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Fourth Edition
Stevenson
Operations Management
Thirteenth Edition
Business Math
Slater and Wittry
Practical Business Math Procedures
Thirteenth Edition
Business Statistics
Bowerman, et al.
Business Statistics and Analytics in Practice
Ninth Edition
8
Lind, Marchal, and Wathen
Basic Statistics for Business and Economics
Ninth Edition
McGuckian
Connect Master: Business Statistics
9
page iv
Dedication
To Jenni, Derek, Rachel, and Sarah, who make my life so full!
Morgan Swink
10
page v
Morgan Swink
is Professor, Eunice and James L. West Chair of Supply Chain Management, and
Executive Director of the Center for Supply Chain Innovation at the Neeley School of
Business, Texas Christian University. He holds a BS in Mechanical Engineering from
Southern Methodist University, an MBA from the University of Dallas, and a PhD in
Operations Management from Indiana University. Before becoming a professor, Dr.
Swink worked for 10 years in a variety of manufacturing and product development
11
positions at Texas Instruments Incorporated. He has co-authored three books and
published over 75 articles in a variety of academic and managerial journals. Dr. Swink
is formerly the Co-Editor in Chief for the Journal of Operations Management and past
president of the Decision Sciences Institute.
Steven A. Melnyk
is Professor of Operations Management at Michigan State University. Dr. Melnyk
obtained his undergraduate degree from the University of Windsor and his doctorate
from the Ivey School of Business, the University of Western Ontario. He has
coauthored 21 books focusing on operations and the supply chain and has published
over 90 refereed articles in numerous international and national journals. He is
Associate Editor for the Journal of Business Logistics. He also is a member of several
editorial advisory boards, including the International Journal of Production Research
and the International Journal of Operations and Production Management. Dr. Melnyk
has consulted with over 60 companies. He has also served as a member of the APICS
Board of Directors (2014–2016) and the APICS leadership team (2015). In 2017, Dr.
Melnyk accepted a joint appointment as the Global Innovation Chair in Supply Chain
Management at the University of Newcastle, New South Wales, Australia.
12
Courtesy of Janet L. Hartley
Janet L. Hartley
is Professor at the Department of Management at Bowling Green State University. She
received her BS in Chemical Engineering from the University of Missouri-Rolla, and
the MBA and PhD degrees in Business Administration from the University of
Cincinnati. Prior to graduate school, she developed new products and designed new
manufacturing processes for the Clorox Company. She has published over 30 articles on
supply management and supply chain management. She serves as an Associate Editor
for the Journal of Operations Management, Journal of Business Logistics, Journal of
Supply Chain Management, International Journal of Operations and Production
Management, and Journal of Purchasing and Supply Management. Dr. Hartley is
president-elect of the Decision Science Institute.
13
page vi
Preface
We continue to live in dynamic and exciting times. Recent years have seen many
changes that have affected nearly every aspect of business, including operations
management. In this fourth edition of our book, we continue to reflect key shifts in
operations management, including transitions:
From a focus on the internal system to a focus on the supply chain. In today’s
highly competitive business environment, organizations must leverage the
capabilities of their suppliers and customers. Operations managers must look beyond
the “four walls” of the firm and take an integrated supply chain perspective of
operations.
From a local focus to a global focus. As Thomas L. Friedman pointed out,1 the
world is indeed flat. Business solutions generated in Argentina are used to meet needs
in the United States, and parts built by suppliers located in China are used to
assemble cars in Canada. Commercial needs have overcome, to a large part, national
borders, presenting new opportunities and challenges for operations managers.
From an emphasis on tools and techniques to an emphasis on systems, people,
and processes. To be successful, operations managers must think more broadly than
just the application of analytical tools and techniques. They must take a systems view
to address important managerial issues such as designing processes, working with
people, managing information flows, and building interorganizational relationships.
