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Operations Management: Processes and Supply Chains, 12th Edition

Book Description

Practical, easy to read text with a managerial approach to operations management

Operations Management: Processes and Supply Chains provides students with a comprehensive framework for addressing operational process and supply chain issues and uses a systemized approach while focusing on issues of current interest. The 12th Edition provides ample opportunities for students to experience the role of a manager with challenging problems, cases, a library of videos customized to the individual chapters, simulations, experiential exercises, and tightly integrated online resources.

Table of Contents

  1. Operations Management Processes and Supply Chains
  2. Dedicated with love to our families.
  3. About the Authors
  4. Brief Contents
  5. Contents
  6. Preface
    1. New to This Edition
    2. Solving Teaching and Learning Challenges
    3. Developing Employability Skills
    4. Instructor Teaching Resources
  7. 1 Using Operations to Create Value
    1. Learning Goals
    2. Role of Operations in an Organization
      1. Historical Evolution and Perspectives
    3. A Process View
      1. How Processes Work
      2. Nested Processes
      3. Service and Manufacturing Processes
        1. Differences
        2. Similarities
    4. A Supply Chain View
      1. Core Processes
      2. Support Processes
      3. Supply Chain Processes
    5. Operations Strategy
      1. Corporate Strategy
        1. Environmental Scanning
        2. Developing Core Competencies
        3. Developing Core Processes
        4. Developing Global Strategies
      2. Market Analysis
        1. Market Segmentation
        2. Needs Assessment
    6. Competitive Priorities and Capabilities
      1. Order Winners and Qualifiers
      2. Using Competitive Priorities: An Airline Example
      3. Identifying Gaps between Competitive Priorities and Capabilities
    7. Addressing the Trends and Challenges in Operations Management
      1. Productivity Improvement
        1. Measuring Productivity
        2. The Role of Management
      2. Global Competition
        1. Comparative Cost Advantages
        2. Disadvantages of Globalization
      3. Ethical, Workforce Diversity, and Environmental Issues
      4. The Internet of Things
        1. Operations Management Applications
        2. Concerns and Barriers
    8. Developing Skills for Your Career
      1. Adding Value with Process Innovation
  8. Supplement A Decision Making
    1. Learning Goals
    2. Break-Even Analysis
      1. Evaluating Services or Products
      2. Evaluating Processes
    3. Preference Matrix
    4. Decision Theory
      1. Decision Making under Certainty
      2. Decision Making under Uncertainty
      3. Decision Making under Risk
    5. Decision Trees
    6. Key Equations
      1. Break-Even Analysis
    7. Key Terms
    8. Solved Problem 1
      1. Solution
    9. Solved Problem 2
      1. Solution
    10. Solved Problem 3
      1. Solution
    11. Solved Problem 4
      1. Solution
    12. Problems
      1. Break-Even Analysis
      2. Preference Matrix
      3. Decision Theory
      4. Decision Trees
  9. Part 1 Managing Process
    1. 2 Process Strategy and Analysis
      1. Learning Goals
      2. Process Structure in Services
        1. Customer-Contact Matrix
          1. Customer Contact and Customization
          2. Process Divergence and Flow
        2. Service Process Structuring
          1. Front Office
          2. Hybrid Office
          3. Back Office
      3. Process Structure in Manufacturing
        1. Product-Process Matrix
        2. Manufacturing Process Structuring
          1. Job Process
          2. Batch Process
          3. Line Process
          4. Continuous-Flow Process
        3. Production and Inventory Strategies
          1. Design-to-Order Strategy
          2. Make-to-Order Strategy
          3. Assemble-to-Order Strategy
          4. Make-to-Stock Strategy
        4. Layout
      4. Process Strategy Decisions
        1. Customer Involvement
          1. Possible Advantages
          2. Possible Disadvantages
        2. Resource Flexibility
          1. Workforce
          2. Equipment
        3. Capital Intensity
          1. Automating Manufacturing Processes
