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 Contents
Preface xxi
About the Authors xxv

Part I
Chapter  1 Supply Chain Management: An Overview 3
Supply Chain Profile: SAB Distribution: The Next Chapter 4
1-1 Introduction 5
1-2 Shaping the Supply Chains of the Twenty-First Century:
Evolution and Change 6
1-2a Globalization 7
1-2b Technology 9
1-2c Organizational Consolidation and Power Shifts 9
1-2d The Empowered Consumer 10
1-2e Government Policy and Regulation 10
On the Line: Changing Times for Drugs 11
1-2f Sustainability 12
1-3 Supply Chains: Development and Shaping
for the ­Twenty-First Century 13
1-3a Development of the Concept 13
1-4 Major Supply Chain Issues 18
1-4a Supply Chain Networks 19
1-4b Complexity 19
1-4c Inventory Deployment 19
1-4d Information 19
1-4e Cost and Value 20
1-4f Organizational Relationships 20
1-4g Performance Measurement 20
1-4h Technology 21
1-4i Transportation Management 21
1-4j Supply Chain Security 21
1-4k Talent Management 22
Summary 22
Study Questions 23
Case 1.1: Lehigh Valley Transport and Logistics Service
(LVTLS) 24
Case 1.2: Central Transport, Inc. 25
vii

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viii Contents

Chapter  2 Global Dimensions of Supply Chains 27

Supply Chain Profile: The Impact of Changing Weather Patterns 28
2-1 Introduction 28
2-2 Rationale for Global Trade and Commerce 29
2-3 Contributing Factors for Global Commerce and
Supply Chain Flows 30
2-3a Global Demographics 30
2-3b Land and Resources 34
On the Line: Economic Growth and the Birth Rate 35
2-3c Technology and Information 35
2-4 Global Supply Chain Flows 36
2-5 Supply Chains in a Global Economy 39
On the Line: How Customer Experience Is Driving Supply
40
Chain ­Innovation
2-6 Global Markets and Strategy 41
2-7 Supply Chain Security: A Balancing Act 43
2-8 Ports 44
2-9 North American Free Trade Agreement 45
Summary 45
Study Questions 46
Case 2.1: Red Fish–Blue Fish, LLP 47
Case 2.2: Nike, Inc. Global Supply Chain Strategy 49

Chapter  3 Role of Logistics in Supply Chains 51

Supply Chain Profile: Girl Scouts Know Logistics 52
3-1 Introduction 52
3-2 What Is Logistics? 54
3-3 Value-Added Roles of Logistics 56
3-3a Form Utility 56
3-3b Place Utility and Time Utility 56
On the Line: Age of the Drone: Good News or Bad News??? 57
3-3c Quantity Utility 58
3-3d Possession Utility 59
3-4 Logistics Activities 59
3-4a Transportation 59
3-4b Storage 60
3-4c Packaging 60
3-4d Materials Handling 60
3-4e Inventory Control 61
3-4f Order Fulfillment 61
3-4g Forecasting 61
3-4h Production Planning 62
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 Contents ix

3-4i Procurement 62
3-4j Customer Service 62
3-4k Facility Location 62
3-4l Other Activities 63
On the Line: “UPS and Wiley Coyote”63
3-5 Logistics in the Economy: A Macro Perspective 64
3-6 Logistics in the Firm: The Micro Dimension 66
3-6a Logistics Interfaces with Manufacturing
or Operations 67
3-6b Logistics Interfaces with Marketing 68
3-6c Logistics Interfaces with Other Areas 69
3-7 Logistics in the Firm: Factors Affecting the Cost and
­Importance of Logistics 70
3-7a Competitive Relationships 70
3-7b Product Relationships 73
3-7c Spatial Relationships 76
3-7d Logistics and Systems Analysis 77
Summary 77
Study Questions 78
Case 3.1: Jordano Food Products 79
Case 3.2: Senco Electronics Company 81
Appendix 3A Techniques of Logistics System Analysis 82
Short-Run/Static Analysis 82
Long-Run/Dynamic Analysis 83
Appendix 3B Approaches to Analyzing Logistics Systems 85
Materials Management versus Physical Distribution 85
Nodes versus Links 86
Logistics Channels 87

Chapter  4 Supply Chain and Omni-Channel Network Design 91

Supply Chain Profile: Amazon Selects Nashville for New Center
92
of ­Excellence
4-1 Introduction 92
4-2 The Need for Long-Range Planning 94
4-2a The Strategic Importance of Supply Chain
Network Design 94
4-2b Changes to Global Trade Patterns 95
4-2c Changing Customer Service Requirements 95
4-2d Shifting Locations of Customer and/or
Supply Markets 96
4-2e Change in Corporate Ownership/Merger
and Acquisition Activity 96
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x Contents

4-2f Cost Pressures 96

4-2g Competitive Capabilities 97
4-2h Corporate Organizational Change 97
4-3 Supply Chain Network Design 97
4-3a Step 1: Define the Supply Chain Network
Design Process 98
4-3b Step 2: Perform a Supply Chain Audit 99
4-3c Step 3: Examine the Supply Chain Network
Alternatives 100
4-3d Step 4: Conduct a Facility Location Analysis 100
4-3e Step 5: Make Decisions Regarding Network and
Facility Location 101
4-3f Step 6: Develop an Implementation Plan 101
4-4 Major Locational Determinants 101
4-4a Key Factors for Consideration 102
On the Line: Supply Chain ­Managers ­Target U.S. Cities for Onshoring
­Opportunities 104
4-4b Current Trends Governing Site Selection 106
4-5 Modeling Approaches 107
4-5a Optimization Models 107
4-5b Simulation Models 111
4-5c Heuristic Models 111
4-5d Example of a Heuristic Modeling Approach:
The Grid Technique 112
4-5e Important Supply Chain Modeling Issues
and ­Concerns 116
4-6 Omni-Channel Network Design 117
4-6a Introduction 117
On the Line: Taking Urban Fulfillment Underground 118
4-6b Channels of Distribution 119
4-6c Customer Fulfillment Models 121
On the Line: Distribution: What Does It Take to Be an Omni-Channel
124
Fulfillment DC?
Summary 128
Study Questions 128
Case 4.1: Home Depot’s Supply Chain Transformation 131
Case 4.2: Bigelow Stores 133
Appendix 4A Grid Method—Sensitivity Analyses and Application to
­Warehouse ­Location in a City 134
Grid Method—Sensitivity Analysis 134
Grid Method—Application to Distribution Center Location
in a City 136
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 Contents xi

