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Operations Management
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Operations Management
Managing Global Supply Chains

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

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Preface
 
Acknowledgments
 
About the Authors
 
PART I: INTRODUCTION
 
Chapter 1: Introduction to Managing Global Operations and Supply Chains
1.1 Supply Chains and Operations Management in the Global Economy

 
1.2 What Does Operations Management Entail?

 
1.3 What Does Supply Chain Management Entail?

 
1.4 An Integrated Perspective on Operations and Supply Chain Management

 
1.5 The Evolution of Operations and Supply Chain Management

 
1.6 Current and Emerging Issues in Operations and Supply Chain Management

 
1.7 Road Map: How This Text Is Organized

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 1.1 Multinational Companies and China: Investing for the Long Term

 
Case Study 1.2 Nintendo’s Wii and Wii U: Absence Makes the Heart Grow Fonder

 
Video Case

 
Critical Thinking Exercise

 
 
PART II: STRATEGIC DECISIONS
 
Chapter 2: Operations and Supply Chain Strategies
2.1 Levels of Strategic Planning

 
2.2 Formulating and Evaluating Operations Strategies

 
2.3 Formulating and Evaluating Strategies for Service Organizations

 
2.4 Measuring Productivity as Part of Strategic Planning

 
2.5 Strategies for Supply Chains

 
2.6 Global Strategies

 
2.7 Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 2.1 Supply Chain Strategies and Disaster Planning

 
Video Case

 
Critical Thinking Exercise

 
 
Chapter 3: Project Management
3.1 Projects, Project Teams, and Measuring Success

 
3.2 Project Life Cycles

 
3.3 Conceptualizing and Planning Projects

 
3.4 Scheduling Projects

 
3.5 Supply Chains for Projects

 
3.6 Executing, Evaluating, and Terminating Projects

 
3.7 Sustainability Issues

 
3.8 Global Projects

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 3.1 Project Management in the Movie Business

 
Video Case

 
Critical Thinking Exercise

 
 
Supplement for Chapter 3: Project Management
3S.1 Determining the Probability of a Project Being Completed on Time

 
3S.2 Calculating the Time-Cost Trade-Offs of Crashing a Project

 
3S.3 Calculating a Project’s Earned Value

 
Supplement Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Critical Thinking Exercise

 
 
Chapter 4: Product and Service Innovations
4.1 Why Companies Develop New Products and Services

 
4.2 How New Products Are Developed

 
4.3 New Product Development Concepts and Strategies

 
4.4 Using Technology to Develop New Products

 
4.5 Global Product Development

 
4.6 New Product Development Issues for Supply Chains

 
4.7 How Services Are Designed

 
4.8 Legal, Ethical, and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 4.1 Redesigning for Efficiency: The Chevrolet Malibu

 
Video Case

 
Critical Thinking Exercise

 
 
Supplement for Chapter 4: Reliability
4S.1 Understanding Reliability

 
4S.2 Availability and Maintainability

 
Supplement Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
 
Chapter 5: Managing for Quality
5.1 Defining Quality

 
5.2 The Benefits and Costs of Managing Quality

 
5.3 The Evolution of Quality Management and Its Pioneers

 
5.4 Major Quality Management Initiatives

 
5.5 Quality Management Tools and Techniques

 
5.6 Managing Quality for Supply Chains

 
5.7 Global Quality Management

 
5.8 Legal, Ethical, and Sustainability Issues,

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 5.1 Pfizer Fixes Problems With Its Cleaning Processes

 
Case Study 5.2 Partnering to Improve Quality

 
Case Study 5.3 3M: Finding the Delicate Balance Between Six Sigma and Innovation

 
Case Study 5.4 Van Halen, Brown M&Ms, and Quality Control

 
Video Case

 
Critical Thinking Exercise

 
 
Chapter 6: Quality Improvement and Control Tools
6.1 Quality Control Versus Quality Assurance

 
6.2 Quality Appraisal Tools

 
6.3 Quality Defect Prevention Tools

 
6.4 Quality Design Tools

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 6.1 J.D. Power Automobile Surveys: What Does “Quality” Mean, Anyway?