From myopic pursuit of profit to a holistic pursuit of sustainability. Pressures on
businesses have risen to the point that they can no longer ignore or give only
lipservice to social and environmental issues. Operations managers have to balance
the profit motive with the need to protect and even strengthen both people and the
planet.
From a static to a dynamic treatment of operations and supply chain
14
management. We have revised each new edition to keep pace with changes taking
place in the field. In recent years, very evident changes include the emergence of
millennials as key consumers and the rapid developments taking place in digital
technologies. Consequently, in this edition, we introduce a new theme: digital. While
the basics remain the same, the context in which operations are managed continues to
change rapidly.
Managing Operations Across the Supply Chain provides a global, supply chain
perspective of operations management for students in introductory courses in operations
management and in supply chain management courses that do not require an operations
management prerequisite. While the book is primarily written for undergraduates, it also
can be used effectively in MBA courses. There are several features that help to
differentiate this book in its view of operations management:
Broader Vision of Operations Management While many operations management
textbooks have revised or added a chapter to address supply chain issues, we
developed our book from the ground up to effectively integrate operations
management and the supply chain. The primary focus of the book is operations
management, but we provide a “supply chain” perspective. Operations management
cuts across a firm’s boundaries, bringing together its internal activities with the
operations of customers, suppliers, and other partners around the world. We clarify
the functional roles of operations, supply management, and logistics while examining
the integrative processes that make up the supply chain. One unique aspect of the
book is that we examine both the upstream (supply-side) and downstream (demand-
side) aspects of the supply chain, including a discussion of marketing and customer
relationships.
Balanced Treatment The book balances the quantitative and qualitative coverage
needed to equip operations and supply chain managers for the challenges and
opportunities they face. It describes and applies analytical tools that operations
managers use to support decision making. However, we also address the important
managerial issues such as systems, people, and processes that are critical in a supply
chain context.
Integrative Frameworks The book introduces and develops various topics in supply
chain operations management using five integrative frameworks:
page vii
1. An operations strategy framework that brings together three critical elements: (1)
the key customer, (2) the value proposition, and (3) capabilities, introducing
students to a broad supply chain perspective of operations management.
2. A foundations framework that covers process fundamentals, innovation, quality,
inventory, and lean thinking.
3. A relational framework that highlights functional, supplier, and customer
management aspects of operations management.
4. A planning framework that covers demand and supply planning at multiple levels.
5. A change management framework that illustrates how projects and future
developments can be used to drive innovation in operations management.
15
Use of Integrating Themes Four key themes are highlighted throughout the book:
digital transformation, global issues, relationships, and sustainability.
Real, Integrated Examples The book brings operations and supply chain
management to life through opening vignettes, Get Real highlights, and rich
examples throughout the book.
Managing Operations Across the Supply Chain, fourth edition, offers a new, global,
supply chain perspective of operations management, a treatment that embraces the
foundations of operations management but includes new frameworks, concepts, and
tools to address the demands of today and changing needs of the future. The book is
organized into five major sections:
Part 1 Supply Chain: A Perspective for Operations Management provides an
overview of operations management as a field, and describes the strategic role
operations has in business from the perspective of supply chain management.
Part 2 Foundations of Operations Management discusses foundational process
concepts and principles that govern all operational activities. This section examines
concepts such as product/process innovation, quality, lean, and inventory
16
fundamentals.
Part 3 Integrating Relationships Across the Supply Chain deals with the primary
functional relationships between internal operations management activities, and other
operational functions both inside and outside the firm. This section describes
customer relationship management, supply management, and logistics management.
Part 4 Planning for Integrated Operations Across the Supply Chain discusses
planning approaches and technologies used at different levels of operations decision
making. Key topics such as demand planning, forecasting, sales and operations
planning, inventory management, and materials requirements planning are examined.
Part 5 Managing Change in Supply Chain Operations discusses how operations
managers use projects, change programs, and technologies to shape a sustainable
future for operations and supply chain management.
page viii
Chapter 1: Introduction to Managing Operations Across the Supply Chain
Introduced digital theme with examples illustrating how technologies are changing
operational processes.