          2. Automating Service Processes
          3. Economies of Scope
      5. Strategic Fit
        1. Decision Patterns for Service Processes
        2. Decision Patterns for Manufacturing Processes
        3. Gaining Focus
          1. Focus by Process Segments
          2. Focused Service Operations
          3. Focused Factories
      6. Strategies for Change
        1. Process Reengineering
        2. Process Improvement
        3. Process Analysis
          1. Six Sigma Process Improvement Model
      7. Defining, Measuring, and Analyzing the Process
        1. Flowcharts
          1. Swim Lane Flowchart
          2. Service Blueprint
        2. Work Measurement Techniques
          1. Time Study Method
          2. Elemental Standard Data Method
          3. Predetermined Data Method
          4. Work Sampling Method
          5. Learning Curve Analysis
        3. Process Charts
        4. Data Analysis Tools
          1. Checklists
          2. Histograms and Bar Charts
          3. Pareto Charts
          4. Scatter Diagrams
          5. Cause-and-Effect Diagrams
          6. Graphs
      8. Redesigning and Managing Process Improvements
        1. Questioning and Brainstorming
        2. Benchmarking
        3. Implementing
    2. 3 Quality and Performance
      1. Learning Goals
      2. Costs of Quality
        1. Prevention Costs
        2. Appraisal Costs
        3. Internal Failure Costs
        4. External Failure Costs
        5. Ethical Failure Costs
      3. Total Quality Management and Six Sigma
        1. Total Quality Management
          1. Customer Satisfaction
          2. Employee Involvement
          3. Continuous Improvement
        2. Six Sigma
      4. Acceptance Sampling
      5. Statistical Process Control
        1. Variation of Outputs
          1. Performance Measurements
          2. Sampling
          3. Sampling Distributions
          4. Common Causes
          5. Assignable Causes
        2. Control Charts
        3. Control Charts for Variables
          1. R-Chart
          2. x ¯ -Chart ¯ -Chart
        4. Control Charts for Attributes
          1. p-Charts
          2. c-Charts
      6. Process Capability
        1. Defining Process Capability
          1. Process Capability Index
          2. Process Capability Ratio
        2. Using Continuous Improvement to Determine the Capability of a Process
      7. International Quality Documentation Standards and Awards
        1. The ISO 9001:2008 Documentation Standards
        2. Malcolm Baldrige Performance Excellence Program
      8. Systems Approach to Total Quality Management
    3. 4 Capacity Planning
      1. Learning Goals
      2. Planning Long-Term Capacity
        1. Measures of Capacity and Utilization
          1. Output Measures of Capacity
          2. Input Measures of Capacity
          3. Utilization
        2. Economies of Scale
          1. Spreading Fixed Costs
          2. Reducing Construction Costs
          3. Cutting Costs of Purchased Materials
          4. Finding Process Advantages
        3. Diseconomies of Scale
      3. Capacity Timing and Sizing Strategies
        1. Sizing Capacity Cushions
        2. Timing and Sizing Expansion
          1. Expansionist Strategy
          2. Wait-and-See Strategy
        3. Linking Capacity and Other Decisions
      4. A Systematic Approach to Long-Term Capacity Decisions
        1. Step 1: Estimate Capacity Requirements
          1. Using Output Measures
          2. Using Input Measures
        2. Step 2: Identify Gaps
        3. Step 3: Develop Alternatives
        4. Step 4: Evaluate the Alternatives
          1. Qualitative Concerns
          2. Quantitative Concerns
      5. Tools for Capacity Planning
        1. Waiting-Line Models
        2. Simulation
        3. Decision Trees
    4. Supplement B Waiting Lines
      1. Learning Goals
      2. Structure of Waiting-Line Problems
        1. Customer Population
        2. The Service System
          1. Number of Lines 
          2. Arrangement of Service Facilities 
        3. Priority Rule
        4. Probability Distributions
        5. Arrival Distribution
        6. Service Time Distribution
      3. Using Waiting-Line Models to Analyze Operations
        1. Single-Server Model
        2. Little’s Law