Part II
Chapter  5 Sourcing Materials and Services 139
Supply Chain Profile: Strategic Sourcing ­Facilitates Innovation,
140
Transformation, and Cost Reduction
5-1 Introduction 140
5-2 Types and Importance of Items and
Services Acquired 142
5-3 Strategic Sourcing Process 145
5-3a Step 1: Develop Strategic Plan 146
5-3b Step 2: Understand Spend 146
5-3c Step 3: Evaluate Supply Sources 147
5-3d Step 4: Finalize Sourcing Strategy 147
5-3e Step 5: Implement Sourcing Strategy 150
5-3f Step 6: Onboarding and Transitioning 151
5-3g Step 7: Collaborative Process
Improvement 151
On the Line: Infosys Streamlines Pharma Sourcing
Strategies 152
5-4 Supplier Evaluation and Relationships 152
5-4a Effective Management of Strategic
Suppliers 153
5-5 Total Landed Cost (TLC) 154
5-6 E-Sourcing and E-Procurement 155
5-6a Which of These Solutions Should be
Considered 156
On the Line: Transportation Sourcing—Innovative Approaches to Bid
Optimization 159
5-7 E-Commerce Models 159
Summary 160
Study Questions 161
Case 5.1: Alligator, Inc. 162
Case 5.2: Trans-Changi, Inc. 164
Appendix 5A The Special Case of Procurement Price 165
Sources of Price 165
Traditional Basic Input Costs 166
Direct Transaction Costs 166
Supplier Relational Costs 167
Landed Costs 167
Quality Costs/Factors 168
Operations Logistics Costs 168
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xii Contents

Chapter  6  Producing Goods and Services 171

Supply Chain Profile: Capacity Expansion: ­Building the Tesla
­Gigafactory 3 in China 172
6-1 Introduction 173
6-2 The Role of Production Operations in Supply Chain
­Management (SCM) 173
6-2a Production Process Functionality 174
6-2b Production Tradeoffs 175
6-2c Production Challenges 177
6-3 Operations Strategy and Planning 178
6-3a Production Strategies 178
On the Line: Additive Manufacturing: No Longer a Novelty 183
6-3b Production Planning 184
6-4 Production Execution Decisions 186
6-4a Assembly Processes 186
On the Line: Have It Your Way 187
6-4b Production Process Layout 189
6-4c Packaging 191
On the Line: Developing More Sustainable Packaging 193
6-5 Production Metrics 194
6-5a Customer Experience and Responsiveness ­Metrics 194
6-5b Quality Manufacturing Metrics 195
6-5c Efficiency Manufacturing Metrics 195
6-5d Inventory Metrics 195
6-5e Compliance Metrics 195
6-5f Maintenance Manufacturing Metrics 195
6-5g Flexibility and Innovation 196
6-5h Costs and Profitability Manufacturing Metrics 196
6-6 Production Technology 196
Summary 198
Study Questions 199
Case 6.1: Hudson Guitars 201
Case 6.2: War Eagle Golf Ltd. 203

Chapter  7 Demand Management 205

Supply Chain Profile: ATA’s Freight Forecast Report 206
7-1 Introduction 207
7-2 Demand Management 207
7-3 Balancing Supply and Demand 210
On the Line: Volatility in Demand Has Become the Norm 210
7-4 Traditional Forecasting 211
7-4a Factors Affecting Demand 211
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 Contents xiii

7-5 Forecast Errors 212

7-6 Forecasting Techniques 214
7-6a Simple Moving Average 214
7-6b Weighted Moving Average 216
7-6c Exponential Smoothing 218
On the Line: S&OP Spans Horizons 220
7-7 Sales and Operations Planning 221
7-8 Collaborative Planning, Forecasting,
and Replenishment 222
Summary 226
Study Questions 226
Case 7.1: Tires for You, Inc. 227
Case 7.2: Playtime, Inc. 229

Chapter  8 Order Management and Customer Service 231

Supply Chain Profile: Rocky Brands Sees
the Light 232
8-1 Introduction 232
8-2 Influencing the Order—Customer Relationship
­Management 234
8-2a Step 1: Segment the Customer Base
by ­Profitability 234
8-2b Step 2: Identify the Product/Service Package
for Each Customer Segment 235
8-2c Step 3: Develop and Execute the Best
­Processes 235
8-2d Step 4: Measure Performance and Continuously
Improve 236
8-2e Activity-Based Costing and Customer
Profitability 237
8-3 Executing the Order—Order Management and Order
Fulfillment 243
8-3a Order-to-Cash (OTC) and Replenishment Cycles 244
8-3b Length and Variability of the Order-to-Cash Cycle 248
8-4 E-Commerce Order Fulfillment Strategies 250
8-5 Customer Service 250
8-5a The Logistics/Marketing Interface 251
8-5b Defining Customer Service 251
8-5c Elements of Customer Service 253
On the Line: FedEx Ground Increases Delivery Schedule
to Sox Days a Week257
8-5d Performance Measures for Customer Service 257
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xiv Contents

8-6 Expected Cost of Stockouts 259

8-6a Back Orders 260
8-6b Lost Sales 260
8-6c Lost Customer 261
8-6d Determining the Expected Cost of Stockouts 261
8-7 Order Management Influences on Customer
Service 261
8-7a Product Availability 262
8-7b Financial Impact 264
8-7c Order Cycle Time 267
8-7d Logistics Operations Responsiveness 270
8-7e Logistics System Information 273
8-7f Postsale Logistics Support 275
On the Line: After-Sales Service: The Forgotten Supply Chain 277
8-8 Service Recovery 278
Summary 279
Study Questions 279
Case 8.1: Telco Corporation 281
Case 8.2: Webers, Inc. 283

Part III
Chapter  9 Managing Inventory in the Supply Chain 287
Supply Chain Profile: Don’t Underestimate the
288
Inventory-to-Sales Ratio
9-1 Introduction 289
9-2 Inventory in the U.S. Economy 289
9-3 Inventory in the Firm: Rationale for Inventory 291
9-3a Batching Economies or Cycle Stocks 292
9-3b Uncertainty and Safety Stocks 293
9-3c Time/In-Transit and Work-in-Process Stocks 294
9-3d Seasonal Stocks 296
9-3e Anticipatory Stocks 296
9-3f Summary of Inventory Accumulation 297
9-3g The Importance of Inventory in Other
Functional Areas 297
9-4 Inventory Costs 298
9-4a Inventory Carrying Cost 298
9-4b Ordering and Setup Cost 302
9-4c Carrying Cost Versus Ordering Cost 304
9-4d Expected Stockout Cost 306
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 Contents xv

