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

Book Description

Known for its comprehensive approach, this text shows operations managers how to analyse processes, ensure quality, create value, and manage the flow of information, products and services. The seventh edition offers an extensive collection of exercises and solved problems to reinforce key concepts. An increased emphasis is placed on supply chain management and services. New information is presented on the environment and green management, and technology type OM topics as it applies to production, control, the supply chain, and global operations. All chapter opening cases and in-text example boxes have also been revised or replaced. This new content better prepares operations managers for the issues they'll experience in the field.

Table of Contents

  1. Copyright
  2. About the Authors
  3. Preface
    1. CHANGES IN THE SEVENTH EDITION
    2. MAJOR TEXT THEMES
      1. OPERATIONS STRATEGY: CREATING VALUE ALONG THE SUPPLY CHAIN
      2. GLOBAL OPERATIONS
      3. SUSTAINABILITY
      4. SERVICES AND MANUFACTURING
      5. QUALITATIVE AND QUANTITATIVE PROCESSES
    3. TEACHING AND LEARNING SUPPORT FEATURES
      1. PEDAGOGY IN THE TEXTBOOK
        1. "Along the Supply Chain" Boxes
        2. OM Dialogue Boxes
        3. Marginal Notes
        4. Examples
        5. Solved Example Problems
        6. Summary of Key Formulas
        7. Summary of Key Terms
        8. Homework Problems, Questions and Cases
    4. ONLINE RESOURCES FOR STUDENTS, WWW.WILEY.COM/COLLEGE/RUSSELL
      1. EXCEL FILES OF EXHIBITS
      2. ONLINE RESOURCES FOR INSTRUCTORS
    5. ONLINE RESOURCES FOR INSTRUCTORS WWW.WILEY.COM/COLLEGE/RUSSELL
      1. WileyPLUS
        1. What do students receive with WileyPLUS?
        2. What do instructors receive with WileyPLUS?
        3. WileyPLUS. Learn More. www.wileyplus.com.
  4. Acknowledgments
  5. I. Operations Management
    1. 1. Introduction to Operations and Supply Chain Management
      1. 1.1. THE OPERATIONS FUNCTION
      2. 1.2. THE EVOLUTION OF OPERATIONS AND SUPPLY CHAIN MANAGEMENT
      3. 1.3. GLOBALIZATION
        1. 1.3.1. THE CHINA FACTOR
        2. 1.3.2. INDIA, THE WORLD'S SERVICE PROVIDER
      4. 1.4. PRODUCTIVITY AND COMPETITIVENESS
      5. 1.5. STRATEGY AND OPERATIONS
        1. 1.5.1. PRIMARY TASK
        2. 1.5.2. CORE COMPETENCIES
        3. 1.5.3. ORDER WINNERS AND ORDER QUALIFIERS
        4. 1.5.4. POSITIONING THE FIRM
          1. 1.5.4.1. Competing on Cost
          2. 1.5.4.2. Competing on Speed
          3. 1.5.4.3. Competing on Quality
          4. 1.5.4.4. Competing on Flexibility
        5. 1.5.5. STRATEGY DEPLOYMENT
          1. 1.5.5.1. Policy Deployment
          2. 1.5.5.2. Balanced Scorecard
        6. 1.5.6. OPERATIONS STRATEGY
      6. 1.6. ORGANIZATION OF THIS TEXT
      7. 1.7. LEARNING OBJECTIVES OF THIS COURSE
      8. 1.8. SUMMARY
      9. 1.9. SUMMARY OF KEY TERMS
      10. 1.10. QUESTIONS
      11. 1.11. PROBLEMS
      12. 1.12. CASE PROBLEM 1.1
      13. 1.13. CASE PROBLEM 1.2
      14. 1.14. CASE PROBLEM 1.3
      15. 1.15. REFERENCES
    2. S1. Operational Decision-Making Tools: Decision Analysis
      1. S1.1. DECISION ANALYSIS WITH AND WITHOUT PROBABILITIES
        1. S1.1.1. DECISION MAKING WITHOUT PROBABILITIES
        2. S1.1.2. DECISION ANALYSIS WITH EXCEL
        3. S1.1.3. DECISION ANALYSIS WITH OM TOOLS
        4. S1.1.4. DECISION MAKING WITH PROBABILITIES
        5. S1.1.5. EXPECTED VALUE OF PERFECT INFORMATION
        6. S1.1.6. SEQUENTIAL DECISION TREES
      2. S1.2. SUMMARY
      3. S1.3. SUMMARY OF KEY FORMULAS
      4. S1.4. SUMMARY OF KEY TERMS
      5. S1.5. SOLVED PROBLEMS
      6. S1.6. PROBLEMS
      7. S1.7. CASE PROBLEM S1.1
      8. S1.8. CASE PROBLEM S1.2
      9. S1.9. CASE PROBLEM S1.3
      10. S1.10. REFERENCES
    3. 2. Quality Management
      1. 2.1. WHAT IS QUALITY?
