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Operations and Supply
Chain Management: The Core
The McGraw Hill Series in Operations and Decision Sciences
SUPPLY CHAIN BUSINESS SYSTEMS Doane and Seward

MANAGEMENT DYNAMICS Essential Statistics in Business and
Economics
Bowersox, Closs, Cooper, and Bowersox Sterman
Third Edition
Supply Chain Logistics Management Business Dynamics: Systems Thinking and
Fifth Edition Modeling for a Complex World Lind, Marchal, and Wathen
Basic Statistics for Business and Economics
Johnson OPERATIONS MANAGEMENT Tenth Edition
Purchasing and Supply Management Cachon and Terwiesch
Sixteenth Edition Operations Management Lind, Marchal, and Wathen
Third Edition Statistical Techniques in Business and
Simchi-Levi, Kaminsky, and Simchi-Levi
Economics
Designing and Managing the Supply Chain: Cachon and Terwiesch Eighteenth Edition
Concepts, Strategies, Case Studies Matching Supply with Demand: An
Fourth Edition Introduction to Operations Management Jaggia and Kelly
Fourth Edition Business Statistics: Communicating with
Stock and Manrodt
Numbers
Fundamentals of Supply Chain Management Jacobs and Chase Fourth Edition
Operations and Supply Chain Management
PROJECT MANAGEMENT Jaggia and Kelly
Sixteenth Edition
Larson and Gray Essentials of Business Statistics:
Project Management: The Managerial Jacobs and Chase Communicating with Numbers
Process Operations and Supply Chain Management: Second Edition
Eighth Edition The Core
Sixth Edition BUSINESS ANALYTICS
SERVICE OPERATIONS Jaggia, Kelly, Lertwachara, and Chen
Schroeder and Goldstein
MANAGEMENT Business Analytics: Communicating with
Operations Management in the Supply
Bordoloi, Fitzsimmons, and Fitzsimmons Numbers
Chain: Decisions and Cases
Service Management: Operations, Strategy, Second Edition
Eighth Edition
Information Technology
Tenth Edition Stevenson BUSINESS MATH
Operations Management Slater and Wittry
MANAGEMENT SCIENCE Fourteenth Edition Practical Business Math Procedures
Hillier and Hillier Fourteenth Edition
Introduction to Management Science: A Swink, Melnyk, and Hartley
Managing Operations Across the Supply Slater and Wittry
Modeling and Case Studies Approach with
Chain Math for Business and Finance: An
Spreadsheets
Fourth Edition Algebraic Approach
Sixth Edition
Second Edition
BUSINESS RESEARCH BUSINESS STATISTICS
Bowerman, Drougas, Duckworth,
METHODS Froelich, Hummel, Moninger, and Schur
Schindler Business Statistics and Analytics in Practice
Business Research Methods Ninth Edition
Fourteenth Edition
Doane and Seward
BUSINESS FORECASTING Applied Statistics in Business and
Keating and Wilson Economics
Forecasting and Predictive Analytics Seventh Edition
Seventh Edition
Sixth Edition
F. ROBERT JACOBS
Indiana University
RICHARD B. CHASE
University of Southern California
Final PDF to printer
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10019. Copyright © 2023 by
McGraw Hill LLC. All rights reserved. Printed in the United States of America. No part of this publication may
be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without
the prior written consent of McGraw Hill LLC, including, but not limited to, in any network or other electronic
storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 27 26 25 24 23 22
ISBN 978-1-265-07682-5
MHID 1-265-07682-0
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jac76820_fm_ise.indd iv 09/17/21 12:44 PM

To Jenny and
Suzy, this one is
for you.
vi
ABOUT THE AUTHORS

F. Robert Jacobs is Professor Emeritus of Operations and Decision
Technologies at Indiana University. He received a BS in industrial engineering
as well as computer and information science, an MBA, and a PhD in opera-
tions management all from The Ohio State University. He has also taught at the
University of Houston and The Ohio State University. He has published 7 books
and over 50 research articles on topics that include enterprise resource planning,
inventory control, the design of manufacturing facilities, cellular manufacturing,
and the scheduling of manufacturing operations. He is a Fellow of the Decision
Sciences Institute and past president and has received teaching honors such as
MBA Teaching Award, Students Award for Teaching Excellence in International
Business Issues, and Teaching Excellence in Operations Management.
Richard B. Chase is Justin B. Dart Professor Emeritus of Operations

Management at the Marshall School of Business, University of Southern
California. He received his PhD in operations management, as well as an
MBA and BS from UCLA. He has taught at the Harvard Business School, IMD
(Switzerland), and the University of Arizona. His research examines service
process design and service strategy. In 2006 he received a POMS Lifetime
Achievement Award for his research in service operations and in 2004 received
a Scholar of the Year Award by the Academy of Management. In 2009, he
was honored in the Production and Operations Management Journal for his
contributions to operations management. He is a Fellow of the Academy of
Management, Production Operations Management Society, and the Decision
Sciences Institute. He was also an examiner for the Malcolm Baldrige National
Quality Award. Dr. Chase has lectured/consulted recently on service and
excellence to such organizations as Cisco Systems, Four Seasons Resorts,
General Electric, and the Gartner Group.
vii
PREFACE
Just as lava flows from the core of the earth, operations and supply management is the
core of business. Materials must flow through supply processes to create cash output and
profits.
In Operations and Supply Management: The Core 6e, we take students to the center of
the business and focus on the core concepts and tools needed to ensure that these processes
run smoothly.
The goal of this book is to provide you with the essential information that every man-
ager needs to know about operations and supply chain–related activities in a firm. Things
have changed dramatically over the last few years. Organization structures are now much
flatter, and rather than being functionally organized, companies often are organized by
customer and product groups. Today’s manager cannot ignore how the real work of the
organization is done. This book is all about how to get the real work done effectively. It
makes little difference if you are officially in finance, marketing, accounting, or opera-
tions: The value-added work, the process of creating and delivering products, needs to
be completed in a manner that is both high quality and maximally efficient. Many of the
things you do, or will do, in your job are repetitive, even some of the most creative and
high-profile activities. You should think of this course as preparing you to be your most
productive and helping you help your organization be its most productive.
We can consider the importance of the material in this book on many levels, but let’s
focus on three. First, consider your role as a business unit manager with people working
under your supervision. Next, in the longer term, you probably have aspirations to become
a senior executive with responsibility for multiple businesses or products. Finally, you may
decide to specialize in operations and supply chain management as a long-term career.
In your role as a manager with people working under your supervision, one of your
major duties will be to organize the way work is done. There needs to be some struc-
ture to the work process, including how information is captured and analyzed, as well as
how decisions and changes and improvements are made. Without a logical or structured
approach, even a small group may be subject to errors, ineffiencies, and even chaos.
Designing efficient process flows is an important element of getting a group to work
together. If your group is involved in creative activities such as designing cars, buildings,
or even stock portfolios, there still needs to be structure to how the work is done, who is
responsible for what, and how progress is reported. The concepts of project management,
manufacturing and service process design, capacity analysis, and quality in this text are all
directly related to the knowledge you will need to be a great supervisor in your organiza-
tion, and getting your group to work productively and efficiently will lead to success and
more responsibility for you.
Next, think about becoming a senior executive. Making acquisitions, planning mergers,
and buying and selling divisions will get your name and picture in business magazines.
Deals are easily explained to boards, shareholders, and the media. They are newsworthy
and offer the prospect of nearly immediate gratification, and being a deal maker is consis-
tent with the image of the modern executive as someone who focuses on grand strategy and
leaves operations details to others. Unfortunately, the majority of deals are unsuccessful.
The critical element of success, even with the grandest deals, can still be found most often
in the operational details.
viii PREFACE
Real success happens when operational processes can be improved. Productivity

improvements from things such as sharing customer service processes, purchasing sys-
tems, distribution and manufacturing systems, and other processes can lead to great syner-
gies and success. Operations accounts for 60 to 80 percent of the direct expenses that limit
the profit of most firms. Without these operations synergies, designed and implemented by
executives with a keen understanding of the concepts in this book, companies are often left
with expensive debt, disappointed customers and shareholders, and pressure on the bottom
line—on earnings.
Finally, you may be interested in a career in operations and supply chain management.
Entry-level jobs might be as a forecast strategist, project manager, inventory control manager,
production supervisor, purchasing manager, logistics manager, or warehouse specialist. In
addition, top operations students may obtain their initial jobs with consulting firms, working
as business process analysts and system design specialists.
We encourage you to talk to your instructor about what you want to get out of the
course. What are your career aspirations, and how do they relate to the material in this
course? Write your instructor a short e-mail describing what you want to do in the future—
this is invaluable information for tailoring the material in the course to your needs. As you
work through the text, share your experiences and insights with the class. Being an active
student is guaranteed to make your experience more valuable and interesting.
ACKNOWLEDGMENTS
Special thanks to those who develop and market the book: Chuck Synovec, Director;
Noelle Bathurst, Portfolio Manager; Harper Christopher, Executive Marketing Manager;
Ryan McAndrews, Product Developer; Amy Gehl, Content Project Manager; Vanessa
McClune, Assessment Project Manager; and Matt Diamond, Senior Designer. The time
spent talking to faculty at the conferences is appreciated. Also, thanks to Gary Black who
keeps Connect current.
Thanks also to the many loyal adopters of the book. Special thanks to Jess Rose, a stu-
dent at Maryville University, who was particularly helpful with input for this edition.
Last, but certainly not least, we thank our families. We have stolen countless hours away
for this project; time that would otherwise be spent with them. We sincerely appreciate
their support.
F. Robert Jacobs
Richard B. Chase
Rev.Confirming Pages
ix
A NOTE TO INSTRUCTORS
Operations and Supply Chain Management: The Core derives its title from a combination
of ideas and trends. The book is designed to be lean and focused, much in the tradition of
the concepts taught in the book. The topics selected are the result of the study of the syllabi
of dozens of representative U.S. universities. There are a wide variety of topics covered,
many more than could be covered in a single course. Our “big book,” Operations and Supply
Chain Management, is comprehensive and is intended for those who want to pick and choose
topics that best fit the objectives of their course. The “Core” book covers the topics most
commonly included in these courses and has material sufficient for a 12- to 15-week course.
As is well known in the field, success for companies today requires successfully manag-
ing the entire supply flow, from the sources of the firm, through the value-added processes
of the firm, and on to the customers of the firm.
In Operations and Supply Chain Management: The Core 6e, we take students to the
center of the business and focus on the core concepts and tools needed to ensure that these
processes run smoothly.
Discussion of Sixth Edition Revisions

Many of the revisions to the sixth edition have been driven by our focus on supply chain
analytics. Supply chain analytics involves the analysis of data to better solve business prob-
lems. We recognize that this is not really new since data have always been used to solve
business problems. What is new is the reality that there are a great deal more data now
available for decision making.
In the past, most analysis involved the generation of standard and ad hoc reports that
summarized the current state of the firm. Software allowed query and “drill down” analysis
to the level of the individual transaction, useful features for understanding what happened
in the past. Decision making was typically left to the decision maker based on judgment
or simple alerting rules. The new “analytics” movement takes this to a new level using
statistical analysis, forecasting to extrapolate what to expect in the future, and even optimi-
zation, possibly in real time, to support decisions.
In this new edition, we now have 15 Analytics Exercises (four new ones). These exer-
cises have proven to be popular in our books. These Analytics Exercises use settings that
are modern and familiar to students taking the course. They include Starbucks, cell phones,
notebook computers, Tesla, a retail website–based company, a tree farm, and industrial
products that are sourced from China/Taiwan and sold globally.
In Chapter 1, we have added a new exercise titled The Supply Chain Improvement
Model. Chapter 2 features a new vignette that describes a company started with a special-
purpose acquisition company (SPAC) that features a large indoor farm operation. A new
carbon footprint exercise has been added to the chapter. In Chapter 3 a new forecasting
analytical exercise has been added. Chapter 6 discusses the use of electronic vehicle plat-
forms to make the manufacturing of new cars at Audi and Porsche efficient. A new inven-
tory management exercise has been added to Chapter 11 that relates to running a tree
farm. Insights from the recent Covid-19 pandemic have been added throughout the book,
together with many other updates.
In this book, all of the chapters have been designed to be independent. We have put
much effort into the organization of the book but recognize that our organization might not
align with the way you are using the material in your course. In addition, many of you may
custom publish a version of the book to exactly meet your needs. The chapters have been
designed to allow this type of customization.
jac98375_fm_i-1.indd ix 08/22/22 07:31 am

x
The chapters are all now tightly organized by special learning objectives. The learning
objectives for the chapter are defined at the start. Special contiguous sections are designed
to cover each objective. The chapter summary and discussion and objective questions are
also organized by learning objective. This new organization allows material to be assigned
at the level of learning objective. If the desire might be to skip some advanced techniques,
for example, this can be done easily by not assigning the specific learning objective. This
allows considerable flexibility in how the material is used in a class.
The material has also been adapted to work well with electronic media, since this is now
becoming the media of choice at many universities.
TECHNOLOGY
McGraw-Hill Connect Features
Connect offers a number of powerful tools and features to make managing assignments
easier so faculty can spend more time teaching. With Connect, students can engage with
their coursework anytime and anywhere making the learning process more accessible and
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The Connect Instructor Library is your repository for additional resources to improve stu-
dent engagement in and out of class. You can select and use any asset that enhances your
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∙ Instructor’s Solutions Manual
∙ Test Banks
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The Student Study Center offers students quick access to study and review material.
Tegrity Campus: Lectures 24/7

Tegrity Campus is a service that makes class time available 24/7
by automatically capturing every lecture in a searchable format
for students to review when they study and complete assignments. With a simple one-
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TECHNOLOGY xi
Remote Proctoring and Browser-Locking Capabilities

New remote proctoring and browser-locking capabilities, hosted by Proctorio within
Connect, provide control of the assessment environment by enabling security options and
verifying the identity of the student.
Seamlessly integrated within Connect, these services allow instructors to control stu-
dents’ assessment experience by restricting browser activity, recording students’ activity,
and verifying students are doing their own work.
Instant and detailed reporting gives instructors an at-a-glance view of potential academic
integrity concerns, thereby avoiding personal bias and supporting evidence-based claims.
OPERATIONS MANAGEMENT AND THE AACSB
Assurance of Learning Ready

Many educational institutions today are focused on the notion of assur-
ance of learning, an important element of some accreditation standards.
Operations and Supply Chain Management is designed specifically to sup-
port your assurance of learning initiatives with a simple yet powerful solution.
Each test bank question for Operations and Supply Chain Management maps to a spe-
cific chapter learning outcome/objective listed in the text. You can use our test bank soft-
ware, EZ Test and EZ Test Online, or Connect Operations Management to easily query for
learning outcomes/objectives that directly relate to the learning objectives for your course.
You can then use the reporting features of EZ Test to aggregate student results in similar
fashion, making the collection, presentation, and assurance of learning data simple and easy.
AACSB Statement
McGraw-Hill Education is a proud corporate member of
AACSB International. Understanding the importance and
value of AACSB accreditation, Operations and Supply Chain
Management recognizes the curricula guidelines detailed in the AACSB standards for
business accreditation by connecting selected questions in the test bank to the six general
knowledge and skill areas in the AACSB standards Assessment of Learning Standards.
The statements contained in Operations and Supply Chain Management are provided
only as a guide for the users of this textbook. The AACSB leaves content coverage and
assessment within the purview of individual schools, the mission of the school, and the
faculty. While Operations and Supply Chain Management and the teaching package make
no claim of any specific AACSB qualification or evaluation, we have within the test bank
labeled questions according to the six general knowledge and skill areas.
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Walkthrough
xiv
Major Study and Learning Features