        3. Finite-Source Model
      4. Waiting Lines and Simulation
        1. SimQuick
      5. Decision Areas for Management
      6. Key Equations
        1. Structure of Waiting-Line Problems
        2. Using Waiting-Line Models to Analyze Operations
      7. Key Terms
      8. Solved Problem
        1. Solution
      9. Problems
        1. Structure of Waiting-Line Problems
        2. Using Waiting-Line Models to Analyze Operations
    5. 5 Constraint Management
      1. Learning Goals
      2. The Theory of Constraints
        1. Key Principles of the TOC
      3. Managing Bottlenecks in Service Processes
      4. Managing Bottlenecks in Manufacturing Processes
        1. Identifying Bottlenecks
        2. Relieving Bottlenecks
        3. Drum-Buffer-Rope Systems
      5. Applying the Theory of Constraints to Product Mix Decisions
      6. Managing Constraints in Line Processes
        1. Line Balancing
          1. Precedence Diagram 
          2. Desired Output Rate 
          3. Cycle Time 
          4. Theoretical Minimum 
          5. Idle Time, Efficiency, and Balance Delay 
          6. Finding a Solution 
        2. Rebalancing the Assembly Line
        3. Managerial Considerations
          1. Pacing 
          2. Behavioral Factors 
          3. Number of Models Produced 
          4. Cycle Times 
    6. 6 Lean Systems
      1. Learning Goals
      2. Continuous Improvement Using A Lean Systems Approach
      3. Strategic Characteristics of Lean Systems
        1. Supply Chain Considerations in Lean Systems
          1. Close Supplier Ties 
          2. Small Lot Sizes 
        2. Process Considerations in Lean Systems
          1. Pull Method of Work Flow 
          2. Quality at the Source 
          3. Uniform Workstation Loads 
          4. Standardized Components and Work Methods 
          5. Flexible Workforce 
          6. Automation 
          7. Five S Practices
          8. Total Productive Maintenance 
        3. Toyota Production System
          1. House of Toyota 
      4. Designing Lean System Layouts
        1. One Worker, Multiple Machines
        2. Group Technology
      5. The Kanban System
        1. General Operating Rules
        2. Determining the Number of Containers
        3. Other Kanban Signals
          1. Container System 
          2. Containerless System 
      6. Value Stream Mapping
        1. Current State Map
        2. Future State Map
      7. Operational Benefits and Implementation Issues
        1. Organizational Considerations
          1. The Human Costs of Lean Systems 
          2. Cooperation and Trust 
          3. Reward Systems and Labor Classifications 
        2. Process Considerations
        3. Inventory and Scheduling
          1. Schedule Stability 
          2. Setups 
          3. Purchasing and Logistics 
    7. 7 Project Management
      1. Learning Goals
      2. Defining and Organizing Projects
        1. Defining the Scope and Objectives of a Project
        2. Selecting the Project Manager and Team
        3. Recognizing Organizational Structure
      3. Constructing Project Networks
        1. Defining the Work Breakdown Structure
        2. Diagramming the Network
          1. Establishing Precedence Relationships
          2. Estimating Activity Times
      4. Developing the Project Schedule
        1. Critical Path
        2. Project Schedule
        3. Activity Slack
          1. Gantt Chart
      5. Analyzing Cost–Time Trade-Offs
        1. Cost to Crash
        2. Minimizing Costs
      6. Assessing and Analyzing Risks
        1. Risk-Management Plans
          1. Simulation
        2. Statistical Analysis
        3. Analyzing Probabilities
        4. Near-Critical Paths
      7. Monitoring and Controlling Projects
        1. Monitoring Project Status
          1. Open Issues and Risks
          2. Schedule Status
        2. Monitoring Project Resources
        3. Controlling Projects
      8. Key Equations
        1. Developing the Project Schedule
        2. Analyzing Cost–Time Trade-offs
        3. Assessing and Analyzing Risks
      9. Key Terms
      10. Solved Problem 1
        1. Solution
      11. Solved Problem 2
        1. Solution
      12. Discussion Questions
      13. Problems
        1. Developing the Project Schedule
        2. Analyzing Cost–Time Trade-offs