 
Video Case

 
Critical Thinking Exercises

 
 
Chapter 7: Capacity Planning
7.1 Capacity Planning

 
7.2 Service Capacity Planning

 
7.3 Capacity Planning for Supply Chains

 
7.4 Ethical and Sustainability Issues

 
7.5 Global Capacity Management

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 7.1 Kirwain’s Capacity Planning Challenge

 
Video Cases

 
Critical Thinking Exercises

 
 
Chapter 8: Supply Chain Design and Location Planning
8.1 Supply Chain Design and Facility Location Decisions

 
8.2 Phases in the Supply Chain Design and Location Decision-Making Process

 
8.3 Analytical Methods for Evaluating Locations

 
8.4 Ethical and Sustainability Issues

 
8.5 Global Location Planning

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 8.1 Countering the Counterfeiters

 
Case Study 8.2 Alpharetta Tools

 
Video Case

 
Critical Thinking Exercise

 
 
Chapter 9: Process Design and Layout Planning
9.1 Designing, Selecting, and Redesigning Manufacturing Processes

 
9.2 Designing Service Processes

 
9.3 Designing Processes for Supply Chains

 
9.4 Global Process Design

 
9.5 Layout Planning

 
9.6 Legal, Ethical, and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 9.1 Challenges of Redesigning a Plant Layout

 
Video Case

 
Critical Thinking Exercise

 
 
Supplement for Chapter 9: Tools for Analyzing, Designing, and Selecting Processes and Layouts
9S.1 Process Selection, Design, and Analysis Tools

 
9S.2 Layout Analysis Tools and Techniques

 
Supplement Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Critical Thinking Exercises

 
 
PART III: INTEGRATIVE DECISIONS
 
Chapter 10: Supplier Management
10.1 Supplier Management and Its Goals

 
10.2 The Supplier Management Process

 
10.3 Managing Service Providers

 
10.4 Global Supplier Management

 
10.5 Legal, Ethical, and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study 10.1 The Boeing

 
Video Cases

 
Critical Thinking Exercise

 
 
Chapter 11: Logistics Management
11.1 Integrated Logistics Management

 
11.2 Order Fulfillment

 
11.3 Transportation Management

 
11.4 Packaging

 
11.5 Materials Handling

 
11.6 Warehousing Management

 
11.7 Inventory Management

 
11.8 Facilities Network Design,

 
11.9 Global Logistics

 
11.10 Logistics Outsourcing

 
11.11 Logistics in the Service Sector

 
11.12 Ethical and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 11.1 How Sustainable Logistics Solutions and Technologies Have Helped Walmart Become More Efficient

 
Case Study 11.2 Third-Party Logistics and the Mistreatment of Workers

 
Video Case

 
Critical Thinking Exercises

 
 
Chapter 12: Demand Management and Customer Service
12.1 Demand Management

 
12.2 Global Demand Management

 
12.3 Services Demand Management

 
12.4 Customer Service and Demand Management

 
12.5 Ethical and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Problems

 
Case Study 12.1 McDonald’s Reinvents Itself, Again

 
Case Study 12.2 Predicting the Future Demand for Rural Health Care

 
Video Cases

 
Critical Thinking Exercises

 
 
Chapter 13: Demand Forecasting Methods
13.1 Introduction to Forecasting and Its Applications

 
13.2 The Characteristics of Good Forecasts

 
13.3 Qualitative Versus Quantitative Forecasting Methods

 
13.4 Measuring and Monitoring the Accuracy of Forecasting Methods

 
13.5 Monitoring and Controlling Forecasts

 
13.6 Forecasting for Supply Chains

 
13.7 Ethical Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 13.1 Forecasting Ticket Demand for the Super Bowl

 
Case Study 13.2 Ethical Forecasting: If You Torture the Numbers Long Enough, They Can Tell You Anything!

 
Video Cases

 
Critical Thinking Exercises

 
 
PART IV: TACTICAL DECISIONS
 
Chapter 14: Lean Operations and Supply Chains
14.1 Introduction to Lean Operations

 
14.2 The Philosophy of Lean Systems

 
14.3 Elements of Lean Systems

 
14.4 Lean Services

 
14.5 Lean Supply Chains

 
14.6 Lean Global Supply Chains

 
14.7 Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study 14.1 Lean Sustainable Supply Chains at Unilever

 
Case Study 14.2 TAL Apparel and JCPenney

 
Critical Thinking Exercise

 
Appendix 14.1: Value Stream Mapping Symbols

 
Appendix 14.2: Steps for Developing a Value Stream Map

 
 
Chapter 15: Inventory Management
15.1 Types of Inventory

 
15.2 Inventory Costs

 
15.3 Inventory Considerations for Supply Chains

 
15.4 Inventory Management Measures

 
15.5 Key Features of Effective Inventory Management Systems

 
15.6 Uncertainty in Supply Chain Inventories: The Bullwhip Effect

 
15.7 Ethical and Sustainability Issues

 
15.8 Global Inventory Management

 
15.9 Service Sector Inventory Management

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study 15.1 Inventory Pressures Cause Tuesday Morning to Abandon e-Commerce

 
Case Study 15.2 Inventory Management in the Age of the Online Shopper

 
Video Case

 
Critical Thinking Exercises

 
 
Chapter 16: Inventory Control Models
16.1 How Much to Order: Continuous Review Systems

