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Operations Management
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Operations Management
Managing Global Supply Chains

Second Edition
Experience with SAGE edge


January 2019 | 1 152 pages | SAGE Publications, Inc
Operations Management: Managing Global Supply Chains takes a holistic, integrated approach to managing operations and supply chains by exploring the strategic, tactical, and operational decisions and challenges facing organizations worldwide. Authors Ray R. Venkataraman and Jeffrey K. Pinto address sustainability in each chapter, showing that sustainable operations and supply chain practices are not only attainable, but are critical and often profitable practices for organizations to undertake. With a focus on critical thinking and problem solving, Operations Management provides students with a comprehensive introduction to the field and equips them with the tools necessary to thrive in today’s evolving global business environment. 

The new Second Edition includes more recent real-world examples of operations and supply chain issues, as well as new and updated cases. The inclusion of the new SAGE amp management system significantly improves the learning experience for the students and delivers learning outcomes for instructors.

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Preface
 
Acknowledgments
 
About the Authors
 
PART I: INTRODUCTION
 
Chapter 1: Introduction to Managing Global Operations and Supply Chains
1.1 Supply Chains and Operations Management in the Global Economy  
1.2 What Does Operations Management Entail?  
1.3 What Does Supply Chain Management Entail?  
1.4 An Integrated Perspective on Operations and Supply Chain Management  
1.5 The Evolution of Operations and Supply Chain Management  
1.6 Current and Emerging Issues in Operations and Supply Chain Management  
1.7 Road Map: How This Text Is Organized  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 1.1 Multinational Companies and China: Investing for the Long Term  
Case Study 1.2 Nintendo’s Wii and Wii U: Absence Makes the Heart Grow Fonder  
Video Case  
Critical Thinking Exercise  
 
PART II: STRATEGIC DECISIONS
 
Chapter 2: Operations and Supply Chain Strategies
2.1 Levels of Strategic Planning  
2.2 Formulating and Evaluating Operations Strategies  
2.3 Formulating and Evaluating Strategies for Service Organizations  
2.4 Measuring Productivity as Part of Strategic Planning  
2.5 Strategies for Supply Chains  
2.6 Global Strategies  
2.7 Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 2.1 Supply Chain Strategies and Disaster Planning  
Video Case  
Critical Thinking Exercise  
 
Chapter 3: Project Management
3.1 Projects, Project Teams, and Measuring Success  
3.2 Project Life Cycles  
3.3 Conceptualizing and Planning Projects  
3.4 Scheduling Projects  
3.5 Supply Chains for Projects  
3.6 Executing, Evaluating, and Terminating Projects  
3.7 Sustainability Issues  
3.8 Global Projects  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 3.1 Project Management in the Movie Business  
Video Case  
Critical Thinking Exercise  
 
Supplement for Chapter 3: Project Management
3S.1 Determining the Probability of a Project Being Completed on Time  
3S.2 Calculating the Time-Cost Trade-Offs of Crashing a Project  
3S.3 Calculating a Project’s Earned Value  
Supplement Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Critical Thinking Exercise  
 
Chapter 4: Product and Service Innovations
4.1 Why Companies Develop New Products and Services  
4.2 How New Products Are Developed  
4.3 New Product Development Concepts and Strategies  
4.4 Using Technology to Develop New Products  
4.5 Global Product Development  
4.6 New Product Development Issues for Supply Chains  
4.7 How Services Are Designed  
4.8 Legal, Ethical, and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 4.1 Redesigning for Efficiency: The Chevrolet Malibu  
Video Case  
Critical Thinking Exercise  
 
Supplement for Chapter 4: Reliability
4S.1 Understanding Reliability  
4S.2 Availability and Maintainability  
Supplement Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
 
Chapter 5: Managing for Quality
5.1 Defining Quality  
5.2 The Benefits and Costs of Managing Quality  
5.3 The Evolution of Quality Management and Its Pioneers  
5.4 Major Quality Management Initiatives  
5.5 Quality Management Tools and Techniques  
5.6 Managing Quality for Supply Chains  
5.7 Global Quality Management  
5.8 Legal, Ethical, and Sustainability Issues,  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 5.1 Pfizer Fixes Problems With Its Cleaning Processes  
Case Study 5.2 Partnering to Improve Quality  
Case Study 5.3 3M: Finding the Delicate Balance Between Six Sigma and Innovation  
Case Study 5.4 Van Halen, Brown M&Ms, and Quality Control  
Video Case  
Critical Thinking Exercise  
 
