HEIZER RENDER TWELFTH EDITION MUNSON O P E R A T I O N S O P Pearson’s MyLab™ E M A N AG E M E N T S uR s t IMPROVING RESULTS aA i n A proven way to help individual students achieve aT b the goals that educators set for their course. Sustainability and Supply Chain Management iI l iO t y ENGAGING EXPERIENCES aN n Dynamic, engaging experiences that personalize and d activate learning for each student. S S u p M AN EXPERIENCED PARTNER p l y From Pearson, a long-term partner with a true grasp A C of the subject, excellent content, and an eye on h N a the future of education. i n A M aG n a E g e mM e n E t N T TWELFTH ISBN-13: 978-0-13-413042-2 ISBN-10: 0-13-413042-1 EDITION 90000 www.pearsonhighered.com 9 780134 130422 JAY HEIZER | BARRY RENDER | CHUCK MUNSON O P E R A T I O N S M A N A G E M E N T Sustainability and Supply Chain Management AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd ii 2299//1122//1155 44::0088 ppmm This page intentionally left blank 561590_MILL_MICRO_FM_ppi-xxvi.indd 2 24/11/14 5:26 PM T W E L F T H E D I T I O N O P E R A T I O N S M A N A G E M E N T Sustainability and Supply Chain Management J A Y HEIZER Jesse H. Jones Professor of Business Administration Texas Lutheran University B A R R Y RENDER Charles Harwood Professor of Operations Management Graduate School of Business Rollins College C H U C K MUNSON Professor of Operations Management Carson College of Business Washington State University Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd iiiiii 2299//1122//1155 44::0088 ppmm Vice President, Business Publishing: Donna Battista Vice President, Director of Digital Strategy and Assessment: Editor-in-Chief: Stephanie Wall Paul Gentile Acquisitions Editor: Daniel Tylman Manager of Learning Applications: Paul DeLuca Editorial Assistant: Linda Albelli Director, Digital Studio: Sacha Laustsen Vice President, Product Marketing: Maggie Moylan Digital Studio Manager: Diane Lombardo Director of Marketing, Digital Services and Products: Digital Studio Project Manager: Andra Skaalrud Jeanette Koskinas Digital Studio Project Manager: Regina DaSilva Field Marketing Manager: Lenny Ann Kucenski Digital Studio Project Manager: Alana Coles Product Marketing Assistant: Jessica Quazza Digital Studio Project Manager: Robin Lazrus Team Lead, Program Management: Ashley Santora Digital Content Project Lead: Courtney Kamauf Program Manager: Claudia Fernandes Full-Service Project Management and Composition: Team Lead, Project Management: Jeff Holcomb Cenveo® Publisher Services Senior Project Manager: Jacqueline A. 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Jones Professor of Business Administration, Texas Lutheran University, Barry Render, Charles Harwood Professor of Operations Management, Crummer Graduate School of Business, Rollins College, Chuck Munson, Professor of Operations Management, Carson College of Business, Washington State University. -- Twelfth edition. pages cm Original edition published under the Title: Production and operations management. Includes bibliographical references and index. ISBN 978-0-13-413042-2 -- ISBN 0-13-413042-1 1. Production management. I. Render, Barry. II. Munson, Chuck. III. Title. TS155.H3725 2015 658.5--dc23 2015036857 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-413042-1 ISBN 13: 978-0-13-413042-2 AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd iivv 2299//1122//1155 44::0088 ppmm To Karen Heizer Herrmann, all a sister could ever be J.H. To Donna, Charlie, and Jesse B.R. T o Kim, Christopher, and Mark Munson for their unwavering support, and to Bentonville High School teachers Velma Reed and Cheryl Gregory, who instilled in me the importance of detail and a love of learning C.M. AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd vv 2299//1122//1155 44::0088 ppmm ABOUT THE Professor Emeritus, the Jesse H. Jones Chair of Business Administration, Texas Lutheran University, Seguin, Texas. He received his B.B.A. and M.B.A. from A U T H O R S the University of North Texas and his Ph.D. in Management and Statistics from Arizona State University. He was previously a member of the faculty at the University of Memphis, the University of Oklahoma, Virginia Commonwealth JAY HEIZER University, and the University of Richmond. He has also held visiting positions at Boston University, George Mason University, the Czech Management Center, and the Otto-Von-Guericke University, Magdeburg. Dr. Heizer’s industrial experience is extensive. He learned the practical side of operations management as a machinist apprentice at Foringer and Company, as a production planner for Westinghouse Airbrake, and at General Dynamics, where he worked in engineering administration. In addition, he has been actively involved in consulting in the OM and MIS areas for a variety of organizations, includ- ing Philip Morris, Firestone, Dixie Container Corporation, Columbia Industries, and Tenneco. He holds the CPIM certification from APICS—the Association for Operations Management. Professor Heizer has co-authored 5 books and has published more than 30 arti- cles on a variety of management topics. His papers have appeared in the A cademy of Management Journal , Journal of Purchasing , Personnel Psychology , P roduction & Inventory Control Management , APICS—The Performance Advantage , Journal of Management History , IIE Solutions, and Engineering Management , among others. He has taught operations management courses in undergraduate, graduate, and executive programs. BARRY RENDER Professor Emeritus, the Charles Harwood Professor of Operations Management, Crummer Graduate School of Business, Rollins College, Winter Park, Florida. He received his B.S. in Mathematics and Physics at Roosevelt University, and his M.S. in Operations Research and Ph.D. in