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Fourth Edition

Jacobs and Chase

Operations and Supply Chain Management
Fifteenth Edition

Jacobs and Chase

Operations and Supply Chain Management: The Core
Fifth Edition

Schroeder and Goldstein

Operations Management in the Supply Chain: Decisions and Cases
Seventh Edition

Stevenson
Operations Management
Thirteenth Edition

Swink, Melnyk, and Hartley

Managing Operations Across the Supply Chain
Fourth Edition

Business Math
Slater and Wittry
Practical Business Math Procedures
Thirteenth Edition

Slater and Wittry

Math for Business and Finance: An Algebraic Approach
Second Edition

Business Statistics
Bowerman, et al.
Business Statistics and Analytics in Practice
Ninth Edition

Doane and Seward

Applied Statistics in Business and Economics
Sixth Edition

Doane and Seward

Essential Statistics in Business and Economics
Third Edition

Jaggia and Kelly

Business Statistics: Communicating with Numbers
Third Edition

Jaggia and Kelly

Essentials of Business Statistics: Communicating with Numbers
Second Edition

8
Lind, Marchal, and Wathen
Basic Statistics for Business and Economics
Ninth Edition

Lind, Marchal, and Wathen

Statistical Techniques in Business and Economics
Seventeenth Edition

McGuckian
Connect Master: Business Statistics

9
 page iv

Dedication
To Jenni, Derek, Rachel, and Sarah, who make my life so full!
Morgan Swink

To my wife and children, Christine, Charles and Beth, for their

support and patience.
To my colleagues in the United States (Dave Frayer, Randall
Schaefer, Nick Little) and in Australia (Jim Jose, Suzanne Ryan, Will
Rifkin, Kevin Lyons).
To these people, this book is dedicated.
Steven A. Melnyk

To Glenn and Caleb, for their love and support.

Janet Hartley

10
 page v

About the Authors

Courtesy of Morgan Swink

Morgan Swink
is Professor, Eunice and James L. West Chair of Supply Chain Management, and
Executive Director of the Center for Supply Chain Innovation at the Neeley School of
Business, Texas Christian University. He holds a BS in Mechanical Engineering from
Southern Methodist University, an MBA from the University of Dallas, and a PhD in
Operations Management from Indiana University. Before becoming a professor, Dr.
Swink worked for 10 years in a variety of manufacturing and product development

11
positions at Texas Instruments Incorporated. He has co-authored three books and
published over 75 articles in a variety of academic and managerial journals. Dr. Swink
is formerly the Co-Editor in Chief for the Journal of Operations Management and past
president of the Decision Sciences Institute.

Courtesy of Steven A. Melnyk

Steven A. Melnyk
is Professor of Operations Management at Michigan State University. Dr. Melnyk
obtained his undergraduate degree from the University of Windsor and his doctorate
from the Ivey School of Business, the University of Western Ontario. He has
coauthored 21 books focusing on operations and the supply chain and has published
over 90 refereed articles in numerous international and national journals. He is
Associate Editor for the Journal of Business Logistics. He also is a member of several
editorial advisory boards, including the International Journal of Production Research
and the International Journal of Operations and Production Management. Dr. Melnyk
has consulted with over 60 companies. He has also served as a member of the APICS
Board of Directors (2014–2016) and the APICS leadership team (2015). In 2017, Dr.
Melnyk accepted a joint appointment as the Global Innovation Chair in Supply Chain
Management at the University of Newcastle, New South Wales, Australia.

12
Courtesy of Janet L. Hartley

Janet L. Hartley
is Professor at the Department of Management at Bowling Green State University. She
received her BS in Chemical Engineering from the University of Missouri-Rolla, and
the MBA and PhD degrees in Business Administration from the University of
Cincinnati. Prior to graduate school, she developed new products and designed new
manufacturing processes for the Clorox Company. She has published over 30 articles on
supply management and supply chain management. She serves as an Associate Editor
for the Journal of Operations Management, Journal of Business Logistics, Journal of
Supply Chain Management, International Journal of Operations and Production
Management, and Journal of Purchasing and Supply Management. Dr. Hartley is
president-elect of the Decision Science Institute.