The following section highlights the key features
developed to provide you with the best overall text
available. We hope these features give you maximum
support to learn, understand, and apply operations
concepts.
Confirming Pag
es
CHAPTER 2
STRATEGY AND
SUSTAINABILITY
Chapter Opener
Learning Obj
ectives
LO2–1
Know what a
sustainable bu
and supply ch siness strategy
ain manageme is and how it
nt. relates to opera
LO2–2
Define operatio tions
ns and supply
LO2–3 chain strategy
Explain how op .
erations and su
LO2–4 pply chain str
Understand wh ategies are im
y strategies ha plemented.
LO2–5 ve implications
Evaluate produ relative to busin
ctivity in opera ess risk.
tions and supp
ly chain mana
gement.
APPHARVEST
AppHarvest
is an exciting
the Appalachia start-up comp
any based in
region in easte
States. This is rn Kentucky in
not an area kn the United
own for agricult
area known for ure, nor is the
high tech. Us
a merger wit ing capital ge
h the special-p nerated from
(SPAC) Novis urpose acquis
Capital Corp, ition compan
y
AppHarvest is
farm where tom a large indoo
atoes and oth r
controlled en er ve ge tab les are grown
eugenegurkov
/Shutterstock vironment. Pla in a
ns are to build
farms in Kentu a dozen indoo
cky by 2025. r
jac98375_ch02
_024-045.indd
24
07/29/21 06:5
1 PM
WALKTHROUGH xv
Opening Vignettes
Each chapter opens with a short vignette to set the stage and help pique
students’ interest in the material about to be studied. A few examples
include:
∙ AppHarvest, Chapter 2
∙ From Bean to Cup: Starbucks Global Supply Chain Challenge, Chapter 3
Confirming Pages
∙ Inside an iPhone, Chapter 9
∙ How the Covid-19 Pandemic Led to Empty Shelves, Chapter 13
disruptions to critical supplies and the movement of

these supplies for the future. Our global community is
connected by the supply chains that move goods and
services to every location on the earth. When these
operations and supply chain links are broken, life as we
know it changes quickly. Examples include the loss of
critical medical supplies, and the closure of local busi-
nesses that impact the economic health of a community.
Really successful firms have a clear and focused
idea of how they intend to make money. Be it high-end
products or services that are custom-tailored to the
needs of a single customer, or generic, inexpensive franz12/Shutterstock
commodities that are bought largely based on cost,

competitively producing and distributing these products is a great challenge.
In the context of major business functions, operations and supply chain man-
agement involves specialists in product design, purchasing, manufacturing, service
operations, logistics, and distribution. These specialists are mixed and matched in
many ways depending on the product or service. For a firm that sells electronic
devices, like Apple, these are the functions responsible for designing the devices,
acquiring materials, coordinating equipment resources to convert material to prod-
ucts, moving the product, and exchanging the final product with the customer.
Some firms are focused on services, such as a hospital. Here, the context
involves managing resources, including the operating rooms, labs, and hospital
beds used to nurse patients back to health. In this context, acquiring materials,
Strategy
moving patients, and coordinating resource use are keys to success. Other firms
are more general, such as Amazon. Here, purchasing, website services, logistics,
and distribution need to be carefully coordinated for success. Processes
In our increasingly interconnected and interdependent global economy, the pro-

cess of delivering finished goods, services, and supplies from one place to another
Analytics
is accomplished by means of mind-boggling technological innovation, clever new
applications of old ideas, seemingly magical mathematics, powerful software, and
old-fashioned concrete, steel, and muscle. This book is about doing this at low
cost while meeting the requirements of demanding customers. Success involves
the clever integration of a great operations-related strategy, processes that can
The fourth is that services as a process are perishable and time dependent, and unlike goods,
they can’t be stored. You cannot “come back last week” for an air flight or a day on campus.
And fifth, the specifications of a service are defined and evaluated as a package of fea-
tures that affect the five senses. These features relate to the location, decoration, and layout
xvi WALKTHROUGH
of the facility where the service is housed, for example. Other features are the training
and attitude of employees, and the consistency of service performance. Such attributes as
Photos
speed, privacy, and Exhibits
and security are other features that define a service.
The Goods–Services
Photos and exhibits Continuum
in the text enhance the visual appeal and clarify
text discussions. Many
Almost any product offering is a of the photos
combination illustrate
of goods additional
and services. examples
In Exhibit 1.3, weof
show thiscompanies
arrayed along a continuum of “pure goods” to “pure services.” The continuum
that utilize the operations and supply chain concepts in their
captures the main focus of the business and spans from firms that just produce products
business.
to those that only provide services. Pure goods industries have become low-margin com-
modity businesses, and in order to differentiate, they are often adding some services. Some
examples are providing help with logistical aspects of stocking items, maintaining exten-
sive information databases, and providing consulting advice.
exhibit 1.3 The Goods–Services Continuum
Pure Goods Core Goods Core Services Pure Services

Food products Appliances Hotels University
Chemicals Automobiles Airlines Medical
Mining Data storage systems Internet service Investment
providers
First Pages
Goods Services
462 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
BUSY FEDEX HUBS MOVE

THOUSANDS OF PACKAGES
ALONG CHUTES AND
CONVEYOR BELTS UNDER
THE WATCHFUL EYES OF HUB
jac98375_ch01_002-023.indd
EMPLOYEES. 8 06/14/21 05:21 PM
Daniel Acker/Bloomberg/Getty
Images
Third-party logistics transportation companies often are called a third-party logistics company. The most
company basic function would be simply moving the goods from one place to another. The logistics
A company that company also may provide additional services such as warehouse management, inventory
manages all or
ness practices change, optimization of the OSCM networks will become an ongo-
ing activity. New analytics that make use of real-time data and artificial intelligence
will become common.
4. The speedy adoption of new technology and automation. In virtually every
aspect of OSCM, technology will be Sincreasingly
ERVICE PROCESSES chapter 7
more important to remaining 233
WALKTHROUGH
competitive. More employees will work from home. Trucks that use automatic
xvii
driving features and platooning will become common. Robots that automate tasks
Model 1 (See Exhibit 7.12.) such as cooking pizzas and making hamburgers will become affordable. These are
Concept Connections just a few examples; there will be thousands of new technologies introduced each
year. Keeping up with all the new technologies and adopting them quickly will be a
Concept Connections λdraws together various λend-of-chapter sections
( μ )( μ ) Questions,
( μ)
2 n
major challenge
Lq for companies. λ λ
L = _______ W = ___ P = 1 − _ __ P = 1−_
including Key Terms,
q
μ(μ Solved
− λ) Problems,
q
λ
n
Discussion 0
Objective [7.3]
Questions, Cases, AnalyticsL Exercises,
λ andL Practice
= ____ W = ___ ρ = __
s λ Exams.
s s
μ−λ λ μ
CONCEPT CONNECTIONS
Model 2
LO1–1 Identify the elements
2 of operations and supply chain management (OSCM).
λ
________
Lq
Lq =
∙ Processes are used to implementW = ___ of the firm.
theq strategy
∙ Analytics are2μ(μ
used to−support
λ) the ongoingλdecisions needed to manage the firm.
[7.4]
Operations and supply chainλ management___ L(OSCM) The design, operation, and
L q + __that create W
s
s =systems
improvement ofLthe ands =
deliver the firm’s primary products and services.
μ λ
Process One or more activities that transform inputs into outputs.
Product–service bundling When a firm builds service activities into its product offerings to
create additional value for the customer.
Model 3
LO1–2 Evaluate the efficiency
λ of the Lfirm.
L s = L q + __ W s = ___
s
Criteria that relate to how wellμthe firm is doing
λ include:
[7.5]
Solved Problems
( )
∙ Efficiency L q Sμ
W q = ___
∙ Effectiveness Pw = Lq _ − 1
λ λ
Representative problems are placed at the end of appropriate chapters.
∙ Value created in its products and services
Each includes a worked-out solution giving students a review before

solving problems on their own.
SOLVED PROBLEMS
jac98375_ch01_002-023.indd 16 06/14/21 05:21 PM
SOLVED PROBLEM 1
Quick Lube Inc. operates a fast lube and oil change garage. On a typical day, customers arrive at the
rate of three per hour, and lube jobs are performed at an average rate of one every 15 minutes. The
mechanics operate as a team on one car at a time. Excel:
Assuming Poisson arrivals and exponential service, find: Queue
a. The utilization of the lube team.

b. The average number of cars in line.
c. The average time a car waits before it is lubed.
d. The total time it takes to go through the system (that is, waiting in line plus lube time).
Solution
λ = 3, μ = 4
λ 3
a. Utilization ρ = __ = __ = 75 percent.
μ 4
λ2 32 9
b. L q = ________ = ________ = __ = 2.25 cars in line.
μ(μ − λ) 4(4 − 3) 4
L q 2.25
c. W q = ___ = ____ = 0.75 hour, or 45 minutes.
λ 3
Ls λ 3
d. W s = __ = _____ ∕ λ = _____ ∕ 3 = 1 hour (waiting + lube).
λ μ−λ 4−3
STRATEGY AND SUSTAINABILITY chapter 2 45
xviii WALKTHROUGH
∙ Producing the barley and malt and transporting b. Compare your initial ranking with the ranking
the beer account for the other 50 percent of CO2 after doing the calculations.
Practice Exam
emissions. c. Suggest ways that you could reduce your
∙ You drink about two six-packs of beer a week. carbon footprint relative to these six products.
a. Calculate the yearly carbon footprint for each
The practice exam includesReference:
of the products based on your usage. Keep inmany F.straightforward review
Robert Jacobs and Rhonda questions,
R. Lummus, The but
also has a selection that tests
mind that some of the data may not be needed
for your calculations.
for mastery and integration/application
Supply Chain Professional, 2nd ed., Hercher Publishing,
2019, pp. 174–175.
level understanding—that is, the kind of questions that make an exam
challenging.
PRACTICE EXAM
1. A strategy that is designed to meet current needs with- 6. A criterion that differentiates the products or services
out compromising the ability of future generations to of one firm from those of another.
meet their needs. 7. A screening criterion that permits a firm’s products to
2. The three criteria included in a triple bottom line. be considered as possible candidates for purchase.
3. The seven operations and supply chain competitive 8. A diagram showing the activities that support a com-
dimensions. pany’s strategy.
4. It is probably most difficult to compete on this major 9. A measure calculated by taking the ratio of output to
competitive dimension. input.
5. This occurs when a company seeks to match what a
competitor is doing while maintaining its existing
competitive position.
Cases
First Pages in the
Cases allow students to think critically about issues discussed
chapter. Cases include:
Shouldice Hospital—A Cut Above, Chapter 4

Pro Fishing Boats—A Value Stream Mapping Exercise, Chapter 12
CASE: PRO FISHING BOATS—A VALUE STREAM MAPPING EXERCISE

A fishing boat manufacturer, Pro Fishing Boats, is having 9-week finished goods buffer inventory. Manufacturing time
many problems with critical globally sourced parts. Pro for each component is only about 3 days. The ship bound
Fishing has two manufacturing facilities in the United States. to the United States takes about 14 days to travel overseas.
criteria 4. Cost 5. Straddling 6. Order winner 7. Order qualifier 8. Activity-system map 9. Productivity
The firm’s reliance on efficient global supply chain opera- Upon arrival in the United States, the component is unloaded
delivery reliability, coping with changes in demand, flexibility and speed of new-product introduction, other product-specific
tions is increasing as the manufacturer is sourcing more and at the Los Angeles port. This takes about 5 days and customs
Answers to Practice Exam 1. Sustainable 2. Social, economic, environmental 3. Cost or price, quality, delivery speed,
more parts overseas, including critical components. Recent inspects the shipment in Los Angeles. The goods travel by
problems with a number of these critical parts have caused train to Chicago, which takes about 7 days. Goods are held in
line shutdowns. In response, Pro Fishing has mandated a six- Chicago for about half a week. From there, the component is
week inventory on all globally sourced parts. Management trucked to a Pro Fishing warehouse where the 6-week inven-
has asked you to evaluate whether this is the right decision. tory buffer has been mandated. Shipment to the Pro Fishing
First, you must understand Pro Fishing’s supply chain. warehouse takes 2 days. From the warehouse, the compo-
Currently, there is very little visibility (knowledge of the current nents are trucked to plants in the United States triggered by
status) of inventory in the supply chain, and communication electronic orders from each of the Pro Fishing plants.
jac98375_ch02_024-045.indd 45 06/14/21 05:10 PM
with the supply base is minimal. In fact, the boat manufacturer In talking to Manufacturing Inc., Pro Fishing has learned
does not have any visibility past the Tier I suppliers. Adding to that the component is made up of two main raw materials:
the complexity of this problem, each part of the supply chain is one from China and the other from the United States. Due to
handled by different departments within the company. the risk of running out of these raw materials, Manufacturing
In order to understand the supply chain, Pro Fishing has Inc. maintains a 4-week buffer of the China-based raw mate-
asked you to map its supply chain. To do so, it has identi- rials and a 12-week buffer of the U.S.-based raw materials.
fied a critical component to follow in the supply chain. After These Tier II supplier orders are by formal purchase order
having the opportunity to interview supply chain partici- only. It is interesting to note that Manufacturing Inc. uses
pants, including suppliers, you have collected the following these suppliers due to Pro Fishing’s strict supplier qualifica-
information. tion requirements.
The component is manufactured overseas in China by the
Questions
Rev.Confirming Pages
WALKTHROUGH xix
Analytics Exercises
There are so much more data now available for decision making. The
analytics movement takes this to a new level using statistical analysis to
extrapolate what to expect in the future to support operations and supply First Pages
chain decisions. A series of 15 analytics exercises are spread through the
chapters. These include:
Forecasting Supply Chain Demand: Starbucks Corporation, Chapter 3
Designing a Manufacturing Process: Notebook Computer Assembly
MANUFACTURING PROCESSES chapter 6 199
Line, Chapter 6
Processing Customer
a. Draw theOrders:
precedenceAnalyzing
diagram. a Fast Food Restaurant,
Chapter 7 b. What is the workstation cycle time required to produce 15 units per hour?
c. Balance the line so that only four workstations are required. Use whatever
Global Sourcing method
Decisions—Grainger:
you feel is appropriate. Reengineering the China/U.S.
Supply Chain, Chapter 13
d. What is the efficiency of your line balance, assuming the cycle time from
part (b)?
ANALYTICS EXERCISE: DESIGNING A MANUFACTURING PROCESS

A Notebook Computer Production of the subnotebook is scheduled to begin in
10 days. Initial production for the new model is to be 150
Assembly Line units per day, increasing to 250 units per day the follow-
A manufacturing engineering section manager is examining ing week (management thought that eventually produc-
the prototype assembly process sheet (shown in Exhibit 6.8) tion would reach 300 units per day). Assembly lines at the
for his company’s newest subnotebook computer model. plant normally are staffed by 10 operators who work at a
With every new model introduced, management felt that the 14.4-meter-long assembly line. The line is organized in a
assembly line had to increase productivity and lower costs, straight line with workers shoulder to shoulder on one
usually resulting in changes to the assembly process. When side. The line can accommodate up to 12 operators if there
a new model is designed, considerable attention is directed is a need. The line normally operates for 7.5 hours a day
toward reducing the number of components and simplify- (employees work from 8:15 A.M. to 5:00 P.M. and regular
ing parts production and assembly requirements. This new hours include one hour of unpaid lunch and 15 minutes of
computer was a marvel of high-tech, low-cost innovation and scheduled breaks). It is possible to run one, two, or three
should give the company an advantage during the upcoming hours of overtime, but employees need at least three days’
fall/winter selling season. notice for planning purposes.
Notebook Computer Assembly Process Sheet exhibit 6.8
TASK TASK TIME (SECONDS) TASKS THAT MUST PRECEDE

