNOVATION6.4. TECHNOLOGY DECISIONS6.4.1. FINANCIAL JUSTIFICATION OF TECHNOLOGY6.4.2. A TECHNOLOGY PRIMER6.5. SUMMARY6.6. SUMMARY OF KEY TERMS6.7. SUMMARY OF KEY FORMULAS6.8. SOLVED PROBLEMS6.9. QUESTIONS6.10. PROBLEMS6.11. CASE PROBLEM 6.16.12. CASE PROBLEM 6.26.13. CASE PROBLEM 6.36.14. REFERENCES
7. Capacity and Facilities Design
7.1. CAPACITY PLANNING7.2. FACILITIES7.2.1. OBJECTIVES OF FACILITY LAYOUT7.3. BASIC LAYOUTS7.3.1. PROCESS LAYOUTS7.3.2. PRODUCT LAYOUTS7.3.3. FIXED-POSITION LAYOUTS7.4. DESIGNING PROCESS LAYOUTS7.4.1. BLOCK DIAGRAMMING7.4.2. RELATIONSHIP DIAGRAMMING7.4.3. COMPUTERIZED LAYOUT SOLUTIONS7.5. DESIGNING SERVICE LAYOUTS7.6. DESIGNING PRODUCT LAYOUTS7.6.1. LINE BALANCING7.6.2. COMPUTERIZED LINE BALANCING7.7. HYBRID LAYOUTS7.7.1. CELLULAR LAYOUTS7.7.1.1. Advantages of Cellular Layouts7.7.1.2. Disadvantages of Cellular Layouts7.7.2. FLEXIBLE MANUFACTURING SYSTEMS7.7.3. MIXED-MODEL ASSEMBLY LINES7.8. SUMMARY7.9. SUMMARY OF KEY FORMULAS7.10. SUMMARY OF KEY TERMS7.11. SOLVED PROBLEMS7.12. QUESTIONS7.13. PROBLEMS7.14. CASE PROBLEM 7.17.15. CASE PROBLEM 7.27.16. CASE PROBLEM 7.37.17. REFERENCES
S7. Operational Decision-Making Tools: Facility Location Models
S7.1. TYPES OF FACILITIESS7.2. SITE SELECTION: WHERE TO LOCATES7.3. GLOBAL SUPPLY CHAIN FACTORSS7.3.1. REGIONAL AND COMMUNITY LOCATION FACTORS IN THE UNITED STATESS7.3.2. LOCATION INCENTIVESS7.3.3. GEOGRAPHIC INFORMATION SYSTEMSS7.4. LOCATION ANALYSIS TECHNIQUESS7.4.1. LOCATION FACTOR RATINGS7.4.2. LOCATION FACTOR RATING WITH EXCEL AND OM TOOLSS7.4.3. CENTER-OF-GRAVITY TECHNIQUES7.4.4. CENTER-OF-GRAVITY TECHNIQUE WITH EXCEL AND OM TOOLSS7.4.5. LOAD-DISTANCE TECHNIQUES7.4.6. LOAD-DISTANCE TECHNIQUE WITH EXCEL AND OM TOOLSS7.5. SUMMARYS7.6. SUMMARY OF KEY FORMULASS7.7. SUMMARY OF KEY TERMSS7.8. SOLVED PROBLEMSS7.9. QUESTIONSS7.10. PROBLEMSS7.11. CASE PROBLEM S7.1S7.12. REFERENCES
8. Human Resources
8.1. HUMAN RESOURCES AND QUALITY MANAGEMENT8.2. THE CHANGING NATURE OF HUMAN RESOURCES MANAGEMENT8.2.1. THE ASSEMBLY LINE8.2.2. LIMITATIONS OF SCIENTIFIC MANAGEMENT8.2.3. EMPLOYEE MOTIVATION8.3. CONTEMPORARY TRENDS IN HUMAN RESOURCES MANAGEMENT8.3.1. JOB TRAINING8.3.2. CROSS TRAINING8.3.3. JOB ENRICHMENT8.3.4. EMPOWERMENT8.3.5. TEAMS8.3.6. FLEXIBLE WORK SCHEDULES8.3.7. ALTERNATIVE WORKPLACES AND TELECOMMUTING8.3.8. TEMPORARY AND PART-TIME EMPLOYEES8.4. EMPLOYEE COMPENSATION8.4.1. TYPES OF PAY8.4.2. GAINSHARING AND PROFIT SHARING8.5. MANAGING DIVERSITY IN THE WORKPLACE8.5.1. AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY8.5.2. DIVERSITY MANAGEMENT PROGRAMS8.5.3. GLOBAL