13
 page vi

Preface

We continue to live in dynamic and exciting times. Recent years have seen many
changes that have affected nearly every aspect of business, including operations
management. In this fourth edition of our book, we continue to reflect key shifts in
operations management, including transitions:
From a focus on the internal system to a focus on the supply chain. In today’s
highly competitive business environment, organizations must leverage the
capabilities of their suppliers and customers. Operations managers must look beyond
the “four walls” of the firm and take an integrated supply chain perspective of
operations.
From a local focus to a global focus. As Thomas L. Friedman pointed out,1 the
world is indeed flat. Business solutions generated in Argentina are used to meet needs
in the United States, and parts built by suppliers located in China are used to
assemble cars in Canada. Commercial needs have overcome, to a large part, national
borders, presenting new opportunities and challenges for operations managers.
From an emphasis on tools and techniques to an emphasis on systems, people,
and processes. To be successful, operations managers must think more broadly than
just the application of analytical tools and techniques. They must take a systems view
to address important managerial issues such as designing processes, working with
people, managing information flows, and building interorganizational relationships.
From myopic pursuit of profit to a holistic pursuit of sustainability. Pressures on
businesses have risen to the point that they can no longer ignore or give only
lipservice to social and environmental issues. Operations managers have to balance
the profit motive with the need to protect and even strengthen both people and the
planet.
From a static to a dynamic treatment of operations and supply chain

14
 management. We have revised each new edition to keep pace with changes taking
place in the field. In recent years, very evident changes include the emergence of
millennials as key consumers and the rapid developments taking place in digital
technologies. Consequently, in this edition, we introduce a new theme: digital. While
the basics remain the same, the context in which operations are managed continues to
change rapidly.
Managing Operations Across the Supply Chain provides a global, supply chain
perspective of operations management for students in introductory courses in operations
management and in supply chain management courses that do not require an operations
management prerequisite. While the book is primarily written for undergraduates, it also
can be used effectively in MBA courses. There are several features that help to
differentiate this book in its view of operations management:
Broader Vision of Operations Management While many operations management
textbooks have revised or added a chapter to address supply chain issues, we
developed our book from the ground up to effectively integrate operations
management and the supply chain. The primary focus of the book is operations
management, but we provide a “supply chain” perspective. Operations management
cuts across a firm’s boundaries, bringing together its internal activities with the
operations of customers, suppliers, and other partners around the world. We clarify
the functional roles of operations, supply management, and logistics while examining
the integrative processes that make up the supply chain. One unique aspect of the
book is that we examine both the upstream (supply-side) and downstream (demand-
side) aspects of the supply chain, including a discussion of marketing and customer
relationships.
Balanced Treatment The book balances the quantitative and qualitative coverage
needed to equip operations and supply chain managers for the challenges and
opportunities they face. It describes and applies analytical tools that operations
managers use to support decision making. However, we also address the important
managerial issues such as systems, people, and processes that are critical in a supply
chain context.
Integrative Frameworks The book introduces and develops various topics in supply
chain operations management using five integrative frameworks:
page vii

1. An operations strategy framework that brings together three critical elements: (1)
the key customer, (2) the value proposition, and (3) capabilities, introducing
students to a broad supply chain perspective of operations management.
2. A foundations framework that covers process fundamentals, innovation, quality,
inventory, and lean thinking.
3. A relational framework that highlights functional, supplier, and customer
management aspects of operations management.
4. A planning framework that covers demand and supply planning at multiple levels.
5. A change management framework that illustrates how projects and future
developments can be used to drive innovation in operations management.

15
 Use of Integrating Themes Four key themes are highlighted throughout the book:
digital transformation, global issues, relationships, and sustainability.

Digital technologies such as the Internet and other communication networks,

automation, and artificial intelligence are rapidly and radically changing
supply chain operations management. The book highlights numerous
examples of these changes, explaining how technologies are enabling faster,
better, cheaper, and richer customer experiences.

Because most organizations have supply chains that reach beyond a

home country, we examine the dynamic global environment
influencing supply chain operations management, taking care to
represent business norms and cultures in many different parts of the
world.

Operations managers must collaborate with other functional

personnel, with suppliers, and with customers to accomplish most
operations activities. The book showcases how to build, maintain, and
benefit from cross- functional and interorganizational relationships.