On the Line: Martignetti Reduces Daily Average Inventory, ­Maintains

In-stock Performance, Helps Buyers Make Better Decisions 309
9-4e In-Transit Inventory Carrying Cost 310
9-5 Fundamental Approaches to Managing Inventory 311
9-5a Key Differences Among Approaches
to Managing Inventory 312
9-5b Principal Approaches and Techniques
for Inventory Management 314
9-5c Fixed Order Quantity Approach
(Condition of Certainty) 314
9-5d Fixed Order Quantity Approach
(Condition of Uncertainty) 323
9-5e Fixed Order Interval Approach 330
9-5f Summary and Evaluation of EOQ Approaches
to Inventory Management 331
9-6 Additional Approaches to Inventory Management 332
9-6a Just-in-Time Approach 332
Supply Chain Technology: Dropping the Security Blanket 333
9-6b Materials Requirements Planning 336
9-6c Distribution Requirements Planning 341
9-6d Vendor-Managed Inventory 343
9-7 Classifying Inventory 345
9-7a ABC Analysis 345
9-7b Quadrant Model 348
9-7c Inventory at Multiple Locations—
The Square-Root Rule 349
Summary 351
Study Questions 352
Case 9.1: MAQ Corporation 353
Case 9.2: Baseball Card Emporium 354
Appendix 9A Special Applications of the EOQ Approach 355
Adjusting the Simple EOQ Model for Modal Choice
Decisions—The Cost of Inventory in Transit 355
Adjusting the Simple EOQ Model for Volume
Transportation Rates 358
Adjusting the Simple EOQ Model for Private Carriage 361
Adjusting the Simple EOQ Model for the Establishment
and Application of In-Excess Rates 362
Summary 365
Chapter 10 Distribution—Managing Fulfillment Operations 367
Supply Chain Profile: The Changing Face of Distribution 368
10-1 Introduction 369
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xvi Contents

10-2 The Role of Distribution Operations in SCM 369

10-2a Distribution Facility Functionality 370
10-2b Distribution Tradeoffs 372
10-2c Distribution Challenges 374
On the Line: DC Automation: ­Addressing the Labor Dilemma (and more) 375
10-3 Distribution Planning and Strategy 376
10-3a Capability Requirements 376
10-3b Network Design Issues 378
10-3c Facility Considerations 382
On the Line: Efficient and Environmentally Friendly DCs385
10-4 Distribution Execution 386
10-4a Product-Handling Functions 386
10-4b Support Functions 389
10-5 Distribution Metrics 390
10-6 Distribution Technology 392
10-6a Warehouse Management Systems 393
On the Line: The Alphabet Soup of ­Warehouse Technology 394
10-6b Automatic Identification Tools 395
Summary 396
Study Questions 397
Case 10.1: Pain Away Corporation 399
Case 10.2: TV Gadgetry 401
Summary 411
Appendix 10A Materials Handling 403
Objectives and Principles of Materials Handling 403
Materials-Handling Equipment 405
Future Direction 410
Summary 411

Chapter  11 Transportation—Managing the Flow of the Supply Chain 413

Supply Chain Profile: Another Transportation ­Perfect Storm 414
11-1 Introduction 415
11-2 The Role of Transportation in Supply Chain
Management 415
11-2a Role Inhibitors 416
11-3 Modes of Transportation 418
11-3a Motor Carriers 419
11-3b Railroads 421
11-3c Air Carriers 423
11-3d Water Carriers 424
11-3e Pipelines 426
On the Line: Pipelines: Safe or Major Risks? 428
11-3f Intermodal Transportation 428
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 Contents xvii

11-4 Transportation Planning and Strategy 431

11-4a Functional Control of Transportation 431
11-4b Terms of Sale 432
11-4c Decision to Outsource Transportation 434
11-4d Modal Selection 435
11-4e Carrier Selection 439
On the Line: Clearing the Path to Shipper of Choice 440
11-4f Rate Negotiations 441
11-5 Transportation Execution and Control 441
11-5a Shipment Preparation and Tendering 441
11-5b Freight Documentation 442
11-5c Maintain In-Transit Visibility 444
11-5d Transportation Metrics 445
11-5e Monitor Service Quality 446
11-6 Transportation Technology 447
11-6a Transportation Management Systems 448
On the Line: Analytics-Driven Delivery Freight Visibility Solutions 450
Summary 450
Study Questions 451
Case 11.1: Vibrant Video 453
Case 11.2: Bob’s Custom BBQs 455
Appendix 11A Federal Regulation of the Transportation Industry 457
Economic Regulation 459
Safety Regulation 460
Summary 462
Appendix 11B Basis of Transportation Rates 463
Cost of Service 463
Value of Service 464
Distance 464
Weight of Shipment 466
Commodity Characteristics 466
Level of Service 467
Summary 468

Part IV
Chapter  12 Aligning Supply Chains 471
Supply Chain Profile: Why Is Strategic Alignment So Challenging? 472
12-1 Introduction 472
12-1a Scope and Intensity of Involvement 473
12-1b Model for Developing and Implementing
­Successful Supply Chain Relationships 475
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xviii Contents

12-1c Imperative for Collaborative Relationships 478

12-2 Third-Party Logistics—Industry Overview 481
On the Line: Collaborative Distribution to Achieve Strategic Goals 481
12-2a Definition of Third-Party Logistics 482
12-2b Example Services of 3PL Providers 484
12-3 Annual Third-Party Logistics Research Study 485
12-3a Profile of Logistics Outsourcing Activities 486
12-3b Strategic Role of Information Technology 487
On the Line: Structured Collaboration Platforms Help 3PLs
to Winmore Bids488
12-3c Management and Relationship Issues 489
12-3d Customer Value Framework 491
12-3e Strategic View of Logistics and the Role of 3PLs 491
Summary 492
Study Questions 492
Case 12.1: Quik Chips, Inc. 494
Case 12.2: United Express 496

Chapter  13 Supply Chain Performance Measurement and Financial

Analysis 497
Supply Chain Profile: CLGN Book Distributors.com 498
13-1 Introduction 500
13-2 Dimensions of Supply Chain Performance
­Metrics 500
13-3 Developing Supply Chain Performance
Metrics 505
On the Line: Establishing Ocean-Alliance 506
13-4 Performance Categories 506
13-5 The Supply Chain–Finance Connection 511
13-6 The Revenue–Cost Savings Connection 512
13-7 The Supply Chain Financial Impact 513
On the Line: Competitive Pressures Are Forcing Supply Chain ­Managers
517
to Become ­Financial Managers
13-8 Financial Statements 517
13-9 Financial Impact of Supply Chain Decisions 519
13-10 Supply Chain Service Financial Implications 525
Summary 531
Study Questions 531
Case 13.1: Wash & Dry, Inc. 534
Case 13.2: Paper2Go.com 535
Appendix 13A Financial Terms 536

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 Contents xix

Chapter  14 Supply Chain Technology—Managing Information Flows 539

Supply Chain Profile: Blockchain Technology Promises Safer Food 540
14-1 Introduction 541
14-2 Information Requirements 541
14-2a Meet Quality Standards 542
14-2b Support Multidirectional Flows 544
14-2c Provide Decision Support 544
14-3 Systems Capabilities 545
14-3a Enable Process Excellence 546
14-3b Link Network Elements 547
14-3c Mitigate Known Risks 548
14-4 SCM Software 550
14-4a Planning 550
On the Line: Planning Software Drives Forecast Accuracy 551
14-4b Execution 552
14-4c Event Management 553
14-4d Business Analytics and Business Intelligence 553
14-4e Facilitating Tools 554
On the Line: RFID Drives Visibility, ­Security, and Sales 556
14-5 SCM Technology Implementation   557
14-5a Needs Assessment 557
14-5b Software Selection 557
14-5c Implementation Issues 559
14-6 Supply Chain Technology Innovations 561
Summary 563
Study Questions 563
Case 14.1: Inflate-a-Dome Innovations 565
Case 14.2: Vintage Shoes Inc. 567