Chapter 6: Quality Improvement and Control Tools
6.1 Quality Control Versus Quality Assurance  
6.2 Quality Appraisal Tools  
6.3 Quality Defect Prevention Tools  
6.4 Quality Design Tools  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 6.1 J.D. Power Automobile Surveys: What Does “Quality” Mean, Anyway?  
Video Case  
Critical Thinking Exercises  
 
Chapter 7: Capacity Planning
7.1 Capacity Planning  
7.2 Service Capacity Planning  
7.3 Capacity Planning for Supply Chains  
7.4 Ethical and Sustainability Issues  
7.5 Global Capacity Management  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 7.1 Kirwain’s Capacity Planning Challenge  
Video Cases  
Critical Thinking Exercises  
 
Chapter 8: Supply Chain Design and Location Planning
8.1 Supply Chain Design and Facility Location Decisions  
8.2 Phases in the Supply Chain Design and Location Decision-Making Process  
8.3 Analytical Methods for Evaluating Locations  
8.4 Ethical and Sustainability Issues  
8.5 Global Location Planning  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 8.1 Countering the Counterfeiters  
Case Study 8.2 Alpharetta Tools  
Video Case  
Critical Thinking Exercise  
 
Chapter 9: Process Design and Layout Planning
9.1 Designing, Selecting, and Redesigning Manufacturing Processes  
9.2 Designing Service Processes  
9.3 Designing Processes for Supply Chains  
9.4 Global Process Design  
9.5 Layout Planning  
9.6 Legal, Ethical, and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 9.1 Challenges of Redesigning a Plant Layout  
Video Case  
Critical Thinking Exercise  
 
Supplement for Chapter 9: Tools for Analyzing, Designing, and Selecting Processes and Layouts
9S.1 Process Selection, Design, and Analysis Tools  
9S.2 Layout Analysis Tools and Techniques  
Supplement Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Critical Thinking Exercises  
 
PART III: INTEGRATIVE DECISIONS
 
Chapter 10: Supplier Management
10.1 Supplier Management and Its Goals  
10.2 The Supplier Management Process  
10.3 Managing Service Providers  
10.4 Global Supplier Management  
10.5 Legal, Ethical, and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study 10.1 The Boeing  
Video Cases  
Critical Thinking Exercise  
 
Chapter 11: Logistics Management
11.1 Integrated Logistics Management  
11.2 Order Fulfillment  
11.3 Transportation Management  
11.4 Packaging  
11.5 Materials Handling  
11.6 Warehousing Management  
11.7 Inventory Management  
11.8 Facilities Network Design,  
11.9 Global Logistics  
11.10 Logistics Outsourcing  
11.11 Logistics in the Service Sector  
11.12 Ethical and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 11.1 How Sustainable Logistics Solutions and Technologies Have Helped Walmart Become More Efficient  
Case Study 11.2 Third-Party Logistics and the Mistreatment of Workers  
Video Case  
Critical Thinking Exercises  
 
Chapter 12: Demand Management and Customer Service
12.1 Demand Management  
12.2 Global Demand Management  
12.3 Services Demand Management  
12.4 Customer Service and Demand Management  
12.5 Ethical and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Problems  
Case Study 12.1 McDonald’s Reinvents Itself, Again  
Case Study 12.2 Predicting the Future Demand for Rural Health Care  
Video Cases  
Critical Thinking Exercises  
 
Chapter 13: Demand Forecasting Methods
13.1 Introduction to Forecasting and Its Applications  
13.2 The Characteristics of Good Forecasts  
13.3 Qualitative Versus Quantitative Forecasting Methods  
13.4 Measuring and Monitoring the Accuracy of Forecasting Methods  
13.5 Monitoring and Controlling Forecasts  
13.6 Forecasting for Supply Chains  
13.7 Ethical Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 13.1 Forecasting Ticket Demand for the Super Bowl  
Case Study 13.2 Ethical Forecasting: If You Torture the Numbers Long Enough, They Can Tell You Anything!  
Video Cases  
Critical Thinking Exercises  
 