DIVERSITY ISSUES8.6. JOB DESIGN8.6.1. THE ELEMENTS OF JOB DESIGN8.6.2. TASK ANALYSIS8.6.3. WORKER ANALYSIS8.6.4. ENVIRONMENTAL ANALYSIS8.6.5. ERGONOMICS8.6.6. TECHNOLOGY AND AUTOMATION8.7. JOB ANALYSIS8.7.1. PROCESS FLOWCHART8.7.2. WORKER-MACHINE CHART8.7.3. MOTION STUDY8.8. LEARNING CURVES8.8.1. DETERMINING LEARNING CURVES WITH EXCEL8.8.2. LEARNING CURVES WITH OM TOOLS8.9. SUMMARY8.10. SUMMARY OF KEY FORMULAS8.11. SUMMARY OF KEY TERMS8.12. SOLVED PROBLEMS8.13. QUESTIONS8.14. PROBLEMS8.15. CASE PROBLEM 8.18.16. REFERENCES
S8. Operational Decision-Making Tools: Work Measurement
S8.1. TIME STUDIESS8.1.1. STOPWATCH TIME STUDYS8.1.2. NUMBER OF CYCLESS8.1.3. ELEMENTAL TIME FILESS8.1.4. PREDETERMINED MOTION TIMESS8.2. WORK SAMPLINGS8.3. SUMMARYS8.4. SUMMARY OF KEY FORMULASS8.5. SUMMARY OF KEY TERMSS8.6. SOLVED PROBLEMSS8.7. QUESTIONSS8.8. PROBLEMSS8.9. CASE PROBLEM S8.1S8.10. REFERENCES
9. Project Management
9.1. PROJECT PLANNING9.1.1. ELEMENTS OF A PROJECT PLAN9.1.2. PROJECT RETURN9.1.3. THE PROJECT TEAM9.1.4. THE PROJECT MANAGER9.1.5. SCOPE STATEMENT9.1.6. WORK BREAKDOWN STRUCTURE9.1.7. RESPONSIBILITY ASSIGNMENT MATRIX9.2. GLOBAL AND DIVERSITY ISSUES IN PROJECT MANAGEMENT9.3. PROJECT SCHEDULING9.3.1. THE GANTT CHART9.4. PROJECT CONTROL9.4.1. TIME MANAGEMENT9.4.2. COST MANAGEMENT9.4.3. QUALITY MANAGEMENT9.4.4. PERFORMANCE MANAGEMENT9.4.5. COMMUNICATION9.4.6. ENTERPRISE PROJECT MANAGEMENT9.5. CPM/PERT9.5.1. THE PROJECT NETWORK9.5.2. AOA NETWORK9.5.3. AON NETWORK9.5.4. THE CRITICAL PATH9.5.5. ACTIVITY SCHEDULING9.5.6. ACTIVITY SLACK9.6. PROBABILISTIC ACTIVITY TIMES9.6.1. PROBABILISTIC TIME ESTIMATES9.7. CPM/PERT ANALYSIS WITH OM TOOLS9.7.1. PROBABILISTIC NETWORK ANALYSIS9.8. MICROSOFT PROJECT9.8.1. PERT ANALYSIS WITH MICROSOFT PROJECT9.9. PROJECT CRASHING AND TIME-COST TRADEOFF9.9.1. PROJECT CRASHING9.9.2. THE GENERAL RELATIONSHIP OF TIME AND COST9.10. SUMMARY9.11. SUMMARY OF KEY FORMULAS9.12. SUMMARY OF KEY TERMS9.13. SOLVED PROBLEMS9.14. QUESTIONS9.15. PROBLEMS9.16. CASE PROBLEM 9.19.17. CASE PROBLEM 9.29.18. REFERENCES
II. Supply Chain Management
10. Supply Chain Management Strategy and Design
10.1. SUPPLY CHAINS10.1.1. SUPPLY CHAINS FOR SERVICE PROVIDERS10.1.2. VALUE CHAINS10.2. THE MANAGEMENT OF SUPPLY CHAINS10.2.1. SUPPLY CHAIN UNCERTAINTY AND INVENTORY10.2.2. THE BULLWHIP EFFECT10.2.3. RISK POOLING10.3. "GREEN" SUPPLY CHAINS10.3.1. SUSTAINABILITY AND QUALITY MANAGEMENT10.4. INFORMATION TECHNOLOGY: A SUPPLY CHAIN ENABLER10.4.1. ELECTRONIC BUSINESS10.4.2. ELECTRONIC DATA INTERCHANGE10.4.3. BAR CODES10.4.4. RADIO FREQUENCY