Professional Documents
Culture Documents
Operations
Management in the
Supply Chain
Decisions and
Cases
Eight
h Edition
page ii
Some ancillaries, including electronic and print components, may not be available
to customers outside the United States.
1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20
ISBN 978-1-260-57143-1
MHID 1-260-57143-2
All credits appearing on page or at the end of the book are considered to be an
extension of the copyright page.
The Internet addresses listed in the text were accurate at the time of publication.
The inclusion of a website does not indicate an endorsement by the authors or
McGraw-Hill Education, and McGraw-Hill Education does not guarantee the
accuracy of the information presented at these sites.
mheducation.com/highered
page iii
PROJECT MANAGEMENT
Brown and Hyer
Managing Projects: A Team-Based Approach
Larson
Project Management: The Managerial Process
Eighth Edition
MANAGEMENT SCIENCE
Hillier and Hillier
Introduction to Management Science: A Modeling and Case Studies
Approach with Spreadsheets
Sixth Edition
BUSINESS FORECASTING
Keating and Wilson
Forecasting and Predictive Analytics
Seventh Edition
OPERATIONS MANAGEMENT
Cachon and Terwiesch
Operations Management
Second Edition
Cachon and Terwiesch
Matching Supply with Demand: An Introduction to Operations
Management
Fourth Edition
Jacobs and Chase
Operations and Supply Chain Management
Sixteenth 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
Eighth Edition
Stevenson
Operations Management
Fourteenth 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, Drougas, Duckworth, Froelich, Hummel, Moninger,
and Schur
Business Statistics 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
Lind, Marchal, and Wathen
Basic Statistics for Business and Economics
Ninth Edition
Lind, Marchal, and Wathen
Statistical Techniques in Business and Economics
Eighteenth Edition
Jaggia and Kelly
Business Statistics: Communicating
with Numbers
Third Edition
Jaggia and Kelly
Essentials of Business Statistics: Communicating with Numbers
Second Edition
McGuckian
Connect Master: Business Statistics
page iv
Roger G. Schroeder
is the Frank A. Donaldson Chair Emeritus in Supply Chain and
Operations Management at the Curtis L. Carlson School of
Management, University of Minnesota. He received B.S. and MSIE
degrees in Industrial Engineering with high distinction from the
University of Minnesota, and a Ph.D. from Northwestern University.
He held positions in the Carlson School of Management as Director
of the Ph.D. program, Chair of the Operations and Management
Science Department, and Co-Director of the Joseph M. Juran Center
for Leadership in Quality. Professor Schroeder has obtained research
grants from the National Science Foundation, the Ford Foundation,
and the American Production and Inventory Control Society. His
research is in the areas of quality management, operations strategy,
and high-performance manufacturing, and he is among the most
widely published and cited researchers in the field of operations
management. He has been selected as a member of the University
of Minnesota Academy of Distinguished Teachers and is a recipient
of the Morse Award for outstanding teaching. Professor Schroeder
received the lifetime achievement award in operations management
from the Academy of Management, and he is a Fellow of the
Decision Sciences Institute and a Fellow of the Production and
Operations Management Society. Professor Schroeder has consulted
widely with numerous organizations, including 3M, Honeywell,
General Mills, Motorola, Golden Valley Foods, and Prudential Life
Insurance Company.
—Roger G. Schroeder
—Susan Meyer Goldstein
page v
Preface
FEATURES
Operations and supply chain management is an exciting and vital
field in today’s complex business world. Therefore, students in both
MBA and undergraduate courses have an urgent need to understand
operations—an essential function in every business.
This textbook on Operations Management in the Supply Chain
emphasizes decision making in operations with a supply chain
orientation. The text provides materials of interest to general
business students and operations and supply chain management
majors. By stressing cross-functional decision making, the text
provides a unique and current business perspective for all students.
This is the first text to incorporate cross-functional decision making
in every chapter, which provides more relevance for non-majors.
The book is organized into five unique sections to help students
understand the key types of decisions made by operations and
supply chain managers. See the illustration below.
Introduction
1. Process design
- How to get work done?