        1. 2.1.1. QUALITY FROM THE CUSTOMER'S PERSPECTIVE
        2. 2.1.2. DIMENSIONS OF QUALITY FOR MANUFACTURED PRODUCTS
        3. 2.1.3. DIMENSIONS OF QUALITY FOR SERVICES
        4. 2.1.4. QUALITY FROM THE PRODUCER'S PERSPECTIVE
        5. 2.1.5. A FINAL PERSPECTIVE ON QUALITY
      2. 2.2. QUALITY MANAGEMENT SYSTEM
        1. 2.2.1. THE EVOLUTION OF QUALITY MANAGEMENT
      3. 2.3. QUALITY TOOLS
        1. 2.3.1. PROCESS FLOWCHARTS
        2. 2.3.2. CAUSE-AND-EFFECT DIAGRAMS
        3. 2.3.3. CHECKSHEETS AND HISTOGRAMS
        4. 2.3.4. PARETO ANALYSIS
        5. 2.3.5. SCATTER DIAGRAMS
        6. 2.3.6. PROCESS CONTROL CHARTS AND STATISTICAL QUALITY CONTROL
      4. 2.4. TQM AND QMS
      5. 2.5. THE FOCUS OF QUALITY MANAGEMENT—CUSTOMERS
        1. 2.5.1. QUALITY MANAGEMENT IN THE SUPPLY CHAIN
        2. 2.5.2. MEASURING CUSTOMER SATISFACTION
      6. 2.6. THE ROLE OF EMPLOYEES IN QUALITY IMPROVEMENT
        1. 2.6.1. KAIZEN AND CONTINUOUS IMPROVEMENT
        2. 2.6.2. QUALITY CIRCLES
        3. 2.6.3. PROCESS IMPROVEMENT TEAMS
      7. 2.7. QUALITY IN SERVICES
        1. 2.7.1. QUALITY ATTRIBUTES IN SERVICES
      8. 2.8. SIX SIGMA
        1. 2.8.1. THE SIX SIGMA GOAL—3.4 DPMO
        2. 2.8.2. THE SIX SIGMA PROCESS
        3. 2.8.3. IMPROVEMENT PROJECTS
        4. 2.8.4. THE BREAKTHROUGH STRATEGY: DMAIC
        5. 2.8.5. BLACK BELTS AND GREEN BELTS
        6. 2.8.6. DESIGN FOR SIX SIGMA
        7. 2.8.7. LEAN SIX SIGMA
        8. 2.8.8. THE BOTTOM LINE—PROFITABILITY
      9. 2.9. THE COST OF QUALITY
        1. 2.9.1. THE COST OF ACHIEVING GOOD QUALITY
        2. 2.9.2. THE COST OF POOR QUALITY
        3. 2.9.3. MEASURING AND REPORTING QUALITY COSTS
        4. 2.9.4. THE QUALITY–COST RELATIONSHIP
      10. 2.10. THE EFFECT OF QUALITY MANAGEMENT ON PRODUCTIVITY
        1. 2.10.1. PRODUCTIVITY
        2. 2.10.2. MEASURING PRODUCT YIELD AND PRODUCTIVITY
        3. 2.10.3. THE QUALITY–PRODUCTIVITY RATIO
      11. 2.11. QUALITY AWARDS
        1. 2.11.1. THE MALCOLM BALDRIGE AWARD
        2. 2.11.2. OTHER AWARDS FOR QUALITY
      12. 2.12. ISO 9000
        1. 2.12.1. STANDARDS
        2. 2.12.2. CERTIFICATION
        3. 2.12.3. IMPLICATIONS OF ISO 9000 FOR U.S. COMPANIES
        4. 2.12.4. ISO REGISTRARS
      13. 2.13. SUMMARY
      14. 2.14. SUMMARY OF KEY FORMULAS
      15. 2.15. SUMMARY OF KEY TERMS
      16. 2.16. SOLVED PROBLEMS
      17. 2.17. QUESTIONS
      18. 2.18. PROBLEMS
      19. 2.19. CASE PROBLEM 2.1
      20. 2.20. CASE PROBLEM 2.2
      21. 2.21. CASE PROBLEM 2.3
      22. 2.22. CASE PROBLEM 2.4
      23. 2.23. REFERENCES
    4. 3. Statistical Process Control
      1. 3.1. THE BASICS OF STATISTICAL PROCESS CONTROL
        1. 3.1.1. SPC IN QUALITY MANAGEMENT
        2. 3.1.2. QUALITY MEASURES: ATTRIBUTES AND VARIABLES
        3. 3.1.3. SPC APPLIED TO SERVICES
        4. 3.1.4. WHERE TO USE CONTROL CHARTS
      2. 3.2. CONTROL CHARTS
      3. 3.3. CONTROL CHARTS FOR ATTRIBUTES
        1. 3.3.1. p-CHART
        2. 3.3.2. C-CHART
      4. 3.4. CONTROL CHARTS FOR VARIABLES
        1. 3.4.1. MEAN (-) CHART
        2. 3.4.2. RANGE (R-) CHART
        3. 3.4.3. USING - AND R-CHARTS TOGETHER
      5. 3.5. CONTROL CHART PATTERNS
        1. 3.5.1. SAMPLE SIZE DETERMINATION
      6. 3.6. SPC WITH EXCEL AND OM TOOLS
      7. 3.7. PROCESS CAPABILITY
        1. 3.7.1. PROCESS CAPABILITY MEASURES
        2. 3.7.2. PROCESS CAPABILITY WITH EXCEL AND OM TOOLS
      8. 3.8. SUMMARY
      9. 3.9. SUMMARY OF KEY FORMULAS
      10. 3.10. SUMMARY OF KEY TERMS
      11. 3.11. SOLVED PROBLEMS
      12. 3.12. QUESTIONS
      13. 3.13. PROBLEMS
      14. 3.14. CASE PROBLEM 3.1
      15. 3.15. CASE PROBLEM 3.2
      16. 3.16. CASE PROBLEM 3.3
      17. 3.17. REFERENCES
    5. S3. Operational Decision-Making Tools: Acceptance Sampling
