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PREFACE
1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 1
What Is Supply Chain Management (SCM)?, 3
Supply Chain Leader’s Box: Amazon.com, 9
The Boundary-Spanning Nature of SCM, 9
The Rise of SCM, 12
Supply Chain Leader’s Box: Dell Computer Corporation, 13
Characteristics of a Competitive Supply Chain, 14
Global Insights Box: Zara, 15
Trends in SCM, 16
Supply Chain Leader’s Box: Wal-Mart, 16
Big Data Analytics Box: Tesco, 18
Managerial Insights Box—Outsourcing Innovation: Goldcorp Inc., 22
Careers in SCM and Professional Organizations, 23
Chapter Highlights, 23
Key Terms, 24
Discussion Questions, 24
Case Study: McNulty’s Muscular Materials (MMM), 24
Case Questions, 24
References, 25
2 SUPPLY CHAIN STRATEGY 26
What Is Supply Chain Strategy?, 28
Achieving a Competitive Advantage, 29
Supply Chain Leader’s Box: Wal-Mart, 30
Global Insights Box: Toyota Motor Corporation, 32
Building Blocks of Supply Chain Strategy, 32
Managerial Insights Box—Outsourcing Alliances: Li & Fung Ltd., 38
Supply Chain Strategic Design, 39
Supply Chain Leader’s Box: Barlean’s Organic Oils, 42
Strategic Considerations, 43
Big Data Analytics Box: Amazon, 44
Productivity as a Measure of Competitiveness, 44
Chapter Highlights, 46
Key Terms, 47
Discussion Questions, 47
Problems, 47
Case Study: Surplus Styles, 47
Case Questions, 48
References, 48
3 NETWORK AND SYSTEM DESIGN 49
The Supply Chain System, 51
Supply Chain Leader’s Box—Moving to Process Thinking: LG Electronics, 54
Understanding Processes: Theory of Constraints (TOC), 54
Integration of Supply Chain Processes, 58
Designing Supply Chain Networks, 60
Managerial Insights Box: Coca-Cola, 61
Big Data Analytics Box: Segmentation in Retail, 64
Enterprise Resource Planning (ERP), 64
Chapter Highlights, 67
Key Terms, 67
Discussion Questions, 67
Problems, 67
Case Study: Boca Electronics, LLC, 68
Case Questions, 68
References, 69
4 MARKETING 70
What Is Marketing?, 72
Supply Chain Leader’s Box: Gap Inc., 73
Supply Chain Leader’s Box—Accommodating Changing Customer
Preferences: PepsiCo, 75
Customer-Driven Supply Chains, 76
Managerial Insight’s Box—Understanding the Customer: Target, 78
Delivering Value to Customers, 80
Global Insights Box—Global Customer Service: Coca-Cola Japan, 84
Channels of Distribution, 85
Managerial Insights Box—Changing the Distribution Channel: Steinway Pianos, 87
Big Data Analytics Box: Oasis, 90
Chapter Highlights, 90
Key Terms, 91
Discussion Questions, 91
Case Study: Gizmo, 91
Case Questions, 91
References, 92
5 OPERATIONS MANAGEMENT 93
What Is Operations Management (OM)?, 95
Supply Chain Leader’s Box: Wal-Mart, 98
Product Design, 99
Big Data Analytics Box: Honda, 100
Global Insights Box: Ryanair, 102
Process Design, 105
Managerial Insights Box—A New Manufacturing Process: Rapid Manufacturing, 108
Facility Layout, 108
Managerial Insights Box: Mazzi’s versus Totino’s Pizza, 110
Line Balancing in Product Layouts, 111
Process Automation, 114
Global Insights Box: KUKA Robotics Corp., 115
Chapter Highlights, 116
Key Terms, 116
Discussion Questions, 116
Problems, 116
References, 117
6 SOURCING 118
What Is Sourcing?, 120
Supply Chain Leader’s Box—Co-Creation: The Auto Industry, 123
The Sourcing Function, 123
Sourcing and SCM, 125
Global Insights Box - Outsourcing Analytics: Accenture, 126
Supply Chain Leader’s Box—Risk Management: IBM, 127
Managerial Insights Box—Outsourcing Alliances: Roots, 130
Big Data Analytics Box: FedEx, 132
Measuring Sourcing Performance, 132
Chapter Highlights, 133
Key Terms, 134
Discussion Questions, 134
Problems, 134
Class Exercise: Toyota, 135
Case Study: Snedeker Global Cruises, 135
Case Questions, 136
References, 136
7 LOGISTICS 137
What Is Logistics?, 139
Supply Chain Leader’s Box: United Parcel Service (UPS), 140
Logistics Tasks, 145
Big Data Analytics Box—Driverless Cars: Uber, 145
Transportation, 147