To reduce costs and be competitive, organizations today must adopt

sustainable business practices. Sustainability is increasingly becoming
a key metric for operations managers, and an important expectation of
customers. Accordingly, we have dedicated an entire chapter to
sustainability, while also incorporating it throughout the book.

Real, Integrated Examples The book brings operations and supply chain
management to life through opening vignettes, Get Real highlights, and rich
examples throughout the book.
Managing Operations Across the Supply Chain, fourth edition, offers a new, global,
supply chain perspective of operations management, a treatment that embraces the
foundations of operations management but includes new frameworks, concepts, and
tools to address the demands of today and changing needs of the future. The book is
organized into five major sections:
Part 1 Supply Chain: A Perspective for Operations Management provides an
overview of operations management as a field, and describes the strategic role
operations has in business from the perspective of supply chain management.
Part 2 Foundations of Operations Management discusses foundational process
concepts and principles that govern all operational activities. This section examines
concepts such as product/process innovation, quality, lean, and inventory

16
 fundamentals.
Part 3 Integrating Relationships Across the Supply Chain deals with the primary
functional relationships between internal operations management activities, and other
operational functions both inside and outside the firm. This section describes
customer relationship management, supply management, and logistics management.
Part 4 Planning for Integrated Operations Across the Supply Chain discusses
planning approaches and technologies used at different levels of operations decision
making. Key topics such as demand planning, forecasting, sales and operations
planning, inventory management, and materials requirements planning are examined.
Part 5 Managing Change in Supply Chain Operations discusses how operations
managers use projects, change programs, and technologies to shape a sustainable
future for operations and supply chain management.

CHAPTER-BY-CHAPTER REVISIONS FOR THE

FOURTH EDITION
In this major revision of Managing Operations Across the Supply Chain, our key
objective has been to integrate and highlight the role of digital technologies throughout
all aspects of supply chain operations management. We also strove to make all of the
content more concise and crisp. We have updated or replaced many of the opening
vignettes and Get Real stories throughout the book, along with other changes, which are
summarized below.

page viii
Chapter 1: Introduction to Managing Operations Across the Supply Chain
Introduced digital theme with examples illustrating how technologies are changing
operational processes.
Replaced example (now a restaurant supply chain) of functional relationships across
the supply chain.
Added new Cemex Digital Transformation case.

Chapter 2: Operations and Supply Chain Strategy

New opening vignette on Redbubble.
Added a case on Lil’ Me, a manufacturer of customized dolls that look like their
owner.
Additional discussion questions and problems.

Chapter 3 and 3S: Managing Processes and Capacity

Included a better focus on the notion of process thinking.
Additional discussion questions and problems.

17
 Expanded alternative process mapping approaches with the expanded coverage of
techniques such as service blueprinting.

Chapter 4: Product/Process Innovation

Introduced new concepts including product service platforms, servitization, and
augmented/virtual reality (VR).
Added new example for modular design.
New Get Real describing Lockheed’s application of VR.

Chapter 5: Manufacturing and Service Process Structures

Revised Table 5-1 to show inputs, transformation, outputs, and examples.
New Get Real explaining how Adidas uses digital technologies to customize shoes.
Moved service blueprinting to Chapter 3S.
Added figure to illustrate market orientation.
Updated the section Capability Enabling Technologies to reflect advances in digital
technologies.
New Get Real on Amazon Go explaining how digital technologies are changing
retailing.
Updated and added a discussion question.

Chapter 6: Managing Quality

Updated the Hyundai story to include awards and changes within the last 3 years.
Updated Get Real on food safety.
Dropped discussion of Malcolm Baldrige award.
Additional problems.

Chapter 6 Supplement: Quality Improvement Tools

Additional discussion questions and problems.

Chapter 7: Managing Inventories

Added discussion of customization and customer service aspects of inventory
location decisions.
Additional problems applying square root law.
Added discussion of Internet of Things (IoT) and inventory visibility in the supply
chain.
Added fuller discussion of choice between using P and Q inventory models.
New Case: Dexter’s Chicken.

Chapter 8: Lean Systems

Additional discussion questions and problems.