      1. S3.1. SINGLE-SAMPLE ATTRIBUTE PLAN
        1. S3.1.1. PRODUCER's AND CONSUMER's RISKS
      2. S3.2. THE OPERATING CHARACTERISTIC CURVE
      3. S3.3. DEVELOPING A SAMPLING PLAN WITH OM TOOLS
      4. S3.4. AVERAGE OUTGOING QUALITY
      5. S3.5. DOUBLE- AND MULTIPLE-SAMPLING PLANS
      6. S3.6. SUMMARY
      7. S3.7. SUMMARY OF KEY TERMS
      8. S3.8. SOLVED PROBLEM
      9. S3.9. QUESTIONS
      10. S3.10. PROBLEMS
    6. 4. Product Design
      1. 4.1. THE DESIGN PROCESS
        1. 4.1.1. IDEA GENERATION
        2. 4.1.2. FEASIBILITY STUDY
      2. 4.2. RAPID PROTOTYPING AND CONCURRENT DESIGN
        1. 4.2.1. FORM DESIGN
        2. 4.2.2. FUNCTIONAL DESIGN
        3. 4.2.3. RELIABILITY
        4. 4.2.4. MAINTAINABILITY
        5. 4.2.5. USABILITY
        6. 4.2.6. PRODUCTION DESIGN
        7. 4.2.7. FINAL DESIGN AND PROCESS PLANS
      3. 4.3. TECHNOLOGY IN DESIGN
        1. 4.3.1. COLLABORATIVE PRODUCT DESIGN SYSTEMS
      4. 4.4. DESIGN QUALITY REVIEWS
      5. 4.5. DESIGN FOR ENVIRONMENT
        1. 4.5.1. GREEN SOURCING
        2. 4.5.2. GREEN MANUFACTURE
        3. 4.5.3. GREEN CONSUMPTION
        4. 4.5.4. RECYCLING AND RE-USE
      6. 4.6. QUALITY FUNCTION DEPLOYMENT
      7. 4.7. DESIGN FOR ROBUSTNESS
      8. 4.8. SUMMARY
      9. 4.9. SUMMARY OF KEY TERMS
      10. 4.10. SUMMARY OF KEY FORMULAS
      11. 4.11. SOLVED PROBLEMS
      12. 4.12. QUESTIONS
      13. 4.13. PROBLEMS
      14. 4.14. CASE PROBLEM 4.1
      15. 4.15. CASE PROBLEM 4.2
      16. 4.16. REFERENCES
    7. 5. Service Design
      1. 5.1. THE SERVICE ECONOMY
      2. 5.2. CHARACTERISTICS OF SERVICES
      3. 5.3. THE SERVICE DESIGN PROCESS
        1. 5.3.1. THE SERVICE-PROCESS MATRIX
      4. 5.4. TOOLS FOR SERVICE DESIGN
        1. 5.4.1. SERVICE BLUEPRINTING
        2. 5.4.2. FRONT OFFICE AND BACK-OFFICE ACTIVITIES
        3. 5.4.3. SERVICESCAPES
        4. 5.4.4. QUANTITATIVE TECHNIQUES
      5. 5.5. WAITING LINE ANALYSIS FOR SERVICE IMPROVEMENT
        1. 5.5.1. ELEMENTS OF WAITING LINE ANALYSIS
          1. 5.5.1.1. Elements of a Waiting Line
          2. 5.5.1.2. The Calling Population
          3. 5.5.1.3. The Arrival Rate
          4. 5.5.1.4. Service Times
          5. 5.5.1.5. Queue Discipline and Length
          6. 5.5.1.6. Basic Waiting Line Structures
        2. 5.5.2. OPERATING CHARACTERISTICS
        3. 5.5.3. TRADITIONAL COST RELATIONSHIPS IN WAITING LINE ANALYSIS
        4. 5.5.4. THE PSYCHOLOGY OF WAITING
        5. 5.5.5. WAITING LINE MODELS
          1. 5.5.5.1. The Basic Single-Server Model
          2. 5.5.5.2. Service Improvement Analysis
          3. 5.5.5.3. Solution of the Single-Server Model with Excel
          4. 5.5.5.4. Advanced Single-Server Models
        6. 5.5.6. MULTIPLE-SERVER MODEL
          1. 5.5.6.1. The Basic Multiple-Server Model
      6. 5.6. SUMMARY
      7. 5.7. SUMMARY OF KEY TERMS
      8. 5.8. SUMMARY OF KEY FORMULAS
      9. 5.9. SOLVED PROBLEMS
      10. 5.10. QUESTIONS
      11. 5.11. PROBLEMS
      12. 5.12. CASE PROBLEM 5.1
      13. 5.13. CASE PROBLEM 5.2
      14. 5.14. CASE PROBLEM 5.3
      15. 5.15. CASE PROBLEM 5.4
      16. 5.16. REFERENCES
    8. 6. Processes and Technology
      1. 6.1. PROCESS PLANNING
        1. 6.1.1. OUTSOURCING
        2. 6.1.2. PROCESS SELECTION
        3. 6.1.3. PROCESS SELECTION WITH BREAKEVEN ANALYSIS
        4. 6.1.4. PROCESS PLANS
      2. 6.2. PROCESS ANALYSIS
        1. 6.2.1. PROCESS FLOWCHARTS
      3. 6.3. PROCESS INNOVATION
        1. 6.3.1. STEPS IN PROCESS INNOVATION
      4. 6.4. TECHNOLOGY DECISIONS
        1. 6.4.1. FINANCIAL JUSTIFICATION OF TECHNOLOGY
        2. 6.4.2. A TECHNOLOGY PRIMER
      5. 6.5. SUMMARY
      6. 6.6. SUMMARY OF KEY TERMS
      7. 6.7. SUMMARY OF KEY FORMULAS