Chapter  15 Strategic Challenges and Change for Supply Chains 569

570
Supply Chain Profile: Keeping the Supply Chain Alive and Nimble
15-1 Introduction 570
15-2 Principles of Supply Chain Management 571
15-2a Principle 1: Segment Customers Based on
Service Needs 571
15-2b Principle 2: Customize the Logistics Network 572
15-2c Principle 3: Listen to Signals of Market Demand
and Plan Accordingly 573
15-2d Principle 4: Differentiate Products Closer
to the Customer 573
15-2e Principle 5: Source Strategically 574

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xx Contents

15-2f Principle 6: Develop a Supply Chain-Wide

­Technology Strategy 575
15-2g Principle 7: Adopt Channel-Spanning ­Performance
Measures 575
15-2h Update on the Seven Principles of SCM 576
15-3 Game-Changing Supply Chain Technologies 576
15-3a Mobility 577
15-3b Digitization 577
15-3c Automation 578
15-3d Concluding Note 579
15-4 Supply Chain Analytics 580
On the Line: Predictive Analytics for Operations Grows 76 Percent
581
in Two Years
15-4a Supply Chain Analytics Maturity Model 581
15-4b Analytical Resources 583
15-4c Big Data and the Supply Chain 584
15-5 Imperatives for Supply Chain Talent Management 585
15-5a Top Issues Facing the Workforce 585
On the Line: 3PLs and Shippers Report Missing Key Talent
586
at All Levels
15-6 Sustainability 588
15-6a Benefits and Challenges to Supply Chain
Sustainability 588
15-6b Reducing Risk 589
15-6c Four “Rs” of Sustainability 589
On the Line: Sustainability and Corporate Social Responsibility
at H&M 590
15-6d Reverse Flows 591
15-7 Supply Chain Innovation and Transformation 592
15-7a Supply Chain Innovation 592
15-7b Frugal versus Disruptive Innovation 593
15-7c Supply Chain Transformation 593
15-8 Closing Thoughts 595
Summary 597
Study Questions 597
Case 15.1 Amazon versus Alibaba 599

Notes 601
Subject Index 613
Name Index 625

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 Preface
The preparation of the 11th edition of Supply Chain Management: A Logistics P ­ erspective
has focused intensively on addressing the enormity of change that has been impacting
our global businesses and supply chains. The authors of the 11th edition feel that the past
several years have elevated the utility of the term “disruptive innovation” to disruptive
levels. Whether this refers to advances in information technology (e.g., cloud capabili-
ties; software-as-a-service; Internet of Things; mobile capabilities; additive manufacturing;
blockchain), operational innovations (e.g., drones, robots, autonomous vehicles) global
economic and environmental factors, or new and more effective business and manage-
ment strategies, the supply chain world is finding it necessary to develop new responses
to issues like these on an almost daily basis. Also, the growing presence and impacts of the
“Amazon effect” have challenged many types of organizations to go back to the drawing
board to re-think and to re-conceptualize the purposes, structure, and functioning of their
supply chains. These realities have significantly elevated the need for the effective execution
of change management in businesses and their supply chains. Global organizations have
learned that lean, fast, agile, and flexible supply chains are a requirement of the twenty-first
century where economic swings are typically quicker and of shorter duration than in the
past. Adaptability and readiness are also ingredients for continuing growth and profitability.
Through it all, logistics and supply chain management played an increasingly important
role to improve organizational efficiency, effectiveness, and competitiveness. Additionally,
and in an increasing number of organizations, supply chains have gained recognition at the
board level, and supply chain and logistics capabilities have become recognized as prerequi-
sites for overall organizational success. Supply chain executive responsibilities now extend
well beyond cost management and customer service, and they have significant linkages
into finance, marketing, and manufacturing/operations strategies. Through the provision
of capable and innovative logistics services, supply chains have become enriched to help
create and deliver value to customers, shareholders and stakeholders, and the organization
itself. In short, many supply chains are now regarded as being key ingredients of overall
organizational success.
This 11th edition of Supply Chain Management: A Logistics Perspective is designed to
introduce the fundamentals of supply chain management, and also to focus on how supply
chains can drive internal value for organizations. Also, a key element of success will be the
ability of organizations to align their supply chain strategies and operations with those of
supplier and customer organizations. Similar to the phenomenon it takes to win in any
team sport, a requirement for success will be a focus on end-to-end supply chain manage-
ment. While every supply chain organization has unique skills and capabilities, the ultimate
viability of the supply chain will depend on its ability to identify and achieve more pervasive
goals relating to delivering value to the end user customer, consumer, warfighter, etc.

Part I—Supply Chain Foundations

This section of the text provides a framework for an appreciation and understanding
of supply chain management as it has developed and expanded to meet the challenges of
the last 30 years. Chapter 1 provides an overview of the role and importance of supply
chain management in the twenty-first century. Considering the accelerating number of

xxi

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xxii Preface

supply chain innovations that are becoming reality, there are a growing number of very
new ­opportunities as well as challenges for today’s supply chain executives. This is followed
by Chapter 2 that has been added to explore the global issues of the twenty-first century
among the various countries of the world with an in-depth look at demographics. Chapter 3
explores the important dimensions of logistics management in support of global supply
chain challenges. This provides due recognition to the critical role played by logistics as the
backbone of supply chains. The final chapter in Part I, Chapter 4, explores the challenges
of supply chain design in a traditional sense, as well as in the rapidly emerging context of
omni-channel distribution. Also, the continued growth of e-Commerce has had significant
impacts on the strategic decisions and imperatives for supply chain management.

Part II—Supply Chain Fundamentals

The underlying fundamentals of supply chains can be visualized in the so-called SCOR®
Model that provides a solid conceptual view of the key ingredients of a supply chain.
The content of this section continues in the spirit of the SCOR® model, with each chapter
exploring individual critical components of the model. Strategic sourcing is the topic for
Chapter 5 with consideration being given to sourcing materials and services. In this era of
outsourcing, the strategic global procurement of goods and services has taken on increased
importance and relevance. The focus of Chapter 6 is on operations. Efficient and effective
operations in manufacturing and related areas such as maintenance are of great significance
in the supply chain. Chapter 7 in this section examines the outbound-to-customer needs
and requirements to add value for customers. The fourth and final Chapter 8 in this section
considers customer service and order management with emphasis on measurement and
financial impact.