18
Chapter 9: Customer Service Management
New opening vignette on the “Amazon Effect.”
New discussion of digital enhancement of customer service including omnichannel
service, product platforms, and crowdsourcing service.
New discussion of social (millennials) and global impacts on customers’ service
expectations.
New Get Real on service delivery failures.
New section on service information.

Chapter 10: Sourcing and Supply Management

Updated the opening vignette on sourcing and supply management at Chipotle to
reflect challenges with food safety.
New Get Real on Resilinc and supply chain risk management.
Updated the Get Real box on Takata airbags.
New Get Real showing how Boeing is doing more insourcing.
Added a section on Supply Category Management.
Revised the Examining the Sourcing Process.
New Get Real showing the importance of supplier innovation in self-driving
vehicles.
Updated the discussion of information sharing to reflect new digital technologies
such as blockchain.
Additional discussion questions.
Added new sourcing case.

Chapter 11: Logistics Management

Updated opening vignette about Amazon’s innovations in delivery.
Moved cost management discussion to Logistics Network Design.
Changed Warehouse Management to Distribution and Fulfillment Management.
New Get Real on Walmart’s delivery policy.
page ix
Added discussion of electronic logging devices (ELDS).
Added discussion of last mile delivery.
New Get Real explaining how logistics network design caused a chicken shortage for
KFC.
Updated and added discussion questions.

Chapter 12: Demand Planning: Forecasting and Demand Management

New opening vignette on how Walmart uses weather, social media, and other data to
forecast sales.
Get Real on how Lennox uses artificial intelligence to improve demand planning.
Enhanced discussion of artificial intelligence.

19
 New discussions of social media and dynamic pricing in demand management.

Chapter 13: Sales and Operations Planning

Additional discussion questions and problems.

Chapter 14: Materials and Resource Requirements Planning

Updated opening vignette on Blue Apron, a home meal delivery service.
Updated the Advances in Planning Systems to reflect digital technologies.
New Get Real showing how MOD Pizza is using a cloud-based ERP system for
planning.

Chapter 15 and 15S: Project Management

Updated opening Pixar vignette.
More in-depth discussion of stages in project life cycle.
New discussion of agile project management.
New Get Real on Spray-N-Wash project.
Deeper discussion of project management software.
New example of a business case for a proposed project.

Chapter 16: Sustainable Operations Management—Preparing for the Future

Updated Unilever vignette with achievements of zero landfill waste.
New Get Real on Patagonia’s sustainability efforts.
Discussion of Starbucks Reserve, a new experiential coffee store in Seattle aimed at
making the experience of brewing and enjoying a unique cup of coffee critical and
attractive.
Discussion of how the Internet of Things (IoT) is affecting not only the supply chain
but also the business model.
New case: “Sourcing Outside the Cage.”
Expanded discussion of the changes in customer (specifically the advent of
millennials) is changing how firms compete and how operations and supply chain
management is carried out.

1Thomas L. Friedman, The World Is Flat: A Brief History of the Twenty-First Century (New York: Farrar, Straus,
and Giroux, 2006).

20
 page x

Acknowledgments

We would like to express our appreciation to the people who have provided assistance
in the development of this textbook. We express our sincere thanks to the following
individuals for their thoughtful reviews and suggestions:

Andrew Borchers, Lipscomb University

Bertie Greer, Wayne State University
Brian Jacobs, Michigan State University
Bruce A. Meyer, Bowling Green State University
David Dobrzykowski, Bowling Green State University
Dennis McCahon, Northeastern University
Edward D. Walker, Valdosta State University
Helen Eckmann, Brandman University
Iddrisu Awudu, Quinnipiac University
Jeanetta Chrystie, Southwest Minnesota State University
Jeff Brand, Marquette University
Jiayi Kate Li, Suffolk University
John Edward Carroll, Wesleyan University
John R. Grandzol, Bloomsburg University
Karen Eboch, Bowling Green State University
Kelwyn DSouza, Hampton University
Madeleine Pullman, Portland State University
Narendra K. Rustagi, Howard University
Nicoleta Maghear, Hampton University
Richard Parrish, Liberty University
Rick Bonsall, McKendree University

21
Rosa Oppenheim, Rutgers University
Samuel Chinnis, Guilford Technical Community College
Sandra Obilade, Brescia University
Stephen Hill, University of North Carolina, Wilmington
William Sawaya, Bowling Green State University
Xiaowen Huang, Miami University, Ohio
Yao Jin, Miami University