1. Assemble cover. 75 None
2. Install LCD in cover. 61 Task 1
3. Prepare base assembly. 24 None
4. Install M-PCB in base. 36 Task 3
5. Install CPU. 22 Task 4
6. Install backup batteries and test. 39 Task 4
7. Install Accupoint pointing device and wrist rest. 32 Task 4
8. Install speaker and microphone. 44 Task 4
9. Install auxiliary printed circuit board (A-PCB) on M-PCB. 29 Task 4
10. Prepare and install keyboard. 26 Task 9
11. Prepare and install solid-state drive (SSD). 52 Task 10
12. Install battery pack. 7 Task 11
13. Insert memory card. 5 Task 12
14. Start software load. 11 Tasks 2, 5, 6, 7, 8, 13
15. Software load (unattended). 310 Task 14
16. Test video display. 60 Task 15
17. Test keyboard. 60 Task 16
jac98375_fm_i-1.indd xix 08/22/22 07:33 am

xx
CONTENTS IN BRIEF
1 Introduction to OSCM 2 10 Quality Management and Six Sigma 302
Analytics Exercise: The Supply Chain Analytics Exercise: Quality Management—Tesla 349
Improvement Model 20
11 Inventory Management 352
2 Strategy and Sustainability 24 Analytics Exercise: Inventory Management at
Analytical Exercise: The Carbon Footprint Quiz 43 Big10sweaters.com 396
Analytics Exercise: Inventory Control at Sebastian
3 Forecasting 46 River Farms 399
Analytics Exercise: Forecasting Supply Chain
Demand—Starbucks Corporation 91 12 Lean Supply Chains 402
Analytical Exercise: Forecasting Demand at 13 Global Sourcing and Procurement 434
Sebastian River Farms 92
Analytics Exercise: Global Sourcing Decisions—
4 Strategic Capacity Management 94 Grainger: Reengineering the China/U.S. Supply
Chain 457
4a Learning Curves 116 14 Location, Logistics, and Distribution 460
Analytical Exercise: Tesla’s Model 3 Learning Analytics Exercise: Distribution Center Location 482
Curve 128
5 Projects 130 APPENDICES

Analytics Exercise: Product Design Project 168
A Linear Programming Using the
6 Manufacturing Processes 170 Excel Solver 485
Analytics Exercise: Designing a Manufacturing B Answers to Selected Objective
Process 199
Questions 508
6a Break-Even Analysis 202 C Present Value Table 510
7 Service Processes 206 D Negative Exponential Distribution:
Analytics Exercise: Processing Customer Values of e−X 511
Orders 239
E Areas of the Cumulative Standard Normal
8 Sales and Operations Planning 242 Distribution 512
Analytics Exercise: Developing an Aggregate
Plan—Bradford Manufacturing 265
9 Material Requirements Planning 268 AUTHOR INDEX 513

Analytics Exercise: An MRP Explosion—Brunswick
Motors 300 SUBJECT INDEX 514
xxi
CONTENTS
1 INTRODUCTION TO OSCM 2 3 FORECASTING 46
Strategy, processes, and analytics 2 From bean to cup: Starbucks global supply chain
What is operations and supply challenge 46
chain management? 4 Forecasting in operations and supply chain
Operations and Supply Chain Processes 6 management 48
Differences between Services and Goods 7
Quantitative forecasting models 49
Components of Demand 50
The Goods–Services Continuum 8
Time Series Analysis 51
Product–Service Bundling 9
Efficiency, effectiveness, and value 9 Simple Moving Average 52
How Does Wall Street Evaluate Efficiency? 10 Weighted Moving Average 54
Careers in operations and supply chain Exponential Smoothing 55
management 11 Exponential Smoothing with Trend 57
Chief Operating Officer 12 Linear Regression Analysis 59
Historical development of operations Decomposition of a Time Series 63
and supply chain management 13
Forecast Errors 66
Current Issues in Operations and Supply Chain
Sources of Error 66
Management 16
Measurement of Error 67
Concept Connections 16 Discussion
Questions 18 Objective Questions 18 Causal Relationship Forecasting 70
Analytics Exercise: The Supply Chain Improvement Multiple Regression Analysis 71
Model 20 Qualitative techniques in forecasting 72
Practice Exam 23 Market Research 72
Panel Consensus 72
2 STRATEGY AND SUSTAINABILITY 24
Historical Analogy 72
AppHarvest 24
A sustainable operations and supply chain The Delphi Method 73
strategy 25 Web-based forecasting: Collaborative Planning,
What is operations and supply Forecasting, and Replenishment (CPFR) 73
chain strategy? 27 Concept Connections 75 Solved
Problems 77 Discussion Questions 82 Objective
Competitive Dimensions 29
Questions 82
The Notion of Trade-Offs 31
Analytics Exercise: Forecasting Supply Chain
Order Winners and Order Qualifiers: Demand—Starbucks Corporation 91
The Marketing–Operations Link 32
Analytical Exercise: Forecasting Demand at Sebastian
Strategies are implemented using River Farms 92
operations and supply chain activities—IKEA’s
Practice Exam 93
strategy 32
Assessing the risk associated with operations and
supply chain strategies 34 4 STRATEGIC CAPACITY MANAGEMENT 94
Tesla—Manufacturing capacity for the Model 3 95
Risk Management Framework 34
Capacity management in operations and
Productivity measurement 36
supply chain management 96
Concept Connections 38 Solved
Capacity Planning Concepts 97
Problem 39 Discussion Questions 40 Objective
Questions 40 Economies and Diseconomies of Scale 97
Analytical Exercise: The Carbon Footprint Capacity Focus 98
Quiz 43 Capacity Flexibility 98
Practice Exam 45 Capacity planning 99
xxii CONTENTS
Considerations in Changing Capacity 99 Flexible and U-Shaped Line Layouts 186

Determining Capacity Requirements 101 Concept Connections 187 Solved
Using decision trees to evaluate capacity Problems 189 Discussion Questions 193 Objective
alternatives 103 Questions 194 Advanced Problem 198
Planning service capacity 106 Analytics Exercise: Designing a Manufacturing
Capacity Planning in Services versus Manufacturing 106 Process 199
Capacity Utilization and Service Quality 107 Practice Exam 201

Problem 109 Discussion Questions 111 Objective
6A BREAK-EVEN ANALYSIS 202
Questions 111 Solved Problems 203 Objective Questions 205
Case: Shouldice Hospital—A Cut Above 113
Practice Exam 115
7 SERVICE PROCESSES 206
NIO–Battery-as-a-Service (BaaS) strategy 206
4A LEARNING CURVES 116 The nature of services 207
The learning curve 116 An Operational Classification of Services 208
How are learning curves modeled? 118 Designing Service Organizations 208
Learning Curve Tables 121 Structuring the Service Encounter: Service–System
Concept Connections 124 Solved Design Matrix 209
Problems 124 Discussion Questions 125 Objective Web Platform Businesses 210
Questions 126 Service blueprinting and fail-safing 212
Analytical Exercise: Tesla’s Model 3 Learning Curve 128 Economics of the waiting line problem 214
5 PROJECTS 130
The Practical View of Waiting Lines 214
The Queuing System 216
Starlink: SpaceX’s satellite internet project 130
What is project management? 131 Waiting Lines and Servers 220
Organizing the Project Team 133 Waiting Line Models 223
Organizing Project Tasks 135 Computer Simulation of Waiting Lines 228

Managing projects 136 Concept Connections 231 Solved
Earned Value Management (EVM) 138
Questions 235
Network-planning models 142
Analytics Exercise: Processing Customer Orders 239
Critical Path Method (CPM) 142
Practice Exam 241
CPM with Three Activity Time Estimates 146
Time–Cost Models and Project Crashing 149 8 SALES AND OPERATIONS PLANNING 242
Project management information systems 154 What is sales and operations planning? 244
Concept Connections 155 Solved Overview of Sales and Operations Planning
Problems 156 Discussion Questions 161 Objective Activities 244
Questions 161
The Aggregate Operations Plan 246
Analytics Exercise: Product Design Project 168
Production Planning Environment 247
Practice Exam 169
Relevant Costs 249
6 MANUFACTURING PROCESSES 170 Aggregate planning techniques 250
Electronic vehicle platforms: Many models with A Cut-and-Try Example: The JC Company 250
similar underpinning 170 Yield management 256
Production processes 171 Operating Yield Management Systems 256
Production process mapping and Little’s law 174
How production processes are organized 177 Problem 258 Discussion Questions 261 Objective
Designing a Production System 179 Questions 261
Assembly-Line and Continuous Process Layouts 182 Analytics Exercise: Developing an Aggregate Plan—
Assembly-line design 182 Bradford Manufacturing 265
Splitting Tasks 186 Practice Exam 267
CONTENTS xxiii
9 MATERIAL REQUIREMENTS PLANNING 268 Process Control with Attribute Measurements: Using
p-Charts 325
Inside an iPhone 268
Process Control with Attribute Measurements: Using
Understanding material requirements
c-Charts 328
planning 270
Process Control with Variable Measurements:
Where MRP Can Be Used 271 ¯- and R-Charts 329
Using  X 
Master Production Scheduling 272 ¯- and R-Charts 330
How to Construct  X 
Time Fences 273 Acceptance sampling 333
Material requirements planning system Design of a Single Sampling Plan for Attributes 333
structure 274
Operating Characteristic Curves 335
Demand for Products 274
Bill-of-Materials 275 Problems 339 Discussion Questions 342 Objective
Inventory Records 277 Questions 343
The MRP Computer Program 278 Analytics Exercise: Quality Management—Tesla 349
An example using MRP 279 Practice Exam 350
Forecasting Demand 279
Developing a Master Production Schedule 280 11 INVENTORY MANAGEMENT 352
Amazon—The master of inventory
Bill-of-Materials (Product Structure) 280
management 352
Inventory Records 281
Understanding inventory management 354
Performing the MRP Calculations 281
Definition of Inventory 356
Lot sizing in MRP systems 285
Purposes of Inventory 356
Lot-for-Lot 285
Inventory Costs 357
Economic Order Quantity 286
Independent versus Dependent Demand 358
Least Total Cost 287
Inventory systems 359
Least Unit Cost 287
A Single-Period Inventory Model 359
Choosing the Best Lot Size 288
Multiperiod Inventory Systems 363
Fixed–Order Quantity Models 364
Questions 296 Establishing Safety Stock Levels 367
Analytics Exercise: An MRP Explosion—Brunswick Fixed–Order Quantity Model with Safety Stock 368
Motors 300 Fixed–Time Period Models 372
Practice Exam 301 Fixed–Time Period Model with Safety Stock 372
Inventory Turn Calculations 374
10 QUALITY MANAGEMENT AND SIX SIGMA 302 The Price-Break Model 375
Disney—An obsession with quality and Inventory planning and accuracy 377
innovation 302
ABC Classification 378
Total quality management 304
Inventory Accuracy and Cycle Counting 379
Quality Specifications and Quality Costs 305
ISO 9000 and ISO 14000 308 Concept Connections 381 Solved
External Benchmarking for Quality Questions 387
Improvement 311
Analytics Exercise: Inventory Management at
Six Sigma quality 311
Big10Sweaters.com 396
Six Sigma Methodology 312
Analytics Exercise: Inventory Control at Sebastian
Analytical Tools for Six Sigma 313 River Farms 399
Statistical quality control 316 Practice Exam 401
Understanding and Measuring Process
Variation 318 12 LEAN SUPPLY CHAINS 402
Process Capability 319 Lean manufacturing practices and the Covid-19
Statistical process control procedures 325 pandemic 402
xxiv CONTENTS
Lean production 404 14 LOCATION, LOGISTICS, AND DISTRIBUTION 460

The Toyota Production System 406 FedEx—Speed is hidden in its logo 460
Lean supply chains 407 Logistics 461
Value stream mapping 408 Decisions related to logistics 462
Lean supply chain design principles 410
Transportation Modes 462
Lean Concepts 412
Warehouse Design 463
Lean Production Schedules 413 Locating logistics facilities 464
Lean Supply Chains 418 Plant Location Methods 466
Lean services 419
Locating Service Facilities 472
Questions 427
Questions 479
Case: Quality Parts Company 429
Analytics Exercise: Distribution Center Location 482
Case: Value Stream Mapping 430
Practice Exam 484
Case: Pro Fishing Boats—A Value Stream Mapping
Exercise 432
Practice Exam 433
APPENDICES
A Linear Programming Using the
13 GLOBAL SOURCING AND PROCUREMENT 434
Excel Solver 485
How the Covid-19 pandemic led to empty
shelves 434 B Answers to Selected Objective
Strategic sourcing 436
Questions 508
The Bullwhip Effect 437
Supply Chain Uncertainty Framework 438 C Present Value Table 510
Outsourcing 441
D Negative Exponential Distribution:
Logistics Outsourcing 442
Values of e−X 511
Framework for Supplier Relationships 442
Green Sourcing 444 E Areas of the Cumulative Standard Normal
Total cost of ownership 447 Distribution 512
Measuring sourcing performance 450
Concept Connections 452 Discussion
Questions 453 Objective Questions 454
Analytics Exercise: Global Sourcing Decisions—
AUTHOR INDEX 513
Grainger: Reengineering the China/U.S. Supply
Chain 457
SUBJECT INDEX 514
Practice Exam 459
CHAPTER 1
Introduction to
OSCM
Learning Objectives
LO1–1 Identify the elements of operations and supply chain management (OSCM).
LO1–2 Evaluate the efficiency of the firm.
LO1–3 Know the potential career opportunities in operations and supply chain
management.
LO1–4 Recognize the major concepts that define the operations and supply chain
management field.
STRATEGY, PROCESSES, AND ANALYTICS

This book is about designing and operating processes that deliver a firm’s goods
and services in a manner that matches customers’ expectations. Given the recent
disruption caused by Covid-19, we are sure that you now know what supply chains
are and are familiar with some of the terminology. Never has OSCM been more
important than during the recent Covid-19 pandemic that swept around our planet.
Getting emergency supplies and other items needed by humanity was dependent
on dramatic and rapid changes to the way the world supplies were directed.
Getting the vaccines produced and distributed to the world has been vital to
ending the pandemic. There is little doubt that this historic event has permanently
changed the way companies and even nations think about the risk associated with
disruptions to critical supplies and the movement of
these supplies for the future. Our global community is
connected by the supply chains that move goods and
services to every location on the earth. When these
operations and supply chain links are broken, life as we
know it changes quickly. Examples include the loss of
critical medical supplies, and the closure of local busi-
nesses that impact the economic health of a community.
Really successful firms have a clear and focused
idea of how they intend to make money. Be it high-end
products or services that are custom-tailored to the
needs of a single customer, or generic, inexpensive franz12/Shutterstock
commodities that are bought largely based on cost,

competitively producing and distributing these products is a great challenge.
In the context of major business functions, operations and supply chain man-
agement involves specialists in product design, purchasing, manufacturing, service
operations, logistics, and distribution. These specialists are mixed and matched in
many ways depending on the product or service. For a firm that sells electronic
devices, like Apple, these are the functions responsible for designing the devices,
acquiring materials, coordinating equipment resources to convert material to prod-
ucts, moving the product, and exchanging the final product with the customer.
Some firms are focused on services, such as a hospital. Here, the context
involves managing resources, including the operating rooms, labs, and hospital
beds used to nurse patients back to health. In this context, acquiring materials,
Strategy
moving patients, and coordinating resource use are keys to success. Other firms
are more general, such as Amazon. Here, purchasing, website services, logistics,
and distribution need to be carefully coordinated for success. Processes
In our increasingly interconnected and interdependent global economy, the pro-