Part III—Cross-Chain Logistics Processes

This section takes an in-depth look at the major supply chain process areas that are
essential to achieving the objectives of customer order fulfillment. Referred to as “cross-
chain logistics processes,” these areas of competency are major contributors to successfully
executing the delivery of raw materials, components, and finished goods, consistent with
customer and consumer requirements. To provide useful insight and perspectives on this
topic, Chapter 9 focuses on contemporary and futuristic approaches to managing inventory
in the supply chain. Chapter 10 highlights the role of distribution as a key supply chain
responsibility and Chapter 11 provides broad coverage of the importance of transportation
as a key element of overall supply chain success. Successful execution of these processes
contributes significantly to achieving the goals of supply chain efficiency and effectiveness.
This helps to provide customers and consumers with the right product in the right quan-
tities at the right place, right time, and at the right cost. This will lead to customer satis-
faction and positive financial impacts from effective management of the “order-to-cash”
cycle. Customers will therefore be satisfied and the objective of order-to-cash flow should
be maximized. While perhaps not as “glamorous” as some other aspects of supply chain
management, the topics covered in this chapter are nevertheless components of successful
supply chains.

Part IV—Supply Chain Challenges and Future Directions

Part IV examines the strategic issues and challenges that face supply chain managers
as organizations strive to remain competitive in the global economy. One of the issues is
that of supply chain alignment that has been receiving increasing attention by supply chain

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 Preface xxiii

­ rofessionals and academics. Covered in Chapter 12 is the need for alignment among people,
p
processes, and technologies within an individual organization, also the need for alignment
among various participating organizations in the broader supply chain. Chapter 12 also
provides information regarding the role of third-party providers of logistics services, and
how they may contribute to desired degrees of alignment among members of the supply
chain. Chapter 13 focuses on the important areas of performance measurement and finan-
cial analysis that are so critical to successfully executing today’s supply chain responsibili-
ties. The topic of technology is examined in Chapter 14 because of its increasingly critical
role in achieving supply chain success. Not only are supply chain technologies important
to the functioning of supply chains and the organizations that are involved, but they have
become key contributors to creating customer value and making significant contributions
to the success of overall organizations. In short, it has become apparent that the use of capa-
ble technologies has become critically important to help deal with the increasing pressures
as well as opportunities faced by supply chains. Last, Chapter 15 provides an insightful look
at some of the governing principles of supply chain management, and how they continue
to evolve and remain current in the fast-changing world of supply chain management. This
concluding chapter also provides in-depth commentaries on several topics that are of great
contemporary and future interest to achieving the goals of supply chain management and
overall business success.

Features
• Learning Objectives at the beginning of each chapter provide students with an overall
perspective of chapter material and also serve to establish a baseline for a working
knowledge of the topics that follow.
• Supply Chain Profiles are the opening vignettes at the beginning of each chapter that
introduce students to the chapter’s topics through familiar, real-world companies,
people, and events.
• On the Line features are applied, concrete examples that provide students with hands-on
managerial experience of the chapter topics.
• End-of-chapter summaries and study questions reinforce material presented in each
chapter.
• Short cases at the end of each chapter build upon what students have learned. Questions
that follow the cases sharpen critical thinking skills.

Ancillaries
The Web site contains three essential resources:
• The Instructors Manual includes chapter outlines, answers to end-of-chapter study
questions, commentaries on end-of-chapter short cases and end-of-text comprehensive
cases, and teaching tips.
• A convenient Test Bank offers a variety of true/false, multiple-choice, and essay
questions for each chapter.
• PowerPoint slides cover the main chapter topics and contain graphics from the main text.