PART IV: TACTICAL DECISIONS
 
Chapter 14: Lean Operations and Supply Chains
14.1 Introduction to Lean Operations  
14.2 The Philosophy of Lean Systems  
14.3 Elements of Lean Systems  
14.4 Lean Services  
14.5 Lean Supply Chains  
14.6 Lean Global Supply Chains  
14.7 Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study 14.1 Lean Sustainable Supply Chains at Unilever  
Case Study 14.2 TAL Apparel and JCPenney  
Critical Thinking Exercise  
Appendix 14.1: Value Stream Mapping Symbols  
Appendix 14.2: Steps for Developing a Value Stream Map  
 
Chapter 15: Inventory Management
15.1 Types of Inventory  
15.2 Inventory Costs  
15.3 Inventory Considerations for Supply Chains  
15.4 Inventory Management Measures  
15.5 Key Features of Effective Inventory Management Systems  
15.6 Uncertainty in Supply Chain Inventories: The Bullwhip Effect  
15.7 Ethical and Sustainability Issues  
15.8 Global Inventory Management  
15.9 Service Sector Inventory Management  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study 15.1 Inventory Pressures Cause Tuesday Morning to Abandon e-Commerce  
Case Study 15.2 Inventory Management in the Age of the Online Shopper  
Video Case  
Critical Thinking Exercises  
 
Chapter 16: Inventory Control Models
16.1 How Much to Order: Continuous Review Systems  
16.2 Economic Production Quantity (EPQ) Model  
16.3 EOQ Model with Quantity Discounts  
16.4 When to Order: Reorder Point for Continuous Review Systems (EOQ Model)  
16.5 How Much to Order: Periodic Review Systems  
16.6 How Much to Order: Single-Period Inventory Systems  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 16.1 When Your Customers Steer You Wrong: Walmart’s Project Impact Disaster  
Video Case  
Critical Thinking Exercise  
 
Chapter 17: Sales and Operations Planning
17.1 The Basics of Sales and Operations Planning  
17.2 Benefits of Sales and Operations Planning  
17.3 Framework of the Sales and Operations Planning Process  
17.4 Options for Influencing Demand and Supply in Sales and Operations Planning  
17.5 Sales and Operations Planning Strategies  
17.6 Methods for Sales and Operations Planning  
17.7 Sales and Operations Planning for Supply Chains  
17.8 Sales and Operations Planning in Service Industries  
17.9 Sustainable S&OP: Sales Carbon Operations Planning (SCOP)  
17.10 Ethical Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study 17.1: Coordinating Sales and Operations Planning for the Next Big Thing: The Case of the Sony PS4 Launch  
Video Case  
Critical Thinking Exercise  
 
PART V: OPERATIONAL DECISIONS
 
Chapter 18: Master Scheduling and Material Requirements Planning
18.1 Master Scheduling  
18.2 Material Requirements Planning  
18.3 Ethical and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 18.1 Bringing Order to a Chaotic Restaurant  
Video Case  
Critical Thinking Exercise  
 
Supplement for Chapter 18: Capacity Requirements Planning, MRP II, ERP, and DRP
18S.1 Capacity Requirements Planning (CRP)  
18S.2 Manufacturing Resource Planning (MRP II)—An Extension of MRP  
18S.3 Enterprise Resource Planning (ERP)  
18S.4 Impact of MRP, MRP II, and ERP on Supply Chains  
18S.5 Distribution Requirements Planning (DRP)  
18S.6 Sustainability Issues  
Supplement Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study 18S.1 Thinking Outside the Box: Enterprise Training at General Mills  
Critical Thinking Exercise  
 
Chapter 19: Detailed Scheduling
19.1 What Detailed Scheduling Is  
19.2 Types of Scheduling for Manufacturers  
19.3 Why Scheduling Is Complex  
19.4 Scheduling in the Service Sector  
19.5 Scheduling for Supply Chains  
19.6 Ethical and Sustainability Issues  
Chapter Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study 19.1 Telling Umpires Where to Go!  
Video Case  
Critical Thinking Exercises  
 