cess of delivering finished goods, services, and supplies from one place to another
Analytics
is accomplished by means of mind-boggling technological innovation, clever new
applications of old ideas, seemingly magical mathematics, powerful software, and
old-fashioned concrete, steel, and muscle. This book is about doing this at low
cost while meeting the requirements of demanding customers. Success involves
the clever integration of a great operations-related strategy, processes that can
deliver the products and services, and analytics that support the ongoing decisions
needed to manage the firm. Our goal in this book is to introduce students to basic
operations and supply chain concepts so they understand how things should be
done and the importance of these functions to the success of the firm.
LO1–1 Identify
the elements of
WHAT IS OPERATIONS AND SUPPLY
operations and CHAIN MANAGEMENT?
supply chain
management (OSCM). Operations and supply chain management (OSCM) is defined as the design, opera-
tion, and improvement of the systems that create and deliver the firm’s primary products
Operations and and services. Like marketing and finance, OSCM is a functional field of business with
supply chain clear line management responsibilities. OSCM is concerned with the management of the
management (OSCM) entire system that produces a product or delivers a service. Producing a product, such as
The design, operation, the Men’s Nylon Supplex Parka, or providing a service, such as a cellular phone account,
and improvement involves a complex series of transformation processes.
of the systems that Exhibit 1.1 shows a supply network for a Men’s Nylon Supplex Parka sold on websites
create and deliver the such as L.L.Bean or Land’s End. We can understand the network by looking at the four
firm’s primary products
color-coded paths. The blue path traces the activities needed to produce the Polartec insu-
and services.
lation material used in the parkas. Polartec insulation is purchased in bulk, processed to
get the proper finish, and then dyed prior to being checked for consistency—or grading—
and color. It is then stored in a warehouse. The red path traces the production of the nylon,
Supplex, used in the parkas. Using a petroleum-based polymer, the nylon is extruded and
drawn into a yarnlike material. From here the green path traces the many steps required
to fabricate the clothlike Supplex used to make the parkas. The yellow path shows the
Supplex and Polartec material coming together and used to assemble the lightweight and
warm parkas. The completed parkas are sent to a warehouse and on to the retailer’s distri-
bution center. The parkas are then picked and packed for shipment to individual customers.
Think of the supply network as a pipeline through which material and information flow.
There are key locations in the pipeline where material and information are stored for
future use: Polartec is stored near the end of the blue pipeline; Supplex is stored
near the end of the red pipeline. In both cases, fabric is cut prior to merging with
the yellow pipeline. At the beginning of the yellow path, bundles of Supplex
and Polartec are stored prior to their use in the fabrication of the parkas. At
the end of the yellow path are the distribution steps, which involve storing
to await orders, picking according to the actual customer order, packing,
and finally shipping to the customer.
Networks such as this can be constructed for any product or service.
Typically, each part of the network is controlled by different compa-
nies, including the nylon Supplex producer, the Polartec producer,
the parka manufacturer, and the catalog sales retailer. All of the
material is moved using transportation providers, ships and trucks
in this case. The network also has a global dimension, with each
entity potentially located in a different country.
Success in today’s global markets requires a business strategy that
L.L. Bean, Inc.
matches the preferences of customers with the realities imposed by

complex supply networks. A sustainable strategy that meets the needs
of shareholders and employees and preserves the environment is critical.
exhibit 1.1 Process Steps for Men’s Nylon Supplex Parkas
Strip and
Spin Inspect Pack Create
Manufacturing Plant (Extrude, into Quads Section
Draw, Beam
& Wind)
Draw In
Inspect/
Test
Produce
Polymer Doff
Receive, Palletize,
and Store in Package
Warehouse Warehouse Slash
Batch Weave
Store in Fabric
Slit, Relax Dry, Store in
Staging Sew Fabric Rolls Warehouse
Area Rolls and Fold
Finish Fabric Scour and Extraction Scour
Face and Dye and Jet
Grade Test
Test and Back Dye
Shade Check Store
Supplex
in Warehouse
Pack
Stage
Assemble Heat Set

Pack On-Line
Spread and Bundle Sew Outer
Cut Fabric Shell Grade
INTRODUCTION TO OSCM
Tag, Fold,
and Pack Receive at Pick
Parka Distribution
Store Polartec Center
in Warehouse
Spread and
chapter 1
Cut Fabric
Assemble Sew Inner
Bundle Sew
Lining
Parka
Store in
Warehouse
Pack
5
In the context of our discussion, the terms operations and supply chain take on special
meaning. Operations refers to manufacturing and service processes that are used to trans-
form the resources employed by a firm into products desired by customers. For example, a
manufacturing process would produce some type of physical product, such as an automo-
bile or a computer. A service process would produce an intangible product, such as a call
center that provides information to customers stranded on the highway or a hospital that
treats accident victims in an emergency room. Planning the use of these processes involves
analyzing capacity, labor, and material needs over time. Ensuring quality and making
ongoing improvements to these processes are needed to manage these processes.
Supply chain refers to processes that move information and material to and from the
manufacturing and service processes of the firm. These include the logistics processes
that physically move product, as well as the warehousing and storage processes that
position products for quick delivery to the customer. Supply chain in this context refers
to providing products and service to plants and warehouses at the input end and also to
the supply of products and service to the customer on the output end of the supply chain.
We consider the topics included in this book to be the foundation or “core” material.
Many other topics could be included, but these cover the fundamental concepts. All man-
agers should understand these basic principles that guide the design of transformation pro-
cesses. This includes understanding how different types of processes are organized, how
to determine the capacity of a process, how long it should take a process to make a unit,
how the quality of a process is monitored, and how information is used to make decisions
related to the design and operation of these processes.
The field of operations and supply chain management is ever changing due to the
dynamic nature of competing in global business and the constant evolution of information
technology. So while many of the basic concepts have been around for years, their applica-
tion in new and innovative ways is exciting. Internet technology has made the sharing of
reliable real-time information inexpensive. Capturing information directly from the source
through such systems as point-of-sale, radio-frequency identification tags, barcode scan-
ners, and automatic recognition has shifted the focus to understanding not only what all the
information is saying but how good the decisions are that will use it.
Operations and Supply Chain Processes

Process Operations and supply chain processes can be conveniently categorized, particularly
One or more from the view of a producer of consumer products and services, as planning, sourcing,
activities that making, delivering, and returning. Exhibit 1.2 depicts where the processes are used in
transform inputs into different parts of a supply chain. The following describes the work involved in each type
outputs. of process.
1. Planning consists of the processes needed to operate an existing supply chain stra-
tegically. Here, a firm must determine how anticipated demand will be met with
available resources. A major aspect of planning is developing a set of metrics to
monitor the supply chain so that it is efficient and delivers high quality and value to
customers.
2. Sourcing involves the selection of suppliers that will deliver the goods and services
needed to create the firm’s product. A set of pricing, delivery, and payment pro-
cesses are needed together with metrics for monitoring and improving the relation-
ships between partners of the firm. These processes include receiving shipments,
verifying them, transferring them to manufacturing facilities, and authorizing sup-
plier payments.
INTRODUCTION TO OSCM chapter 1 7
Supply Chain Processes exhibit 1.2
Making
Sourcing Planning Delivering
Returning
3. Making is where the major product is produced or the service is provided. The step
requires scheduling processes for workers and coordinating material and other crit-
ical resources such as the equipment to support producing or providing the service.
Metrics that measure speed, quality, and worker productivity are used to monitor
these processes.
4. Delivering is also referred to as a logistics process. Carriers are picked to move
products to warehouses and customers, coordinate and schedule the movement of
goods and information through the supply network, develop and operate a network
of warehouses, and run the information systems that manage the receipt of orders
from customers and the invoicing systems that collect payments from customers.
5. Returning involves processes for receiving worn-out, defective, and excess prod-
ucts back from customers and support for customers who have problems with
delivered products. In the case of services, this may involve all types of follow-up
activities that are required for after-sales support.
To understand the topic, it is important to consider the many different players that need to
coordinate work in a typical supply chain. The steps of planning, sourcing, making, deliver-
ing, and returning are fine for manufacturing and can also be used for the many processes that
do not involve the discrete movement and production of parts. In the case of a service firm
such as a hospital, for example, supplies are typically delivered on a daily basis from drug
and health care suppliers and require coordination among drug companies, local warehouse
operations, local delivery services, and hospital receiving. Patients need to be scheduled into
the services provided by the hospital, such as operations and blood tests. Other areas, such as
the emergency room, need to be staffed to provide service on demand. The orchestration of
all of these activities is critical to providing quality service at a reasonable cost.
Differences between Services and Goods

There are five essential differences between services and goods. The first is that a service
is an intangible process that cannot be weighed or measured, whereas a good is a tangible
output of a process that has physical dimensions. This distinction has important business
implications since a service innovation, unlike a product innovation, cannot be patented.
Thus, a company with a new concept must expand rapidly before competitors copy its
procedures. Service intangibility also presents a problem for customers since, unlike with a
physical product, customers cannot try it out and test it before purchase.
The second is that a service requires some degree of interaction with the customer for
it to be a service. The interaction may be brief, but it must exist for the service to be
complete. Where face-to-face service is required, the service facility must be designed
to handle the customer’s presence. Goods, on the other hand, are generally produced in a
facility separate from the customer. They can be made according to a production schedule
that is efficient for the company.
The third is that services, with the big exception of hard technologies such as automated
teller machines (ATMs) and information technologies such as answering machines and
automated Internet exchanges, are inherently heterogeneous—they vary from day to day
and even hour by hour as a function of the attitudes of the customers and the servers. Thus,
even highly scripted work, such as found in call centers, can produce unpredictable out-
comes. Goods, in contrast, can be produced to meet very tight specifications day-in and
day-out with essentially zero variability. In those cases where a defective good is produced,
it can be reworked or scrapped.
The fourth is that services as a process are perishable and time dependent, and unlike goods,
they can’t be stored. You cannot “come back last week” for an air flight or a day on campus.
And fifth, the specifications of a service are defined and evaluated as a package of fea-
tures that affect the five senses. These features relate to the location, decoration, and layout
of the facility where the service is housed, for example. Other features are the training
and attitude of employees, and the consistency of service performance. Such attributes as
speed, privacy, and security are other features that define a service.
The Goods–Services Continuum

Almost any product offering is a combination of goods and services. In Exhibit 1.3, we
show this arrayed along a continuum of “pure goods” to “pure services.” The continuum
captures the main focus of the business and spans from firms that just produce products
to those that only provide services. Pure goods industries have become low-margin com-
modity businesses, and in order to differentiate, they are often adding some services. Some
examples are providing help with logistical aspects of stocking items, maintaining exten-
sive information databases, and providing consulting advice.
exhibit 1.3 The Goods–Services Continuum
Pure Goods Core Goods Core Services Pure Services

Food products Appliances Hotels University
Chemicals Automobiles Airlines Medical
Mining Data storage systems Internet service Investment
providers
Goods Services
Core goods providers already provide a significant service component as part of their
businesses. For example, automobile manufacturers provide extensive spare parts distribu-
tion services to support repair centers at dealers.
Core service providers must integrate tangible goods. For example, your cable tele-
vision company must provide cable hookup and repair services and also high-definition
cable boxes. Pure services, such as those offered by a financial consulting firm, may need
little in the way of facilitating goods, but what they do use—such as textbooks, profes-
sional references, and spreadsheets—are critical to their performance.
Product–Service Bundling
Product–service bundling refers to a company building service activities into its prod- Product–service
uct offerings for its customers. Such services include maintenance, spare part provision- bundling
ing, training, and in some cases, total systems design and R&D. A well-known pioneer When a firm builds
in this area is IBM, which treats its business as a service business and views physical service activities
goods as a small part of the “business solutions” it provides its customers. Companies into its product
offerings to create
that are most successful in implementing this strategy start by drawing together the ser-
additional value for
vice aspects of the business under one roof in order to create a consolidated service orga-
the customer.
nization. The service evolves from a focus on enhancing the product’s performance to
developing systems and product modifications that support the company’s move up the
“value stream” into new markets. This type of strategy might not be the best approach
for all product companies, however. Firms that offer product–service bundles typically
generate higher revenues, and they tend to generate lower profits as a percentage of rev-
enues when compared to focused firms. This is because they are often unable to generate
revenues or margins high enough to cover the additional investment required to cover
service-related costs.
EFFICIENCY, EFFECTIVENESS, AND VALUE

Compared with most of the other ways managers try to stimulate growth—via technol- LO1–2 Evaluate the
ogy investments, acquisitions, and major market campaigns, for example—innovations in efficiency of the firm.
operations are relatively reliable and low cost. As a business student, you are perfectly
positioned to come up with innovative operations-related ideas. You understand the big
picture of all the processes that generate the costs and support the cash flow essential to the
firm’s long-term viability.
Through this book, you will become aware of the concepts and tools now being
employed by companies around the world as they craft efficient and effective operations.
Efficiency means doing something at the lowest possible cost. Later in the book, we define Efficiency
this more thoroughly. But roughly speaking, the goal of an efficient process is to produce Doing something at
a good or provide a service by using the smallest input of resources. In general, these the lowest possible
resources are the material, labor, equipment, and facilities used in the OSCM processes. cost.
Effectiveness means doing the right things to create the most value for the customer. Effectiveness
For example, to be effective at a grocery store, it is important to have plenty of operating Doing the right
checkout lines even though they may often stand idle. This is a recognition that the cus- things to create the
tomer’s time is valuable and that they do not like waiting to be served in the checkout line. most value for the
Often maximizing effectiveness and efficiency at the same time creates conflict between customer.
the two goals. We see this trade-off every day in our lives. At the checkout lines, being effi-
cient means using the fewest people possible to ring up customers. Being effective, though,
means minimizing the amount of time customers need to wait in line.
Value Related to efficiency and effectiveness is the concept of value, which can be abstractly
The attractiveness of defined as quality divided by price. Here quality is the attractiveness of the product, con-
a product relative to sidering its features and durability. If you can provide the customer with a better car with-
its price. out changing price, value has gone up. If you can give the customer a better car at a lower
price, value goes way up. A major objective of this book is to show how smart manage-
ment can achieve high levels of value.
How Does Wall Street Evaluate Efficiency?

Investors have great interest in operations and supply chain management since the relative
cost of providing a good or service is essential to high earnings growth. When you think
about it financially, earnings growth is largely a function of the firm’s profitability, and
profit can be increased through higher sales and/or reduced cost. Highly efficient firms
usually shine when demand drops during recession periods. They often can continue to
make a profit due to their low-cost structure. These operations-savvy firms may even see a
recession as an opportunity to gain market share as their less-efficient competitors struggle
to remain in business.
The relationships between the cost, profit margin, and return on assets (ROA) are direct.
Reducing the cost of raw materials, for example, might be a typical OSCM focus. Consider
a firm that can reduce raw material costs by 5 percent. This reduction should reduce both
the operating costs and the assets of the firm, thus improving profit margin, asset turnover,
and the firm return on assets (ROA). For the example shown in Exhibit 1.4, the 5 percent
Benchmarking
reduction leads to a nearly 29 percent increase in profit margin and a 30 percent increase
When one company in the company’s ROA—thus, in this case an almost 6:1 return for every dollar saved by
studies the reducing raw materials costs.
processes of another Benchmarking is a process in which the processes of companies are compared to iden-
company to identify tify best practices. Wall Street uses a set of financial indications that are called manage-
best practices. ment efficiency ratios to benchmark companies.
exhibit 1.4 The Impact of Reducing Raw Material Cost
Before After Change

Annual Sales Before
Annual Sales $5,000 $5,000
After
$5,000
Operating Data
Labor $700 $700 Net Income

Materials $2,300 $2,185 –5.00% $400
–
Overhead $800 $800 Total Costs $515 Profit Margin
COGS $3,800 $3,685 $4,600 ÷ 8.00%
Other Costs $800 $800 $4,485 Annual Sales 10.30%
Return on Investment (ROI)
Total Costs $4,600 $4,485 $5,000
× 10.00%
Inventory $500 $475 –5.00% Current Assets Asset Turnover 12.96% 29.56% Change
Receivables $300 $300 $1,100 ÷ 1.25
Cash $300 $300 $1,075 Total Assets 1.26
Assets
Current Assets $1,100 $1,075 + $4,000

Fixed Assets $2,900 $2,900 Fixed Assets $3,975
Total Assets $4,000 $3,975 $2,900

Efficiency at Southwest Airlines

Getting passengers on a plane quickly can greatly affect an
airline’s costs. Southwest, considered the fastest at turn-
ing a plane around, does not assign seats. For Southwest,
the goal is to have its airplanes in the air as much as pos-
sible. This is difficult, given the multiple short flights that a
Southwest jet flies each day.
Southwest has over 700 jets that average just over
five flights per day. Turning a jet around—from landing to
takeoff—is critical to this type of airline, and it has been
estimated that Southwest can do this in between 30 and
55 minutes, depending on the airport and plane. Think
about this: even at 45 minutes per turn, a Southwest jet still
spends about 3.75 hours on the ground each day being
serviced. The precious minutes that Southwest can save in
loading passengers results in more flights the airline can fly.
F. Robert Jacobs
CAREERS IN OPERATIONS AND SUPPLY CHAIN