      8. 6.8. SOLVED PROBLEMS
      9. 6.9. QUESTIONS
      10. 6.10. PROBLEMS
      11. 6.11. CASE PROBLEM 6.1
      12. 6.12. CASE PROBLEM 6.2
      13. 6.13. CASE PROBLEM 6.3
      14. 6.14. REFERENCES
    9. 7. Capacity and Facilities Design
      1. 7.1. CAPACITY PLANNING
      2. 7.2. FACILITIES
        1. 7.2.1. OBJECTIVES OF FACILITY LAYOUT
      3. 7.3. BASIC LAYOUTS
        1. 7.3.1. PROCESS LAYOUTS
        2. 7.3.2. PRODUCT LAYOUTS
        3. 7.3.3. FIXED-POSITION LAYOUTS
      4. 7.4. DESIGNING PROCESS LAYOUTS
        1. 7.4.1. BLOCK DIAGRAMMING
        2. 7.4.2. RELATIONSHIP DIAGRAMMING
        3. 7.4.3. COMPUTERIZED LAYOUT SOLUTIONS
      5. 7.5. DESIGNING SERVICE LAYOUTS
      6. 7.6. DESIGNING PRODUCT LAYOUTS
        1. 7.6.1. LINE BALANCING
        2. 7.6.2. COMPUTERIZED LINE BALANCING
      7. 7.7. HYBRID LAYOUTS
        1. 7.7.1. CELLULAR LAYOUTS
          1. 7.7.1.1. Advantages of Cellular Layouts
          2. 7.7.1.2. Disadvantages of Cellular Layouts
        2. 7.7.2. FLEXIBLE MANUFACTURING SYSTEMS
        3. 7.7.3. MIXED-MODEL ASSEMBLY LINES
      8. 7.8. SUMMARY
      9. 7.9. SUMMARY OF KEY FORMULAS
      10. 7.10. SUMMARY OF KEY TERMS
      11. 7.11. SOLVED PROBLEMS
      12. 7.12. QUESTIONS
      13. 7.13. PROBLEMS
      14. 7.14. CASE PROBLEM 7.1
      15. 7.15. CASE PROBLEM 7.2
      16. 7.16. CASE PROBLEM 7.3
      17. 7.17. REFERENCES
    10. S7. Operational Decision-Making Tools: Facility Location Models
      1. S7.1. TYPES OF FACILITIES
      2. S7.2. SITE SELECTION: WHERE TO LOCATE
      3. S7.3. GLOBAL SUPPLY CHAIN FACTORS
        1. S7.3.1. REGIONAL AND COMMUNITY LOCATION FACTORS IN THE UNITED STATES
        2. S7.3.2. LOCATION INCENTIVES
        3. S7.3.3. GEOGRAPHIC INFORMATION SYSTEMS
      4. S7.4. LOCATION ANALYSIS TECHNIQUES
        1. S7.4.1. LOCATION FACTOR RATING
        2. S7.4.2. LOCATION FACTOR RATING WITH EXCEL AND OM TOOLS
        3. S7.4.3. CENTER-OF-GRAVITY TECHNIQUE
        4. S7.4.4. CENTER-OF-GRAVITY TECHNIQUE WITH EXCEL AND OM TOOLS
        5. S7.4.5. LOAD-DISTANCE TECHNIQUE
        6. S7.4.6. LOAD-DISTANCE TECHNIQUE WITH EXCEL AND OM TOOLS
      5. S7.5. SUMMARY
      6. S7.6. SUMMARY OF KEY FORMULAS
      7. S7.7. SUMMARY OF KEY TERMS
      8. S7.8. SOLVED PROBLEMS
      9. S7.9. QUESTIONS
      10. S7.10. PROBLEMS
      11. S7.11. CASE PROBLEM S7.1
      12. S7.12. REFERENCES
    11. 8. Human Resources
      1. 8.1. HUMAN RESOURCES AND QUALITY MANAGEMENT
      2. 8.2. THE CHANGING NATURE OF HUMAN RESOURCES MANAGEMENT
        1. 8.2.1. THE ASSEMBLY LINE
        2. 8.2.2. LIMITATIONS OF SCIENTIFIC MANAGEMENT
        3. 8.2.3. EMPLOYEE MOTIVATION
      3. 8.3. CONTEMPORARY TRENDS IN HUMAN RESOURCES MANAGEMENT
        1. 8.3.1. JOB TRAINING
        2. 8.3.2. CROSS TRAINING
        3. 8.3.3. JOB ENRICHMENT
        4. 8.3.4. EMPOWERMENT
        5. 8.3.5. TEAMS
        6. 8.3.6. FLEXIBLE WORK SCHEDULES
        7. 8.3.7. ALTERNATIVE WORKPLACES AND TELECOMMUTING
        8. 8.3.8. TEMPORARY AND PART-TIME EMPLOYEES
      4. 8.4. EMPLOYEE COMPENSATION
        1. 8.4.1. TYPES OF PAY
        2. 8.4.2. GAINSHARING AND PROFIT SHARING
      5. 8.5. MANAGING DIVERSITY IN THE WORKPLACE
        1. 8.5.1. AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY
        2. 8.5.2. DIVERSITY MANAGEMENT PROGRAMS
        3. 8.5.3. GLOBAL DIVERSITY ISSUES
      6. 8.6. JOB DESIGN
        1. 8.6.1. THE ELEMENTS OF JOB DESIGN
        2. 8.6.2. TASK ANALYSIS
        3. 8.6.3. WORKER ANALYSIS
        4. 8.6.4. ENVIRONMENTAL ANALYSIS
        5. 8.6.5. ERGONOMICS
        6. 8.6.6. TECHNOLOGY AND AUTOMATION
      7. 8.7. JOB ANALYSIS
        1. 8.7.1. PROCESS FLOWCHART
        2. 8.7.2. WORKER-MACHINE CHART
        3. 8.7.3. MOTION STUDY
      8. 8.8. LEARNING CURVES