Replaced example (now a restaurant supply chain) of functional relationships across
the supply chain.
Added new Cemex Digital Transformation case.
17
Expanded alternative process mapping approaches with the expanded coverage of
techniques such as service blueprinting.
18
Chapter 9: Customer Service Management
New opening vignette on the “Amazon Effect.”
New discussion of digital enhancement of customer service including omnichannel
service, product platforms, and crowdsourcing service.
New discussion of social (millennials) and global impacts on customers’ service
expectations.
New Get Real on service delivery failures.
New section on service information.
19
New discussions of social media and dynamic pricing in demand management.
1Thomas L. Friedman, The World Is Flat: A Brief History of the Twenty-First Century (New York: Farrar, Straus,
and Giroux, 2006).
20
page x
Acknowledgments
We would like to express our appreciation to the people who have provided assistance
in the development of this textbook. We express our sincere thanks to the following
individuals for their thoughtful reviews and suggestions:
21
Rosa Oppenheim, Rutgers University
Samuel Chinnis, Guilford Technical Community College
Sandra Obilade, Brescia University
Stephen Hill, University of North Carolina, Wilmington
William Sawaya, Bowling Green State University
Xiaowen Huang, Miami University, Ohio
Yao Jin, Miami University
We also want to express our sincere thanks to the following individuals for their
exceptional contributions: Katherine Eboch, Bowling Green State University; William
Berry, Professor Emeritus, Queens College; David Weltman, Texas Christian
University; Frank Novakowski, Davenport University; and Jody Wolfe, Clarke
University.
We want to thank the outstanding McGraw-Hill Education production and
marketing team who made this book possible, including Harper Christopher, executive
marketing manager; Chuck Synovec, director; Tim Vertovec, managing director; Fran
Simon and Jamie Koch, content project managers; Sandy Ludovissy, buyer; Kevin
Moran, digital content development director; Egzon Shaqiri, designer; and Ann Marie
Jannette, content licensing specialist.
A special thanks to our outstanding editorial team. We greatly appreciate the
support, encouragement, and patience shown by Tobi Philips, our product developer.
Thanks for keeping us on track! Our portfolio manager, Noelle Bathurst, provided
excellent guidance and leadership throughout the process. We truly appreciate it!
Morgan Swink
Steven A. Melynk
Janet L. Hartley
22
page xi
Walkthrough
The following section highlights the key features of Managing Operations Across the
Supply Chain and the text’s accompanying resources, which have been developed to
help you learn, understand, and apply operations concepts.
CHAPTER ELEMENTS
Within each chapter of the text, you will find the following elements. All of these have
been developed to facilitate study and learning.
Opening Vignette
Each chapter opens with an introduction to the important operations topics covered in
the chapter. Students need to see the relevance of operations management in order to
actively engage in learning the material. Learning objectives provide a quick
introduction to the important operations topics that will be covered in the chapter.
23
page xii
Key Terms
Key terms are presented in bold and defined in the margin as they are introduced. A list
of chapter key terms is also available at the end of the chapter.
Student Activity
At appropriate moments students are asked to do a personal activity that illustrates the
concept being presented or covered, thereby helping them learn to apply the concepts
and understand them more deeply.
24
Numbered Examples
Numbered examples are integrated into chapters where analytic techniques are
introduced. Students learn how to solve specific problems step-by-step and gain insight
into general principles by seeing how they are applied.
page xiii
25
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led him to forsake. Having returned to her as a babe, and lain at
suck at the brown breasts of the sweet savage, she caresses him
and croons her strange songs in his ears; and to give him pleasure
and sustenance—because the Warrior whom she has long mourned
as lost has ever been the favourite among all her children—she
whispers to him as he lies again in her bosom that he is indeed
divine.