MANAGEMENT
So what do people who pursue careers in OSCM do? Quite simply, they specialize in LO1–3 Know the
managing the planning, production, and distribution of goods and services. Jobs abound
potential career
for people who can do this well since every organization is dependent on effective perfor-
opportunities in
mance of this fundamental activity for its long-term success.
operations and
It is interesting to contrast entry-level jobs in OSCM to marketing and finance jobs.
Many marketing entry-level jobs focus on actually selling products or managing the sales supply chain
of products. These individuals are out on the front line trying to push product to potential management.
customers. Frequently, a significant part of their income will depend on commissions from
these sales. Entry-level finance (and accounting) jobs are often in large public accounting
firms. These jobs involve working at a desk auditing transactions to ensure the accuracy
of financial statements. Other assignments involve the analysis of transactions to better
understand the costs associated with the business.
Contrast the marketing and finance jobs to OSCM jobs. The operations and sup-
ply chain manager is out working with people to figure out the best way to deliver the
goods and services of the firm. Sure, OSCM people work with the marketing folks, but
rather than being on the selling side, they are on the buying side: trying to select the
best materials and hiring the greatest talent. They will use the data generated by the
finance people and analyze processes to figure out how to produce those goods and
services. OSCM jobs are hands-on, working with people and figuring out the best way
to do things.
The following are some typical jobs in OSCM:
∙ Plant manager—Oversees the workforce and physical resources (inventory, equip-

ment, and information technology) required to produce the organization’s product.
∙ Hospital administrator—Oversees human resource management, staffing, and

finances at a health care facility.
∙ Branch manager (bank)—Oversees all aspects of financial transactions at a branch.
∙ Department store manager—Oversees all aspects of staffing and customer service at
a store.
∙ Call center manager—Oversees staffing and customer service activities at a call
center.
∙ Supply chain manager—Negotiates contracts with vendors and coordinates the flow
of material inputs to the production process and the shipping of finished products to
customers.
∙ Purchasing manager—Manages the day-to-day aspects of purchasing, such as invoic-
ing and follow-up.
∙ Logistics manager—Oversees the movement of goods throughout the supply chain.
∙ Warehouse/Distribution manager—Oversees all aspects of running a warehouse,
including replenishment, customer order fulfillment, and staffing.
∙ Business process improvement analyst—Applies the tools of lean production to
reduce cycle time and eliminate waste in a process.
∙ Quality control manager—Applies techniques of statistical quality control, such as
acceptance sampling and control charts, to the firm’s products.
∙ Lean improvement manager—Trains organizational members in lean production and
continuous improvement methods.
∙ Project manager—Plans and coordinates staff activities, such as new-product devel-
opment, new-technology deployment, and new-facility location.
∙ Production control analyst—Plans and schedules day-to-day production.
∙ Facilities manager—Ensures that the building facility design, layout, furniture, and
other equipment are operating at peak efficiency.
Chief Operating Officer

So how far can you go in a career in OSCM? One goal would be to become the chief oper-
ating officer (COO) of a company. The COO works with the chief executive officer (CEO)
Spotlight on an OSCM Professional
This 28-Year-Old Supply Chain Manager Lives on $227,000 a Year in London.

So how would this path to the Chief Operating Officier start? Recently, a supply chain graduate of Arizona State was fea-
tured in the CNBC Make IT Millennial Money series. Imani Change, age 28, was raised in Oak Park, Illinois, a suburb of
Chicago, and began saving for college at age 5. She grew up understanding the value of money and the importance of
working hard. She earned a bachelor’s degree in supply chain management at Arizona State University and landed her
first job with a technology company in Baltimore, Maryland.
After only five years with her company, a new work opportunity came along. The new opportunity gave her the chance
to move to London, along with a promotion and a great salary. She never thought that she could advance to senior opera-
tions manager so quickly. She is paid both a base salary and restricted stock shares, so what she makes is dependent on the
value of the stock she is awarded each year.
Imani has a career and financial plan to become a millionaire by age 30 and to own a house by age 33.
and company president to determine the company’s competitive strategy. The COO’s
ideas are filtered down through the rest of the company. COOs determine an organiza-
tion’s location, its facilities, which vendors to use, and how the hiring policy will be imple-
mented. Once the key decisions are made, lower-level operations personnel carry them
out. Operations personnel work to find solutions and then set about fixing the problems.
Managing the supply chain, service, and support are particularly challenging aspects of a
chief operating officer’s job.
Career opportunities in OSCM are plentiful today as companies strive to improve prof-
itability by improving quality and productivity and reducing costs. The hands-on work of
managing people is combined with great opportunities to leverage the latest technologies
in getting the job done at companies around the world. No matter what you might do for a
final career, your knowledge of OSCM will prove to be a great asset.
HISTORICAL DEVELOPMENT OF OPERATIONS LO1–4 Recognize

the major concepts
AND SUPPLY CHAIN MANAGEMENT that define the
operations and
Our purpose in this section is not to go through all the details of OSCM; that would require supply chain
us to recount the entire Industrial Revolution. Rather, the focus is on major operations-
management field.
related concepts that have been popular since the 1980s. Exhibit 1.5 will help clarify the
dates as you read about the concepts. Where appropriate, how a supposedly new idea Manufacturing
relates to an older idea is discussed. (We seem to keep rediscovering the past.) strategy
Emphasizes how a
factory’s capabilities
Manufacturing Strategy Paradigm The late 1970s and early 1980s saw the develop-
could be used
ment of the manufacturing strategy paradigm, which emphasized how manufacturing strategically to gain
executives could use their factories’ capabilities as strategic competitive weapons. Central advantage over a
competing company.
exhibit 1.5 Time Line Depicting When Major OSCM Concepts

Became Popular
Manufacturing strategy developed

Late 1970s
Just-in-time (JIT) production
Early 1980s
pioneered by the Japanese
Mid-1980s Service quality and productivity
Total quality management Early 1990s

(TQM) and quality Six Sigma quality
certification programs
Mid-1990s
Supply chain
Business process Late 1990s management (SCM)
reengineering (BPR)
Early 2000s Sustainability
Electronic commerce
Mid-2010s
Business analytics
Just-in-time (JIT) to this thinking was the notion of manufacturing trade-offs among such performance mea-
An integrated set of sures as low cost, high quality, and high flexibility.
activities designed to
achieve high-volume Lean Manufacturing, JIT, and TQC The 1980s saw a revolution in the management phi-
production using losophies and technologies by which production is carried out. Just-in-time (JIT) produc-
minimal inventories
tion was the major breakthrough in manufacturing philosophy. Pioneered by the Japanese,
of parts that arrive
exactly when they
JIT is an integrated set of activities designed to achieve high-volume production using
are needed. minimal inventories of parts that arrive exactly when they are needed. The philosophy—
Total quality control coupled with total quality control (TQC), which aggressively seeks to eliminate causes
(TQC) of production defects—is now a cornerstone in many manufacturers’ production practices,
Aggressively seeks and the term lean manufacturing is used to refer to the set of concepts.
to eliminate causes of
production defects. Service Quality and Productivity The unique approach to quality and productivity by
Lean manufacturing McDonald’s has been so successful that it stands as a reference point in thinking about how
Term used to refer to to deliver high-volume standardized services.
the set of concepts
relating to JIT and Total Quality Management and Quality Certification Another major develop-
TQC. ment was the focus on total quality management (TQM) in the late 1980s and 1990s.
Total quality Helping the quality movement along was the Baldrige National Quality Award, started
management (TQM) in 1987 under the direction of the National Institute of Standards and Technology. The
Managing the entire Baldrige Award recognizes companies each year for outstanding quality management
organization so systems.
that it excels on The ISO 9000 certification standards, created by the International Organization for
all dimensions of Standardization, now play a major role in setting quality standards for global manufacturers.
products and services
that are important to
the customer.
Business Process Reengineering The need to become lean to remain competitive
in the global economic recession in the 1990s pushed companies to seek innovations in
Business process the processes by which they run their operations. The business process reengineering
reengineering (BPR)
(BPR) approach seeks to make revolutionary changes as opposed to evolutionary
An approach to
improving business
changes (which are commonly advocated in TQM). It does this by taking a fresh look
processes that seeks at what the organization is trying to do in all its business processes, and then eliminat-
to make revolutionary ing non-value-added steps and computerizing the remaining ones to achieve the desired
changes as opposed outcome.
to evolutionary (small)
changes. Six Sigma Quality Originally developed in the 1980s as part of total quality manage-
Six Sigma ment, Six Sigma in the 1990s saw a dramatic expansion as an extensive set of diagnostic
A statistical term to tools was developed. These tools have been taught to managers as part of “Green and
describe the quality Black Belt Programs” at many corporations. The tools are now applied not only to the
goal of no more than well-known manufacturing applications, but also to nonmanufacturing processes such as
3.4 defects out of accounts receivable, sales, and research and development. Six Sigma has been applied
every million units. to environmental, health, and safety services at companies and is now being applied to
Also refers to a
research and development, finance, information systems, legal, marketing, public affairs,
quality improvement
philosophy and
and human resource processes.
program.
Mass customization
Supply Chain Management The central idea of supply chain management is to apply a
The ability to total system approach to managing the flow of information, materials, and services from
produce a unique raw material suppliers through factories and warehouses to the end customer. Trends such
product exactly to a as outsourcing and mass customization are forcing companies to find flexible ways to
particular customer’s meet customer demand. The focus is on optimizing core activities to maximize the speed
requirements. of response to changes in customer expectations.
Electronic Commerce The quick adoption of the Internet and the World Wide Web dur-
ing the late 1990s was remarkable. The term electronic commerce refers to the use of Electronic
the Internet as an essential element of business activity. The use of web pages, forms, and commerce
interactive search engines has changed the way people collect information, shop, and com- The use of the
municate. It has changed the way operations managers coordinate and execute production Internet as an
and distribution functions. essential element of
business activity.
Sustainability and the Triple Bottom Line Sustainability is the ability to maintain bal- Sustainability
ance in a system. Management must now consider the mandates related to the ongoing The ability to meet
economic, employee, and environmental viability of the firm (the triple bottom line). current resource
Economically, the firm must be profitable. Employee job security, positive working con- needs without
ditions, and development opportunities are essential. The need for nonpolluting and non- compromising the
ability of future
resource-depleting products and processes presents new challenges to operations and
generations to meet
supply managers.
their needs.
Business Analytics Business analytics involves the analysis of data to better solve busi- Triple bottom line
ness problems. Not that this is something new. Data have always been used to solve busi- A business strategy
ness problems. What is new is the reality that so much more data are now captured and that includes social,
available for decision-making analysis than were available in the past. In addition, math- economic, and
environmental
ematical tools are now readily available that can be used to support the decision-making
criteria.
process.
In the past, most analysis involved the generation of standard and ad hoc reports that Business analytics
summarized the current state of the firm. Software allowed querying and “drill down” The use of current
analysis to the level of the individual transaction, useful features for understanding what business data to
happened in the past. Decision making was typically left to the decision maker based on solve business
judgment or simple alerting rules. The new “analytics” movement takes this to a new problems using
level, using statistical analysis, forecasting to extrapolate what to expect in the future, mathematical
and even optimization, possibly in real time, to support decisions. These mathematical analysis.
results can be used either to support the
decision maker or to automate decision
making.
Take, for example, an airline manager
presented with the task of setting price
points for tickets on a flight. Real-time
demand data, historic demand patterns,
and powerful mathematical models can
now be applied to setting price points
for different classes of tickets. As it is
closer to the time of departure for a par-
ticular flight, these price points can be
adjusted based on how sales are going.
These decisions have a major impact on
the utilization of aircraft capacity, which
impacts both revenue and costs for the
airlines. These decisions can even be
made using criteria related to weather
conditions, fuel prices, crew schedules, SOUTHWEST AIRLINES MANAGER MONITORING FLIGHTS AND PASSENGERS TO
and other flights to maximize the profit DECIDE PRICING.
of the firm. Erik S.Lesser/EPA/REX/Shutterstock
Current Issues in Operations and Supply Chain Management

OSCM is a dynamic field, and issues arising in global enterprise present exciting new
challenges for operations and supply chain managers. Looking forward to the future, we
believe the major challenges in the field will be as follows:
1. Adapting to rapidly changing global business relationships. For years, China

and other Asian suppliers have successfully excelled at the production of low-cost
products that have been exported to world markets. This has caused economic trade
imbalances that some world leaders consider a problem. The rebalancing of this
trade will present major challenges to companies in the future.
2. Accommodating the shift to online retail purchasing. Consumers are rapidly
adopting shopping and purchasing practices that make use of online offerings. The
challenges presented to companies as they adapt to this change are significant.
These changes require the physical reconfiguration of retail stores, warehouses,
and other facilities.
3. Optimizing global supplier, production, and distribution networks. As busi-
ness practices change, optimization of the OSCM networks will become an ongo-
ing activity. New analytics that make use of real-time data and artificial intelligence
will become common.
4. The speedy adoption of new technology and automation. In virtually every
aspect of OSCM, technology will be increasingly more important to remaining
competitive. More employees will work from home. Trucks that use automatic
driving features and platooning will become common. Robots that automate tasks
such as cooking pizzas and making hamburgers will become affordable. These are
just a few examples; there will be thousands of new technologies introduced each
year. Keeping up with all the new technologies and adopting them quickly will be a
major challenge for companies.
CONCEPT CONNECTIONS
LO1–1 Identify the elements of operations and supply chain management (OSCM).
∙ Processes are used to implement the strategy of the firm.
∙ Analytics are used to support the ongoing decisions needed to manage the firm.
Operations and supply chain management (OSCM) The design, operation, and
improvement of the systems that create and deliver the firm’s primary products and services.
Process One or more activities that transform inputs into outputs.
Product–service bundling When a firm builds service activities into its product offerings to
create additional value for the customer.
LO1–2 Evaluate the efficiency of the firm.

Criteria that relate to how well the firm is doing include:
∙ Efficiency
∙ Effectiveness
∙ Value created in its products and services
Efficiency Doing something at the lowest possible cost.