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Another random document with
no related content on Scribd:
 “Breaking-Down” the Ingot
Whether it is to be sold in intermediate shapes or further rolled
down into a finished product, all ingots have to be “cogged” or
broken down into intermediate-sized slabs, blooms or billets, for an
ingot contains altogether too much steel for any single plate, rail,
rod, or other finished product.
The cogging or first rolling is accomplished in one of the three
types of rolls already described but now more generally in the
reversing mill.
When the tongs of the big overhead
crane have lifted the white-hot ingot
out of the soaking pit it is run back and
forth through the rolls which are
forced nearer and nearer together by
the “screw-down” man so that the
piece continually becomes thinner and
much longer with each pass. Tables
made up of small rollers geared
together receive the long piece as it
emerges from the rolls. After each pass Ingot Coming Out of the
they bring the piece back to the rolls “Soaking Pit”
which are now turning in the opposite
direction. The table on the other side
repeats the process, the piece being regularly turned on edge or slid
from one side of the rolls to the other by steel guides which can be
raised up between the rollers of the tables where desired. The
direction of these as well as of the rolls themselves is controlled
through levers by two or three men standing at one side of the mill.
Reversing after each pass, with the big ingot apparently turning
and sliding itself into the most advantageous position for the next
entry, the big engine, mill and roll-train seem almost human.
 The Rolling of Steel Plates
It is manifestly impossible in the
space at disposal to give in much detail
the rolling of many of the better known
products. Fortunately it is not
necessary, for after description of the
Ingot in the Rolls making of plate, pipe and tube, and of
rod and wire, the rolling of other forms
such as rails, bars, and the structural
shapes, I beams, channels, angles, Z bars, etc., can well be imagined.
From the contract department to the
mill clerk come the orders for plate,
with detailed list of sizes and
thicknesses, and definite specifications
of quality in terms of chemical and
physical requirements, etc. Steel Billets for
After Forging or Other
studying Purposes
these,
the clerk
makes requisition upon the open-
hearth furnace for such tonnages of
steel of various compositions as he
estimates will give him sufficient stock
for his purposes. As soon as possible
the steel is made and poured into
ingots which are transferred to the
Rolling Ingot into Slabs soaking pits of the slabbing mill there
to await disposition as soon as the
chemical laboratory has made analysis of the sample taken and has
reported by telephone the result to the clerk who ordered the
material. If close enough to the composition he ordered, he sends to
the slabbing mill his requisition ordering them to roll and cut the
four or six ingots of the “heat” into slabs of definite weights, each one
designed for a plate on a customer’s order.
The clerk at the slabbing mill determines to what width and
thickness each ingot shall be rolled and in what varying lengths it is
to be cut to furnish slabs of the definite weights ordered in the
requisition.
After rolling the ingot down to proper width and thickness, the
“piped” end is cut off and “discarded.” Slabs are cut and piled in
regular order on a little flat steel car on which they are pulled, still
red-hot, by the shrieking little dummy engine out from the slabbing
mill, through the yard and to the plate mill furnaces, into which they
are charged in proper order. Here they remain until they are again
white-hot and the plate mill roller is ready for them.
Meanwhile record sheets giving the heat number, the number of
the ingot and the weights of the slabs in the order in which they were
piled come to the plate mill clerk. From these and the results of
analysis of the steel he makes out the rolling orders for the plates to
be manufactured.
You have heard how difficult it is to
get solid ingots and how the top eighth
(or sometimes more) of an ingot is
usually “piped” and discarded. Now
slabs from the balance of the ingot
were piled on the car and have been
charged in the plate mill furnace.
Those from the upper part of the ingot Slabs from Which Plates
(next to the discarded part) are used Are Rolled
for the less exacting qualities of plate.
Only the bottom half of the ingot,
which of course is the solidest and best, goes into the higher grades
of plate, such as “fire box,” the choicest grades of “flange” steel, etc.
The third quarter goes into flange stock, “ship” and “tank” plate, the
latter representing miscellaneous lower-priced plate which may be
used for water tanks, steel flooring, etc. Steel known as “fire box” of
course must be of very high grade. It is used for parts of locomotives,
etc., which come in contact with and likely will suffer deterioration
from flame, smoke, etc. The best “flange” goes into boiler plates and
other products which have to stand considerable bending to shape.
 In making out his rolling orders the clerk sees that each numbered
slab is ordered rolled only into a product for which it is well suited.
He has to take into consideration the chemical composition, the
probable strength and other physical properties which were
definitely named in the specifications of the customer’s order. And,
as the physical properties of such steel are mightily affected by
temperature and speed of rolling and by rapidity of cooling, he must
know mill practice and constantly keep in touch with the results
which the physical testing laboratory is getting from bars sheared
from such of his plates as have been “pulled” for customers or the
inspectors who represent them.
When hot, the slabs one by one and in regular order come to the
rolls from the furnace. Following his rolling orders the roller and his
helpers put each slab back and forth through the plate mill rolls, first
drawing it out to a width a few inches greater than the plate to be
sheared from it, and then turning it a quarter around, they draw it
out in the rolls until it has come down to the proper thickness or
“gauge.”
If the clerk’s computations have been correct the plate will now
have the proper length. However, he may have ordered a slab of
insufficient weight to make it, particularly if the rolls have become
much worn.
It will hardly be realized how much the width and thickness of the
plate ordered have to do with the “percentage” of trimmed plate
which the mill will get out of the slab ordered. There is a “fish tail” on
each end of a rolled plate. On a thin, wide plate this becomes rather
serious.
Wherever possible the clerk puts two or three plates end to end
and perhaps narrow ones side by side, but he must not exceed the
width which the “shears” can “split” nor give the mill such a long
plate that it will become too cold to roll or too long to be
conveniently handled.
For diversion the mill men take delight in throwing an extra
amount of salt upon the plate to rid it of scale when nervous visitors
have come as close to the rolls as their conductor through the mill
will bring them. The explosion which comes from the usual amounts
is much intensified and it is not at all out of the ordinary to hear
 shrieks from the women and to see
surprised and somewhat dismayed
men among the visitors.
Plate mills are usually three-high
with tables of small rollers on each side
which tilt to feed the plate into the
rolls and to receive it on the other side
from which it is fed in again, either
An 84–inch Plate Mill above or below as the case may be. As
the plates must be flat, perfectly plain
rolls are used. For plates which are
very wide these rolls may be 140 inches or more long and perhaps
three feet in diameter.
The rolls, of course, are kept flooded with water to keep them cool.
At first thought one would think that the water would cool the plates
which are being rolled. It does not materially do so, however, the
extreme heat apparently keeping the water from coming in actual
contact with them. Thus they are rolled down from the three-inch
thick slab to ³⁄₁₆″, ¼″ or ⅜″, and from 6″, 8″, 10″, or 12″ slabs into
½″, ¾″ or possibly 1″ or 1¼″ plates.
All plates must be rolled very
accurately to gauge, allowance of
variation often being not over one or
two hundredths of an inch. The roller
must be a man of experience and of
very good judgment for slabs for
almost any plate may come of any one
of several thicknesses and lengths. He
must know his temperatures, speeds of
rolling and the amount of reduction
given with each pass, and, particularly The Rolling of Plates
in case of thin, wide plates, the
condition of his rolls, which after two or three days’ wear will
produce plates thicker in the middle than at the edges. As the “screw-
down” man on top screws the rolls together a little with each
successive pass and the “hookers” under the roller’s direction keep
the plate entering the rolls properly, he must with his very accurate
gauge measure the thickness of the plate as it nears completion.
Especially when plates are ordered and paid for by average weight
per square foot must he judge accurately the thickness of the center
of the plate where he cannot measure, and pull down the edges
enough that the finished plate when sheared will average right.
It is fortunate for the steel mill men of this country which does not
know the advantages of the metric system that a steel plate one inch
thick weighs very close to 40.8 pounds per square foot. This is an
easy figure and the clerk, roller, hot bed foreman, weighers and all
concerned “think” in terms of a plate one foot square and one inch
thick. One-half inch plate, therefore, weighs 20.4 lbs.; ¼″, 10.2 lbs.;
and ³⁄₁₆″, 7.66 lbs. per square foot.
As will be seen when we consider wire drawing and cold-drawn
seamless tubes, the strength and other physical properties of steel
depend first, upon composition, and, secondly, upon temperature at
which they are hammered, rolled, or otherwise “worked.” Therefore,
plates can be much modified in physical properties by finishing at
chosen temperatures. A steel containing .19% of carbon and .45% of
manganese, for instance, which in one inch plate should give a
tensile strength of around 55,000 pounds per square inch, 58,000
pounds in ½″ or 62,000 pounds in ¼″ when finished at usual
temperatures, by slightly “colder rolling” can be made to show a
considerably greater strength. Of course, the ductility is somewhat
reduced, but, with a moderate amount of cold rolling, it will not be
enough to do harm.
All of these and many other details must be not only kept in mind
but become second nature to the plate worker.
After the final pass the plates go upon the “hot bed” where they are
laid out side by side in the order in which they have been rolled. They
must now have marked out upon them the boundaries of the smaller
plates or pieces into which they are to be cut. From a duplicate of the
roller’s sheet the hot bed foreman marks upon the end of each plate
what is to be laid out and boys or men wearing shoes with thick soles
of old belting or other cheap non-conducting material go upon them
with chalk and “squares” which are somewhat similar to the
carpenter’s square but having “legs” six and twelve or fifteen feet
long. Though the soles of their shoes smoke from contact with the
still hot plate, they very quickly and accurately mark out upon its
surface the design which the hot bed foreman has signified.
 Usually the plates laid out are rectangular and of standard size but
often the boys have to lay out pieces of odd sizes and shapes, and
sometimes, what are known as “sketches” have to be drawn using
arcs, chords, radii, etc., as the student in geometry draws his
geometrical figures. Round plates for boiler heads, tank ends, etc., in
plate mill parlance are termed “heads.” These are marked out with
string and a piece of chalk. A boy with a pot of white paint follows
and paints on the surface of each piece laid out its size, thickness, the
customer’s name, the order number and heat number. That the plate
can always be identified, even after exposure to severe service or
weather conditions, another boy with steel stamps follows and
stamps into the steel the heat number.
Cranes with magnets or hooks convey the long plates to the “goose
necks” over the small rollers of which they are pulled to the shears
where the powerful steam or hydraulically-operated square-edged
knife with ease trims the ends and irregular edges along the chalk
lines into the sizes marked. Accuracy is everywhere necessary as ¼″
over or under ordered dimensions or a variation of two hundredths
of an inch in thickness may and probably will cause rejection of a
plate.
After weighing and recording, the plates are conveyed to the
shipping yard, where they are loaded by electro-magnets into cars for
shipping.
In the plate mill process above described plates anywhere between
30 and 120 inches in width, say, can be rolled. And as mentioned, the
more or less irregular edges on the sides are “sheared” off. This extra
allowance, which must be given, of course becomes “scrap.”
For plates which can best be rolled in long narrow lengths a
“universal” plate mill is often used. This has vertical rolls just back of
the two horizontal rolls, which are adjustable so that the plate can be
regulated, not only as to thickness, but also as to width as well. Such
mills give plates which have to be trimmed on the ends only, the
sides being quite smooth.
The rolling of plate has been described thus in detail that a slight
conception can be obtained of the refinement and the minutia which
is a necessary part of modern mill practice. American outputs which
have grown to as much as several hundred tons per twelve-hour turn,
require that every operation move along with “clock-like” precision.
 But with this immense tonnage and
with all of the handicaps of occasional
broken rolls and machine parts,
electric crane delays, and illness of
important men, the work must be and
usually is kept up without serious
delay.
Modern metallurgical and rolling
mill practice is a marvel.
Loading Plate from the
Shipping Yard
 Sheets
Most plates are rolled from slabs
which are about 36 inches wide, but
“sheets,” which are plates less than
³⁄₁₆″ thick are rolled from much
smaller-sized slabs known as “sheet
bars.” After “pulling out” into sheets
these may be folded once or even more
times, so that from two to eight thinner
sheets are rolled at once. That they
may not weld or stick together under
the heavy pressure, they must be rolled
colder than are single plates. They are
later trimmed and pulled apart. Some
mills start sheet bars of smaller size,
for each sheet a separate piece, which,
after drawing out somewhat are piled,
two, three, four or five high. With coal
or charcoal dust—either dry or mixed The Rolling of Sheets
with water—between them, they are
heated and rolled, the charcoal and
coal dust keeping them from sticking together. After annealing,
pickling, etc., they may be cold finished in polished rolls or otherwise
treated according to the purpose for which they are intended. After
straightening some are galvanized, others are tinned, blued or
painted. Most of them are sold “black,” i.e., with no coating at all.
Terneplate has a coating of 75% of lead and 25% of tin.
 The Rolling of Rails and Structural Shapes
It will be readily understood after reading the above, that, instead
of using plain rolls, mills for rolling steel rails, I beams, channels,
angles, Z bars, rods, etc., must have grooved rolls. For these products
the first pass will be through a groove slightly smaller than the bloom
or billet. Successive passes will be through other grooves in the same
set of rolls which will gradually make smaller and bring more nearly
to the finished shape the piece being rolled.
Before our eyes the white-hot bloom
enters the three-high mill, goes
backward and forward through the
rolls and very shortly assumes the
general shape desired. Each pass
thereafter brings it nearer to the
finished shape. Rails, for instance, are
rolled out from the blooms into one
long rail perhaps 140 feet in length
which glides along like a huge snake to
Rail in the Finishing the swiftly revolving “hot” saws which
Rolls are so spaced that four 33–foot rails
are sawed from it at the same time. As
the rails pass from the saws to the
cooling bed they are marked by a revolving stamp. When cool they go
to the straightening yard, are straightened, drilled, inspected and
later loaded into cars for shipment.
The production of all kinds of finished rolled iron and steel
products in the United States during the past twenty-eight years is
given in the following table which shows how extensive are our
rolling mill industries and the rapidity of their development.
Year Iron and Plates Nail Wire Structural All Other Total
Steel Rails and Plate Rods Shapes Finished Gross
Sheets Rolled Prod. Tons
1887 2,139,640 603,355 308,432 2,184,279 5,235,706
1890 1,885,307 809,981 251,828 457,099 2,618,660 6,022,875
1895 1,306,135 991,459 95,085 791,130 517,920 2,487,845 6,189,574
1899 2,272,700 1,903,505 85,015 1,036,398 850,376 4,146,425 10,294,419
1901 2,874,639 2,254,425 68,850 1,365,934 1,013,150 4,772,329 12,349,327
1903 2,992,477 2,599,665 64,102 1,503,455 1,095,813 4,952,185 13,207,697
1905 3,375,929 3,532,230 64,542 1,808,688 1,660,519 6,398,107 16,840,015
1907 3,633,654 4,248,832 52,027 2,017,583 1,940,352 7,972,374 19,864,822
1909 3,023,845 4,234,346 63,746 2,335,685 2,275,562 7,711,506 19,644,690
1911 2,822,790 4,488,049 48,522 2,450,453 1,912,367 7,316,990 19,039,171
1913 3,502,780 5,751,037 37,503 2,464,807 3,004,972 10,030,144 24,791,243
1915 2,204,203 6,077,694 31,929 3,095,907 2,437,003 10,546,188 24,392,924
 Specifications and Inspection
Customers, of course, have a right to see that their specifications
are lived up to. Though years ago the mills perhaps intentionally sold
to customers products which did not fulfill his specifications to the
letter, it is not generally so to-day. Now the mills’ own inspectors are
commonly more severe in their rejections of products than are the
representatives which the customers themselves send. Not only does
the mill laboratory make careful and accurate analysis of each heat or
batch of steel made, but, after its application to orders, pieces of
plate, shapes or rails rolled from it are examined, gauged, and test
bars of the steel are pulled in the physical testing laboratory.
The mill rightly recognizes that it is for its own interest that the
standard of its product be kept high.
A trip through one of the large steel plants with its furnaces, its
blooming and slabbing mills, its rail, plate, structural and rod mills is
one of the most interesting that can be taken. If the visitor is not
afraid of smoke or dust or of what seems to him an uncomfortable
heat on a warm day he will discover new worlds. No particular
attention is paid to the casual visitor to the plant, but, for those who
show real interest, steel men have a warm welcome, from manager to
the sample boys.
 CHAPTER XVIII
THE ROLLING OF RODS