Girt by this forgiveness, and clad in the valour of his divinity once
again, a new and ampler strength is given to the Warrior’s right
hand. He learns for the first time in what manner to use his Sword.
Yet no sooner does he learn so to do than he understands how
Earth, his mother, has deceived him, in order that she may give
pleasure to the favourite among all her children, who has returned to
lie at her brown breasts. And the Warrior blesses her for the
deception, as otherwise he could never have received the strength in
his right hand; and without that strength he could not have learned to
use the sword of his reason. The poem closes in the exaltation of an
infinite pity and tenderness, for the Warrior, blind and spent and
weak, with the Sword all broken and jagged upon his knees, has had
his inquiries answered, and ceasing to struggle and to resent, in his
concern for all his brothers who have not yet learned to use their
swords, he defends their amazing formulas and shibboleths and
extraordinary self-deceptions, whereby they seek to acquire the
strength so to do. And in a passage of tender irony that has no
parallel he entreats his poor brothers to continue to deceive
themselves; and the Warrior concludes with an invocation to Earth,
his mother, for her loving and wise deception, whereby the proudest
of her sons has come to lie at peace.
As the white-haired man continued to read the appreciation of the
poem, which he himself had wrought, thereby re-enacting the
deception of the Mother of the Warrior-Soul, he revealed to the dying
poet how his work in all the wonderful assemblance of its qualities
surpassed any other that had been given to the world. He appraised
the metre which only the highest inspiration would have dared to
employ; he appraised the miraculous blend of gravity, sonority,
sweetness, purity; the ever-gathering range and power of those
mighty cadences, which swept the whole gamut of the emotions as
though they were the strings of a lyre. He showed how the people of
unborn ages would be able to derive stimulus and sanction for their
labours; how the poet’s divine simplicity was such that he who ran
might read; how the official “souls” who infest the groves of Academe
would be able to cherish it for its “art”; how the humblest street-
persons who walked the streets of the great city would be able to
cherish it for its truth. This epic of Man the Warrior ever trampling the
brakes of the Eternal Forest, cutting out the path with the Sword in
his right hand in the fruitless search for that which will reconcile him
to his partial vision, with the nobly pitiful irony of its conclusion that in
the present stage of the Warrior’s development the reconciliation
must be sought by compromise—this epic had in its austere mingling
together of those elements of tragedy which purge man’s nature with
the healing and co-ordinating properties which reconcile diverse and
conflicting factors of experience with the primal belief of Man
Himself, a universal power which had been given to no other poet in
the modern or the ancient world. And the old man concluded with the
prophecy that when “Civilization” itself had sunk to a mere shibboleth
of the remote age of “Reason,” the half-divine, half-barbarous music
of the unknown poet of the Reconciliation, would prove the only via
media between the epoch of ampler vision and that fantastic
shadowography of the long ago when Man seemed other than He
was.
Throughout the reading of this appraisement of his labours, the
blind-eyed poet seemed to vibrate with every word that came upon
his ears. As each phrase uttered by that thin, high, quavering voice
addressed the entranced being of the poet, the frail and broken form
seemed to sway in unison therewith; and the secret and beautiful
smile lurking within the hollows of the cheeks seemed to illuminate
even the sightless eyes, so that poor Dodson, who sat listening
faintly to the old man’s words, was tortured continually by the illusion
that the sight had returned to the eyes of his dying friend.
As the old man, never failing to give expression to his own personal
vindication of that which the poet had wrought, won nearer and
nearer towards the end, the dying man was heard to murmur,
“Courage, Achilles! Courage, Achilles!” for he seemed almost to fear
that consciousness would forsake him before he could realize his
own apotheosis to the full.
When the old man in a kind of triumph and defiance had come to the
end of his task, the radiance upon the poet’s face was starlike in its
lustre.
“Oh, oh, he can see! he can see!” muttered Dodson, in a wild
consternation. “He has the sight in his eyes.”
The poet had stretched forth his weak left hand as though in quest of
something.