We also want to express our sincere thanks to the following individuals for their
exceptional contributions: Katherine Eboch, Bowling Green State University; William
Berry, Professor Emeritus, Queens College; David Weltman, Texas Christian
University; Frank Novakowski, Davenport University; and Jody Wolfe, Clarke
University.
We want to thank the outstanding McGraw-Hill Education production and
marketing team who made this book possible, including Harper Christopher, executive
marketing manager; Chuck Synovec, director; Tim Vertovec, managing director; Fran
Simon and Jamie Koch, content project managers; Sandy Ludovissy, buyer; Kevin
Moran, digital content development director; Egzon Shaqiri, designer; and Ann Marie
Jannette, content licensing specialist.
A special thanks to our outstanding editorial team. We greatly appreciate the
support, encouragement, and patience shown by Tobi Philips, our product developer.
Thanks for keeping us on track! Our portfolio manager, Noelle Bathurst, provided
excellent guidance and leadership throughout the process. We truly appreciate it!
Morgan Swink
Steven A. Melynk
Janet L. Hartley

22
 page xi

Walkthrough

The following section highlights the key features of Managing Operations Across the
Supply Chain and the text’s accompanying resources, which have been developed to
help you learn, understand, and apply operations concepts.

CHAPTER ELEMENTS
Within each chapter of the text, you will find the following elements. All of these have
been developed to facilitate study and learning.

Opening Vignette
Each chapter opens with an introduction to the important operations topics covered in
the chapter. Students need to see the relevance of operations management in order to
actively engage in learning the material. Learning objectives provide a quick
introduction to the important operations topics that will be covered in the chapter.

23
 page xii

Key Terms
Key terms are presented in bold and defined in the margin as they are introduced. A list
of chapter key terms is also available at the end of the chapter.

Student Activity
At appropriate moments students are asked to do a personal activity that illustrates the
concept being presented or covered, thereby helping them learn to apply the concepts
and understand them more deeply.

24
Numbered Examples
Numbered examples are integrated into chapters where analytic techniques are
introduced. Students learn how to solve specific problems step-by-step and gain insight
into general principles by seeing how they are applied.