2. Quality
- How to satisfy customers?
3. Capacity and scheduling
- When and how much work to do?
4. Inventory
- How to manage parts and products?
5. Supply chain decisions
- How to manage across organizations?
page vi
OPERATIONS LEADER
Nike Does It
Nike and Nike-owned Converse, among other athletic shoe brands, offer
customized shoes that can be ordered online for a reasonable price and
delivered within a few weeks. Customers can select from numerous fabric
or leather colors and patterns on various pieces of the shoe, as well as the
colors of laces, stitching, and soles. These shoes, with their many
customizable options, are an example of successful mass customization.
1. Every function in every organization touches Operations and the Supply Chain
in some manner. This is the first book to add materials in every chapter to
show how topics apply to majors in Marketing, Finance, Accounting, Human
Resources, and Information Systems. The handshake symbol indicates these
cross-functional decisions.
page vii
1. To help practice calculations, example boxes are included within chapters and
solved problems are added at the end of the chapter.
Suppose demand at the receiving work center B is 2 parts per
Example minute and a standard con-tainer holds 25 parts. It takes 100
minutes for a container to make a complete circuit from work
center A to work center B and back to A again, including all
setup, run, move, and wait times. The number of containers
needed in this case is:
Maximum inventory = nC = DT
SOLVED PROBLEMS
1. Students can both preview and review the key points and terms. These are
found at the end of each chapter.
page viii
Key Terms
Toyota Production System (TPS) 119
Just-in-Time (JIT) manufacturing 119
Lean production 119
Lean thinking 120
Waste (muda) 121
Value stream 121
Value stream mapping 121
Gemba 121
Push 123
Pull 123
Perfection 124
5 Whys 125
5S 125
Stabilizing the master schedule 127
Uniform load 127
Takt time 127
Reducing setup time 128
Single setups 128
Internal setup 128
External setup 128
Cellular manufacturing 129
Preventative maintenance 129
Cross-training 130
Respect for people 130
Kanban 130
Reducing lead time 133
Supplier relationships 133
Co-location 133
Kaizen 135
1. Twenty-two Excel spreadsheets are included for solving problems and analyzing
case studies using analytic methods.
excel
11. As cereal boxes are filled in a factory, they are weighed for
their contents by an automatic scale. The target value is to put
10 ounces of cereal in each box. Twenty samples of three boxes
each have been weighed for quality control purposes. The fill
weight for each box is shown below.
Observation
Sample 1 2 3
Sample 1 2 3
1. Throughout the text, company and industry examples illustrate real use of the
ideas.
Harrah’s uses superior customer service to increase profits.
Leonard Zhukovsky/123RF
page ix
1. At the end of every chapter, Learning Enrichment boxes provide videos and
websites where students can extend their knowledge on chapter topics using
Internet content.
FOOTNOTES:
79 The MSS. used for the Vox Clamantis are the following:—
S (All Souls College, Oxford, 98), C (Cotton, Tiberius, A.
iv), E (Ecton Hall), H (Harleian 6291), G (Glasgow, Hunterian
Museum, T. 2. 17), D (Bodleian Library, Digby 138), L
(Bodleian Library, Laud 719), T (Trinity College, Dublin, D. 4.
6), H₂ (Hatfield Hall), L₂ (Lincoln Cathedral Library A. 7. 2).
The text is based on S.