Effectiveness Doing the right things to create the most value for the customer.
Value The attractiveness of a product relative to its price.
Benchmarking When one company studies the processes of another company to identify best
practices.
LO1–3 Know the potential career opportunities in operations and supply chain
management.
∙ OSCM people specialize in managing the production of goods and services.
∙ OSCM jobs are hands-on and require working with others and figuring out the best way to
do things.
∙ The chief operating officer (COO) works with the chief executive officer (CEO) and
company president to determine the company’s competitive strategy.
∙ COOs determine an organization’s location, its facilities, which vendors to use, and how the
hiring policy will be implemented.
LO1–4 Recognize the major concepts that define the operations and supply chain
management field.
Many of the concepts that form the OSCM field have their origins in the Industrial Revolution in
the 1800s. The focus of this book is on popular concepts developed since the 1980s.
These concepts include:
Manufacturing strategy Emphasizes how a factory’s capabilities could be used strategically to

gain advantage over a competing company.
Just-in-time (JIT) An integrated set of activities designed to achieve high-volume production

using minimal inventories of parts that arrive exactly when they are needed.
Total quality control (TQC) Aggressively seeks to eliminate causes of production defects.
Lean manufacturing Term used to refer to the set of concepts relating to JIT and TQC.
Total quality management (TQM) Managing the entire organization so that it excels on all
dimensions of products and services that are important to the customer.
Business process reengineering (BPR) An approach to improving business processes that

seeks to make revolutionary changes as opposed to evolutionary (small) changes.
Six Sigma A statistical term to describe the quality goal of no more than 3.4 defects out of every
million units. Also refers to a quality improvement philosophy and program.
Mass customization The ability to produce a unique product exactly to a particular customer’s
requirements.
Electronic commerce The use of the Internet as an essential element of business activity.
Sustainability The ability to meet current resource needs without compromising the ability of
future generations to meet their needs.
Triple bottom line A business strategy that includes social, economic, and environmental criteria.
Business analytics The use of current business data to solve business problems using
mathematical analysis.
DISCUSSION QUESTIONS
LO1–1 1. Using Exhibit 1.2 as a model, describe the source-make-deliver-return
relationships in the following systems:
a. An airline
b. An automobile manufacturer
c. A hospital
d. An insurance company
2. Define the service package of your college or university. What is its strongest
element? Its weakest one?
3. What service industry has impressed you the most with its innovativeness?
4. What is product–service bundling, and what are the benefits to customers?
5. What is the difference between a service and a good?
LO1–2 6. Some people tend to use the terms effectiveness and efficiency interchangeably,
though we have seen they are different concepts. But is there any relationship
at all between them? Can a firm be effective but inefficient? Very efficient but
essentially ineffective? Both? Neither?
7. Two of the efficiency ratios mentioned in the chapter are the asset turnover and
the return on assets. While they are two separate measures, they are similar. What
bit of data is used in one measure but not the other?
LO1–3 8. Look at the job postings at jobs.apics.org and evaluate the opportunities for an
OSCM major with several years of experience.
LO1–4 9. Recent outsourcing of parts and services that had previously been produced
internally is addressed by which current issue facing operation management
today?
10. What factors account for the amazing interest in OSCM today?
11. As the field of OSCM has advanced, new concepts have been applied to help
companies compete in a number of ways, including the advertisement of the
firm’s products or services. One recent concept to gain the attention of companies
is promoting sustainability. Discuss how you have seen the idea of sustainability
used by companies to advertise their goods or services.
OBJECTIVE QUESTIONS
LO1–1 1. What are the three elements that require integration to be successful in operations
and supply chain management?
2. Operations and supply chain management is concerned with the design and
management of the entire system that has what function?
LO1–2 3. Consider the following financial data from the past year for Midwest Outdoor
Equipment Corporation.
Annual sales 24,324,000
Net income 2,975,000
Cost of goods sold 12,600,000
Total assets 10,550,000
Inventory 2,875,000
Receivables 3,445,000
a. Compute the profit margin.

b. Compute the asset turnover ratio.
c. Compute the return on assets ratio.
4. The Midwest Outdoor Equipment Corporation (see question 3) has entered into
a new contract with a major supplier of raw materials used in the manufacturing
process. Under the new arrangement, called vendor managed inventory, the
supplier manages its raw material inventory inside the manufacturer’s plant and
bills only the manufacturer when the manufacturer consumes the raw material.
This is expected to reduce total assets by $2 million. What is the expected change
in return on assets?
5. What is the name of the process in which one company studies the processes of
another firm to identify best practices?
6. A company has recently implemented an automated online billing and payment
processing system for orders it ships to customers. As a result, it has reduced
receivables by $500,000. What would be the expected directional change in the
asset turnover ratio?
LO1–3 7. Match the following OSCM job titles with the appropriate duties and responsibilities.
Plant manager A. Plans and coordinates staff activities
Supply chain manager such as new-product development and
Project manager new-facility location.
Business process B. Oversees the movement of goods
improvement analyst throughout the supply chain.
Logistics manager C. Oversees the workforce and resources
required to produce the firm’s products.
D. Negotiates contracts with vendors and
coordinates the flow of material inputs
to the production process.
E. Applies the tools of lean production to
reduce cycle time and eliminate waste
in a process.
8. What high-level OSCM manager is responsible for working with the CEO and
company president to determine the company’s competitive strategy?
LO1–4 9. Order the following major concepts that have helped define the OSCM field on a
time line. Use 1 for the earliest concept to be introduced, and 5 for the most recent.
Supply chain management
Manufacturing strategy
Business analytics
Total quality management
Electronic commerce
10. Which major OSCM concept can be described as an integrated set of activities
designed to achieve high-volume production using minimal inventories of parts
that arrive at workstations exactly when they are needed?
11. leverage the vast amount of data in enterprise resource planning
systems to make decisions related to managing resources.
12. Which current issue in OSCM relates to the ability of a firm to reconfigure its
retail stores, warehouses, and other facilities?
ANALYTICS EXERCISE: THE SUPPLY CHAIN IMPROVEMENT MODEL

Improving a company’s operations and supply chain is an The SCIM uses base data from a company’s income state-
ongoing job. New ways to make things, to move goods, ment and the balance sheet. The focus here is on data that is
and to interact with customers, along with a myriad of largely dependent on OSCM functions in the firm. From the
other opportunities, become available. The challenge is income statement: Annual sales, Labor, Material, Overhead,
determining where the operations and supply chain man- and Other costs (typically Sales and Administrative cost)
agers should focus. Some changes will result in less objec- accounts are used. From the balance sheet: Cash, Inventory,
tive improvements like the quality of a material finish, or Receivables, Fixed assets (these are typically Plant,
a change in the shape of a product. Other improvements Equipment, and other assets needed to support OSCM func-
can be evaluated analytically such as speeding the delivery tions), are used.
process or reducing the failure rate of a part. One uniform The following are equations that relate these accounts:
criterion that can be used is the financial impact of a poten-
tial improvement. This is the focus of The Supply Chain Cost of good sold = Labor + Material + Overhead
Improvement Model (SCIM). Total costs = Cost of goods sold + Other costs
The SCIM is a mathematical version of the diagram Net income = Annual sales − Total costs
shown in Exhibit 1.4. The model consists of a few simple Current assets = Inventory + Receivables + Cash
linear equations that capture the relationships in the diagram. Total assets = Current assets + Fixed assets
Many of these types of models are described in this book. Profit margin = Net income/Annual sales
Where possible, the equations are kept simple and intuitive Asset turnover = Annual sales/Total assets
so they can be easily understood and remembered. The best Return on assets (ROA) = Profit margin × Asset turnover
way to analyze a model is with a spreadsheet, since the equa-
tions can be easily captured in the formulas. The following scenario has been developed for analysis
The ability to evaluate the potential financial impact using the SCIM. The scenario uses estimates of data like
of an OSCM change is the goal of the SCIM. For a public what a company such as Tesla might face. Tesla, as you
company striving to improve profitability for its sharehold- know, is an innovation leader in the development of electric
ers, the ability to predict this impact is important. Using this vehicles and clean energy products. The firm manufactures
approach to evaluate a decision is probably not new to you, electric vehicles, battery storage devices, and solar panel roof
but a fresh emphasis on how OSCM influences outcomes is tiles. Tesla management is presented with many opportuni-
the purpose here. ties in their ongoing quest to lead the clean energy charge.
Paul Nylander Paul Nylander Ken Wolter/Shutterstock
THE TESLA LOGO–THE “T” IS A CROSS-SECTION OF AN ELECTRIC MOTOR.

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II. On the winds, of which frequent mention is made by our
author, Coray has treated with a degree of prolixity and earnestness
for which it is difficult to recognize the necessity. The figure given
above, if properly studied and understood, will supply the
professional reader with all the information he will require on this
head.
III. One of the most singular diseases noticed in this work is the
effeminacy with which the Scythians are said to have been attacked
in consequence of spending the greater part of their time on
horseback. (See § 22.) As the subject has attracted a good deal of
attention lately, I will give a summary of the information which has
been collected respecting it. See Coray, etc., t. ii., p. 331; Littré, t. ii.,
p. 5, 6; and Avert., xxxix., p. 47; t. iv., p. 9.
In the first place, then, it can scarcely admit of doubt that the
disease is the same as that which Herodotus describes in the
following passage: “Venus inflicted upon the Scythians, who pillaged
her temple at Ascalon, and on their descendants, the feminine
disease; at least it is to this cause that they attribute their disease;
and travellers that go to the land of Scythia see how these persons
are affected whom the Scythians called accursed (ἐναρεες).”[372]
All the opinions which have been entertained respecting this
affection are referred by M. Littré to the three following categories:
I. A vice, namely (A), Pederasty, which, he says is the most
ancient opinion we have respecting it, as indicated by Longinus[373]
(on the Sublime, 25), and defended by his commentators, Toll and
Pearce, and by Casaubon and Coster.[374] (B), Onanism, the opinion
to which Sprengel inclines in his work on Hippocrates.
2. A bodily disease, to wit: (A), Hemorrhoids, as maintained by
Paul Thomas de Girac,[375] by Valkenäer, by Bayer,[376] and by the
Compilers of the ‘Universal History.’[377] (B), A true menstruation, as
appears to be maintained by Lefevre and Dacier,[378] and by others.
(C), Blenorrhagia, as Guy Patin[379] and others suppose. (D), A true
impotence, as held by Mercuriali and others.
3. A mental disease, as maintained by Sauvages,[380] Heyne,
[381] Coray,[382] and others.
M. Rosenbaum is at great pains to make out that the affection in

question was pederasty, and that the accursed (ἐνάρεες) of
Herodotus were the same as the pathici of the Romans. I must say,
that in my opinion Rosenbaum makes out a strong case in support of
this opinion. In particular it will be remarked, that Herodotus says,
the descendants of these Scythians were also afflicted with this
complaint. Now Celsus Aurelianus says expressly, that the affection
of the pathici was hereditary.[383] Taking everything into account, I
must say that my own opinion has always been that the disease in
question must have been some variety of spermatorrhœa. I need
scarcely remark that this affection induces a state, both of body and
mind, analogous to that of the pathici, as described by ancient
authors.
Before leaving this subject, however, I should mention that M.
Littré, in the fourth volume of his Hippocrates (p. xi.), brings into view
a thesis by M. Graff, the object of which is to prove that the disease
of the Scythians was a true sort of impotence; and in illustration of it,
he cites a passage from the memoirs of M. Larrey, containing a
description of a species of impotence, attended with wasting of the
testicle, which attacked the French army in Egypt. But, as far as I
can see, this disease described by Larrey had nothing to do with
riding on horseback, and I cannot see any relation between it and
the diseases described by Herodotus and Hippocrates.
IV. Of all the legendary tales of antiquity, there is probably no one
which was so long and so generally credited by the best informed
historians, critics, geographers, poets, and philosophers, as the story
of the Amazons. They are noticed historically by Homer (Iliad, iii.,
186; vi., 152); Apollonius Rhodius (ii., 196); Pindar (Olymp. xiii., 84);
Herodotus (ix., 27); Lysias (Epitaph. 3); Plato (Menex.); Isocrates
(Panyg.); Ctesias (Persic.); Plutarch (Theseus); Strabo (Geogr. ix.);
Pausanias (iv., 31, 6; vii., 2, 4); Arrian (Exped. Alexand.); Quintus
Curtius (vi., 4). Now it is singular that in all this list of authorities,
which, it will be remarked, comprehends the élite of ancient scholars,
no one, with the exception of Strabo, ventures to express the
slightest doubt respecting the actual existence of the Amazons.
Some of them, indeed, admit that the race had become extinct in
their time; but they all seem satisfied that the Amazons had truly
existed in a bygone age, and consequently they acknowledge them
as real historical personages. See, in particular, Arrian, who,
although compelled by his respect for truth to acknowledge that they
did not exist in the days of Alexander the Great, still does not
hesitate to declare that it appeared incredible that this race of
women, celebrated as they were by the most eminent authors,
should never have existed at all. Yet, notwithstanding the mass of
evidence in support of their actual existence, I suppose few scholars
nowadays will hesitate to agree with Heyne (Apollodor. ii., 5, 9), and
with Grote (Hist. of Greece, i., 2), in setting down the whole story as
mere myth. But, considering how generally it had been believed, we
need not wonder that Hippocrates in this treatise should appear to
entertain no doubt of their actual existence. The reader will remark
that he makes the locality of the Amazons to be in Europe, among
the Sarmatians, on the north side of the Euxine. It is generally taken
for granted, however, in the ancient myths, that their place of
residence was on the banks of the Thermodon, in Cappadocia, and
they are described as having afterwards crossed to the opposite side
of the Euxine, when expelled from this locality. But, in fact, they are
remarkable so much for nothing as their ubiquity, being sometimes
located in Asia, sometimes in Africa, and at other times in Athens. I
may remark, before concluding, that Mr. Payne Knight (Symbolical
Language, etc., Classical Journal, 23), and Creuzer (Symbolik. etc.),
give a symbolical interpretation to the story of the Amazons; but this
mode of explaining the myths of antiquity is altogether fanciful and
unsatisfactory. It seems safer and more judicious to deal with them
as Mr. Grote has done,[384] that is to say, to receive them as tales in
which the ancients believed, without having any rational foundation
for their faith. That there may have been a certain basis of truth in
the story of the Amazons need not be denied; but in this, as in all the
ancient myths, it is a hopeless task to attempt to separate truth from
fiction.
ON AIRS, WATERS, AND PLACES.
1. Whoever wishes to investigate medicine properly, should