Supply Chain Leader’s Box: Sysco, 148
Global Insights Box—Rail Service Between China and Europe: “Northeast Passage”, 150
Warehousing, 150
Third-Party Logistics (3PL) Providers, 153
Chapter Highlights, 153
Key Terms, 154
Discussion Questions, 154
Problems, 154
Case Study: Strategic Solutions Inc., 154
Case Questions, 156
References, 156
8 FORECASTING AND DEMAND PLANNING 157
What Is Forecasting?, 159
Managerial Insights Box: Forecasting beyond Widgets, 160
Global Insights Box—Matching Supply and Demand: World Health Organization (WHO), 162
The Forecasting Process, 163
Managerial Insights Box: Predictive Analytics, 165
Types of Forecasting Methods, 166
Big Data Analytics Box—Improving Weather Forecasting: NOAA, 168
Time Series Forecasting Models, 169
Causal Models, 175
Measuring Forecast Accuracy, 178
Collaborative Forecasting and Demand Planning, 180
Supply Chain Leader’s Box—Using Collaborative Technology: Li & Fung, 181
Chapter Highlights, 183
Key Terms, 183
Discussion Questions, 183
Problems, 184
Case Study: Speedy Automotive, 185
Case Questions, 187
References, 187
9 INVENTORY MANAGEMENT 188
Basics of Inventory Management, 190
Managerial Insights Box—Service Inventory: Zoots, 191
Supply Chain Leader’s Box: John Deere & Company, 195
Inventory Systems, 195
Fixed-Order Quantity Systems, 198
Big Data Analytics Box—Analytics Driven Inventory: Dell, 205
Fixed-Time Period Systems, 205
Independent versus Dependent Demand, 207
Global Insights Box: Intel Corporation, 208
Managing Supply Chain Inventory, 208
Chapter Highlights, 212
Key Terms, 212
Discussion Questions, 212
Problems, 213
References, 213
10 LEAN SYSTEMS AND SIX-SIGMA QUALITY 214
What Is Lean?, 216
Big Data Analytics Box: General Electric, 218
Supply Chain Leader’s Box: U.S. Army, 219
Lean Production, 220
Global Insights Box: UPS, 221
Respect for People, 223
Total Quality Management (TQM), 224
Managerial Insights Box: Lean Tools in the Popular Press, 227
Statistical Quality Control (SQC), 228
Supply Chain Leader’s Box: Intel Corporation, 229
Six Sigma Quality, 236
The Lean Six Sigma Supply Chain, 237
Chapter Highlights, 240
Key Terms, 240
Discussion Questions, 240
Problems, 241
Case Study: Buckeye Technologies, 242
Case Questions, 242
References, 243
11 SUPPLY CHAIN RELATIONSHIP MANAGEMENT 244
Supply Chain Relationships, 246
Big Data Analytics Box—The Network Effect: Amazon, 249
Supply Chain Leaders’ Box—Open Innovation: Proctor & Gamble, 251
The Role of Trust, 252
Global Insights Box—Growth Through Partnership: Coca-Cola in Africa, 256
Managing Conflict and Dispute Resolution, 256
Managerial Insights Box: Commodity Swapping, 260
Negotiation Concepts, Styles, and Tactics, 260
Relationship Management in Practice, 265
Chapter Highlights, 267
Key Terms, 267
Discussion Questions, 267
Case Study: Lucid v. Black Box, 268
Case Questions, 268
References, 268
12 GLOBAL SUPPLY CHAIN MANAGEMENT 270
Global Supply Chain Management, 272
Supply Chain Leader’s Box—Challenges of Global Culture: Wal-Mart, 273
Global Market Challenges, 276
Managerial Insights Box: Coca-Cola’s China Branding Challenge, 278
Global Infrastructure Design, 280
Big Data Analytics Box—Supplier Risk: Cisco, 281
Cost Considerations, 282
Managerial Insights Box—Beyond Cost: BMW, 283
Political and Economic Factors, 284
Chapter Highlights, 286
Key Terms, 286
Discussion Questions, 287
Case Study: Wú’s Brew Works, 287
Case Questions, 291
References, 292
13 SUSTAINABLE SUPPLY CHAIN MANAGEMENT 293
What Is Sustainability?, 295
Global Insights Box: The Great Pacific Garbage Patch, 296
Supply Chain Leaders Box: Fibria Celulose, 298
Evaluating Sustainability in SCM, 302
Big Data Analytics Box: Coca-Cola, 310
Sustainability in Practice, 312
Managerial Insights Box: Carbon Fiber Auto Parts, 313
Chapter Highlights, 316
Key Terms, 316
Discussion Questions, 317
Case Study: Haitian Oil, 317
Case Questions, 318
References, 318
APPENDIX 319
GLOSSARY 321
INDEX 329