        1. 8.8.1. DETERMINING LEARNING CURVES WITH EXCEL
        2. 8.8.2. LEARNING CURVES WITH OM TOOLS
      9. 8.9. SUMMARY
      10. 8.10. SUMMARY OF KEY FORMULAS
      11. 8.11. SUMMARY OF KEY TERMS
      12. 8.12. SOLVED PROBLEMS
      13. 8.13. QUESTIONS
      14. 8.14. PROBLEMS
      15. 8.15. CASE PROBLEM 8.1
      16. 8.16. REFERENCES
    12. S8. Operational Decision-Making Tools: Work Measurement
      1. S8.1. TIME STUDIES
        1. S8.1.1. STOPWATCH TIME STUDY
        2. S8.1.2. NUMBER OF CYCLES
        3. S8.1.3. ELEMENTAL TIME FILES
        4. S8.1.4. PREDETERMINED MOTION TIMES
      2. S8.2. WORK SAMPLING
      3. S8.3. SUMMARY
      4. S8.4. SUMMARY OF KEY FORMULAS
      5. S8.5. SUMMARY OF KEY TERMS
      6. S8.6. SOLVED PROBLEMS
      7. S8.7. QUESTIONS
      8. S8.8. PROBLEMS
      9. S8.9. CASE PROBLEM S8.1
      10. S8.10. REFERENCES
    13. 9. Project Management
      1. 9.1. PROJECT PLANNING
        1. 9.1.1. ELEMENTS OF A PROJECT PLAN
        2. 9.1.2. PROJECT RETURN
        3. 9.1.3. THE PROJECT TEAM
        4. 9.1.4. THE PROJECT MANAGER
        5. 9.1.5. SCOPE STATEMENT
        6. 9.1.6. WORK BREAKDOWN STRUCTURE
        7. 9.1.7. RESPONSIBILITY ASSIGNMENT MATRIX
      2. 9.2. GLOBAL AND DIVERSITY ISSUES IN PROJECT MANAGEMENT
      3. 9.3. PROJECT SCHEDULING
        1. 9.3.1. THE GANTT CHART
      4. 9.4. PROJECT CONTROL
        1. 9.4.1. TIME MANAGEMENT
        2. 9.4.2. COST MANAGEMENT
        3. 9.4.3. QUALITY MANAGEMENT
        4. 9.4.4. PERFORMANCE MANAGEMENT
        5. 9.4.5. COMMUNICATION
        6. 9.4.6. ENTERPRISE PROJECT MANAGEMENT
      5. 9.5. CPM/PERT
        1. 9.5.1. THE PROJECT NETWORK
        2. 9.5.2. AOA NETWORK
        3. 9.5.3. AON NETWORK
        4. 9.5.4. THE CRITICAL PATH
        5. 9.5.5. ACTIVITY SCHEDULING
        6. 9.5.6. ACTIVITY SLACK
      6. 9.6. PROBABILISTIC ACTIVITY TIMES
        1. 9.6.1. PROBABILISTIC TIME ESTIMATES
      7. 9.7. CPM/PERT ANALYSIS WITH OM TOOLS
        1. 9.7.1. PROBABILISTIC NETWORK ANALYSIS
      8. 9.8. MICROSOFT PROJECT
        1. 9.8.1. PERT ANALYSIS WITH MICROSOFT PROJECT
      9. 9.9. PROJECT CRASHING AND TIME-COST TRADEOFF
        1. 9.9.1. PROJECT CRASHING
        2. 9.9.2. THE GENERAL RELATIONSHIP OF TIME AND COST
      10. 9.10. SUMMARY
      11. 9.11. SUMMARY OF KEY FORMULAS
      12. 9.12. SUMMARY OF KEY TERMS
      13. 9.13. SOLVED PROBLEMS
      14. 9.14. QUESTIONS
      15. 9.15. PROBLEMS
      16. 9.16. CASE PROBLEM 9.1
      17. 9.17. CASE PROBLEM 9.2
      18. 9.18. REFERENCES
  6. II. Supply Chain Management
    1. 10. Supply Chain Management Strategy and Design
      1. 10.1. SUPPLY CHAINS
        1. 10.1.1. SUPPLY CHAINS FOR SERVICE PROVIDERS
        2. 10.1.2. VALUE CHAINS
      2. 10.2. THE MANAGEMENT OF SUPPLY CHAINS
        1. 10.2.1. SUPPLY CHAIN UNCERTAINTY AND INVENTORY
        2. 10.2.2. THE BULLWHIP EFFECT
        3. 10.2.3. RISK POOLING
      3. 10.3. "GREEN" SUPPLY CHAINS
        1. 10.3.1. SUSTAINABILITY AND QUALITY MANAGEMENT
      4. 10.4. INFORMATION TECHNOLOGY: A SUPPLY CHAIN ENABLER
        1. 10.4.1. ELECTRONIC BUSINESS
        2. 10.4.2. ELECTRONIC DATA INTERCHANGE
        3. 10.4.3. BAR CODES
        4. 10.4.4. RADIO FREQUENCY IDENTIFICATION
        5. 10.4.5. THE INTERNET
        6. 10.4.6. BUILD-TO-ORDER (BTO)
      5. 10.5. SUPPLY CHAIN INTEGRATION
        1. 10.5.1. COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT
      6. 10.6. SUPPLY CHAIN MANAGEMENT (SCM) SOFTWARE
      7. 10.7. MEASURING SUPPLY CHAIN PERFORMANCE
        1. 10.7.1. KEY PERFORMANCE INDICATORS
        2. 10.7.2. PROCESS CONTROL
        3. 10.7.3. SCOR
      8. 10.8. SUMMARY
      9. 10.9. SUMMARY OF KEY TERMS
      10. 10.10. SUMMARY OF KEY FORMULAS
      11. 10.11. SOLVED PROBLEMS
      12. 10.12. QUESTIONS
      13. 10.13. PROBLEMS