IDENTIFICATION10.4.5. THE INTERNET10.4.6. BUILD-TO-ORDER (BTO)10.5. SUPPLY CHAIN INTEGRATION10.5.1. COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT10.6. SUPPLY CHAIN MANAGEMENT (SCM) SOFTWARE10.7. MEASURING SUPPLY CHAIN PERFORMANCE10.7.1. KEY PERFORMANCE INDICATORS10.7.2. PROCESS CONTROL10.7.3. SCOR10.8. SUMMARY10.9. SUMMARY OF KEY TERMS10.10. SUMMARY OF KEY FORMULAS10.11. SOLVED PROBLEMS10.12. QUESTIONS10.13. PROBLEMS10.14. CASE PROBLEM 10.110.15. REFERENCES
11. Global Supply Chain Procurement and Distribution
11.1. PROCUREMENT11.1.1. OUTSOURCING11.2. E-PROCUREMENT11.2.1. E-MARKETPLACES11.2.2. REVERSE AUCTIONS11.3. DISTRIBUTION11.3.1. SPEED AND QUALITY11.3.2. INTERNET COMPANIES: AMAZON.COM11.3.3. DISTRIBUTION CENTERS AND WAREHOUSING11.3.4. POSTPONEMENT11.3.5. WAREHOUSE MANAGEMENT SYSTEMS11.3.6. VENDOR-MANAGED INVENTORY11.3.7. COLLABORATIVE LOGISTICS11.3.8. DISTRIBUTION OUTSOURCING11.4. TRANSPORTATION11.4.1. INTERNET TRANSPORTATION EXCHANGES11.5. THE GLOBAL SUPPLY CHAIN11.5.1. OBSTACLES TO GLOBAL SUPPLY CHAIN MANAGEMENT11.5.2. DUTIES, TARIFFS, AND GLOBAL TRADING GROUPS11.5.3. LANDED COST11.5.4. WEB-BASED INTERNATIONAL TRADE LOGISTICS SYSTEMS11.5.5. RECENT TRENDS IN GLOBALIZATION FOR U.S. COMPANIES11.5.6. CHINA'S INCREASING ROLE IN THE GLOBAL SUPPLY CHAIN11.5.7. REVERSE GLOBALIZATION11.5.8. EFFECTS OF TERRORISM ON GLOBAL SUPPLY CHAINS11.6. SUMMARY OF KEY TERMS11.7. QUESTIONS11.8. CASE PROBLEM 11.1
S11. Operational Decision-Making Tools: Transportation and Transshipment Models
S11.1. THE TRANSPORTATION MODELS11.1.1. SOLUTION OF THE TRANSPORTATION MODEL WITH EXCELS11.2. THE TRANSSHIPMENT MODELS11.2.1. SOLUTION OF THE TRANSSHIPMENT PROBLEM WITH EXCELS11.3. SUMMARYS11.4. SUMMARY OF KEY TERMSS11.5. SOLVED PROBLEMSS11.6. PROBLEMSS11.7. CASE PROBLEM S11.1S11.8. CASE PROBLEM S11.2S11.9. REFERENCES
12. Forecasting
12.1. THE STRATEGIC ROLE OF FORECASTING IN SUPPLY CHAIN MANAGEMENT12.1.1. SUPPLY CHAIN MANAGEMENT12.1.2. QUALITY MANAGEMENT12.1.3. STRATEGIC PLANNING12.2. COMPONENTS OF FORECASTING DEMAND12.2.1. TIME FRAME12.2.2. DEMAND BEHAVIOR12.2.3. FORECASTING METHODS12.2.4. FORECASTING PROCESS12.3. TIME SERIES METHODS12.3.1. MOVING AVERAGE12.3.2. WEIGHTED MOVING AVERAGE12.3.3. EXPONENTIAL SMOOTHING12.3.4. ADJUSTED EXPONENTIAL SMOOTHING12.3.5. LINEAR TREND LINE12.3.6. SEASONAL ADJUSTMENTS12.4. FORECAST ACCURACY12.4.1. MEAN ABSOLUTE DEVIATION12.4.2. CUMULATIVE ERROR12.4.3. FORECAST CONTROL12.5. TIME SERIES FORECASTING USING EXCEL12.5.1. FORECASTING WITH OM TOOLS12.6. REGRESSION METHODS12.6.1. LINEAR REGRESSION12.6.2. CORRELATION12.6.3. REGRESSION ANALYSIS WITH EXCEL12.6.4. MULTIPLE REGRESSION WITH EXCEL12.7. SUMMARY12.8. SUMMARY OF KEY FORMULAS12.9. SUMMARY OF KEY TERMS12.10. SOLVED PROBLEMS12.11. QUESTIONS12.12. PROBLEMS12.13. CASE PROBLEM 12.112.14. CASE PROBLEM 12.212.15. CASE PROBLEM 12.312.16. CASE PROBLEM 12.412.17. REFERENCES