        3. Assessing and Analyzing Risks
      14. Active Model Exercise
        1. Questions
  10. Part 2 Managing Customer Demand
    1. 8 Forecasting
      1. Learning Goals
      2. Managing Demand
        1. Demand Patterns
        2. Demand Management Options
          1. Complementary Products
          2. Promotional Pricing
          3. Prescheduled Appointments
          4. Reservations
          5. Revenue Management
          6. Backlogs
          7. Backorders and Stockouts
      3. Key Decisions on Making Forecasts
        1. Deciding What to Forecast
          1. Level of Aggregation
          2. Units of Measurement
        2. Choosing the Type of Forecasting Technique
      4. Forecast Error
        1. Cumulative Sum of Forecast Errors
        2. Dispersion of Forecast Errors
        3. Mean Absolute Percent Error
        4. Computer Support
      5. Judgment Methods
      6. Causal Methods: Linear Regression
      7. Time-Series Methods
        1. Naïve Forecast
        2. Horizontal Patterns: Estimating the Average
          1. Simple Moving Averages
          2. Weighted Moving Averages
          3. Exponential Smoothing
        3. Trend Patterns: Using Regression
        4. Seasonal Patterns: Using Seasonal Factors
        5. Criteria for Selecting Time-Series Methods
          1. Using Statistical Criteria
          2. Using a Holdout Sample
          3. Using a Tracking Signal
      8. Insights into Effective Demand Forecasting
        1. Big Data
          1. Volume
          2. Variety
          3. Velocity
        2. A Typical Forecasting Process
        3. Using Multiple Forecasting Methods
        4. Adding Collaboration to the Process
        5. Forecasting as a Nested Process
      9. Key Equations
        1. Forecast Error
        2. Causal Methods: Linear Regression
        3. Time-Series Methods
      10. Key Terms
      11. Solved Problem 1
        1. Solution
      12. Solved Problem 2
        1. Solution
      13. Solved Problem 3
        1. Solution
      14. Solved Problem 4
        1. Solution
      15. Discussion Questions
      16. Problems
        1. Causal Methods: Linear Regression
        2. Time-Series Methods
      17. Forecasting a Vital Energy Statistic
        1. In-Class Exercise—Part 1
        2. In-Class Exercise—Part 2
        3. In-Class Exercise—Parts 3 and Beyond
    2. 9 Inventory Management
      1. Learning Goals
      2. Inventory Trade-offs
        1. Pressures for Small Inventories
          1. Cost of Capital
          2. Storage and Handling Costs
          3. Taxes, Insurance, and Shrinkage
        2. Pressures for Large Inventories
          1. Customer Service
          2. Ordering Cost
          3. Setup Cost
          4. Labor and Equipment Utilization
          5. Transportation Cost
          6. Payments to Suppliers
      3. Types of Inventory
        1. Accounting Inventories
        2. Operational Inventories
          1. Cycle Inventory
          2. Safety Stock Inventory
          3. Anticipation Inventory
          4. Pipeline Inventory
      4. Inventory Reduction Tactics
        1. Cycle Inventory
        2. Safety Stock Inventory
        3. Anticipation Inventory
        4. Pipeline Inventory
      5. ABC Analysis
      6. Economic Order Quantity
        1. Calculating the EOQ
        2. Managerial Insights from the EOQ
      7. Continuous Review System
        1. Selecting the Reorder Point when Demand and Lead Time are Constant
        2. Selecting the Reorder Point when Demand Is Variable and Lead Time Is Constant
          1. Step 1: Service Level Policy
          2. Step 2: Distribution of Demand during Lead Time
          3. Step 3: Safety Stock and Reorder Point
        3. Selecting the Reorder Point when Both Demand and Lead Time are Variable
        4. Systems Based on the Q System
          1. Two-Bin System
          2. Base-Stock System
        5. Calculating Total Q System Costs
        6. Advantages of the Q System
      8. Periodic Review System
        1. Selecting the Time Between Reviews
        2. Selecting the Target Inventory Level when Demand is Variable and Lead Time is Constant
        3. Selecting the Target Inventory Level when Demand and Lead Time are Variable
        4. Systems Based on the P System
          1. Single-Bin System
          2. Optional Replenishment System