 
16.2 Economic Production Quantity (EPQ) Model

 
16.3 EOQ Model with Quantity Discounts

 
16.4 When to Order: Reorder Point for Continuous Review Systems (EOQ Model)

 
16.5 How Much to Order: Periodic Review Systems

 
16.6 How Much to Order: Single-Period Inventory Systems

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 16.1 When Your Customers Steer You Wrong: Walmart’s Project Impact Disaster

 
Video Case

 
Critical Thinking Exercise

 
 
Chapter 17: Sales and Operations Planning
17.1 The Basics of Sales and Operations Planning

 
17.2 Benefits of Sales and Operations Planning

 
17.3 Framework of the Sales and Operations Planning Process

 
17.4 Options for Influencing Demand and Supply in Sales and Operations Planning

 
17.5 Sales and Operations Planning Strategies

 
17.6 Methods for Sales and Operations Planning

 
17.7 Sales and Operations Planning for Supply Chains

 
17.8 Sales and Operations Planning in Service Industries

 
17.9 Sustainable S&OP: Sales Carbon Operations Planning (SCOP)

 
17.10 Ethical Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study 17.1: Coordinating Sales and Operations Planning for the Next Big Thing: The Case of the Sony PS4 Launch

 
Video Case

 
Critical Thinking Exercise

 
 
PART V: OPERATIONAL DECISIONS
 
Chapter 18: Master Scheduling and Material Requirements Planning
18.1 Master Scheduling

 
18.2 Material Requirements Planning

 
18.3 Ethical and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 18.1 Bringing Order to a Chaotic Restaurant

 
Video Case

 
Critical Thinking Exercise

 
 
Supplement for Chapter 18: Capacity Requirements Planning, MRP II, ERP, and DRP
18S.1 Capacity Requirements Planning (CRP)

 
18S.2 Manufacturing Resource Planning (MRP II)—An Extension of MRP

 
18S.3 Enterprise Resource Planning (ERP)

 
18S.4 Impact of MRP, MRP II, and ERP on Supply Chains

 
18S.5 Distribution Requirements Planning (DRP)

 
18S.6 Sustainability Issues

 
Supplement Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study 18S.1 Thinking Outside the Box: Enterprise Training at General Mills

 
Critical Thinking Exercise

 
 
Chapter 19: Detailed Scheduling
19.1 What Detailed Scheduling Is

 
19.2 Types of Scheduling for Manufacturers

 
19.3 Why Scheduling Is Complex

 
19.4 Scheduling in the Service Sector

 
19.5 Scheduling for Supply Chains

 
19.6 Ethical and Sustainability Issues

 
Chapter Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study 19.1 Telling Umpires Where to Go!

 
Video Case

 
Critical Thinking Exercises

 
 
PART VI: QUANTITATIVE MODULES
 
Module A: Linear Programming
Introduction

 
A.1 Features of a Linear Programming (LP) Problem

 
A.2 Solving Linear Programming Problems Using Excel

 
A.3 Sensitivity Analysis

 
A.4 Additional Linear Programming Models

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study A.1 Happy Hour, Happy Profits

 
 
Module B: The Transportation Models
B.1 Formulating and Solving the Transportation Problem

 
B.2 Additional Issues in Transportation Modeling

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study B.1 Plant Location for Tru-Blade Ski Company

 
 
Module C: Waiting Line Models
C.1 Introduction to Waiting Line Models

 
C.2 Queueing Models

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study C.1 The Psychology of Waiting in Lines

 
Questions for Discussion

 
 
Module D: Simulation
D.1 Introduction to Simulation

 
D.2 Monte Carlo Simulation

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problem

 
Problems

 
Case Study D.1 Staying Ahead of the Demand for Ice Cream

 
 
Module E: Learning Curves
E.1 What Are Learning Curves?

 
E.2 Applications of Learning Curves

 
E.3 Approaches to Solving Learning Curve Problems

 
E.4 Learning Curves in Cost Estimation

 
E.5 Limitations of Learning Curves

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study E.1 Estimating the Cost of a Drilling Platform

 
 
Module F: Decision-Making Tools
F.1 Using a Systematic Decision-Making Process

 
F.2 Elements in the Decision-Making Process

 
F.3 Categorizing Decisions

 
F.4 Techniques for Making Decisions Under Certainty, Uncertainty, and Risk

 
F.5 Techniques for Making Sequential Decisions

 
Module Summary

 
Key Terms

 
Discussion and Review Questions

 
Solved Problems

 
Problems

 
Case Study F.1 Gerber Products Company: The Problem

 
Case Study F.2 Gerber Products Company: The Solution

 
 
Appendix A: Tables
 
Appendix B: Answers to Select Problems
 
Glossary
 
Notes
 
Company Index
 
Subject Index

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