Table of Contents not found in HLTL₂ (H defective)
80 3 velud C
81 4 fingit SGD narrat CE
82 Lib. I i. 2 eciam om. D
83 i. 7 tamen om. D
84 vi. 4 comitabantur E comitebantur SCG committebantur D
85 vii. 3 associabantur E
86 ix. 3 Geay D Iay E
87 iii. 2 et om. D
88 iiii. S has lost a leaf (Lib. II. iiii-Lib. III. xxii, luxurie). Text follows
C
89 v. This heading om. D
90 iiii. Hic loquitur quomodo diligentibus positiuis quasi quotidie
noua instituuntur nobis peccata quibus tamen prius fiunt
prelati propter lucrum dispensant et ea fieri liberi propter
aurum permittunt D
91 v. 1 illis om. D
92 vi. 1 loquitur om. D
93 vi. 2 dicit E dicitur CGD
94 vii. 1 loquitur om. D
95 viii. 1 eciam om. D
96 viii. 2 aliqualiter om. D
97 xv. 1 qualiter] finaliter quod ED
98 xxii. 2 S resumes
99 After Cap. xxvii no space CEGD
100 iii. 1 qualiter modus] de modo D
101 After Cap. xv no space CEGD
102 xix. f. ad ecclesie—viuentes om. D
103 xx. 2 aqualiter S
104 xxiii. 1 circuieundo C circumeundo D
105 After Cap. viii no space CEGD
106 ix. 1 rem bublicam S
107 After Cap. x no space CEGD
108 i. 6 enaruant C
109 iii. 3 colore om. C
110 After Cap. vii no space CEGD
111 vii. 5 f. innocenciam—excusat nearly erased G
112 viii. 3 f. in and honore partly erased G
113 xii. 1 illecebra CED
114 xix. 4 adiu C
115 Lib. VII. i. 4 Nabugonosor C
116 i. 8 significacionem ferri D
117 vi. 3 suum CEGD sum S
118 vii. 4 gratum] congruum D
119 xvi. 3 mundi om. C
120 xvii. 3 eciam S eciam in speciali CED
121 xviii. 1 quod quamuis] quomodo D
122 xix. 2 S has lost two leaves (resoluitur—Lib. I. i. 18). Text
follows C
123 xxiii. 4 excercent CE
124 xxiiii. 2 ipse] ille D
125 xxiiii. 4 enaruantur C
126 xxv. 5 penitus CE
126aThese four lines (with picture below) are found here in CEG.
L has them later, Lib. III. cap. i.
Incipit Cronica que Vox Clamantis
dicitur.127
In huius opusculi principio intendit compositor describere
qualiter seruiles rustici impetuose contra ingenuos et nobiles
regni insurrexerunt. Et quia res huiusmodi velut monstrum
detestabilis fuit et horribilis, n a r r a t128 se per sompnium
vidisse diuersas vulgi turmas in diuersas species bestiarum129
domesticarum transmutatas: dicit tamen quod ille bestie
domestice, a sua deuiantes natura, crudelitates ferarum sibi
presumpserunt.130 De causis vero, ex quibus inter homines
talia contingunt enormia, tractat vlterius secundum
distincciones libelli istius, qui in septem diuiditur partes, prout
inferius locis suis euidencius apparebit.
Incipit prologus libri Primi.131
FOOTNOTES:
127 Title Incipit—dicitur CE om. GDL
128 4 narrat CE fingit GD
129 5 bestiarum species GD
130 7 sumpserunt E
131 Prol. Heading om. L
132 margin Nota de nomine Iohannis Gower CE Nota nomen L
Nomen compilatoris est Iohannes Gower vt patet in his tribus
versibus T om. GD
133 21 Godefri des atque D
134 25 adscribe EL ascribens D
135 27 nil vt laudes D nichil vt laudes L
136 32 Sicque DL
137 36 censeat C sensiat GEH₂ senceat T senciat D(p. m.)L
138 37 Penna madet C (ras.) E Sepeque sunt GDLTH₂ hec] de D
139 38 Text C (ras.) E Humida fit lacrimis sepeque penna meis
GDLTH₂
140 44 fauent DH₂
141 49 confracto DLH₂
142 56 conturbat D conturbant CEGLT
143 58 Huius ergo DL
Hic declarat in primis sub cuius regis imperio, in quibus
eciam144 mense et anno, ista sibi accidencia, cuius tenor
subsequitur, contingebat.145 Commendat insuper, secundum
illud quod esse solebat, fertilitatem illius terre146 vbi ipse tunc
fuerat, in qua, vt dicit, omnium quasi147 rerum delicie pariter
conueniunt. Et loquitur vlterius de amenitate temporis, necnon
et de diei serenitate, que tunc tamen sompnium nimis148
horribile precedebant.
Incipit liber Primus.