      14. 10.14. CASE PROBLEM 10.1
      15. 10.15. REFERENCES
    2. 11. Global Supply Chain Procurement and Distribution
      1. 11.1. PROCUREMENT
        1. 11.1.1. OUTSOURCING
      2. 11.2. E-PROCUREMENT
        1. 11.2.1. E-MARKETPLACES
        2. 11.2.2. REVERSE AUCTIONS
      3. 11.3. DISTRIBUTION
        1. 11.3.1. SPEED AND QUALITY
        2. 11.3.2. INTERNET COMPANIES: AMAZON.COM
        3. 11.3.3. DISTRIBUTION CENTERS AND WAREHOUSING
        4. 11.3.4. POSTPONEMENT
        5. 11.3.5. WAREHOUSE MANAGEMENT SYSTEMS
        6. 11.3.6. VENDOR-MANAGED INVENTORY
        7. 11.3.7. COLLABORATIVE LOGISTICS
        8. 11.3.8. DISTRIBUTION OUTSOURCING
      4. 11.4. TRANSPORTATION
        1. 11.4.1. INTERNET TRANSPORTATION EXCHANGES
      5. 11.5. THE GLOBAL SUPPLY CHAIN
        1. 11.5.1. OBSTACLES TO GLOBAL SUPPLY CHAIN MANAGEMENT
        2. 11.5.2. DUTIES, TARIFFS, AND GLOBAL TRADING GROUPS
        3. 11.5.3. LANDED COST
        4. 11.5.4. WEB-BASED INTERNATIONAL TRADE LOGISTICS SYSTEMS
        5. 11.5.5. RECENT TRENDS IN GLOBALIZATION FOR U.S. COMPANIES
        6. 11.5.6. CHINA'S INCREASING ROLE IN THE GLOBAL SUPPLY CHAIN
        7. 11.5.7. REVERSE GLOBALIZATION
        8. 11.5.8. EFFECTS OF TERRORISM ON GLOBAL SUPPLY CHAINS
      6. 11.6. SUMMARY OF KEY TERMS
      7. 11.7. QUESTIONS
      8. 11.8. CASE PROBLEM 11.1
    3. S11. Operational Decision-Making Tools: Transportation and Transshipment Models
      1. S11.1. THE TRANSPORTATION MODEL
        1. S11.1.1. SOLUTION OF THE TRANSPORTATION MODEL WITH EXCEL
      2. S11.2. THE TRANSSHIPMENT MODEL
        1. S11.2.1. SOLUTION OF THE TRANSSHIPMENT PROBLEM WITH EXCEL
      3. S11.3. SUMMARY
      4. S11.4. SUMMARY OF KEY TERMS
      5. S11.5. SOLVED PROBLEMS
      6. S11.6. PROBLEMS
      7. S11.7. CASE PROBLEM S11.1
      8. S11.8. CASE PROBLEM S11.2
      9. S11.9. REFERENCES
    4. 12. Forecasting
      1. 12.1. THE STRATEGIC ROLE OF FORECASTING IN SUPPLY CHAIN MANAGEMENT
        1. 12.1.1. SUPPLY CHAIN MANAGEMENT
        2. 12.1.2. QUALITY MANAGEMENT
        3. 12.1.3. STRATEGIC PLANNING
      2. 12.2. COMPONENTS OF FORECASTING DEMAND
        1. 12.2.1. TIME FRAME
        2. 12.2.2. DEMAND BEHAVIOR
        3. 12.2.3. FORECASTING METHODS
        4. 12.2.4. FORECASTING PROCESS
      3. 12.3. TIME SERIES METHODS
        1. 12.3.1. MOVING AVERAGE
        2. 12.3.2. WEIGHTED MOVING AVERAGE
        3. 12.3.3. EXPONENTIAL SMOOTHING
        4. 12.3.4. ADJUSTED EXPONENTIAL SMOOTHING
        5. 12.3.5. LINEAR TREND LINE
        6. 12.3.6. SEASONAL ADJUSTMENTS
      4. 12.4. FORECAST ACCURACY
        1. 12.4.1. MEAN ABSOLUTE DEVIATION
        2. 12.4.2. CUMULATIVE ERROR
        3. 12.4.3. FORECAST CONTROL
      5. 12.5. TIME SERIES FORECASTING USING EXCEL
        1. 12.5.1. FORECASTING WITH OM TOOLS
      6. 12.6. REGRESSION METHODS
        1. 12.6.1. LINEAR REGRESSION
        2. 12.6.2. CORRELATION
        3. 12.6.3. REGRESSION ANALYSIS WITH EXCEL
        4. 12.6.4. MULTIPLE REGRESSION WITH EXCEL
      7. 12.7. SUMMARY
      8. 12.8. SUMMARY OF KEY FORMULAS
      9. 12.9. SUMMARY OF KEY TERMS
      10. 12.10. SOLVED PROBLEMS
      11. 12.11. QUESTIONS
      12. 12.12. PROBLEMS
      13. 12.13. CASE PROBLEM 12.1
      14. 12.14. CASE PROBLEM 12.2
      15. 12.15. CASE PROBLEM 12.3
      16. 12.16. CASE PROBLEM 12.4
      17. 12.17. REFERENCES
    5. 13. Inventory Management
      1. 13.1. THE ROLE OF INVENTORY IN SUPPLY CHAIN MANAGEMENT
        1. 13.1.1. THE EFFECTS OF INFORMATION TECHNOLOGY ON INVENTORY MANAGEMENT
      2. 13.2. INVENTORY AND QUALITY MANAGEMENT IN THE SUPPLY CHAIN
      3. 13.3. THE ELEMENTS OF INVENTORY MANAGEMENT
        1. 13.3.1. DEMAND
        2. 13.3.2. INVENTORY COSTS
      4. 13.4. INVENTORY CONTROL SYSTEMS