        5. Calculating Total P System Costs
        6. Advantages of the P System
      9. Key Equations
        1. Types of Inventory
        2. Economic Order Quantity
        3. Continuous Review System
        4. Periodic Review System
      10. Key Terms
      11. Solved Problem 1
        1. Solution
      12. Solved Problem 2
        1. Solution
      13. Solved Problem 3
        1. Solution
      14. Solved Problem 4
        1. Solution
      15. Solved Problem 5
        1. Solution
      16. Solved Problem 6
        1. Solution
      17. Discussion Questions
      18. Problems
        1. Types of Inventory
        2. Inventory Reduction Tactics
        3. ABC Analysis
        4. Economic Order Quantity
        5. Continuous Review System
        6. Periodic Review System
      19. Active Model Exercise
        1. Questions
      20. Swift Electronic Supply, Inc.
      21. Industry and Company Preview
      22. DRAM
      23. Simulation
    3. Supplement C Special Inventory Models
      1. Learning Goals
      2. Noninstantaneous Replenishment
      3. Quantity Discounts
      4. One-Period Decisions
      5. Key Equations
        1. Noninstantaneous Replenishment
        2. Quantity Discounts
        3. One-Period Decisions
      6. Key Term
      7. Solved Problem 1
        1. Solution
      8. Solved Problem 2
        1. Solution
      9. Solved Problem 3
        1. Solution
      10. Problems
        1. Noninstantaneous Replenishment
        2. Quantity Discounts
        3. One-Period Decisions
    4. 10 Operations Planning and Scheduling
      1. Learning Goals
      2. Levels in Operations Planning and Scheduling
        1. Level 1: Sales and Operations Planning
          1. Aggregation
          2. Information Inputs
          3. Related Plans
        2. Level 2: Resource Planning
        3. Level 3: Scheduling
      3. S&OP Supply Options
      4. S&OP Strategies
        1. Chase Strategy
        2. Level Strategy
        3. Constraints and Costs
        4. Sales and Operations Planning as a Process
      5. Spreadsheets for Sales and Operations Planning
        1. Spreadsheets for a Manufacturer
        2. Spreadsheeets for a Service Provider
      6. Scheduling
        1. Job and Facility Scheduling
          1. Gantt Progress Chart
          2. Gantt Workstation Chart
        2. Workforce Scheduling
          1. Constraints
          2. Developing a Workforce Schedule
        3. Sequencing Jobs at a Workstation
          1. Priority Sequencing Rules
          2. Performance Measures
        4. Software Support
      7. Key Terms
      8. Solved Problem 1
        1. Solution
      9. Solved Problem 2
        1. Solution
      10. Solved Problem 3
        1. Solution
      11. Discussion Questions
      12. Problems
        1. S&OP Strategies
        2. Spreadsheets for Sales and Operations Planning
        3. Scheduling
      13. Active Model Exercise
        1. Questions
    5. Supplement D Linear Programming
      1. Learning Goals
      2. Characteristics of Linear Programming Models
        1. Objective Function
        2. Decision Variables
        3. Constraints
        4. Feasible Region
        5. Parameters
        6. Linearity
        7. Nonnegativity
      3. Formulating a Linear Programming Model
      4. Graphic Analysis
        1. Plot the Constraints
        2. Identify the Feasible Region
        3. Plot the Objective Function Line
        4. Find the Visual Solution
        5. Find the Algebraic Solution
        6. Slack and Surplus Variables
        7. Sensitivity Analysis
      5. Computer Analysis
        1. Simplex Method
        2. Computer Output
      6. The Transportation Method
        1. Transportation Method for Sales and Operations Planning
      7. Key Terms
      8. Solved Problem 1
        1. Solution
      9. Solved Problem 2
        1. Solution
      10. Discussion Questions
      11. Problems
        1. Formulating a Linear Programming Model
        2. Graphic Analysis
        3. Computer Analysis
        4. The Transportation Method
    6. 11 Resource Planning
      1. Learning Goals
      2. Material Requirements Planning
        1. Dependent Demand
      3. Master Production Scheduling
        1. Developing a Master Production Schedule
        2. Available-to-Promise Quantities