Steel rods and what we will call large wires are rolled from billets
which are long, and approximately square blocks of steel. The size
and shape of the billets used vary, depending upon the process and
the size of the rod to be rolled. Much of the finished rod is sold as
such for various purposes for which round steel is desired and an
immense tonnage of one of the smaller sizes is used as the
intermediate raw material from which wire is drawn.
Rod mills have a very interesting history, which, by the way, is but
one of several histories of the development of the iron and steel
processes and products which should make us proud of the genius of
man in the way of metallurgical, mechanical and business
development.
 The Belgian Mill
The first bars and rods were rolled in the old two-high mill, where,
after each pass they were pulled back over the top roll and inserted
into the next groove by the roller as is usual with the two-high mill.
Then along came the three-high mill which probably resulted in
greater advantage to rod rolling than to other lines, important, even,
as it was to them.
But long, thin bars or rods are quite pliable when at white or
rolling heat and the “catcher” soon discovered a way by which he
could save time and push up his tonnage. He skillfully caught the
forward end of the bar as it came through, and, giving it a quarter
twist, he inserted it in the proper return groove without waiting for
the whole bar to run through to his side before starting it on its
return journey. This, of course, was easily possible with the slow
speeds then used.
Naturally the rod coming through from one side and going back to
the other formed a loop.
The roller, at the front, was not slow in discovering that on long
rods he could do the same thing, so rods were soon regularly going
through three or more passes at the same time.
It was soon found out that it was
better to use a second set of rolls
placed end to end with the first for the
third and subsequent passes as the
roller had hardly room or time to loop
the rod on the return and start his next
one. This second set of rolls was
connected on the same shaft and Wire drawing of 350
therefore made to run at the same Years Ago
speed as the first. It worked out that by
use of such extra sets of rolls and an
additional helper or two the same long rods could be running
through as many as six or seven passes at once with a great saving in
time.
 As it came from the final pass the forward end of the finished rod
was seized in a pair of tongs by a boy who ran with it away from the
rolls, stretching it out along the floor to cool. As the various sets of
rolls were connected on the same driving shaft and revolved at the
same speed, the loops which were formed between passes continually
grew longer. Here, too, boys with iron hooks were useful in
controlling the loops. Later it was found advisable to have each
succeeding mill speeded enough to take the rod as the preceding pair
of rolls delivered it; then the loops remained of approximately
constant length.
To push production the mill was run
faster and faster. As longer rods were
rolled, a hand-operated reel was
devised to which the boy attached the
forward end of the rod while another
turned the reel. But the speed of the
mill was limited mainly because of the
slow reel and the awkward method of
getting the rod attached to it.