        1. 13.4.1. CONTINUOUS INVENTORY SYSTEMS
        2. 13.4.2. PERIODIC INVENTORY SYSTEMS
        3. 13.4.3. THE ABC CLASSIFICATION SYSTEM
      5. 13.5. ECONOMIC ORDER QUANTITY MODELS
        1. 13.5.1. THE BASIC EOQ MODEL
        2. 13.5.2. THE PRODUCTION QUANTITY MODEL
        3. 13.5.3. SOLUTION OF EOQ MODELS WITH EXCEL
        4. 13.5.4. SOLUTION OF EOQ MODELS WITH OM TOOLS
      6. 13.6. QUANTITY DISCOUNTS
        1. 13.6.1. QUANTITY DISCOUNTS WITH CONSTANT CARRYING COST
        2. 13.6.2. QUANTITY DISCOUNT MODEL SOLUTION WITH EXCEL
      7. 13.7. REORDER POINT
        1. 13.7.1. SAFETY STOCKS
        2. 13.7.2. SERVICE LEVEL
        3. 13.7.3. REORDER POINT WITH VARIABLE DEMAND
        4. 13.7.4. DETERMINING THE REORDER POINT WITH EXCEL
      8. 13.8. ORDER QUANTITY FOR A PERIODIC INVENTORY SYSTEM
        1. 13.8.1. ORDER QUANTITY WITH VARIABLE DEMAND
        2. 13.8.2. DETERMINING THE ORDER QUANTITY FOR THE FIXED-PERIOD MODEL WITH EXCEL
      9. 13.9. SUMMARY
      10. 13.10. SUMMARY OF KEY FORMULAS
      11. 13.11. SUMMARY OF KEY TERMS
      12. 13.12. SOLVED PROBLEMS
      13. 13.13. QUESTIONS
      14. 13.14. PROBLEMS
      15. 13.15. CASE PROBLEM 13.1
      16. 13.16. CASE PROBLEM 13.2
      17. 13.17. CASE PROBLEM 13.3
      18. 13.18. REFERENCES
    6. S13. Operational Decision-Making Tools: Simulation
      1. S13.1. MONTE CARLO SIMULATION
      2. S13.2. COMPUTER SIMULATION WITH EXCEL
        1. S13.2.1. DECISION MAKING WITH SIMULATION
      3. S13.3. AREAS OF SIMULATION APPLICATION
        1. S13.3.1. WAITING LINES/SERVICE
        2. S13.3.2. INVENTORY MANAGEMENT
        3. S13.3.3. PRODUCTION AND MANUFACTURING SYSTEMS
        4. S13.3.4. CAPITAL INVESTMENT AND BUDGETING
        5. S13.3.5. LOGISTICS
        6. S13.3.6. SERVICE OPERATIONS
        7. S13.3.7. ENVIRONMENTAL AND RESOURCE ANALYSIS
      4. S13.4. SUMMARY
      5. S13.5. SUMMARY OF KEY TERMS
      6. S13.6. SOLVED PROBLEMS
        1. S13.6.1. SOLUTION
      7. S13.7. QUESTIONS
      8. S13.8. PROBLEMS
      9. S13.9. REFERENCES
    7. 14. Sales and Operations Planning
      1. 14.1. THE SALES AND OPERATIONS PLANNING PROCESS
      2. 14.2. STRATEGIES FOR ADJUSTING CAPACITY
        1. 14.2.1. LEVEL PRODUCTION
        2. 14.2.2. CHASE DEMAND
        3. 14.2.3. PEAK DEMAND
        4. 14.2.4. OVERTIME AND UNDERTIME
        5. 14.2.5. SUBCONTRACTING
        6. 14.2.6. PART-TIME WORKERS
        7. 14.2.7. BACKLOGS, BACKORDERING, AND LOST SALES
      3. 14.3. STRATEGIES FOR MANAGING DEMAND
      4. 14.4. QUANTITATIVE TECHNIQUES FOR AGGREGATE PLANNING
        1. 14.4.1. PURE STRATEGIES
        2. 14.4.2. GENERAL LINEAR PROGRAMMING MODEL
        3. 14.4.3. MIXED STRATEGIES
        4. 14.4.4. THE TRANSPORTATION METHOD
        5. 14.4.5. OTHER QUANTITATIVE TECHNIQUES
      5. 14.5. THE HIERARCHICAL NATURE OF PLANNING
        1. 14.5.1. COLLABORATIVE PLANNING
        2. 14.5.2. AVAILABLE-TO-PROMISE
      6. 14.6. AGGREGATE PLANNING FOR SERVICES
        1. 14.6.1. REVENUE MANAGEMENT
      7. 14.7. SUMMARY
      8. 14.8. SUMMARY OF KEY TERMS
      9. 14.9. SOLVED PROBLEMS
      10. 14.10. QUESTIONS
      11. 14.11. PROBLEMS
      12. 14.12. CASE PROBLEM 14.1
      13. 14.13. CASE PROBLEM 14.2
      14. 14.14. REFERENCES
    8. S14. Operational Decision-Making Tools: Linear Programming
      1. S14.1. MODEL FORMULATION
      2. S14.2. GRAPHICAL SOLUTION METHOD
      3. S14.3. LINEAR PROGRAMMING MODEL SOLUTION
        1. S14.3.1. THE SIMPLEX METHOD
        2. S14.3.2. SLACK AND SURPLUS VARIABLES
      4. S14.4. SOLVING LINEAR PROGRAMMING PROBLEMS WITH EXCEL
      5. S14.5. SENSITIVITY ANALYSIS
        1. S14.5.1. SENSITIVITY RANGES
      6. S14.6. SUMMARY
      7. S14.7. SUMMARY OF KEY TERMS
      8. S14.8. SOLVED PROBLEMS
      9. S14.9. QUESTIONS