13. Inventory Management
13.1. THE ROLE OF INVENTORY IN SUPPLY CHAIN MANAGEMENT13.1.1. THE EFFECTS OF INFORMATION TECHNOLOGY ON INVENTORY MANAGEMENT13.2. INVENTORY AND QUALITY MANAGEMENT IN THE SUPPLY CHAIN13.3. THE ELEMENTS OF INVENTORY MANAGEMENT13.3.1. DEMAND13.3.2. INVENTORY COSTS13.4. INVENTORY CONTROL SYSTEMS13.4.1. CONTINUOUS INVENTORY SYSTEMS13.4.2. PERIODIC INVENTORY SYSTEMS13.4.3. THE ABC CLASSIFICATION SYSTEM13.5. ECONOMIC ORDER QUANTITY MODELS13.5.1. THE BASIC EOQ MODEL13.5.2. THE PRODUCTION QUANTITY MODEL13.5.3. SOLUTION OF EOQ MODELS WITH EXCEL13.5.4. SOLUTION OF EOQ MODELS WITH OM TOOLS13.6. QUANTITY DISCOUNTS13.6.1. QUANTITY DISCOUNTS WITH CONSTANT CARRYING COST13.6.2. QUANTITY DISCOUNT MODEL SOLUTION WITH EXCEL13.7. REORDER POINT13.7.1. SAFETY STOCKS13.7.2. SERVICE LEVEL13.7.3. REORDER POINT WITH VARIABLE DEMAND13.7.4. DETERMINING THE REORDER POINT WITH EXCEL13.8. ORDER QUANTITY FOR A PERIODIC INVENTORY SYSTEM13.8.1. ORDER QUANTITY WITH VARIABLE DEMAND13.8.2. DETERMINING THE ORDER QUANTITY FOR THE FIXED-PERIOD MODEL WITH EXCEL13.9. SUMMARY13.10. SUMMARY OF KEY FORMULAS13.11. SUMMARY OF KEY TERMS13.12. SOLVED PROBLEMS13.13. QUESTIONS13.14. PROBLEMS13.15. CASE PROBLEM 13.113.16. CASE PROBLEM 13.213.17. CASE PROBLEM 13.313.18. REFERENCES
S13. Operational Decision-Making Tools: Simulation
S13.1. MONTE CARLO SIMULATIONS13.2. COMPUTER SIMULATION WITH EXCELS13.2.1. DECISION MAKING WITH SIMULATIONS13.3. AREAS OF SIMULATION APPLICATIONS13.3.1. WAITING LINES/SERVICES13.3.2. INVENTORY MANAGEMENTS13.3.3. PRODUCTION AND MANUFACTURING SYSTEMSS13.3.4. CAPITAL INVESTMENT AND BUDGETINGS13.3.5. LOGISTICSS13.3.6. SERVICE OPERATIONSS13.3.7. ENVIRONMENTAL AND RESOURCE ANALYSISS13.4. SUMMARYS13.5. SUMMARY OF KEY TERMSS13.6. SOLVED PROBLEMSS13.6.1. SOLUTIONS13.7. QUESTIONSS13.8. PROBLEMSS13.9. REFERENCES
14. Sales and Operations Planning
14.1. THE SALES AND OPERATIONS PLANNING PROCESS14.2. STRATEGIES FOR ADJUSTING CAPACITY14.2.1. LEVEL PRODUCTION14.2.2. CHASE DEMAND14.2.3. PEAK DEMAND14.2.4. OVERTIME AND UNDERTIME14.2.5. SUBCONTRACTING14.2.6. PART-TIME WORKERS14.2.7. BACKLOGS, BACKORDERING, AND LOST SALES14.3. STRATEGIES FOR MANAGING DEMAND14.4. QUANTITATIVE TECHNIQUES FOR AGGREGATE PLANNING14.4.1. PURE STRATEGIES14.4.2. GENERAL