        3. Freezing the MPS
        4. Reconciling the MPS with Sales and Operations Plans
      4. MRP Explosion
        1. Bill of Materials
        2. Inventory Record
          1. Gross Requirements
          2. Scheduled Receipts
          3. Projected On-Hand Inventory
          4. Planned Receipts
          5. Planned Order Releases
        3. Planning Factors
          1. Planning Lead Time
          2. Lot-Sizing Rules
          3. Fixed Order Quantity
          4. Periodic Order Quantity
          5. Lot for Lot
          6. Comparing Lot-Sizing Rules
          7. Safety Stock
        4. Outputs from MRP
          1. Material Requirements
          2. Action Notices
          3. Resource Requirements Reports
          4. Performance Reports
        5. MRP and the Environment
        6. MRP, Core Processes, and Supply Chain Linkages
      5. Enterprise Resource Planning
        1. How ERP Systems Are Designed
      6. Resource Planning for Service Providers
        1. Dependent Demand for Services
          1. Restaurants
          2. Airlines
          3. Hospitals
          4. Hotels
        2. Bill of Resources
      7. Key Terms
      8. Solved Problem 1
        1. Solution
      9. Solved Problem 2
        1. Solution
      10. Solved Problem 3
        1. Solution
      11. Solved Problem 4
        1. Solution
      12. Discussion Questions
      13. Problems
        1. Master Production Scheduling
        2. MRP Explosion
        3. Resource Planning for Service Providers
      14. Active Model Exercise
        1. Questions
  11. Part 3 Managing Supply Chains
    1. 12 Supply Chain Design
      1. Learning Goals
      2. Creating an Effective Supply Chain
        1. Supply Chains for Services and Manufacturing
        2. Services
        3. Manufacturing
      3. Measuring Supply Chain Performance
        1. Inventory Measures
        2. Financial Measures
          1. Total Revenue
          2. Cost of Goods Sold
          3. Operating Expenses
          4. Cash Flow
          5. Working Capital
          6. Return on Assets
      4. Strategic Options for Supply Chain Design
        1. Efficient Supply Chains
          1. Common Designs
        2. Responsive Supply Chains
          1. Common Designs
        3. Designs for Efficient and Responsive Supply Chains
      5. Mass Customization
        1. Competitive Advantages
        2. Supply Chain Design for Mass Customization
          1. Assemble-to-Order Strategy
          2. Modular Design
          3. Postponement
      6. Outsourcing Processes
        1. Vertical Integration
        2. Make-or-Buy Decisions
      7. Key Equations
        1. Measuring Supply Chain Performance
        2. Outsourcing Processes
      8. Key Terms
      9. Solved Problem
        1. Solution
      10. Discussion Questions
      11. Problems
        1. Measuring Supply Chain Performance
        2. Outsourcing Processes
      12. Scenario
      13. Materials (available from instructor)
      14. Setup
      15. Tasks
      16. Costs and Conditions
      17. Delays
        1. Ordering Delay.
        2. Delivery Delay.
      18. Run the Exercise
    2. 13 Supply Chain Logistic Networks
      1. Learning Goals
      2. Factors Affecting Location Decisions
        1. Dominant Factors in Manufacturing
          1. Favorable Labor Climate
          2. Proximity to Markets
          3. Impact on Environment
          4. Quality of Life
          5. Proximity to Suppliers and Resources
          6. Proximity to the Parent Company’s Facilities
          7. Utilities, Taxes, and Real Estate Costs
          8. Other Factors
        2. Dominant Factors in Services
          1. Proximity to Customers
          2. Transportation Costs and Proximity to Markets
          3. Location of Competitors
          4. Site-Specific Factors
      3. Load–Distance Method
        1. Distance Measures
        2. Calculating a Load–Distance Score
        3. Center of Gravity
      4. Break-Even Analysis
      5. Transportation Method
        1. Setting Up the Initial Tableau
        2. Dummy Plants or Warehouses
        3. Finding a Solution
      6. Geographical Information Systems
        1. Using GIS
        2. The GIS Method for Locating Multiple Facilities
      7. Inventory Placement
      8. A Systematic Location Selection Process
      9. Key Equations