      10. S14.10. PROBLEMS
      11. S14.11. CASE PROBLEM S14.1
      12. S14.12. CASE PROBLEM S14.2
      13. S14.13. CASE PROBLEM S14.3
      14. S14.14. CASE PROBLEM 14.4
      15. S14.15. CASE PROBLEM S14.5
      16. S14.16. CASE PROBLEM S14.6
      17. S14.17. REFERENCES
    9. 15. Resource Planning
      1. 15.1. MATERIAL REQUIREMENTS PLANNING (MRP)
        1. 15.1.1. WHEN TO USE MRP
        2. 15.1.2. MASTER PRODUCTION SCHEDULE
        3. 15.1.3. PRODUCT STRUCTURE FILE
        4. 15.1.4. TIME-PHASED BILLS
        5. 15.1.5. ITEM MASTER FILE
        6. 15.1.6. THE MRP PROCESS
        7. 15.1.7. LOT SIZING IN MRP SYSTEMS
        8. 15.1.8. MRP OUTPUTS
      2. 15.2. CAPACITY REQUIREMENTS PLANNING (CRP)
        1. 15.2.1. CALCULATING CAPACITY
        2. 15.2.2. LOAD PROFILES
        3. 15.2.3. OVERLOADS
        4. 15.2.4. LOAD LEVELING
        5. 15.2.5. RELAXING MRP ASSUMPTIONS
      3. 15.3. ENTERPRISE RESOURCE PLANNING (ERP)
        1. 15.3.1. ERP MODULES
        2. 15.3.2. ERP IMPLEMENTATION
      4. 15.4. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
      5. 15.5. SUPPLY CHAIN MANAGEMENT (SCM)
      6. 15.6. PRODUCT LIFECYCLE MANAGEMENT (PLM)
      7. 15.7. CONNECTIVITY, INTEGRATION, AND SERVICES
      8. 15.8. SUMMARY
      9. 15.9. SUMMARY OF KEY TERMS
      10. 15.10. QUESTIONS
      11. 15.11. SOLVED PROBLEMS
      12. 15.12. PROBLEMS
      13. 15.13. CASE PROBLEM 15.1
      14. 15.14. CASE PROBLEM 15.2
      15. 15.15. REFERENCES
    10. 16. Lean Systems
      1. 16.1. THE BASIC ELEMENTS OF LEAN PRODUCTION
        1. 16.1.1. FLEXIBLE RESOURCES
        2. 16.1.2. CELLULAR LAYOUTS
        3. 16.1.3. THE PULL SYSTEM
        4. 16.1.4. KANBANS
        5. 16.1.5. SMALL LOTS
        6. 16.1.6. QUICK SETUPS
        7. 16.1.7. UNIFORM PRODUCTION LEVELS
        8. 16.1.8. QUALITY AT THE SOURCE
        9. 16.1.9. VISUAL CONTROL
        10. 16.1.10. KAIZEN
        11. 16.1.11. JIDOKA
        12. 16.1.12. TOTAL PRODUCTIVE MAINTENANCE
        13. 16.1.13. SUPPLIER NETWORKS
      2. 16.2. THE BENEFITS OF LEAN PRODUCTION
      3. 16.3. IMPLEMENTING LEAN PRODUCTION
        1. 16.3.1. DRAWBACKS OF LEAN PRODUCTION
      4. 16.4. LEAN SERVICES
        1. 16.4.1. LEAN RETAILING
        2. 16.4.2. LEAN BANKING
        3. 16.4.3. LEAN HEALTH CARE
        4. 16.4.4. LEANING THE SUPPLY CHAIN
        5. 16.4.5. LEAN SIX SIGMA
        6. 16.4.6. LEAN AND THE ENVIRONMENT
        7. 16.4.7. VALUE STREAM MAPPING (VSM)
      5. 16.5. SUMMARY
      6. 16.6. SUMMARY OF KEY FORMULAS
      7. 16.7. SUMMARY OF KEY TERMS
      8. 16.8. QUESTIONS
      9. 16.9. PROBLEMS
      10. 16.10. CASE PROBLEM 16.1
      11. 16.11. CASE PROBLEM 16.2
      12. 16.12. REFERENCES
    11. 17. Scheduling
      1. 17.1. OBJECTIVES IN SCHEDULING
      2. 17.2. LOADING
        1. 17.2.1. THE ASSIGNMENT METHOD OF LOADING
      3. 17.3. SEQUENCING
        1. 17.3.1. SEQUENCING JOBS THROUGH ONE PROCESS
        2. 17.3.2. SEQUENCING JOBS THROUGH TWO SERIAL PROCESSES
        3. 17.3.3. GUIDELINES FOR SELECTING A SEQUENCING RULE
      4. 17.4. MONITORING
        1. 17.4.1. GANTT CHARTS
        2. 17.4.2. INPUT/OUTPUT CONTROL
      5. 17.5. ADVANCED PLANNING AND SCHEDULING SYSTEMS
      6. 17.6. THEORY OF CONSTRAINTS
        1. 17.6.1. DRUM-BUFFER-ROPE
        2. 17.6.2. PROCESS VS. TRANSFER BATCH SIZES
      7. 17.7. EMPLOYEE SCHEDULING
        1. 17.7.1. AUTOMATED SCHEDULING SYSTEMS
      8. 17.8. SUMMARY
      9. 17.9. SUMMARY OF KEY FORMULAS
      10. 17.10. SUMMARY OF KEY TERMS
      11. 17.11. SOLVED PROBLEMS
      12. 17.12. QUESTIONS
      13. 17.13. PROBLEMS
      14. 17.14. CASE PROBLEM 17.1
      15. 17.15. CASE PROBLEM 17.2
      16. 17.16. REFERENCES
    12. A. NORMAL CURVE AREAS
      1. A.1. SOLUTIONS TO SELECTED ODD-NUMBERED PROBLEMS