LINEAR PROGRAMMING MODEL14.4.3. MIXED STRATEGIES14.4.4. THE TRANSPORTATION METHOD14.4.5. OTHER QUANTITATIVE TECHNIQUES14.5. THE HIERARCHICAL NATURE OF PLANNING14.5.1. COLLABORATIVE PLANNING14.5.2. AVAILABLE-TO-PROMISE14.6. AGGREGATE PLANNING FOR SERVICES14.6.1. REVENUE MANAGEMENT14.7. SUMMARY14.8. SUMMARY OF KEY TERMS14.9. SOLVED PROBLEMS14.10. QUESTIONS14.11. PROBLEMS14.12. CASE PROBLEM 14.114.13. CASE PROBLEM 14.214.14. REFERENCES
S14. Operational Decision-Making Tools: Linear Programming
S14.1. MODEL FORMULATIONS14.2. GRAPHICAL SOLUTION METHODS14.3. LINEAR PROGRAMMING MODEL SOLUTIONS14.3.1. THE SIMPLEX METHODS14.3.2. SLACK AND SURPLUS VARIABLESS14.4. SOLVING LINEAR PROGRAMMING PROBLEMS WITH EXCELS14.5. SENSITIVITY ANALYSISS14.5.1. SENSITIVITY RANGESS14.6. SUMMARYS14.7. SUMMARY OF KEY TERMSS14.8. SOLVED PROBLEMSS14.9. QUESTIONSS14.10. PROBLEMSS14.11. CASE PROBLEM S14.1S14.12. CASE PROBLEM S14.2S14.13. CASE PROBLEM S14.3S14.14. CASE PROBLEM 14.4S14.15. CASE PROBLEM S14.5S14.16. CASE PROBLEM S14.6S14.17. REFERENCES
15. Resource Planning
15.1. MATERIAL REQUIREMENTS PLANNING (MRP)15.1.1. WHEN TO USE MRP15.1.2. MASTER PRODUCTION SCHEDULE15.1.3. PRODUCT STRUCTURE FILE15.1.4. TIME-PHASED BILLS15.1.5. ITEM MASTER FILE15.1.6. THE MRP PROCESS15.1.7. LOT SIZING IN MRP SYSTEMS15.1.8. MRP OUTPUTS15.2. CAPACITY REQUIREMENTS PLANNING (CRP)15.2.1. CALCULATING CAPACITY15.2.2. LOAD PROFILES15.2.3. OVERLOADS15.2.4. LOAD LEVELING15.2.5. RELAXING MRP ASSUMPTIONS15.3. ENTERPRISE RESOURCE PLANNING (ERP)15.3.1. ERP MODULES15.3.2. ERP IMPLEMENTATION15.4. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)15.5. SUPPLY CHAIN MANAGEMENT (SCM)15.6. PRODUCT LIFECYCLE MANAGEMENT (PLM)15.7. CONNECTIVITY, INTEGRATION, AND SERVICES15.8. SUMMARY15.9. SUMMARY OF KEY TERMS15.10. QUESTIONS15.11. SOLVED PROBLEMS15.12. PROBLEMS15.13. CASE PROBLEM 15.115.14. CASE PROBLEM 15.215.15. REFERENCES
16. Lean Systems
16.1. THE BASIC ELEMENTS OF LEAN PRODUCTION16.1.1. FLEXIBLE RESOURCES16.1.2. CELLULAR LAYOUTS16.1.3. THE PULL SYSTEM16.1.4. KANBANS16.1.5. SMALL LOTS16.1.6. QUICK SETUPS16.1.7. UNIFORM PRODUCTION LEVELS16.1.8. QUALITY AT THE SOURCE16.1.9. VISUAL CONTROL16.1.10. KAIZEN16.1.11. JIDOKA16.1.12. TOTAL PRODUCTIVE MAINTENANCE16.1.13. SUPPLIER NETWORKS16.2. THE BENEFITS OF LEAN PRODUCTION16.3. IMPLEMENTING LEAN PRODUCTION16.3.1. DRAWBACKS OF LEAN PRODUCTION16.4. LEAN SERVICES16.4.1. LEAN RETAILING16.4.2. LEAN BANKING16.4.3. LEAN HEALTH CARE16.4.4. LEANING THE SUPPLY CHAIN16.4.5. LEAN SIX SIGMA16.4.6. LEAN AND THE ENVIRONMENT16.4.7. VALUE STREAM MAPPING (VSM)16.5. SUMMARY16.6. SUMMARY OF KEY FORMULAS16.7. SUMMARY OF KEY TERMS16.8. QUESTIONS16.9. PROBLEMS16.10. CASE PROBLEM 16.116.11. CASE PROBLEM 16.216.12. REFERENCES