proceed thus: in the first place to consider the seasons of the year,
and what effects each of them produces (for they are not at all alike,
but differ much from themselves in regard to their changes).[385]
Then the winds, the hot and the cold, especially such as are
common to all countries, and then such as are peculiar to each
locality. We must also consider the qualities of the waters, for as they
differ from one another in taste and weight, so also do they differ
much in their qualities. In the same manner, when one comes into a
city to which he is a stranger, he ought to consider its situation, how
it lies as to the winds and the rising of the sun; for its influence is not
the same whether it lies to the north or the south, to the rising or to
the setting sun. These things one ought to consider most attentively,
and concerning the waters which the inhabitants use, whether they
be marshy and soft, or hard, and running from elevated and rocky
situations, and then if saltish and unfit for cooking; and the ground,
whether it be naked and deficient in water, or wooded and well
watered, and whether it lies in a hollow, confined situation, or is
elevated and cold; and the mode in which the inhabitants live, and
what are their pursuits, whether they are fond of drinking and eating
to excess, and given to indolence, or are fond of exercise and labor,
and not given to excess in eating and drinking.[386]
2. From these things he must proceed to investigate everything
else. For if one knows all these things well, or at least the greater
part of them, he cannot miss knowing, when he comes into a strange
city, either the diseases peculiar to the place, or the particular nature
of common diseases, so that he will not be in doubt as to the
treatment of the diseases, or commit mistakes, as is likely to be the
case provided one had not previously considered these matters. And
in particular, as the season and the year advances, he can tell what
epidemic diseases will attack the city, either in summer or in winter,
and what each individual will be in danger of experiencing from the
change of regimen. For knowing the changes of the seasons, the
risings and settings of the stars, how each of them takes place, he
will be able to know beforehand what sort of a year is going to
ensue. Having made these investigations, and knowing beforehand
the seasons, such a one must be acquainted with each particular,
and must succeed in the preservation of health, and be by no means
unsuccessful in the practice of his art. And if it shall be thought that
these things belong rather to meteorology,[387] it will be admitted, on
second thoughts, that astronomy contributes not a little, but a very
great deal, indeed, to medicine. For with the seasons the digestive
organs of men undergo a change.
3. But how each of the afore-mentioned things should be
investigated and explained, I will now declare in a clear manner. A
city that is exposed to hot winds (these are between the wintry rising,
and the wintry setting of the sun), and to which these are peculiar,
but which is sheltered from the north winds; in such a city the waters
will be plenteous and saltish, and as they run from an elevated
source, they are necessarily hot in summer, and cold in winter;[388]
the heads of the inhabitants are of a humid and pituitous constitution,
and their bellies subject to frequent disorders, owing to the phlegm
running down from the head; the forms of their bodies, for the most
part, are rather flabby; they do not eat nor drink much; drinking wine
in particular, and more especially if carried to intoxication, is
oppressive to them; and the following diseases are peculiar to the
district: in the first place, the women are sickly and subject to
excessive menstruation; then many are unfruitful from disease, and
not from nature, and they have frequent miscarriages; infants are
subject to attacks of convulsions and asthma, which they consider to
be connected with infancy,[389] and hold to be a sacred disease
(epilepsy). The men are subject to attacks of dysentery, diarrhœa,
hepialus,[390] chronic fevers in winter, of epinyctis,[391] frequently,
and of hemorrhoids about the anus. Pleurisies, peripneumonies,
ardent fevers, and whatever diseases are reckoned acute, do not
often occur, for such diseases are not apt to prevail where the
bowels are loose. Ophthalmies occur of a humid character, but not of
a serious nature, and of short duration, unless they attack
epidemically from the change of the seasons. And when they pass
their fiftieth year, defluxions supervening from the brain, render them
paralytic when exposed suddenly to strokes of the sun,[392] or to
cold. These diseases are endemic to them, and, moreover, if any
epidemic disease connected with the change of the seasons, prevail,
they are also liable to it.
4. But the following is the condition of cities which have the
opposite exposure, namely, to cold winds, between the summer
settings and the summer risings of the sun, and to which these winds
are peculiar, and which are sheltered from the south and the hot
breezes. In the first place the waters are, for the most part, hard and
cold. The men must necessarily be well braced and slender, and
they must have the discharges downwards of the alimentary canal
hard, and of difficult evacuation, while those upwards are more fluid,
and rather bilious than pituitous. Their heads are sound and hard,
and they are liable to burstings (of vessels?) for the most part. The
diseases which prevail epidemically with them, are pleurisies, and
those which are called acute diseases. This must be the case when
the bowels are bound; and from any causes, many become affected
with suppurations in the lungs, the cause of which is the tension of
the body, and hardness of the bowels; for their dryness and the
coldness of the water dispose them to ruptures (of vessels?). Such
constitutions must be given to excess of eating, but not of drinking;
for it is not possible to be gourmands and drunkards at the same
time. Ophthalmies, too, at length supervene; these being of a hard
and violent nature, and soon ending in rupture of the eyes; persons
under thirty years of age are liable to severe bleedings at the nose in
summer; attacks of epilepsy are rare but severe. Such people are
likely to be rather long-lived; their ulcers are not attended with serous
discharges, nor of a malignant character; in disposition they are
rather ferocious than gentle. The diseases I have mentioned are
peculiar to the men, and besides they are liable to any common
complaint which may be prevailing from the changes of the seasons.
But the women, in the first place, are of a hard constitution, from the
waters being hard, indigestible, and cold; and their menstrual
discharges are not regular, but in small quantity, and painful. Then
they have difficult parturition, but are not very subject to abortions.
And when they do bring forth children, they are unable to nurse
them; for the hardness and indigestible nature of the water puts
away their milk. Phthisis frequently supervenes after childbirth, for
the efforts of it frequently bring on ruptures and strains.[393] Children
while still little are subject to dropsies in the testicle, which disappear
as they grow older; in such a town they are late in attaining
manhood. It is, as I have now stated, with regard to hot and cold
winds and cities thus exposed.
5. Cities that are exposed to winds between the summer and the
winter risings of the sun, and those the opposite to them, have the
following characters:—Those which lie to the rising of the sun are all
likely to be more healthy than such as are turned to the North, or
those exposed to the hot winds, even if there should not be a furlong
between them.[394] In the first place, both the heat and cold are more
moderate. Then such waters as flow to the rising sun, must
necessarily be clear, fragrant, soft, and delightful to drink, in such a
city. For the sun in rising and shining upon them purifies them, by
dispelling the vapors which generally prevail in the morning. The
persons of the inhabitants are, for the most part, well colored and
blooming, unless some disease counteract. The inhabitants have
clear voices, and in temper and intellect are superior to those, which
are exposed to the north, and all the productions of the country in
like manner are better. A city so situated resembles the spring as to
moderation between heat and cold, and the diseases are few in
number, and of a feeble kind, and bear a resemblance to the
diseases which prevail in regions exposed to hot winds. The women
there are very prolific, and have easy deliveries. Thus it is with
regard to them.
6. But such cities as lie to the west, and which are sheltered from
winds blowing from the east, and which the hot winds and the cold
winds of the north scarcely touch, must necessarily be in a very
unhealthy situation: in the first place the waters are not clear, the
cause of which is, because the mist prevails commonly in the
morning, and it is mixed up with the water and destroys its clearness,
for the sun does not shine upon the water until he be considerably
raised above the horizon. And in summer, cold breezes from the east
blow and dews fall; and in the latter part of the day the setting sun
particularly scorches the inhabitants, and therefore they are pale and
enfeebled, and are partly subject to all the aforesaid diseases, but no
one is peculiar to them. Their voices are rough and hoarse owing to
the state of the air, which in such a situation is generally impure and
unwholesome, for they have not the northern winds to purify it; and
these winds they have are of a very humid character, such being the
nature of the evening breezes. Such a situation of a city bears a
great resemblance to autumn as regards the changes of the day,
inasmuch as the difference between morning and evening is great.
So it is with regard to the winds that are conducive to health, or the
contrary.
7. And I wish to give an account of the other kinds of waters,
namely, of such as are wholesome and such as are unwholesome,
and what bad and what good effects may be derived from water; for
water contributes much towards health.[395] Such waters then as are
marshy, stagnant, and belong to lakes, are necessarily hot in
summer, thick, and have a strong smell, since they have no current;
but being constantly supplied by rain-water, and the sun heating
them, they necessarily want their proper color, are unwholesome and
form bile; in winter, they become congealed, cold, and muddy with
the snow and ice, so that they are most apt to engender phlegm, and
bring on hoarseness; those who drink them have large and
obstructed spleens, their bellies are hard, emaciated, and hot; and
their shoulders, collar-bones, and faces are emaciated; for their flesh
is melted down and taken up by the spleen, and hence they are
slender; such persons then are voracious and thirsty; their bellies are
very dry both above and below, so that they require the strongest
medicines.[396] This disease is habitual to them both in summer and
in winter, and in addition they are very subject to dropsies of a most
fatal character; and in summer dysenteries. diarrhœas, and
protracted quartan fevers frequently seize them, and these diseases
when prolonged dispose such constitutions to dropsies, and thus
prove fatal. These are the diseases which attack them in summer;
but in winter younger persons are liable to pneumonia, and maniacal
affections; and older persons to ardent fevers, from hardness of the
belly. Women are subject to œdema and leucophlegmasiæ;[397]
when pregand then during nursing they become wasted and sickly,
and the lochial discharge after parturition does not proceed properly
with the women. The children are particularly subject to hernia, and
adults to varices and ulcers on their legs, so that persons with such
constitutions cannot be long-lived, but before the usual period they
fall into a state of premature old age. And further, the women appear
to be with child, and when the time of parturition arrives, the fulness
of the belly disappears, and this happens from dropsy of the uterus.
[398] Such waters then I reckon bad for every purpose. The next to
them in badness are those which have their fountains in rocks, so
that they must necessarily be hard, or come from a soil which
produces thermal waters, such as those having iron, copper, silver,
gold, sulphur, alum, bitumen, or nitre (soda) in them: for all these are
formed by the force of heat.[399] Good waters cannot proceed from
such a soil, but those that are hard and of a heating nature, difficult
to pass by urine, and of difficult evacuation by the bowels. The best
are those which flow from elevated grounds, and hills of earth; these
are sweet, clear, and can bear a little wine; they are hot in summer
and cold in winter, for such necessarily must be the waters from
deep wells. But those are most to be commended which run to the
rising of the sun, and especially to the summer sun; for such are
necessarily more clear, fragrant, and light. But all such as are saltish,
crude, and hard, are not good for drink. But there are certain
constitutions and diseases with which such waters agree when
drunk, as I will explain presently. Their characters are as follows: the
best are such as have their fountains to the east; the next, those
between the summer risings and settings of the sun, and especially
those to the risings; and third, those between the summer and winter
settings; but the worst are those to the south, and the parts between
the winter rising and setting, and those to the south are very bad, but
those to the north are better. They are to be used as follows:
whoever is in good health and strength need not mind, but may
always drink whatever is at hand. But whoever wishes to drink the
most suitable for any disease, may accomplish his purpose by
attending to the following directions: To persons whose bellies are
hard and easily burnt up, the sweetest, the lightest, and the most
limpid waters will be proper; but those persons whose bellies are
soft, loose, and pituitous, should choose the hardest, those kinds
that are most crude, and the saltest, for thus will they be most readily
dried up; for such waters as are adapted for boiling, and are of a
very solvent nature, naturally loosen readily and melt down the
bowels; but such as are intractable, hard, and by no means proper
for boiling, these rather bind and dry up the bowels. People have
deceived themselves with regard to salt waters, from inexperience,
for they think these waters purgative, whereas they are the very
reverse; for such waters are crude, and ill adapted for boiling, so that
the belly is more likely to be bound up than loosened by them.[400]
And thus it is with regard to the waters of springs.
8. I will now tell how it is with respect to rain-water, and water
from snow. Rain waters, then, are the lightest, the sweetest, the
thinnest, and the clearest; for originally the sun raises and attracts
the thinnest and lightest part of the water, as is obvious from the
nature of salts; for the saltish part is left behind owing to its thickness
and weight, and forms salts; but the sun attracts the thinnest part,
owing to its lightness, and he abstracts this not only from the lakes,
but also from the sea, and from all things which contain humidity,
and there is humidity in everything; and from man himself the sun
draws off the thinnest and lightest part of the juices. As a strong
proof of this, when a man walks in the sun, or sits down having a
garment on, whatever parts of the body the sun shines upon do not
sweat, for the sun carries off whatever sweat makes its appearance;
but those parts which are covered by the garment, or anything else,
sweat, for the particles of sweat are drawn and forced out by the
sun, and are preserved by the cover so as not to be dissipated by
the sun; but when the person comes into the shade the whole body
equally perspires, because the sun no longer shines upon it.[401]
Wherefore, of all kinds of water, these spoil the soonest; and rain
water has a bad smell, because its particles are collected and mixed
together from most objects, so as to spoil the soonest. And in
addition to this, when attracted and raised up, being carried about
and mixed with the air, whatever part of it is turbid and darkish is
separated and removed from the other, and becomes cloud and
mist, but the most attenuated and lightest part is left, and becomes
sweet, being heated and concocted by the sun, for all other things
when concocted become sweet. While dissipated then and not in a
state of consistence it is carried aloft. But when collected and
condensed by contrary winds, it falls down wherever it happens to be
most condensed. For this is likely to happen when the clouds being
carried along and moving with a wind which does not allow them to
rest, suddenly encounters another wind and other clouds from the
opposite direction: there it is first condensed, and what is behind is
carried up to the spot, and thus it thickens, blackens, and is
conglomerated, and by its weight it falls down and becomes rain.
Such, to all appearance, are the best of waters, but they require to
be boiled and strained;[402] for otherwise they have a bad smell, and
occasion hoarseness and thickness of the voice to those who drink
them.[403] Those from snow and ice are all bad, for when once
congealed, they never again recover their former nature; for
whatever is clear, light, and sweet in them, is separated and
disappears; but the most turbid and weightiest part is left behind.[404]
You may ascertain this in the following manner: If in winter you will
pour water by measure into a vessel and expose it to the open air
until it is all frozen, and then on the following day bring it into a warm
situation where the ice will thaw, if you will measure the water again
when dissolved you will find it much less in quantity. This is a proof
that the lightest and thinnest part is dissipated and dried up by the
congelation, and not the heaviest and thickest, for that is impossible:
[405] wherefore I hold that waters from snow and ice, and those allied
to them, are the worst of any for all purposes whatever. Such are the
characters of rain-water, and those from ice and snow.
9.[406] Men become affected with the stone, and are seized with
diseases of the kidneys, strangury, sciatica, and become ruptured,
when they drink all sorts of waters, and those from great rivers into
which other rivulets run, or from a lake into which many streams of
all sorts flow, and such as are brought from a considerable distance.
For it is impossible that such waters can resemble one another, but
one kind is sweet, another saltish and aluminous, and some flow
from thermal springs; and these being all mixed up together
disagree, and the strongest part always prevails; but the same kind
is not always the strongest, but sometimes one and sometimes
another, according to the winds, for the north wind imparts strength
to this water, and the south to that, and so also with regard to the
others. There must be deposits of mud and sand in the vessels from
such waters, and the aforesaid diseases must be engendered by
them when drunk, but why not to all I will now explain. When the
bowels are loose and in a healthy state,[407] and when the bladder is
not hot, nor the neck of the bladder very contracted, all such persons
pass water freely, and no concretion forms in the bladder; but those
in whom the belly is hot, the bladder must be in the same condition;
and when preternaturally heated, its neck becomes inflamed; and
when these things happen, the bladder does not expel the urine, but
raises its heat excessively. And the thinnest part of it is secreted, and
the purest part is passed off in the form of urine, but the thickest and
most turbid part is condensed and concreted, at first in small
quantity, but afterwards in greater; for being rolled about in the urine,
whatever is of a thick consistence it assimilates to itself, and thus it
increases and becomes indurated. And when such persons make
water, the stone forced down by the urine falls into the neck of the
bladder and stops the urine, and occasions intense pain; so that
calculous children rub their privy parts and tear at them, as
supposing that the obstruction to the urine is situated there. As a
proof that it is as I say, persons affected with calculus have very
limpid urine, because the thickest and foulest part remains and is
concreted.[408] Thus it generally is in cases of calculus. It forms also
in children from milk, when it is not wholesome, but very hot and
bilious, for it heats the bowels and bladder, so that the urine being
also heated undergoes the same change. And I hold that it is better
to give children only the most diluted wine, for such will least burn up
and dry the veins. Calculi do not form so readily in women, for in
them the urethra is short and wide, so that in them the urine is easily
expelled; neither do they rub the pudendum with their hands, nor
handle the passage like males;[409] for the urethra in women opens
direct into the pudendum, which is not the case with men, neither in
them is the urethra so wide, and they drink more than children do.
[410] Thus, or nearly so, is it with reward to them.
10. And respecting the seasons, one may judge whether the year
will prove sickly or healthy from the following observations:[411]—If
the appearances connected with the rising and setting stars be as
they should be; if there be rains in autumn; if the winter be mild,
neither very tepid nor unseasonably cold, and if in spring the rains be
seasonable, and so also in summer, the year is likely to prove
healthy. But if the winter be dry and northerly, and the spring
showery and southerly, the summer will necessarily be of a febrile
character, and give rise to ophthalmies and dysenteries.[412] For
when suffocating heat sets in all of a sudden, while the earth is
moistened by the vernal showers, and by the south wind, the heat is
necessarily doubled from the earth, which is thus soaked by rain and
heated by a burning sun, while, at the same time, men’s bellies are
not in an orderly state, nor the brain properly dried; for it is
impossible, after such a spring, but that the body and its flesh must
be loaded with humors, so that very acute fevers will attack all, but
especially those of a phlegmatic constitution. Dysenteries are also
likely to occur to women and those of a very humid temperament.
And if at the rising of the Dog-star rain and wintry storms supervene,
and if the etesian winds blow, there is reason to hope that these
diseases will cease, and that the autumn will be healthy; but if not, it
is likely to be a fatal season to children and women, but least of all to
old men; and that convalescents will pass into quartans, and from
quartans into dropsies; but if the winter be southerly, showery and
mild, but the spring northerly, dry, and of a wintry character, in the
first place women who happen to be with child, and whose
accouchement should take place in spring, are apt to miscarry; and
such as bring forth, have feeble and sickly children, so that they
either die presently or are tender, feeble, and sickly, if they live. Such
is the case with the women. The others are subject to
dysenteries[413] and dry ophthalmies, and some have catarrhs
beginning in the head and descending to the lungs. Men of a
phlegmatic temperament are likely to have dysenteries; and women,
also, from the humidity of their nature, the phlegm descending
downwards from the brain; those who are bilious, too, have dry
ophthalmies from the heat and dryness of their flesh; the aged, too,
have catarrhs from their flabbiness and melting of the veins, so that
some of them die suddenly and some become paralytic on the right
side or the left.[414] For when, the winter being southerly and the
body hot, the blood and veins are not properly constringed; a spring
that is northerly, dry, and cold, having come on, the brain when it
should have been expanded and purged, by the coryza and
hoarseness is then constringed and contracted, so that the summer
and the heat occurring suddenly, and a change supervening, these
diseases fall out. And such cities as lie well to the sun and winds,
and use good waters, feel these changes less, but such as use
marshy and pooly waters, and lie well both as regards the winds and
the sun, these all feel it more. And if the summer be dry, those
diseases soon cease, but if rainy, they are protracted; and there is
danger of any sore that there is becoming phagedenic from any
cause; and lienteries and dropsies supervene at the conclusion of
diseases; for the bowels are not readily dried up. And if the summer
be rainy and southerly, and next the autumn, the winter must, of
necessity, be sickly, and ardent fevers are likely to attack those that
are phlegmatic, and more elderly than forty years, and pleurisies and
peripneumonies[415] those that are bilious. But if the summer is
parched and northerly, but the autumn rainy and southerly, headache
and sphacelus of the brain[416] are likely to occur; and in addition
hoarseness, coryza, coughs, and in some cases, consumption.[417]
But if the season is northerly and without water, there being no rain,
neither after the Dog-star nor Arcturus; this state agrees best with
those who are naturally phlegmatic, with those who are of a humid
temperament, and with women: but it is most inimical to the bilious;
for they become much parched up, and ophthalmies of a dry nature
supervene, fevers both acute and chronic, and in some cases
melancholy;[418] for the most humid and watery part of the bile being
consumed, the thickest and most acrid portion is left, and of the
blood likewise, whence these diseases come upon them. But all
these are beneficial to the phlegmatic, for they are thereby dried up,
and reach winter not oppressed with humors, but with them dried up.
11. Whoever studies and observes these things may be able to
foresee most of the effects which will result from the changes of the
seasons: and one ought to be particularly guarded during the
greatest changes of the seasons, and neither willingly give
medicines, nor apply the cautery to the belly, nor make incisions
there until ten or more days be past. Now, the greatest and most
dangerous are the two solstices, and especially the summer, and
also the two equinoxes, but especially the autumnal.[419] One ought
also to be guarded about the rising of the stars, especially of the
Dog-star, then of Arcturus, and then the setting of the Pleiades; for
diseases are especially apt to prove critical in those days, and some
prove fatal, some pass off, and all others change to another form
and another constitution. So it is with regard to them.
12. I wish to show, respecting Asia and Europe, how, in all
respects, they differ from one another, and concerning the figure of
the inhabitants, for they are different, and do not at all resemble one
another. To treat of all would be a long story, but I will tell you how I
think it is with regard to the greatest and most marked differences. I
say, then, that Asia differs very much from Europe as to the nature of
all things, both with regard to the productions of the earth and the
inhabitants, for everything is produced much more beautiful and
large in Asia; the country is milder, and the dispositions of the
inhabitants also are more gentle and affectionate.[420] The cause of
this is the temperature of the seasons, because it lies in the middle
of the risings of the sun[421] towards the east, and removed from the
cold (and heat),[422] for nothing tends to growth and mildness so
much as when the climate has no predominant quality, but a general
equality of temperature prevails. It is not everywhere the same with
regard to Asia, but such parts of the country as lie intermediate
between the heat and the cold, are the best supplied with fruits and
trees, and have the most genial climate, and enjoy the purest waters,
both celestial and terrestrial. For neither are they much burnt up by
the heat, nor dried up by the drought and want of rain, nor do they
suffer from the cold; since they are well watered from abundant
showers and snow, and the fruits of the season,[423] as might be
supposed, grow in abundance, both such as are raised from seed
that has been sown, and such plants as the earth produces of its
own accord, the fruits of which the inhabitants make use of, training
them from their wild state and transplanting them to a suitable soil;
the cattle also which are reared there are vigorous, particularly
prolific, and bring up young of the fairest description; the inhabitants
too, are well fed, most beautiful in shape, of large stature, and differ
little from one another either as to figure or size; and the country
itself, both as regards its constitution and mildness of the seasons,
may be said to bear a close resemblance to the spring. Manly
courage, endurance of suffering, laborious enterprise, and high spirit,
could not be produced in such a state of things either among the
native inhabitants or those of a different country, for there pleasure
necessarily reigns. For this reason, also, the forms of wild beasts
there are much varied.[424] Thus it is, as I think, with the Egyptians
and Libyans.
13. But concerning those on the right hand of the summer risings
of the sun as far as the Palus Mæotis[425] (for this is the boundary of
Europe and Asia), it is with them as follows: the inhabitants there
differ far more from one another than those I have treated of above,
owing to the differences of the seasons and the nature of the soil.
But with regard to the country itself, matters are the same there as
among all other men; for where the seasons undergo the greatest
and most rapid changes, there the country is the wildest and most
unequal; and you will find the greatest variety of mountains, forests,
plains, and meadows; but where the seasons do not change much
there the country is the most even; and, if one will consider it, so is it
also with regard to the inhabitants; for the nature of some is like to a
country covered with trees and well watered; of some, to a thin soil
deficient in water; of others, to fenny and marshy places; and of
some again, to a plain of bare and parched land.[426] For the
seasons which modify their natural frame of body are varied, and the
greater the varieties of them the greater also will be the differences
of their shapes.
14. I will pass over the smaller differences among the nations, but
will now treat of such as are great either from nature, or custom; and,
first, concerning the Macrocephali.[427] There is no other race of men
which have heads in the least resembling theirs. At first, usage was
the principal cause of the length of their head, but now nature
cooperates with usage. They think those the most noble who have
the longest heads. It is thus with regard to the usage: immediately
after the child is born, and while its head is still tender, they fashion it
with their hands, and constrain it to assume a lengthened shape by
applying bandages and other suitable contrivances whereby the
spherical form of the head is destroyed, and it is made to increase in
length. Thus, at first, usage operated, so that this constitution was
the result of force: but, in the course of time, it was formed naturally;
so that usage had nothing to do with it; for the semen comes from all
parts of the body, sound from the sound parts, and unhealthy from
the unhealthy parts. If, then, children with bald heads are born to
parents with bald heads; and children with blue eyes to parents who
have blue eyes; and if the children of parents having distorted eyes
squint also for the most part; and if the same may be said of other
forms of the body, what is to prevent it from happening that a child
with a long head should be produced by a parent having a long
head?[428] But now these things do not happen as they did formerly,
for the custom no longer prevails owing to their intercourse with
other men. Thus it appears to me to be with regard to them.
15. As to the inhabitants of Phasis,[429] their country is fenny,
warm, humid, and wooded; copious and severe rains occur there at
all seasons; and the life of the inhabitants is spent among the fens;
for their dwellings are constructed of wood and reeds, and are
erected amidst the waters; they seldom practise walking either to the
city or the market, but sail about, up and down, in canoes
constructed out of single trees, for there are many canals there.[430]
They drink the hot and stagnant waters, both when rendered putrid
by the sun, and when swollen with rains. The Phasis itself is the
most stagnant of all rivers, and runs the smoothest;[431] all the fruits
which spring there are unwholesome, of feeble and imperfect
growth, owing to the redundance of water, and on this account they
do not ripen, for much vapor from the waters overspreads the
country. For these reasons the Phasians have shapes different from
those of all other men; for they are large in stature, and of a very
gross habit of body, so that not a joint nor vein is visible; in color they
are sallow, as if affected with jaundice. Of all men they have the
roughest voices, from their breathing an atmosphere which is not
clear, but misty and humid; they are naturally rather languid in
supporting bodily fatigue. The seasons undergo but little change
either as to heat or cold; their winds for the most part are southerly,
with the exception of one peculiar to the country, which sometimes
blows strong, is violent and hot, and is called by them the wind
cenchron. The north wind scarcely reaches them, and when it does
blow it is weak and gentle. Thus it is with regard to the different
nature and shape of the inhabitants of Asia and Europe.
16. And with regard to the pusillanimity and cowardice of the
inhabitants, the principal reason why the Asiatics are more unwarlike
and of more gentle disposition than the Europeans is, the nature of
the seasons, which do not undergo any great changes either to heat
or cold, or the like; for there is neither excitement of the
understanding nor any strong change of the body by which the
temper might be ruffled, and they be roused to inconsiderate
emotion and passion, rather than living as they do always in the
same state. It is changes of all kinds which arouse the understanding
of mankind, and do not allow them to get into a torpid condition. For
these reasons, it appears to me, the Asiatic race is feeble, and
further, owing to their laws; for monarchy prevails in the greater part
of Asia, and where men are not their own masters nor independent,
but are the slaves of others, it is not a matter of consideration with
them how they may acquire military discipline, but how they may
seem not to be warlike, for the dangers are not equally shared, since
they must serve as soldiers, perhaps endure fatigue, and die for their
masters, far from their children, their wives, and other friends; and
whatever noble and manly actions they may perform lead only to the
aggrandizement of their masters, whilst the fruits which they reap are
dangers and death; and, in addition to all this, the lands of such
persons must be laid waste by the enemy and want of culture.[432]
Thus, then, if any one be naturally warlike and courageous, his
disposition will be changed by the institutions. As a strong proof of all
this, such Greeks or barbarians in Asia as are not under a despotic
form of government, but are independent, and enjoy the fruits of their
own labors, are of all others the most warlike; for these encounter
dangers on their own account, bear the prizes of their own valor, and
in like manner endure the punishment of their own cowardice. And
you will find the Asiatics differing from one another, for some are
better and others more dastardly; of these differences, as I stated
before, the changes of the seasons are the cause. Thus it is with
Asia.
17. In Europe there is a Scythian race, called Sauromatæ, which
inhabits the confines of the Palus Mæotis, and is different from all
other races.[433] Their women mount on horseback, use the bow,
and throw the javelin from their horses, and fight with their enemies
as long as they are virgins; and they do not lay aside their virginity
until they kill three of their enemies, nor have any connection with
men until they perform the sacrifices according to law. Whoever
takes to herself a husband, gives up riding on horseback unless the
necessity of a general expedition obliges her. They have no right
breast; for while still of a tender age their mothers heat strongly a
copper instrument constructed for this very purpose, and apply it to
the right breast, which is burnt up, and its development being
arrested, all the strength and fullness are determined to the right
shoulder and arm.
18. As the other Scythians have a peculiarity of shape, and do
not resemble any other, the same observation applies to the
Egyptians, only that the latter are oppressed by heat and the former
by cold.[434] What is called the Scythian desert is a prairie,
abounding in meadows, high-lying, and well watered; for the rivers
which carry off the water from the plains are large. There live those
Scythians which are called Nomades, because they have no houses,
but live in wagons. The smallest of these wagons have four wheels,
but some have six; they are covered in with felt, and they are
constructed in the manner of houses, some having but a single
apartment, and some three; they are proof against rain, snow, and
winds. The wagons are drawn by yokes of oxen, some of two and
others of three, and all without horns, for they have no horns, owing
to the cold.[435] In these wagons the women live, but the men are
carried about on horses, and the sheep, oxen, and horses
accompany them; and they remain on any spot as long as there is
provender for their cattle, and when that fails they migrate to some
other place. They eat boiled meat, and drink the milk of mares, and
also eat hippace, which is cheese prepared from the milk of the
mare. Such is their mode of life and their customs.[436]
19. In respect of the seasons and figure of body, the Scythian
race, like the Egyptian, have a uniformity of resemblance, different
from all other nations; they are by no means prolific, and the wild
beasts which are indigenous there are small in size and few in
number, for the country lies under the Northern Bears, and the
Rhiphæan mountains, whence the north wind blows; the sun comes
very near to them only when in the summer solstice, and warms
them but for a short period, and not strongly; and the winds blowing
from the hot regions of the earth do not reach them, or but seldom,
and with little force; but the winds from the north always blow,
congealed, as they are, by the snow, the ice, and much water, for
these never leave the mountains, which are thereby rendered
uninhabitable. A thick fog covers the plains during the day, and
amidst it they live, so that winter may be said to be always present
with them; or, if they have summer, it is only for a few days, and the
heat is not very strong. Their plains are high-lying and naked, not
crowned with mountains, but extending upwards under the Northern
Bears.[437] The wild beasts there are not large, but such as can be
sheltered under-ground; for the cold of winter and the barrenness of
the country prevent their growth, and because they have no covert
nor shelter.[438] The changes of the seasons, too, are not great nor
violent, for, in fact, they change gradually; and therefore their figures
resemble one another, as they all equally use the same food, and
the same clothing summer and winter, respiring a humid and dense
atmosphere, and drinking water from snow and ice; neither do they
make any laborious exertions, for neither body nor mind is capable
of enduring fatigue when the changes of the seasons are not great.
[439] For these reasons their shapes are gross and fleshy, with ill-
marked joints, of a humid temperament, and deficient in tone: the
internal cavities, and especially those of the intestines, are full of
humors; for the belly cannot possibly be dry in such a country, with
such a constitution and in such a climate; but owing to their fat, and
the absence of hairs from their bodies, their shapes resemble one
another, the males being all alike, and so also with the women: for