Plan of a Modern
Looping Mill (The
Garrett Mill)
 The Bedson Continuous Mill
About 1867 George Bedson of England, invented the first
“continuous” mill.
Instead of looping the rod around and back through the rolls he
put several sets of rolls each in front of the other with every other
pair vertical. This alternate horizontal and vertical roll arrangement
was necessary because the reduction of the billet or rod in any pass
can be only in a direction perpendicular to the axis of the rolls. The
roller and catcher had given it a quarter-turn twist each time they
started it into the two-high rolls. Bedson’s successive pairs of rolls
were set close together, each pair being speeded enough that it took
the rod exactly as fast as the preceding pair delivered it. The billet or
rod, therefore, traveled through them in a straight line.
This continuous process was, of course, of great advantage in that
considerable speed could be attained and there was not the rapid
cooling nor the opportunity for loss by scaling from exposure to the
air which occurred with the long loops of the Belgian Mill. It was a
great advance, but the speed was yet held down by the finishing pass
and the inability of the reel to coil the rod fast enough.
The greatest development came through the inventive genius of
two men, Charles Morgan and George Garrett, who developed the
two separate types of mill which have made the rod rolling industry
what it is to-day. The work of both was done in this country.
 The Morgan Continuous Mill
Morgan’s also was a continuous process. The billet was put in at
one end of a new type of heating furnace which Morgan devised, and
was gradually pushed along to the other end. From this second or
outgoing end, the long, narrow, white-hot billet went through several
pairs of two-high rolls set close together, each successive pair having
smaller grooves than the one preceding it, so that, after traversing
these several pairs of rolls, the rods emerged from the last pair
finished, having traveled in a straight line through them.
Hand reeling was much too slow for Morgan who invented two
different types of high-speed automatic reel which, in the highly
speeded mills of to-day, receive and coil wire coming from the
finishing passes at speeds of over one-half mile per minute. It is
stated that the billets and rods therefrom traverse the rolls so fast
and the pressure is applied so quickly and so hard that the rods
emerging from the finishing passes are hotter than were the billets
when they went into the rolls.
The Billet Traverses the Morgan Continuous Mill at High Speed Emerging
from the Last Roll as Finished Rod

As was explained, no reduction in thickness is brought about by

the sides of the grooves in the rolls. Therefore, a bar or rod must be
turned after each pass unless Bedson’s alternating horizontal and
vertical rolls are used. This turning Morgan did in spiral tubes
inserted between the successive sets of rolls, all of which were
horizontal. These tubes operate as does the “rifling” in a gun barrel,
in turning the rod.
In Bedson’s mill, with its alternating horizontal and vertical pairs
of rolls, it was possible to roll only one rod at a time. With Morgan’s
system, in which all rolls were horizontal, several rods could be
traversing the mill side by side.
With the high-speed reels and what are known as “flying shears” in
which billets or rods can be cut to any length while going at full
speed, Morgan’s mill had come to a high stage of development. It was
practically automatic.
 The Garrett Mill
While Morgan was developing his continuous mill, William Garrett
was improving the old Belgian mill. Garrett believed and insisted
that with proper working, rods could be rolled from billets of much
larger diameter and greater weight than the long narrow billets
which had been used. He eventually did away with an intermediate
rolling operation by using larger billets.
You remember that in the Belgian mill the “catchers” looped the
rods back into the rolls. To do this work automatically Garrett
inserted between the sets of rolls looping troughs which guided the
forward ends of the rods around and into the next groove in the rolls.
These troughs are called “repeaters.” It was found that while they
worked very well for looping the cross-sections known as the
squares, they were less suitable for looping the oval sections which
were produced with every other pass. These were better and more
safely done in the old way, i.e., by manual labor. They are generally
so done to-day. With the Morgan high-speed reel, sloping floors to
better take care of the loops, and with successive pairs of rolls each
running at higher speed than the preceding pair, the Garrett mill has
apparently kept pace with the Morgan.
Each has its advantages and each is used for certain classes of
work. For long continued runs on rod of one size the Morgan mill can
produce more cheaply, its product is more uniform in temper and
the loss from scaling is less as little of the rod is exposed while in the
mill. As the first pair of rolls in the Morgan mill is set close to the
furnace, less than one-quarter of the billet is in the mill at any one
time and the forward end of the billet is on the reel as finished rod
before the last of the billet leaves the furnace. With any process
something occasionally goes wrong so that the rod does not follow
the path intended. In such cases misshapen or tangled rod results.
Such spoiled billets or rods are called “cobbles.” With what is known
as the “flying shears,” which in the Morgan mill cuts the billet or rod
while it is traveling at high speed, the rear part of the piece can be cut
off and saved in case of cobbling. On this account the Morgan mill is
said to give less scrap than the Garrett.
The Garrett mill, on the other hand, gives rod which is more
uniform all along in shape and diameter and it has the considerable
advantage that it is quickly adaptable to change of product; it does
not require such complicated and nice adjustment as does the
Morgan mill. So, despite the greater danger to the rollers from the
circling loops about them, which occasionally become
unmanageable, the Garrett mill is largely used.