17. Scheduling
17.1. OBJECTIVES IN SCHEDULING17.2. LOADING17.2.1. THE ASSIGNMENT METHOD OF LOADING17.3. SEQUENCING17.3.1. SEQUENCING JOBS THROUGH ONE PROCESS17.3.2. SEQUENCING JOBS THROUGH TWO SERIAL PROCESSES17.3.3. GUIDELINES FOR SELECTING A SEQUENCING RULE17.4. MONITORING17.4.1. GANTT CHARTS17.4.2. INPUT/OUTPUT CONTROL17.5. ADVANCED PLANNING AND SCHEDULING SYSTEMS17.6. THEORY OF CONSTRAINTS17.6.1. DRUM-BUFFER-ROPE17.6.2. PROCESS VS. TRANSFER BATCH SIZES17.7. EMPLOYEE SCHEDULING17.7.1. AUTOMATED SCHEDULING SYSTEMS17.8. SUMMARY17.9. SUMMARY OF KEY FORMULAS17.10. SUMMARY OF KEY TERMS17.11. SOLVED PROBLEMS17.12. QUESTIONS17.13. PROBLEMS17.14. CASE PROBLEM 17.117.15. CASE PROBLEM 17.217.16. REFERENCES
A. NORMAL CURVE AREAS
A.1. SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS

Content preview from Operations Management: Creating Value Along the Supply Chain, 7th Edition

Chapter 14. Sales and Operations Planning

In this chapter, you will learn about . . .

The Sales and Operations Planning Process
Strategies for Adjusting Capacity
Strategies for Managing Demand
Quantitative Techniques for Aggregate Planning
The Hierarchical Nature of Planning
Aggregate Planning for Services

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Sales and Operations Planning AT HERSHEY'S

The seasonal demand for chocolate, coupled with its limited shelf life, requires careful coordination of sales and operations planning. Strategies for increasing demand may have unintended consequences for the bottom line if production capabilities and costs are not considered.

Since over 50% of candy purchases are impulse buys, product promotions and merchandising can have a dramatic influence on sales. For example, one way to generate new sales is to take a stable product like Hershey's kisses and dress it up for different seasons (red and green wrapper for Christmas, red and silver for Valentine's Day, pink and green for Easter), or create upscale versions for special occasions, such as chocolate mint, dark chocolate, or white chocolate hugs. However, while seasonal products may increase demand, without a corresponding increase ...

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Operations Management: Creating Value Along the Supply Chain, 7th Edition

by Roberta S. Russell, Bernard W. Taylor III

Chapter 14. Sales and Operations Planning

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