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Operations and Supply Chain

Management: The Core, 6th Edition F.

Operations and Supply Chain Management: The Core, 6th

Operations and Supply Chain Management, 17e F. Robert

Handbook Integral Logistics Management: Operations and

Operations and Supply Chain Management 2nd Edition

Supply Chain Logistics Management, 6th Edition Donald

ISE Operations Management in the Supply Chain:

Operations Management Creating Value Along the Supply

Supply Chain Logistics Management (IRWIN OPERATIONS/DEC

SUPPLY CHAIN BUSINESS SYSTEMS Doane and Seward

OPERATIONS AND SUPPLY CHAIN MANAGEMENT

This book is printed on acid-free paper.

Cover Image: moodboard/age fotostock

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ABOUT THE AUTHORS

Richard B. Chase is Justin B. Dart Professor Emeritus of Operations

Real success happens when operational processes can be improved. Productivity

Discussion of Sixth Edition Revisions

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Student Study Center

Tegrity Campus: Lectures 24/7

Remote Proctoring and Browser-Locking Capabilities

OPERATIONS MANAGEMENT AND THE AACSB

Assurance of Learning Ready

McGraw-Hill Customer Experience Contact Information

Study made personal

Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images

Affordable solutions, Solutions for

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Study anytime, anywhere “I really liked this

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Learning for everyone

Major Study and Learning Features

disruptions to critical supplies and the movement of

commodities that are bought largely based on cost,

In our increasingly interconnected and interdependent global economy, the pro-

exhibit 1.3 The Goods–Services Continuum

Pure Goods Core Goods Core Services Pure Services

462 OPERATIONS AND SUPPLY CHAIN MANAGEMENT

BUSY FEDEX HUBS MOVE

Each includes a worked-out solution giving students a review before

a. The utilization of the lube team.

Shouldice Hospital—A Cut Above, Chapter 4

CASE: PRO FISHING BOATS—A VALUE STREAM MAPPING EXERCISE

ANALYTICS EXERCISE: DESIGNING A MANUFACTURING PROCESS

Notebook Computer Assembly Process Sheet exhibit 6.8

TASK TASK TIME (SECONDS) TASKS THAT MUST PRECEDE

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5 Projects 130 APPENDICES

9 Material Requirements Planning 268 AUTHOR INDEX 513

Considerations in Changing Capacity 99 Flexible and U-Shaped Line Layouts 186

Capacity Utilization and Service Quality 107 Practice Exam 201

Concept Connections 108 Solved

Organizing the Project Team 133 Waiting Line Models 223

Organizing Project Tasks 135 Computer Simulation of Waiting Lines 228

Lean production 404 14 LOCATION, LOGISTICS, AND DISTRIBUTION 460

STRATEGY, PROCESSES, AND ANALYTICS

commodities that are bought largely based on cost,

In our increasingly interconnected and interdependent global economy, the pro-

matches the preferences of customers with the realities imposed by

Assemble Heat Set

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jac98375_fm_i-1.indd ix 08/22/22 07:31 am

jac98375_fm_i-1.indd xix 08/22/22 07:33 am