page xiii

Get Real Boxes

25
Another random document with
no related content on Scribd:
Thus the Pawnees, too, though in actual want themselves, showed
their good will towards us by preparing for us the best they could
afford. One chief placed before us, besides dried buffalo meat, a
small dish of marrow, which by them is considered a great delicacy.
Labor.—The more enlightened a people has become through the
benign influence of religion, and the cultivation of the arts and
sciences, the more the weaker sex attains to that rank in society,
which the Creator intended for them; but the more debased and sunk
in heathenism a Nation lies, the more is woman enslaved, and held
in subjection. So among the Pawnees, too, the men are the lords,
who, while they themselves are not disposed to do any work, and
generally consider it a shame to labor, direct the women, as inferior
beings, how everything must be done. The females, besides
attending to the housework, generally incumbent upon their sex, are
obliged to cut and carry all the fire-wood; prepare the fields for
cultivation with their hoes, plant the corn, weed it, and finally, when
ripe, gather it in; and take care of the horses of their lords, when not
used by them.
The most difficult labor, however, that falls to their lot, is the
erecting of their lodges. As the upper village had been burnt by their
enemies during their absence, the labor of rebuilding of course
devolved upon the poor women, and in the course of about two
months, when we visited them, they had completed nearly 150
lodges. When we observed that the nearest timber to the site of the
village was two or three miles off, and that they have no beasts of
burden, but that all the building material, much of which is very
heavy, was carried so great a distance on the shoulders of the
women, it seemed almost incredible to us. We noticed even girls of
12 to 14 years bearing baskets on their backs, filled with wet turf, to
cover or repair their lodges, which must have been very heavy. Thus
early the females are trained to carry burdens (either at home or
while travelling), which inures them to hardships, but at the same
time deforms them, rendering them low and bent in stature, and
pitiable objects to the beholder. While the men, trained to no work
whatever, are erect, tall and well-proportioned in their form, and
almost feminine in their features, the women are short and low, with
stooping gait, downcast looks, harsh features, and hair dishevelled;
and dirty, ragged, and filthy in their appearance. Such is a picture of
heathenism! Have we not cause to be grateful for the benign
influence of the gospel upon our land, so that we are elevated far
above such a miserable state of heathenism? Unto the Lord be all
the praise!
Though it is generally a feature among heathen nations, that it is
considered a shame for the men to labor, while all the work devolves
upon the females, still the Pawnees seem not altogether indisposed
to be instructed. Mr. Sharpee, who has been acquainted with them
and other Indians in these parts for nearly 20 years, told us that the
Pawnee men were unlike those of other tribes, since they were
willing to lay hold of a plough or any other farming utensil, and only
the instruction was wanting to make them industrious. Mr. Allis, too,
who has been acquainted with them for the last 20 years, and has
lived among them a great portion of this period, informed us that
when the missionaries were formerly living among them, several of
the Pawnees had already commenced the use of the plough. The
good beginning was, however, interrupted by their missionaries
having to leave them.
Dress.—The dress of the men consists in nothing but a small
piece of cloth, fastened around the middle. This, we observed, was
generally the only covering they had on, when in their lodges. When
abroad, they had a buffalo robe or blanket wrapped around them.
The females are more decently clothed than the men. Their dress
consists of leggings, generally made of scarlet cloth, over which a
piece of blue or brown woolen cloth is tied around the waist, the
ends lapping over each other and extending a little below the knees.
The upper dress consists of a shirt, or short gown, made of calico,
reaching to the middle. Over the whole a blanket or robe is slung,
above which, on the back, may frequently be discovered the black
sparkling eyes of a little “papoose” peering forth.
Intoxicating Drink.—It is somewhat remarkable that the
Pawnees are not so fond of “fire water” as other tribes, who are fast
dwindling away from the demoralizing and debasing effects of
intoxicating drink. Nothing, perhaps, has aided more in diminishing
the population of different Indian tribes, than spirituous liquors. To
the missionary it is always gratifying and encouraging to observe,
when a tribe takes a bold stand against the introduction of this
destructive poison. The Pawnees allow none to be brought into their
villages.
Burying Their Dead.—On the highest mounds in the prairie, we
often observed little hillocks of earth, which we were informed were
the places of sepulture of their chiefs and others of their tribe. A tall
bush was frequently stuck in the ground, to designate the spot. We
were also informed, that among the Pawnees and other wild tribes
the cruel practice prevails, when they are on their hunt, and their old
people get so feeble, that they can no longer accompany them, of
leaving them behind, and even burying them alive.—In allusion to
this fact Mr. Allis, pointing to their old and feeble chief, addressed the
other chiefs as follows: “I have learned that you intend to put aside
your old chief, because he is now feeble and sickly, and perhaps you
will even think of burying him, when he can no longer follow you; but
I want you to take care of him. He has been like a father to you.
When he was yet strong, you know his kettle was always over the
fire with plenty. He has always been a friend of the whites, and you
ought to esteem him for the services he has rendered your nation,
and not to bury him before he is dead.”
More might be added, to show the wretchedness of their present
state, but we should fear to become too tedious. Sufficient, however,
has been said to prove that these poor people need the assistance
of missionaries to better them in their outward condition. But, when
we consider their spiritual destitution—their ignorance, darkness and
superstition—

“Shall WE whose souls are lighted

With wisdom from on high,
Shall WE to men benighted
The lamp of life deny?”

“Whosoever shall call on the name of the Lord, shall be saved.”

But “how shall they call on him, in whom they have not believed?
and how shall they believe in him of whom they have not heard? and
how shall they hear without a preacher?” (Rom. 10:13, 14). In the
face of all difficulties, let us not be deterred from bringing the glad
tidings of Salvation to these benighted savages; thereby perhaps
paving the way for still more extensive operations among the
aborigines of our country; and thus, by breaking unto them the bread
of life, proving the means of repairing, in part, the numberless
wrongs inflicted upon this poor abject race, by people who call
themselves christians.
Transcriber’s Notes:
Missing or obscured punctuation was silently
corrected.
Typographical errors were silently corrected.
Inconsistent spelling and hyphenation were
made consistent only when a predominant form
was found in this book.
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