PART VI: QUANTITATIVE MODULES
 
Module A: Linear Programming
Introduction  
A.1 Features of a Linear Programming (LP) Problem  
A.2 Solving Linear Programming Problems Using Excel  
A.3 Sensitivity Analysis  
A.4 Additional Linear Programming Models  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study A.1 Happy Hour, Happy Profits  
 
Module B: The Transportation Models
B.1 Formulating and Solving the Transportation Problem  
B.2 Additional Issues in Transportation Modeling  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study B.1 Plant Location for Tru-Blade Ski Company  
 
Module C: Waiting Line Models
C.1 Introduction to Waiting Line Models  
C.2 Queueing Models  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study C.1 The Psychology of Waiting in Lines  
Questions for Discussion  
 
Module D: Simulation
D.1 Introduction to Simulation  
D.2 Monte Carlo Simulation  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problem  
Problems  
Case Study D.1 Staying Ahead of the Demand for Ice Cream  
 
Module E: Learning Curves
E.1 What Are Learning Curves?  
E.2 Applications of Learning Curves  
E.3 Approaches to Solving Learning Curve Problems  
E.4 Learning Curves in Cost Estimation  
E.5 Limitations of Learning Curves  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study E.1 Estimating the Cost of a Drilling Platform  
 
Module F: Decision-Making Tools
F.1 Using a Systematic Decision-Making Process  
F.2 Elements in the Decision-Making Process  
F.3 Categorizing Decisions  
F.4 Techniques for Making Decisions Under Certainty, Uncertainty, and Risk  
F.5 Techniques for Making Sequential Decisions  
Module Summary  
Key Terms  
Discussion and Review Questions  
Solved Problems  
Problems  
Case Study F.1 Gerber Products Company: The Problem  
Case Study F.2 Gerber Products Company: The Solution  
 
Appendix A: Tables
 
Appendix B: Answers to Select Problems
 
Glossary
 
Notes
 
Company Index
 
Subject Index

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Key features

NEW TO THIS EDITION:

  • New Operations Profiles demonstrate concepts in real-world settings and highlight current examples of operations and/or supply chain management in action. Some examples reflect on significant achievements, while others detail important examples of operations challenges.
  • SAGE amp, a dynamic courseware solution that integrates SAGE textbook content with auto-graded algorithmic assignments, exclusive video case studies and tutorial videos, and other learning tools and resources is available as a stand-alone eAccess version of this text or as a bundle. 
  • New state-of-the-art examples, concepts, and cases reflect more recent issues/developments in the operations and supply chain.

 

KEY FEATURES: 

  • Integrated supply chain considerations illustrate the inextricable links between operations and the larger supply chain.
  • Emphasis on sustainability and ethics underscores the need for operations managers to adopt sustainable and responsible practices in light of the world’s limited resources.
  • A global perspective reflects the reality of our interconnected global market place and unpacks how corporations can leverage their operations strategy to create a competitive advantage.  
  • “Operations Management: Lessons Learned” boxes highlight companies that have made supply chain or operations mistakes and as a result are discovering the negative consequences. This shows students the critical cause-and-effect relationships between decisions and subsequent problems resulting from these choices.
  • Sample problems and activities require students to generate MS Excel output files, teaching them how to use this device for solving a variety of operations problems.
  • “Consider This” boxes discuss examples, both successful and unsuccessful, of companies addressing challenges with their operations and supply chain management, and help personalize the content for students and convert the theory into practice.
  • Discussion questions review just-completed chapter content and help students better understand the content by posing questions for classroom discussion.
  • Solved Problems offer actual examples that guide students as they answer many of the quantitative problems.
  • Over 500 qualitative and quantitative practice problems give students as many opportunities as possible to practice and apply chapter concepts.
  • Critical thinking exercises require students to reflect on the main points and apply them to other, equally important problems, as a result of expanding on either theory or practical implications.
  • End of chapter case studies take specific examples of the material covered and apply them in a narrative format. They include discussion questions to evoke recollection, understanding, critical thinking, and application for the reader.

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