Quantitative Analysis at the University of Cincinnati. He previously taught at George Washington University, University of New Orleans, Boston University, and George Mason University, where he held the Mason Foundation Professorship in Decision Sciences and was Chair of the Decision Sciences Department. Dr. Render has also worked in the aerospace indus- try for General Electric, McDonnell Douglas, and NASA. Professor Render has co-authored 10 textbooks for Pearson, including M anagerial Decision Modeling with Spreadsheets , Quantitative Analysis for Management , Service Management , I ntroduction to Management Science , and C ases and Readings in Management Science . Quantitative Analysis for Management, now in its 13th edition, is a leading text in that discipline in the United States and globally. Dr. Render’s more than 100 articles on a variety of management topics have appeared in Decision Sciences , Production and Operations Management , Interfaces , Information and Management , Journal of Management Information Systems , Socio-Economic Planning Sciences , IIE Solutions , and O perations Management Review , among others. Dr. Render has been honored as an AACSB Fellow and was twice named a Senior Fulbright Scholar. He was Vice President of the Decision Science Institute Southeast Region and served as Software Review Editor for Decision Line for six years and as Editor of the N ew York Times Operations Management special issues for five years. For nine years, Dr. Render was President of Management Service Associates of Virginia, Inc., whose technology clients included the FBI, NASA, the U.S. Navy, Fairfax County, Virginia, and C&P Telephone. He is currently Consulting Editor to P earson Press . Dr. Render has received Rollins College’s Welsh Award as leading Professor and was selected by Roosevelt University as the recipient of the St. Claire Drake Award for Outstanding Scholarship. Dr. Render also received the Rollins College MBA Student Award for Best Overall Course, and was named Professor of the Year by full-time MBA students. vi AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd vvii 2299//1122//1155 44::0088 ppmm ABOUT THE AUTHORS vii Professor of Operations Management, Carson College of Business, Washington CHUCK MUNSON State University, Pullman, Washington. He received his BSBA s umma cum laude in finance, along with his MSBA and Ph.D. in operations management, from Washington University in St. Louis. For two years, he served as Associate Dean for Graduate Programs in Business at Washington State. He also worked for three years as a financial analyst for Contel Telephone Corporation. Professor Munson serves as a senior editor for P roduction and Operations Management , and he serves on the editorial review board of four other journals. He has published more than 25 articles in such journals as P roduction and Operations Management , IIE Transactions, Decision Sciences , Naval Research Logistics , European Journal of Operational Research , Journal of the Operational Research Society , and A nnals of Operations Research. He is editor of the book T he Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM , and he has co-authored the research monograph Q uantity Discounts: An Overview and Practical Guide for Buyers and Sellers . He is also coauthor of M anagerial Decision Modeling with Spreadsheets (4th edition), published by Pearson. Dr. Munson has taught operations management core and elective courses at the undergraduate, MBA, and Ph.D. levels at Washington State University. He has also conducted several teaching workshops at international conferences and for Ph.D. students at Washington State University. His major awards include being a Founding Board Member of the Washington State University President’s Teaching Academy (2004); winning the WSU College of Business Outstanding Teaching Award (2001 and 2015), Research Award (2004), and Service Award (2009 and 2013); and being named the WSU MBA Professor of the Year (2000 and 2008). AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd vviiii 2299//1122//1155 44::0088 ppmm This page intentionally left blank 561590_MILL_MICRO_FM_ppi-xxvi.indd 2 24/11/14 5:26 PM Brief Table of Contents PART ONE Introduction to Operations Management 1 Chapter 1 Operations and Productivity 1 Chapter 2 Operations Strategy in a Global Environment 29 Chapter 3 Project Management 59 Chapter 4 Forecasting 105 PART T WO Designing Operations 1 59 Chapter 5 Design of Goods and Services 159 ◆ Supplement 5 Sustainability in the Supply Chain 193 Chapter 6 Managing Quality 213 ◆ Supplement 6 Statistical Process Control 245 Chapter 7 Process Strategy 279 ◆ Supplement 7 Capacity and Constraint Management 307 Chapter 8 Location Strategies 337 Chapter 9 Layout Strategies 367 Chapter 10 Human Resources, Job Design, and Work Measurement 407 PART T HREE Managing Operations 4 41 Chapter 11 Supply Chain Management 441 ◆ Supplement 11 Supply Chain Management Analytics 471 Chapter 12 Inventory Management 487 Chapter 13 Aggregate Planning and S&OP 529 Chapter 14 Material Requirements Planning (MRP) and ERP 563 Chapter 15 Short-Term Scheduling 599 Chapter 16 Lean Operations 6 35 Chapter 17 Maintenance and Reliability 659 PART FOUR Business Analytics Modules 6 77 Module A Decision-Making Tools 677 Module B Linear Programming 699 Module C Transportation Models 729 Module D Waiting-Line Models 747 Module E Learning Curves 775 Module F Simulation 791 ONLINE TUTORIALS 1. Statistical Tools for Managers T 1-1 2. Acceptance Sampling T2-1 3. The Simplex Method of Linear Programming T3-1 4. The MODI and VAM Methods of Solving Transportation Problems T4-1 5. Vehicle Routing and Scheduling T5-1 ix AA0011__HHEEIIZZ00442222__1122__SSEE__FFMM..iinndddd iixx 2299//1122//1155 44::0088 ppmm