        1. Load–Distance Method
      10. Key Terms
      11. Solved Problem 1
        1. Solution
      12. Solved Problem 2
        1. Solution
      13. Solved Problem 3
        1. Solution
      14. Solved Problem 4
        1. Solution
      15. Discussion Questions
      16. Problems
        1. Load–Distance Method
        2. Break-Even Analysis
        3. Transportation Method
        4. A Systematic Location Selection Process
      17. Active Model Exercise
        1. Questions
    3. 14 Supply Chain Integration
      1. Learning Goals
      2. Supply Chain Disruptions
        1. Causes of Supply Chain Disruptions
          1. External Causes
          2. Internal Causes
        2. Supply Chain Dynamics
        3. Integrated Supply Chains
      3. Additive Manufacturing
        1. Supply Chain Implications of AM
        2. Enablers of Adopting AM
      4. New Service or Product Development Process
        1. Design
        2. Analysis
        3. Development
        4. Full Launch
      5. Supplier Relationship Process
        1. Sourcing
          1. Supplier Selection
          2. Supplier Certification and Evaluation
        2. Design Collaboration
        3. Negotiation
          1. Competitive Orientation
          2. Cooperative Orientation
        4. Buying
          1. Electronic Data Interchange
          2. Catalog Hubs
          3. Exchanges
          4. Auctions
          5. Locus of Control
        5. Information Exchange
          1. Radio Frequency Identification
          2. Vendor-Managed Inventories
      6. Order Fulfillment Process
        1. Customer Demand Planning
        2. Supply Planning
        3. Production
        4. Logistics
      7. Customer Relationship Process
        1. Marketing
          1. Business-to-Consumer Systems
          2. Business-to-Business Systems
        2. Order Placement
        3. Customer Service
      8. Supply Chain Risk Management
        1. Operational Risks
        2. Financial Risks
        3. Security Risks
        4. Performance Measures
      9. Key Equations
        1. Supplier Relationship Process
        2. Order Fulfillment Process
      10. Key Terms
      11. Solved Problem 1
        1. Solution
          1. Kramer
          2. Sunrise
      12. Solved Problem 2
        1. Solution
      13. Solved Problem 3
        1. Solution
          1. One Team In-House
          2. Expected Value
      14. Discussion Questions
      15. Problems
        1. Supplier Relationship Process
        2. Order Fulfillment Process
        3. Supply Chain Risk Management
    4. 15 Supply Chain Sustainability
      1. Learning Goals
      2. The Three Elements of Supply Chain Sustainability
      3. Reverse Logistics
        1. Supply Chain Design for Reverse Logistics
        2. Financial Implications
      4. Energy Efficiency
        1. Transportation Distance
        2. Freight Density
        3. Transportation Mode
      5. Disaster Relief Supply Chains
        1. Organizing for Disaster Relief
        2. Managing Disaster Relief Operations
      6. Supply Chain Ethics
        1. Buyer–Supplier Relationships
        2. Facility Location
        3. Inventory Management
      7. Managing Sustainable Supply Chains
      8. Key Equation
        1. Energy Efficiency
      9. Key Terms
      10. Solved Problem 1
        1. Solution
      11. Solved Problem 2
        1. Solution
      12. Discussion Questions
      13. Problems
        1. Energy Efficiency
  12. Appendix Normal Distribution
  13. Selected References
  14. Glossary
  15. Name Index
  16. Subject Index
  17. SupplementE Simulation
    1. Learning Goals
    2. Reasons for Using Simulation Models
    3. The Monte Carlo Simulation Process
      1. Data Collection
      2. Random-Number Assignment
      3. Model Formulation
      4. Analysis
    4. Simulation with Excel Spreadsheets
      1. Generating Random Numbers
      2. Random-Number Assignment
      3. Simulation with Two Uncontrollable Variables
    5. Simulation with SimQuick Software
    6. Key Terms
    7. Solved Problem 1
      1. Solution
    8. Solved Problem 2
      1. Solution
    9. Problems
      1. The Monte Carlo Simulation Process
      2. Simulation with Excel Spreadsheets
      3. Table of Random Numbers
    10. Selected References
  18. Supplement F Financial Analysis