He shaped a phrase with his lips, which Dodson had not the power
to understand.
“What does he say?” cried Dodson wildly.
However, the white-haired man appeared to understand. He took
from the table not the carefully written pages from which he had
been reading, but the threepenny reporter’s notebook in which
Dodson’s hastily pencilled criticism had been scribbled. To Dodson’s
profound wonder the old man carried this over to where the poet lay
and placed it in the outstretched left hand. But the hand had not the
power to hold it now.
The poet was heard to mutter some inaudible words.
The old man bore the somewhat unclean threepenny reporter’s
notebook, with its dilapidated green cover, to the lips of the poet,
who pressed them upon it with a half-joyful gesture. In the act he had
ceased to breathe.
It was left to poor Dodson to discover that the act of the divine
clemency had, after many days, been extended to the Warrior-Soul.
The old man was still holding the threepenny reporter’s notebook to
the lips of the mighty dead, when Dodson tore it from his hand.
Clutching it convulsively the young man ran forth of the room and
headlong through the shop. Bare-headed, wild-eyed he reached the
frost-bound, fog-engirdled darkness of the January streets. As he ran
up one street and down another, not knowing nor desiring to know
whither he was bound, yet with that in his clutch ever pressed to his
own white lips, he cried out, “Oh Luney, Luney, I wish now I had
never known you!”
LIX
In the course of the afternoon of the following day, the old man, as
he was clearing away a quantity of débris that choked the fire-grate
in the little room, heard a tap upon the closed shutters of the shop.
Supposing it to proceed from the hand of that blind agent of
providence to whom the world was so much indebted, he left his
occupation and went forth to open the door.
Upon the threshold of the shop he discovered an elderly, grizzled,
grey-bearded man, a total stranger to him. The face of the stranger
was of great resolution.
No sooner had the old man opened the door of the shop and beheld
this unexpected appearance, than the man upon the threshold
looked into his eyes. Suddenly he swept the hat from his head, and
his grey hairs fluttered in the icy January wind.
“I think, sir,” he said in a harsh, strange accent, which yet was that of
awe, “I think, sir, I stand in the presence of the poet.”
The old man recoiled a step from his visitor in mute surprise.
“Forgive me, sir,” said his visitor, “forgive the importunity of the
vulgar, but I am hardly to blame. I have come all the way from
Aberdeen to look upon the poet. You see, I have been a reviewer of
books for the Caledonian Journal for fifty years, but a month ago I
received a book from which my pen has refrained. But I have not
been able to refrain my eyes from its author. To-day, upon my arrival
from Aberdeen, I went direct to the publishers, who at first even
denied an acquaintance with the poet’s name, but ultimately I found
a young man in their office who sent me here.”
“The poet is not I,” said the old man humbly.
The visitor appeared surprised and incredulous.
“If you are not the poet, sir,” he said, “I am sure you are a near
kinsman.”
The old man peered at the grim features of his visitor with his half-
blind eyes. “You appear to be simple and gentle,” he said softly.
“Perhaps you will follow.”
The old man led his visitor into the shop, into the little room, which
was now deserted, and thence up the stairs, into the small chamber
lighted with dim candles, in which the poet lay.
As soon as the visitor beheld that which was therein contained, he
sank to his knees by its side. He remained in that attitude a long
while.
When he arose the aged man was gazing upon him with his half-
blind eyes. They confronted one another like a pair of children.
Suddenly the visitor leaned across the bed in an act of further
homage to the lifeless clay.
“Why do you do that?” said the white-haired man at his side.
“Why do I do this?” said the other, and his powerful spreading
northern speech appeared to strike the walls of the tiny chamber.
“Why do I do this? I am afraid, sir, it must be left to my great great
grandchildren to answer your question.”
THE END
Nimrod’s Wife
By Grace Gallatin Seton. Author of “A Woman Tenderfoot.”
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A Romance of Riches
By MARIE CORELLI
With Photogravure Portrait of the Author
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