    1. Learning Goals
    2. Time Value of Money
      1. Future Value of an Investment
      2. Present Value of an Investment
      3. Present Value Factors
      4. Annuities
    3. Methods of Financial Analysis
      1. Depreciation and Taxes
        1. Straight-Line Depreciation 
        2. Accelerated Depreciation 
        3. Taxes 
      2. Analysis of Cash Flows
      3. Net Present Value Method
      4. Internal Rate of Return Method
      5. Payback Method
      6. Computer Support
    4. Using Judgment with Financial Analysis
    5. Key Equations
      1. Time Value of Money
      2. Methods of Financial Analysis
    6. Key Terms
    7. Selected References
  19. Supplement G Acceptance Sampling Plans
    1. Learning Goals
    2. Acceptance Sampling Quality and Risk Decisions
    3. Sampling Plans
      1. Single-Sampling Plan
      2. Double-Sampling Plan
      3. Sequential-Sampling Plan
    4. Operating Characteristic Curves
      1. Drawing the OC Curve
    5. Selecting a Single-Sampling Plan
      1. Sample Size Effect
      2. Acceptance Level Effect
    6. Average Outgoing Quality
    7. Key Equation
      1. Average Outgoing Quality
    8. Key Terms
    9. Solved Problem
      1. Solution
    10. Problems
      1. Operating Characteristic Curves
      2. Selecting a Single-Sampling Plan
      3. Average Outgoing Quality
    11. Selected References
  20. Supplement H Measuring Output Rates
    1. Learning Goals
    2. Work Standards
      1. Developing a Work Standard
      2. Methods for Measuring Output Rates
    3. Time Study Method
      1. Step 1: Selecting Work Elements
      2. Step 2: Timing the Elements
      3. Step 3: Determining Sample Size
      4. Step 4: Setting the Standard
      5. Overall Assessment of Time Study
      6. Elemental Standard Data Method
    4. Predetermined Data Method
    5. Work Sampling Method
      1. Work Sampling Procedure
      2. Sample Size
      3. Sampling Schedule
      4. Overall Assessment of Work Sampling
      5. Managerial Considerations in Work Measurement
    6. Key Equations
      1. Time Study Method
      2. Work Sampling Method
    7. Key Terms
    8. Solved Problem 1
      1. Solution
    9. Solved Problem 2
      1. Solution
    10. Problems
      1. Time Study Method
      2. Work Sampling Method
    11. Selected References
  21. Supplement I Learning Curve Analysis
    1. Learning Goals
    2. The Learning Curve Concept
      1. Background
      2. Learning Curves and Competitive Strategy
    3. Developing Learning Curves
    4. Using Learning Curves
      1. Bid Preparation
      2. Financial Planning
      3. Labor Requirement Estimation
    5. Managerial Considerations in the Use of Learning Curves
    6. Key Equation
      1. Developing Learning Curves
    7. Key Term
    8. Solved Problem
    9. Solution
    10. Problems
      1. Developing Learning Curves
      2. Using Learning Curves
    11. Selected References
  22. Supplement J Operations Scheduling
    1. Learning Goals
    2. Performance Measures for Scheduling Processes
    3. Job Shop Scheduling
      1. Priority Sequencing Rules
      2. Scheduling Jobs for One Workstation
        1. Single-Dimension Rules 
        2. Multiple-Dimension Rules 
      3. Scheduling Jobs for Multiple Workstations
    4. Flow Shop Scheduling
    5. Labor-Limited Environments
    6. Key Equations
      1. Performance Measures for Scheduling Processes
      2. Job Shop Scheduling
    7. Key Terms
    8. Solved Problem 1
      1. Solution
    9. Solved Problem 2
      1. Solution
    10. Solved Problem 3
      1. Solution
    11. Discussion Question
    12. Problems
      1. Job Shop Scheduling
      2. Flow Shop Scheduling
    13. Active Model Exercise
      1. Questions
    14. Selected References
  23. Supplement K Layout
    1. Learning Goals
    2. Step 1: Gather Information
      1. Space Requirements
      2. Closeness Factors
      3. Constraints
    3. Step 2: Develop a Block Plan
      1. Weighted-Distance Method
      2. Evaluating Block Plans
    4. Step 3: Design a Detailed Layout
    5. Key Equation
      1. Step 2: Develop a Block Plan
    6. Key Terms
    7. Solved Problem
      1. Solution
    8. Problems
      1. Step 2: Develop a Block Plan
    9. Active Model Exercise
      1. Questions
    10. Selected References